For Residents:
The following are the income categories that you need to deduct withholding tax:
Fees for writers, lecturers/speakers, translators, interpreters, illustrators, composing music and editing,
Fees for licensed professionals such as lawyers, CPAs, certified tax accountants, legal scriveners, consultants that provides analysis of a company and provide advice.
Salaries/bonus
Retirement pay (a half of the pay after deducting JPY 400,000 x number of years in the company. Directors within 5 years are fully taxed after the same deduction.)
For Non-Residents:
Non-residents are subject to withholding tax when the income source was in Japan and include the following:
Royalties (usually taxed at a lower rate applicable by submitting a tax treaty document. Not refundable by filing a tax return)
Salaries (e.g. seasonal works who work in Japan. Those employed abroad and come to Japan on a business trip aren’t not subject to withholding tax.) (flat 20.42%)
Interest Income (usually taxed at a lower rate applicable by submitting a tax treaty document. Not refundable by filing a tax return)
Dividends (usually taxed at a lower rate applicable by submitting a tax treaty document. Not refundable by filing a tax return)
Rental Income (refundable by filing a tax return)
Sales of properties (refundable by filing a tax return)