Please be aware that this site is informational only, and many external factors, unique to your company might apply.
Each company must make their own decisions about how they meet their tax obligations.
Employers can reimburse employees for using personal vehicles for business travel, commuting, or company-owned cars.
While Japan does not enforce a statutory mileage rate, companies should ensure fair and transparent reimbursements.
Reimbursement methods include:
- A fixed rate per kilometre;
- Actual fuel and maintenance cost reimbursements.
For more information on the taxability of these reimbursements, visit the National Tax Agency.
Last changed 2026-01-26