Withholding Tax Guide

Withholding Tax Guide
This Withholding Tax Guide is a translation of the 2019 edition of Gensen Choushu no Shikata.
This is an unofficial translation and reference material designed to help you understand the
Japanese withholding tax system; thus, no liability is accepted. To ensure the accuracy, reliability, or
current validity of the contents of this translation, please consult the original Japanese texts of laws
and regulations.
National Tax Agency
1
This “Withholding Tax Guide” outlines the withholding procedure mainly
pertaining to salary. Please make full use of this guide to ensure that taxes are
properly withheld.
This “Withholding Tax Guide” has been prepared on the basis of income tax laws and regulations in force as of
November 1, 2018.
Contents
1. Outline of the Withholding Tax System ........................................................................................... 3

I. Significance of the Withholding Tax System ................................................................................ 3
II. Withholding Agents ..................................................................................................................... 3
III. Place for Payment of Withheld Income Tax and Special Income Tax for Reconstruction ......... 3
IV. Notification of Salary-Paying Office ........................................................................................... 3
V. Scope of Income Subject to Withholding .................................................................................... 4
VI. Timing of Withholding ................................................................................................................ 5
VII. Payment of Withheld Income Tax and Special Income Tax for Reconstruction ....................... 6
2. Procedure for Withholding from Employment Income .................................................................... 8

I. Outline of Withholding Procedure .................................................................................................. 8
II. Scope of Employment Income ..................................................................................................... 9
III. Application for (Change in) Exemption for Dependents of Employment Income Earner......... 12
IV. Various Withholding Deductions ............................................................................................... 13
V. How to Apply the Tax Amount Table .......................................................................................... 23
VI. Calculation of Tax Amount (based on the Tax Amount Table for 2019) ................................... 25
VII. Year-end Adjustment .............................................................................................................. 28
VIII. Payment of Withheld Income Tax and Special Income Tax for Reconstruction .................... 28
IX. Issuance of Salary Payment Slip ............................................................................................. 29
3. Procedure for Withholding from Retirement Income .................................................................... 31

I. Scope of Retirement Income ..................................................................................................... 31
II. Categories of Retirement Allowance, etc. ................................................................................. 31
III. Deduction for Retirement Income ............................................................................................ 32
IV. Calculation of Tax Amount (based on the Tax Amount Table for 2019) ................................... 32
4. Procedure for Withholding from Remuneration/Fees ................................................................... 34

I. Remuneration/Fees Paid to Residents ...................................................................................... 34
II. Remuneration/Fees Paid to Domestic Corporations ................................................................ 35
5. Procedure for Withholding from Dividend Income ........................................................................ 36
6. Procedure for Withholding from Income Paid to Non-Residents or Foreign Corporations ........... 37
7. Withholding from Other Income .................................................................................................... 40
8. Other Matters ................................................................................................................................ 41

I. Refunds of Erroneously Withheld Amounts ............................................................................... 41
II. Submission of Withholding Records and Report of Payment ................................................... 41
III. Relief for Disaster Victims ........................................................................................................ 43
IV. Refunds of Tax Amounts Withheld in Response to Employment Income Earners’ Tax Returns..... 44
2
1. Outline of the Withholding Tax System
I. Significance of the Withholding Tax System

The income tax system is founded on the principle of the “self-assessment system," whereby an income earner
spontaneously calculates his/her income for the year and the corresponding amount of tax by submitting a
return.
For certain types of income, the payer of the income is required to pay income tax withheld at the time the
income is paid under the “withholding tax system.”
Under the withholding tax system, (1) a payer of certain types of income, such as salary, interest, dividends
and tax accountants’ fees, (2) calculates the amount of income tax payable pursuant to prescribed methods at
the time the income is paid, and (3) withholds the amount of income tax from the income payment and pays it
to the government.
With regard to special income tax for reconstruction, the withholding tax system has been adopted for the
income subject to income tax withholding among the income arising between January 1, 2013 and December
31, 2037, in which special income tax for reconstruction is withheld when withholding income tax and is paid
with the income tax withheld.
Income tax and special income tax for reconstruction withheld under this system is settled through a year-end
adjustment or by filing a final tax return for the year, except forms of income such as income from interest
subject to “separate withholding tax” that tax payment is completed only by withholding.
II. Withholding Agents

