The Intra-Company Transferee Visa is a crucial work visa for foreign employees transferred within a company or to related companies in Japan. It serves as an essential bridge for facilitating global personnel transfers, allowing businesses to seamlessly expand their operations across borders. This visa specifically facilitates temporary relocations, allowing employees to work in Japan under specified terms without requiring a new local employment contract.
We are pleased to announce that our company can now offer services for clients who wish to stay in Japan for a short period, in partnership with a renowned administrative scrivener firm in Japan. If you are interested in a short-term stay in Japan, please contact us through the form below.
This article provides a comprehensive guide to the Intra-Company Transferee Visa, its eligibility criteria, required documentation, salary considerations, and other critical details to help both employees and employers navigate the process effectively.
We have another article on the Japanese Business Merger Visa that you can check here.
Key Features of the Intra-Company Transferee Visa
Eligibility Criteria
The Intra-Company Transferee Visa applies when a company transfers an employee from:
- A foreign branch to a Japanese branch of the same company.
- A parent company to a subsidiary or vice versa.
- Related companies within a corporate group (e.g., sister companies).
The visa facilitates the temporary transfer of employees to Japan for assignments that require specific expertise, professional knowledge, or cultural sensitivity. These include roles classified under the “Engineer/Specialist in Humanities/International Services” category.
Check here for the required documents.
Scope of Activities
The visa permits the holder to engage in activities requiring technical expertise, knowledge of humanities, or international services. Examples include:
- Technical roles: IT engineers, programmers, mechanical engineers, architects.
- Business functions: Marketing, management consulting, accounting.
- Cultural and international roles: Translators, interpreters, designers, language instructors, public relations specialists, and trade professionals.
Duration of Stay
The visa is granted for fixed periods: 5 years, 3 years, 1 year, or 3 months, depending on the applicant’s role, contract length, and employer stability. The period of stay is determined by the Immigration Services Agency after evaluating the transfer agreement and organizational details. Importantly, the visa requires a fixed-term assignment and cannot be issued for indefinite transfers.
Salary Considerations: Domestic or Overseas Payments?
Who Should Pay the Salary?
One common question among employers is whether the salary of an Intra-Company Transferee Visa holder should be paid by the Japanese branch or the overseas entity. Both options are permissible under Japanese immigration law. Employers can choose to:
- Pay the salary entirely from the overseas branch.
- Pay the salary entirely from the Japanese branch.
- Split the salary payments between the two entities, depending on mutual agreement.
The flexibility of salary arrangements ensures that companies can align payment structures with their internal policies and the specific circumstances of the transfer.
Salary Requirements
Regardless of the payment origin, the salary must meet the following conditions:
- Equal to or above Japanese standards: The salary should be comparable to what a Japanese employee would earn for the same role, as mandated by Japanese immigration laws.
- Compliance with minimum wage laws: The salary must adhere to the prefectural minimum wage rates in Japan. Failure to meet these standards could result in penalties or visa denial.
Currency and Exchange Rate Impacts
For salaries paid from overseas, currency fluctuations can significantly impact the actual amount received in yen. Employers should regularly monitor exchange rates to ensure the salary remains compliant with Japanese regulations. For example, a dramatic shift in the exchange rate could reduce the effective salary below the minimum required threshold, leading to potential compliance issues.
Tax and Legal Considerations
Tax Obligations for Employees
Employees holding the Intra-Company Transferee Visa must adhere to Japanese tax laws, particularly if they receive part or all of their salary from an overseas entity. Key points include:
- Tax filing requirements: Employees receiving income from overseas must file annual tax returns in Japan. This applies even if the income is taxed in their home country.
- Exemptions for domestic-only income: Employees solely earning a salary from a Japanese company and meeting specific conditions (e.g., salary below ¥20 million) may rely on year-end tax adjustments instead of filing separate tax returns.
- Consequences of non-compliance: Failure to file taxes can result in penalties. Including up to 20% in additional taxes and adverse effects on future visa renewals.
Exemptions from Social Insurance
Visa holders may be exempt from Japan’s employment insurance due to the temporary nature of their stay. Additionally, health and pension insurance requirements may be waived if a social security agreement exists between Japan and the employee’s home country. Japan has active agreements with over 20 countries, including the United States, South Korea, and Germany.
Advantages of the Intra-Company Transferee Visa
Simplified Administrative Processes
The visa’s streamlined application process reduces the administrative burden for both employees and employers compared to other work visa categories.
Flexible Career Development
Holders can leverage this visa to gain international experience while contributing to global projects, enhancing their career trajectories.
Continuity of Employment
Employees benefit from uninterrupted employment terms, avoiding the need for new contracts or local job searches during temporary assignments in Japan.
Global Networking Opportunities
The visa fosters interaction with diverse teams and cultures, broadening the holder’s professional and personal perspectives.
Common Scenarios for Visa Usage
Case 1: Strategic Talent Deployment
A multinational company transfers a senior IT engineer from its U.S. branch to Japan to lead a high-priority project, ensuring seamless execution and knowledge transfer.
Case 2: Short-Term Assignments
A company relocates a foreign marketing specialist to Japan for six months to launch a new product line and train local staff in advanced techniques.
Case 3: Expertise Without Degree Requirements
An employee with extensive hands-on experience but no formal degree is transferred to Japan to manage a specialized role, leveraging their unique expertise.
Frequently Asked Questions (FAQs)
1. Can this visa cover permanent transfers?
No, the Intra-Company Transferee Visa is strictly for temporary assignments. Permanent relocations require a different visa type.
2. Are academic qualifications necessary?
No formal academic qualifications are required, distinguishing this visa from others like the “Engineer/Specialist in Humanities/International Services” visa, which mandates a university degree or equivalent experience.
3. What is the difference between this visa and the “Management” visa?
The Intra-Company Transferee Visa applies to employees engaged in technical or professional roles, while the Management visa is for executives overseeing business operations.
4. Can family members relocate with the visa holder?
Yes, dependents may apply for family visas, subject to additional requirements.
Will You Be Needing a Intra-Company Transferee Visa?
The Intra-Company Transferee Visa is an invaluable resource for companies aiming to expand their global footprint and for employees seeking international career opportunities. With its flexibility, streamlined processes, and opportunities for professional growth, the visa facilitates effective personnel transfers and enriches cross-border collaboration.
Employers and employees must stay updated on Japanese immigration regulations to ensure compliance and make the most of this visa category. For personalized guidance, consult with immigration professionals or legal advisors specializing in Japanese work visas.
We are pleased to announce that our company can now offer services for clients who wish to stay in Japan for a short period, in partnership with a renowned administrative scrivener firm in Japan. If you are interested in a short-term stay in Japan, please contact us through the form below.
