Income taxes are imposed on the income that each of the following items prescribes for the category of person set forth in the item:
所得税は、次の各号に掲げる者の区分に応じ当該各号に定める所得について課する。
a Resident other than a Non-Permanent Resident:all income;
a Non-Permanent Resident: income other than foreign source income as prescribed in Article 95, paragraph (1) (Foreign Tax Credit) (including income that Cabinet Order prescribes as income arising from the transfer of Securities located outside Japan; referred to as "foreign source income" in this item), and foreign source income that is paid in Japan or remitted from outside Japan;
a Nonresident: domestic source income as prescribed in each of the items of Article 164, paragraph (1) and paragraph (2) (How Nonresidents Are Taxed) for the category of Nonresident set forth in the relevant item of Article 164, paragraph (1);
a Domestic Corporation:interest and similar income, dividends and similar income, compensation for periodic deposits, finance charges, profits, margin profits, distributions of profits, and monetary awards set forth in the items of Article 174 (Tax Base for a Domestic Corporation's Income Taxes), which it is paid in Japan;
a Foreign Corporation: domestic source income as prescribed in Article 161, paragraph (1) (Domestic Source Income) which is set forth in items (iv) through (xi) and items (xiii) through (xvi) of that paragraph.
外国法人 第百六十一条第一項（国内源泉所得）に規定する国内源泉所得のうち同項第四号から第十一号まで及び第十三号から第十六号までに掲げるもの
Cabinet Order provides for the necessary particulars concerning the scope of income set forth in item (ii) of the preceding paragraph.
前項第二号に掲げる所得の範囲に関し必要な事項は、政令で定める。
Read this with the articles around it
in Japan
「国内」
The area in which this Act is in force, that is, Japan.
Defined inArticle 2, paragraph (1), item (i)· applies throughout the law
outside Japan
「国外」
Anywhere outside the area in which this Act is in force, that is, outside Japan.
Defined inArticle 2, paragraph (1), item (ii)· applies throughout the law
Resident
「居住者」
An individual who has a domicile in Japan, or who has had a residence in Japan continuously for one year or more up to now.
Defined inArticle 2, paragraph (1), item (iii)· applies throughout the law
Non-Permanent Resident
「非永住者」
A resident who does not have Japanese nationality and has had a domicile or residence in Japan for a total of five years or less in the past ten years.
Defined inArticle 2, paragraph (1), item (iv)· applies throughout the law
Nonresident
「非居住者」
An individual who is not a resident.
Defined inArticle 2, paragraph (1), item (v)· applies throughout the law
Domestic Corporation
「内国法人」
A corporation whose head office or principal office is in Japan.
Defined inArticle 2, paragraph (1), item (vi)· applies throughout the law
Foreign Corporation
「外国法人」
A corporation other than a domestic corporation, that is, one whose head office or principal office is not in Japan; in Article 3, paragraph (4) of the supplementary provisions of the 2018 amending law (Act No. 7 of 2018) it means only such a corporation that on 31 December 2018 had something counting as a permanent establishment under the new rules but not under the old.
Defined inArticle 2, paragraph (1), item (vii)· applies throughout the law
Securities
「有価証券」
Securities as defined in Article 2, paragraph (1) of the Financial Instruments and Exchange Act, and similar instruments a Cabinet Order (政令) specifies.
Defined inArticle 2, paragraph (1), item (xvii)· applies throughout the law
foreign source incomemachine translation
「国外源泉所得」
Income with its source outside Japan as listed in Article 95, paragraph (4), together with income from selling securities held abroad that a Cabinet Order (政令) specifies; a non-permanent resident is taxed on it only where it is paid in Japan or sent to Japan from abroad.
Short name set inArticle 7, paragraph (1), item (ii)· applies only in this item