Under the withholding tax system, persons are obliged to withhold income tax and special income tax for
reconstruction subject to withholding, and pay it to the government are called “withholding agents.” All
payers of income subject to withholding are withholding agents, including schools, government agencies, and
even individuals and non-juridical associations or foundations, as well as companies.
However, salaries, etc., retirement allowances, etc. and remuneration/fees such as tax accountants’ fees that
are paid by an individual who regularly employs no more than two domestic employees are not subject to
withholding income tax.
III. Place for Payment of Withheld Income Tax and Special Income Tax for
Reconstruction
Income tax and special income tax for reconstruction withheld by a withholding agent shall be paid to the
competent tax office for the place of tax payment. The place of tax payment of the withheld tax shall, in
principle, be the location of the office, establishment, etc., as it exists on the date income is paid, where the
income payer pays the income subject to withholding.
If the office, establishment, etc. where the income payer pays the income are relocated, the place of tax
payment of withheld income tax and special income tax for reconstruction on the payment of the income
before the relocation shall be the location of the office, establishment, etc. after the relocation, which should
be stated in a “Notification of Relocation of a Salary-Paying Office”（給与支払事務所等の移転届出書）.
IV. Notification of Salary-Paying Office

1 Submission of “Notification of Establishment of a Salary-Paying Office”
A payer of salary, etc. shall submit a “Notification of Establishment of a Salary-Paying Office”（給与支払事
3
務所等の開設届出書）to the district director of the competent tax office for the salary-paying office, etc.
within one month of the date of occurrence of any of the following events:
(1) The establishment of a new office that handles payments of salary, etc. (e.g. the establishment of a
corporation or the opening of a branch or business office); or
(2) The commencement of handling activities of payment of salary, etc. by any branch, business office, or
similar establishment.
(Note) If an individual newly starts a business or establishes an office for business activities, he/she is
required to submit a "Notification of Establishment, etc. of Solo Proprietorship" to the district director
of the competent tax office, hence no need to submit the above Notification.
2 Submission of “Notification of Relocation (Closure) of a Salary-Paying Office”

A payer of salary, etc. shall submit a “Notification of Relocation (Closure) of a Salary-Paying Office”（給与支
払事務所等の移転（廃止）届出書）within one month of the date of occurrence of any of the following events:
(1) Discontinuation of payments of salary, etc. due to the dissolution, closure or suspension of a business,
etc.
(2) Transfer of handling activities of payments of salary, etc. from any branch or business office to the head
office or the principal establishment, etc.; or
(3) Relocation of an office that handles payments of salary, etc.
(Note) 1 If a solo proprietor relocates or closes his/her office, etc. for business activities, he/she is required
to submit a "Notification of Discontinuance, etc. of Solo Proprietorship" to the district director of the
competent tax office, hence no need to submit the above Notification.
2 If a payer of salary, etc. relocates an office that handles payment of salary, etc., the payer is
required to submit the above Notification to the district director of the competent tax office in the
place before the relocation.
V. Scope of Income Subject to Withholding

The scope of income subject to withholding according to the category of the beneficiary is as shown in the
following table.
Each of the main items is considered separately in more detail below.
Beneficiary Kinds and scope of income subject to withholding
Resident 1 Interest, etc.

(an individual having a 2 Dividends, etc.
domicile in Japan or an 3 Salary, etc.
individual who resides
continuously in Japan 4 Retirement allowance, etc.
for 1 year or more) 5 Public pension, etc.
6 Remuneration/fees, etc. (Excluding the income covered in "3. Salary, etc." and "4.
Retirement allowance, etc.")
7 Pension based on a life insurance contract, casualty insurance contract, or similar annuity
agreement concluded with a life insurance company or a casualty insurance company,
etc. under the Insurance Business Act
8 Compensation money for benefits from installment deposits, etc.
9 Distribution of profits under a silent partnership (Tokumei-Kumiai) contract
10 Capital gains, etc. from listed stocks, etc. kept in a specific account
11 Monetary awards, etc. from deposits and savings offering such awards, etc.
4
12 Profit from redemption of discount bonds
13 Profit on redemption amount of discount bonds
Domestic corporation 1 Interest, etc.

