6.5 Non residents with income from the jurisdiction

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