Japanese withholding income tax/Japan AC Outsourcing

Japan AC Outsourcing Co., Ltd. SAKUMA CPA OFFICE



Japan AC Outsourcing Co., Ltd. SAKUMA CPA OFFICE We specialize in providing professional Accounting &Bookeeping and Tax services in Japan.



Japanese withholding income tax Withholding income tax in Japan is divided into four categories, according to the recipient of the tax payment from which the tax is withheld at source: an individual resident a domestic corporation an individual non resident a foreign corporation An income payer who withholds tax at the source from the payment must transfer the tax so withheld to a tax office on or before the tenth day of the month following the month of payment. When income is paid to a nonresident or a foreign corporation at a place outside Japan by a payer who has a resident or an office in Japan, the withholding tax is transferred at the end of the month following the month of payment.
Withholding tax from payments to residents The withholding tax is applicable to interest, dividends, salaries and remuneration paid to resident individuals, unless they are abroad. Salaries paid to employees are subject to withholding tax in Japan. The amount to be withheld is determined by the withholding tax table for salaries. Withholding tax from payments to nonresidents and foreign corporations. The following items of income paid to nonresidents or foreign corporations are subject to Japanese withholding tax. The tax applies if they are paid in Japan or if they are paid abroad and the payer also has an office, residence within Japan. Salaries paid to an employee for personal services in　Japan Remuneration paid to a person for professional or technical services Royalties or capital gains derived from patents, know-how, and copyright, used for business carried on in Japan