(a legal person having a 2 Dividends, etc.
head office or principal 3 Compensation money for benefits from installment deposits, etc.
place of business in
Japan) 4 Distribution of profits under a silent partnership (Tokumei-Kumiai) contract
5 Horse racing prizes received by a horse owner
8 Profit on redemption amount of discount bonds (Only for certain domestic corporations)
Non-resident 1 The following domestic source income:

(an individual other (1) Distribution of profits arising from business conducted through a permanent
than a resident) or a establishment based on a partnership contract ;
foreign corporation (2) Consideration for the transfer of land, etc., in Japan;
(a legal person other
than a domestic (3) Consideration received by a person doing business that involves the provision of
corporation) personal services in Japan;
(4) Consideration for leasing of real property, etc. and arranging land use rights, etc. in
Japan;
(5) Interest, etc., on deposits and savings deposited in a business office in Japan;
(6) Dividends of surplus, dividends of profit, distribution of surplus, distribution of
monies or interest on funds received from a domestic corporation, distribution of
proceeds from an investment trust (excluding bond investment trusts and publicly
offered bond investment trusts) or specified trust that issues beneficiary certificates
entrusted to a business office in Japan.;
(7) Interest on a loan pertaining to domestic operations for a person doing operations in
Japan;
(8) Royalties for any industrial property right or copyright, consideration for the transfer
thereof, or royalties for machinery, equipment, etc. pertaining to domestic operations
from a person doing operations in Japan;
(9) Any amount sourced from work in Japan among remuneration paid for the provision
of personal services including salary, etc., certain amounts of public pensions, etc.,
and any retirement allowances, etc. sourced from work performed while the
beneficiary was a resident (non-residents only);
(10) Money or items awarded for advertising business conducted in Japan;
(11) Pensions based on an insurance contract, etc. concluded with a life insurance company,
a casualty insurance company under the Insurance Business Act, made through
domestic business offices, etc.;
(12) Compensation money for benefits from installment deposits accepted by business
offices in Japan; and
(13) Distribution of profits received under any silent partnership (Tokumei-Kumiai)
contract pertaining to a contribution to a person doing business in Japan.
2 Capital gains, etc. from listed stocks, etc. kept in a specific account and received by a
non-resident having a permanent establishment in Japan
5 Profit on redemption amount of discount bonds
VI. Timing of Withholding

Withholding of income tax and special income tax for reconstruction occurs when the income subject to
5
withholding is actually paid. Even if the income should be paid, no withholding is in principle necessary
unless actual payment is made.
(Note) 1 “Payment” for the purpose of withholding includes not only actual delivery of cash, but also all
other acts to extinguish the payment obligation such as a transfer to a principal and/or to a savings
account.
2 If no actual payment is made for dividends, etc., directors' bonus and distribution of profits arising
from business conducted through a permanent establishment based on a partnership contract, a
payment shall be deemed to have been made on a date after passing a given period of time, and it is
necessary to withhold.
VII. Payment of Withheld Income Tax and Special Income Tax for Reconstruction
1 Due Date for Payment
Income tax and special income tax for reconstruction withheld by a withholding agent shall in principle be
paid by the 10th of the month following the month in which the income subject to withholding was paid.
If the due date is a Saturday, Sunday, or holiday, the next business day shall be the due date.
If payment is not made by the due date, the withholding agent may in principle have to pay delinquent tax and
additional tax for non-payment.
2 Special Provision for Due Date

