Japanese Income Tax Applicable to Foreign National Working in Japan
Withholding Income Tax
For a salary paid by the Japanese domestic corporation or Japanese branch, the company will deduct withholding income tax imposed on such salary, and will pay the tax so deducted to the Japanese tax authorities. The withholding income tax deducted from the salary will be determined based on the predetermined monthly withholding income tax calculation table, depending on the amount of monthly salary and the number of dependents.
Scope of dependents for whom withholding income tax is deducted is as follows.
1) Spouse and relatives other than the spouse (relatives by blood within the sixth degree of kinship and relatives by marriage within the third degree of kinship)
2) He/she depends on the taxpayer for his/her livelihood.
3) His/her total annual income is not more than 1.03 million yen.