Monday, October 28, 2013

Overview of Japan withholding tax system


Japan’s tax filing system is premised on the self-assessed income tax payment system where an income earner shall calculate annual income and tax amount, filing tax returns. The income subject to withholding tax is determined in accordance with the income classification of tax law. In principle, withheld tax must be paid to the tax office no later than the 10th day of the month following that in which the taxable income is paid. For the payment to a non-resident or foreign corporation, the withholding tax may be paid by the last day of the month following that in which the income is paid. For withholding tax on residents’ salaries and professional service fees, a special exemption is provided to small businesses with fewer than 10 counts on the payroll, allowing paying withholding income tax in six-month installments twice a year.

For more: http://english.uniteds.asia