Any withholding agent that pays salaries to fewer than 10 employees on a regular basis and submits an
“Application for Approval Made in Relation to the Special Provision for Due Dates for Withholding Income
Tax”（源泉所得税の納期の特例の承認に関する申請書）and obtains such approval may take advantage of a
special provision regarding the due dates for income tax and special income tax for reconstruction withheld
from salaries, etc., retirement allowances, etc. and remuneration/fees paid to tax accountants, etc. Under this
arrangement, payment can be made twice a year as indicated below.
If no notice of approval or denial of the application has been received from the district director of the
competent tax office by the last day of the month following the month in which the application was submitted,
the special provision shall be deemed to have been approved at the end of the month following the month in
which the application was submitted and shall apply to tax payments made in the second month following the
month in which the application was submitted.
Classification Due date
Income tax and special income tax for reconstruction July 10

withheld between January and June
Income tax and special income tax for reconstruction January 20 of the following year
withheld between July and December
(Note) 1 The special provision for due dates is limited to the following:
i) Income tax and special income tax for reconstruction withheld from salaries, etc. and
retirement allowances, etc. (including those for non-residents).
ii) Income tax and special income tax for reconstruction withheld from remuneration/fees as
provided for in Item 2 of Article 204, Paragraph 1 of the Income Tax Act paid to attorneys at
law (including foreign lawyers licensed in Japan), judicial scriveners, real estate surveyors,
certified public accountants, tax accountants, social insurance labor consultants, patent
attorneys, marine procedure commission agents, surveyors, architects, real estate appraisers,
professional engineers, etc.
2 If this application was submitted by post or correspondence delivery (hereinafter referred to as
6
“mail”), it shall be deemed to have been submitted on the date indicated by the date stamp on the
mail.
3 Payment Procedure
Withheld income tax and special income tax for reconstruction shall be paid at a local financial institution
(such as a bank or post office) or over the counter at the competent tax office, together with submission of
“Statement (Tax Payment Slip) of Collected Income Tax.”（所得税徴収高計算書（納付書））
The kinds and purposes of the Statement are as indicated in the table below. Upon payment, please record in
the tax payment slip the reference number designated by the tax office without fail.
Withheld income tax and special income tax for reconstruction can be paid and the statement submitted via
the Internet (for details, please see the “e-Tax” website, www.e-tax.nta.go.jp, in Japanese only).
Kind of Statement (Tax Payment Slip) Main kinds of income for which the tax payment slip
Symbol
of Collected Income Tax shown in the left column is used
Statement (tax payment slip) of income tax Employment income, retirement income, and remuneration/fees
collected from employment/retirement income, 給 paid to attorneys at law and tax accountants, etc.
etc. (for general purposes and the special
provision for due dates)
Statement (tax payment slip) of income tax Remuneration/fees other than remuneration/fees paid to attorneys
collected from remuneration/fees, etc. 報 at law and tax accountants, pensions paid under a life/casualty
insurance contract or similar annuity agreement, or public
pensions
Statement (tax payment slip) of income tax Interest income, distribution of proceeds from an investment trust
collected from interest, etc. (excluding a trust subject to corporation taxation) or a specified
利 trust that issues beneficiary certificates, and distribution of profits
under a silent partnership (Tokumei-Kumiai) contract (excluding
interest income from listed stocks, etc. received in a specific
account for which withholding is chosen)
Statement (tax payment slip) of income tax Dividend income (excluding distribution of proceeds from an
collected from dividends, etc. investment trust (excluding a trust subject to corporation
配 taxation) or a specified trust that issues beneficiary certificates,
and dividend income from listed stocks, etc. received in a specific
account for which withholding is chosen)
Statement (tax payment slip) of income tax Various types of income paid to a non-resident or a foreign
collected from income of a non-resident/foreign 非 corporation (excluding income using tax payment slips with
corporation 償割株 )
Statement (tax payment slip) of income tax Profit from redemption of discount bonds (withheld at the time of
collected from redemption profit
償
issue)
Statement (tax payment lip) of income tax Profit on redemption amount of discount bonds (withheld at the
collected from profit on redemption amount of 割 time of redemption)
discount bonds
Statement (tax payment slip) of income tax Compensation money for benefits from installment deposits and
collected from compensation payments for 定 monetary awards, etc. from deposits and savings offering such
benefits from installment deposits, etc. awards, etc.
Statement (tax payment slip) of income tax - Capital gains, etc. from listed stocks, etc. kept in a specific
collected: from adjusted amount of income from account for which withholding is chosen and dividend income
any listed stocks, etc. kept in a specific account from listed stocks, etc. received in a specific account for which
for which withholding is chosen; from 株 withholding is chosen
dividends, etc. received in a specific account for - Capital gains, etc. from and dividend income from listed stocks,
which withholding is chosen; and in case of a etc. in case of a breach of contract, etc. in an account held by a
breach of contract, etc. in an account held by a minor
minor, etc.
7
2. Procedure for Withholding from Employment Income
The process of withholding from employment income paid to residents is broadly divided into the process of
withholding from monthly (daily) salary and bonuses, etc., and the year-end adjustment process at the end of
the year. The key points to consider here are: (1) the scope of taxable employment income, (2) the
requirements for the application of various deductions, such as exemptions for spouses and dependents, and
(3) how to use the tax amount table and the methods for specific tax amount calculations.
(Note) The definitions of resident and non-resident are unrelated to nationality or residence (visa) status and
it is determined by considering such factors as whether having a domicile in Japan or whether
continuously having a residence in Japan for 1 year or more. In each of the following cases, it shall be
handled as below.
1 If a person who is to reside in Japan has an occupation normally requiring a continuous residence
in Japan for one year or more, the person is presumed to have a domicile in Japan.
2 If a person who is to reside outside Japan has an occupation normally requiring a continuous
residence outside Japan for one year or more, the person is presumed not to have a domicile in Japan.
* In this brochure, “the Tax Amount Table” means “the Withholding Tax Amount Table for Employment
Income (monthly table and daily table) and the Table for Calculating Withholding Tax Amount for
Bonuses.”
I. Outline of Withholding Procedure

