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.

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