2.1ÌýÌýÌýÌý Withholding of income tax
Basis of taxation and scope of withholding
Withholding is operated on certain types of income paid in Japan. Income tax and the special income tax for reconstruction (see 1.1) must be withheld from all income within its scope.
For full details of all types of income subject to withholding, see Withholding Tax Guide 2024, section 1.V. The table below summarises the key elements
| Status of recipient | Broad definition | Scope of withholding |
| Resident | An individual having a domicile in Japan or an individual who resides
continuously in Japan for one year or more.
The individual is subject to tax on worldwide income (however, also see below). | Withholding operates on:
– Salary*, etc
– professional fees
– interest income
– pension income
– dividends
– capital gains from listed stocks
– profit on discounted bonds |
| Non resident | An individual living in Japan for
for less than one year.
The individual is subject to tax on worldwide income (however, also see below). | Withholding operates on:
– salary*, etc for work in Japan
– remuneration |
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Web page updated on 17 Mar 2025 16:44