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)