One employee (AU citizen) of our AU company has been doing a three-month secondment in Japan office starting from mid July 2024. Under this contract the employee is still getting paid by Australia directly (the payroll costs is apportioned between AU and Japan). Considering it’s only three-month secondment and the salary source is still from Australia, we would think this employee is still AU tax resident and subject to AU taxation, there’s no Japan tax implication.
Now Japan office hopes to keep this employee for another 12 months starting January 2025. It will technically no longer fall under a short term secondment so we assume that he would need to obtain a Japanese work visa. However, we haven’t decided if the employee will still be paid by AU office or begin being paid by Japan office directly instead. In this case I’m wondering if the tax requirement would change for this employee as individual, Australia office and Japan office?
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