The employment income withholding process and the tax amount table and application form used for
withholding are as outlined below. The tax amount table and application form, etc., are available at tax
offices.
The National Tax Agency (hereinafter the "NTA") has established a special page in its website “Withholding
Tax Agents”（源泉徴収義務者の方）（www.nta.go.jp/users/gensen/index.htm） in order to provide the latest
information to withholding tax agents.
The special page contains information necessary for withholding procedure, including various forms such as
“Application for (Change in) Exemption for Dependents of Employment Income Earner”, various kinds of
guides and brochures such as the "Gensen choshu no aramashi"（源泉徴収のあらまし）, in Japanese only, and
Q&As on withholding tax. We recommend you to visit the page in our website.
You can easily access the special page by clicking “Withholding Tax Agents”（源泉徴収義務者の方）on the
bottom right of the top page of the NTA website.
8
 Withholding process at time of payment of monthly (daily) salary, bonus, etc.
<Process> <Forms used>

1 Confirmation of spouse covered by the Application for (change in) Exemption for
withholding exemption and dependents covered Dependents of Employment Income Earner
by the exemption
2 Calculation of amount of tax withheld from Withholding Tax Amount Table for Employment
salaries, bonuses, etc. Income (Monthly Table, Daily Table), Table for
Calculating Withholding Tax Amounts for Bonuses
3 Collection and recording of amount of tax Ledger of Withholding Tax for Employment
withheld Income/Retirement Income
4 Payment of amount of tax withheld Statement (Tax Payment Slip) of Income Tax
Collected from Employment Income/Retirement
Income, etc.
 Year-end adjustment process, etc.
<Process> <Forms used>

5 Confirmation of various deductions for life Application for Deduction for Insurance Premiums
insurance/earthquake insurance premiums, for Employment Income Earner, Application for
(special) exemption for spouses, special credit Exemption for Spouse of Employment Income
for loans, etc. related to a dwelling (specific Earner and Application for Special Credit for Loans,
additions or improvements, etc.) etc. Related to a Dwelling (Specific Additions or
Improvements, etc.) for Employment Income Earner
6 Settlement of any discrepancy and payment by Quick Calculating Income Tax Amount Table for the
year-end adjustment Year-End Adjustment, Table of Salary Amounts
after Employment Income Deductions for the
Year-End Adjustment, Ledger of Withholding Tax
for Employment Income/Retirement Income,”
“Statement (Tax Payment Slip) of Income Tax
Collected from Employment/Retirement Income, etc.
7 Withholding record delivered to the taxpayer Employment Income Withholding Record

and submitted to a tax office
II. Scope of Employment Income

Employment income includes normal salary, wages, bonuses, various allowances, and fringe benefits paid for
employment.
Please note the following points concerning the scope of employment income:
1 Commutation Allowances, etc.

