Japanese Income Tax Applicable to Foreign National Working in Japan/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 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.
When a person who does not stay in Japan but stays in the home country satisfies the above-mentioned requirements for dependents, the person can be included in the number of dependents. However, caution is required because the Japanese tax authorities may request the submission of official documents showing the fact that the above-mentioned requirements for dependents are satisfied.