For foreign residents living in Japan, maintaining and renewing their visa (status of residence) is the most crucial factor for a stable stay. As the Japanese government plans to reflect the fulfillment of tax obligations more directly and strictly in visa screenings, residents need to exercise extra caution.
The Immigration Services Agency of Japan (ISA) and the National Tax Agency (NTA) have fully launched a system to share information on foreign residents starting July 1, 2026. With this measure, tax delinquency or tax law violations will be shared with visa screening departments in real time, potentially leading to severe disadvantages during visa renewals and status changes.
Information-Sharing Mechanism Between the ISA and NTA
The purpose of this information linkage is to ensure the fair management of foreign residents in Japan while achieving appropriate and equitable assessment and collection of national taxes, such as income tax, consumption tax, and corporate tax. The two agencies will closely exchange information in the following ways:
- Information Provision by the NTA: The NTA will directly provide the ISA with information on foreign nationals who have maliciously violated tax obligations or are delinquent on taxes.
- Rigorous Screening by the ISA: Based on the received tax information, the ISA will conduct more careful and strict screenings when the foreign national applies for a change of status of residence or an extension of period of stay. Confirmed tax delinquency will act as a highly unfavorable factor in the screening process.
- Reverse Information Provision by the ISA: The ISA will also provide the NTA with the current visa application status of foreign nationals flagged by the NTA, as well as information on foreign nationals holding specific statuses of residence or periods of stay, to enhance the efficiency of tax administration.
Impact on "Business Manager" Visa Holders
In particular, those holding the "Business Manager" status of residence—typically obtained by foreign nationals who establish and operate companies or run businesses in Japan—will face even stricter standards.
If a business owner is caught fraudulently receiving consumption tax refunds or is subjected to heavy additional tax penalties (heavy penalty tax) for intentional tax evasion related to income tax or corporate tax, it will be evaluated as an extremely negative factor during their visa screening. This is a critical issue that could directly lead to the denial of visa extensions or the revocation of status of residence.
Background of the Policy Implementation
This administrative information-sharing system was promoted following a proposal by Japan's ruling Liberal Democratic Party (LDP). The system was developed based on a formal policy proposal submitted to the government in January 2026 by the LDP's Special Committee on Foreign Workers (chaired by Yoshitaka Shindo), and it went into full effect in July of the same year.
What Foreign Residents Need to Prepare For
With the implementation of this system, all foreign nationals staying in Japan—including international students, work visa holders, and self-employed individuals—must meticulously manage their tax payment status. Simply missing a tax deadline or delaying payment can become a fatal obstacle to maintaining status of residence, such as future visa renewals or permanent residency applications. Therefore, it has become more important than ever to transparently and faithfully fulfill tax obligations, including not only individual residence tax and income tax but also corporate tax and consumption tax for those running businesses.
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Source: 自由民主党