Commutation allowances paid in addition to the normal salary and commutation passes (including equivalent
9
allowances and tickets) are tax-free up to the monthly amounts shown below.
Classification Non-taxable amount
(1) Commutation allowance paid to a person using public Reasonable monthly fare
transportation and/or a toll road (up to a maximum of ¥150,000)
(2) Commutation allowance Commuting distance of 55 km ¥31,600

paid to a person using a or more one way
bicycle, car, or similar
means of transport Commuting distance of 45 km ¥28,000
or more and less than 55 km
one way
Commuting distance of 35km ¥24,400

or more and less than 45km
one way

one way

one way

one way

one way
Commuting distance of less (taxable in full)

than 2km one way
(3) Commutation pass given to a person using public Reasonable monthly fare
transportation (up to a maximum of ¥150,000)
(4) Commutation allowance and/or commutation pass given to Total of the reasonable monthly fare and the
a person using own means of transport in addition to public amount in (2)
transportation and/or a toll road (up to a maximum of ¥150,000)
(Note) 1 “Reasonable monthly fare” means the fare or charge for use of the normal commutation route and method
deemed most economical and reasonable in view of the fare, time, distance, etc.
This “reasonable monthly fare” includes express train charges when using the Shinkansen Line (bullet train),
but excludes green-car charges.
2 “Fare” includes the amount equivalent to consumption tax and local consumption tax. Therefore, if the fare
including consumption tax and local consumption tax is equal to or less than the “non-taxable amount”
indicated above, there will be no taxable amount. If it exceeds the “non-taxable amount” listed above, the
excess amount will be subject to taxation.
2 Special Allowances, etc.
Classification Treatment
Travel expenses Money and items provided and paid as required for the travel of an
employment income earner indicated below and considered to be necessary
for such travel in normal circumstances are not taxable.
(1) Travel to implement certain duties away from the workplace
(2) Travel for relocation as a result of a transfer
10
(3) Travel for relocation of a person who has found an employment or has
ceased working, or of the bereaved of a person who has ceased working
due to death
Night/day-duty allowance The amount of the night/day-duty allowance on any one occasion not
exceeding 4,000 yen (if any meal is provided for night/day duty, the balance
of 4,000 yen minus the cost of the meal) shall not be taxed, other than
certain amounts such as night/day-duty allowances for persons whose work
primarily involves night/day-duty.
Entertainment expenses Money and items provided as entertainment and social expenses are treated
as salary, etc. If it is clear that the expenses are used for the business of the
employer, they are not taxable.
Marriage gifts, etc. Money and items provided under an employment contract for occasions
such as marriage or the birth of a child are treated as salary,etc. If they are
deemed reasonable according to commonly accepted norms in light of the
status of the recipient, they are not taxable.
Allowances for bereavement, Funeral contributions, condolence payments, consolation money for
disasters, etc. disasters, etc., are not taxable if they are deemed reasonable according to
commonly accepted norms.
Various benefits provided for under Benefits for medical treatment or leave compensation provided for under the
the Labor Standards Act Labor Standards Act and the Seaman Act are not taxable.
Scholarships While the money and items provided as a scholarship having the nature of
compensation such as salary, etc. are excluded from tax exempt items, a
scholarship provided in addition to his/her normal salary among
scholarships received by an employment income earner from his/her
employer and is not taxable, except for certain cases such as that provided
by a corporate employer to its director to help fund the cost of the director's
schooling.
3 Fringe Benefits
While salary, etc. is usually paid in monetary form, it may be paid in the form of an object, right, or other
fringe benefit, including meals supplied in kind and discounts for merchandise.
Although these fringe benefits are treated as employment income, they are treated differently from monetary
salary, etc. as indicated below because they differ in nature from monetary salary, etc., as (1) they are
indispensable in terms of the nature of the duty and are provided as a necessity of the employer’s business; (2)
they cannot be encashed; (3) they cannot be valued easily or (4) the beneficiary cannot select particular items ,
or because (5) they require special treatment in terms of government policy.
Classification Treatment
Meals Meals provided by an employer shall not, in principle, be taxed if the beneficiary pays half
or more of the cost of the meal. If the balance of the cost of the meal minus the amount
borne by the beneficiary (i.e. the amount borne by the employer) exceeds 3,500 yen per
month, the whole amount borne by the employer (the cost of the meal minus the amount
paid by the beneficiary) shall be treated as employment income.
Whether the amount borne by the employer exceeds 3,500 yen is determined by the amount
after subtracting the amount of consumption tax and local consumption tax.
The cost of meals provided by the employer is assessed by the amount listed as below.
(1) Meals cooked and provided by the employer: the amount equivalent of the “direct
cost” of the ingredients, seasonings, etc.
(2) Meals purchased from food shops and provided by the employer: the amount
equivalent of the purchase price of meals.
11
Meals provided to a person on night/day duty or working overtime outside his/her regular
hours for such work are not taxable.
Uniforms Uniforms and other belongings, business wear, work wear, etc., provided or leased to a
