Commentary

6.5 Non residents with income from the jurisdiction

Japan
Japan | Commentary

6.5 Non residents with income from the jurisdiction

Japan | Commentary

6.5     Non residents with income from the jurisdiction

Flat rate withholding

If a non resident receives payment for certain services performed in Japan, the payer must withhold income tax at 20.42% (Income Tax Act, sections 212, 213). The special income tax for reconstruction (see 1.1) must also be withheld and is calculated at 2.1% of the income tax charged at 20.42%.

The payments subject to this withholding include:

  1.  

    •     salaries and other remuneration arising from work in Japan

  2.  

    •     retirement allowances arising from work performed while the person was a resident of Japan

  3.  

    •     services of motion

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