person who must wear a uniform due to the nature of the work are not taxable.
Lease of company The fringe benefit received by an employee, etc. through the leasing of a company
residence residence or dormitory gratuitously or at a low rent shall not be taxed if the rent collected
from the employee is equal to or more than the amount of a reasonable rent to be paid for a
company house, etc. calculated using a certain formula. If the rent collected from an
employee falls below the amount of the reasonable rent to be paid for a company house,
etc., the difference is deemed employment income.
If a company residence, etc. leased to directors (including any executive officer, auditor,
etc.) is a “luxury residence,” the amount of the reasonable rent shall be calculated based on
the amount that would normally be payable for a general rental house.
Recreation costs The fringe benefit received from the employer by a person participating in an event, such
as a party, trip, performance or athletic competition, whose cost is borne by the employer
and which is deemed in light of commonly accepted norms to be held for recreational
purposes, is not taxable unless any money is paid to persons who could not participate
owing to their own circumstances to make up for their non-participation, or the cost of the
event is borne by the company only for directors.
In principle, a recreational trip meeting certain requirements, such as a trip for four nights
(the number of days spent at a destination in the case of a trip abroad) or less, and whose
fringe benefit is considered insignificant, is tax-free.
Awards for long Any fringe benefit derived from the provision of a trip, drama performance or award in
service commemoration of the long service of a person shall not be taxed if the award meets
certain requirements, such as the person having worked for 10 years or more.
Gifts commemorating Any gift provided in commemoration of startup, capital increase, completion of
startups, etc. construction or merger, etc., shall not be taxed if the gift is considered proper in light of
commonly accepted norms and meets certain requirements such as that its price (valued
based on the resale price) is 10,000 yen or less, other than any gift provided upon
completion of a construction or shipbuilding contract by a construction firm or shipbuilder.
Whether the price is 10,000 yen or less is determined by the amount after subtracting the
amount of consumption tax and local consumption tax.
Discounted sale of The fringe benefit derived from a discount for a product or merchandise (excluding
merchandise, etc. securities and meals) is not taxable if the discounted price is equal to or higher than the
employer’s acquisition cost and meets certain requirements such as that the price is about
70% or more of the price for sales to others.
Interest-free loans The fringe benefit derived from receipt of an interest-free or low-interest loan from an
employer shall not be taxed if: (1) with regard to the fringe benefit is derived from the
provision of funds for persons temporarily requiring a high living allowance due to
disaster, sickness, etc., it shall be received during a period regarded to be rational for the
repayment of the amount loaned for the allocation of such funds, (2) the interest is
collected at a reasonable rate, such as the average interest rate on loans procured by the
employer, or (3) the total of the fringe benefit provided is 5,000 yen or less.
Use of welfare The fringe benefit to a user derived from the employer’s payment for the running costs of a
facilities welfare facility shall not be taxed unless the amount is extremely high or only directors
receive the fringe benefit.
III. Application for (Change in) Exemption for Dependents of Employment Income
Earner
An earner of salary, etc. shall submit to the payer of salary, etc. (or the principal payer of salary, etc. where
there are two or more sources) an “Application for (Change in) Exemption for Dependents of Employment
Income Earner”（給与所得者の扶養控除等（異動）申告書）no later than one day prior to the date of the first
12
payment of salary, etc. in each year.
This application must also be submitted by any person with no dependents or spouse eligible for the
withholding exemption. Any person who does not submit such an application shall have his/her salary, etc.
taxed according to column 乙(otsu) of the “Withholding Tax Amount Table”（源泉徴収税額表）, i.e., at a
higher rate than would have applied had the application been submitted. The payer of salary, etc. is requested
to advise eligible employees, i.e. recipients of salary, etc. from principal payer of salary, etc. to submit the
application.
The payer of salary, etc. who receives this application from an earner of salary, etc. is required to keep the
application until the district director of the competent tax office requires its submission.
≪Main Withholding Procedure Concerning the Social Security and Tax Number System (“My Number
System”)≫
(1) Entries in "Application for (Change in) Exemption for Dependents of Employment Income Earner"
When a payer of salary, etc. receives an "Application for (Change in) Exemption for Dependents of
Employment Income Earner", the payer is required to receive from the employment income earner an
application which states individual numbers of the employment income earner him/herself, spouse covered by
withholding exemption, dependents covered by exemption, etc.
(Note) If a payer of salary, etc. keeps a book stating individual numbers, etc. of the employment income
earner him/herself, spouse covered by withholding exemption, dependents covered by exemption, etc.
that should be stated in "Application for (Change in) Exemption for Dependents of Employment
Income Earner", the employment income earner is not required to state individual numbers stated in
the book in the "Application for (Change in) Exemption for Dependents of Employment Income
Earner."
(2) Confirmation of the identity of the individual

When a payer of salary, etc. receives a provision of the individual number from an employment income earner,
the payer is required to carry out confirmation of the identity of the individual, first "Number Confirmation"
to confirm that the provided number is correct, and "Identity Confirmation" to confirm that the provider of the
number is the true owner of the number.
A payer of salary, etc. is required to confirm the identity only of the employment income earner him/herself
providing the individual number (confirmation of the identity of the spouse covered by withholding
exemption, the dependents covered by exemption, etc. shall be made by the employment income earner).
(Note) Examples of documents used to confirm the identity of the individual
1 Individual number card (for Number Confirmation and Identity Confirmation)
2 Notification card (for Number Confirmation) and driver's license, certificate of participation in
health insurance, etc. (for Identity Confirmation) (in the case of Identity Confirmation using an ID
card without a photograph, two types of ID cards are necessary)
IV. Various Withholding Deductions

1 Deduction for Employment Income
The amount of employment income shall be the balance of the total revenue from salary, wages, bonuses, etc.
received during the relevant year minus the deduction for employment income.
The deduction for employment income is determined according to the following chart:
13
Revenue from salaries, etc. Deduction for employment income
1,625,000 yen or less 650,000 yen

Over 1,625,000 yen and 1,800,000 yen or less Revenue  40%
Over 1,800,000 yen and 3,600,000 yen or less Revenue  30% + 180,000 yen
Over 3,600,000 yen and 6,600,000 yen or less Revenue  20% + 540,000 yen
Over 6,600,000 yen and 10,000,000 yen or less Revenue  10% + 1,200,000 yen
Over 10,000,000 yen 2,200,000 yen
The “Withholding Tax Amount Table for Employment Income,” which is used to determine the monthly (or
daily) amount of withholding tax, takes into account the amounts equivalent to the deductions for employment
income. It is therefore unnecessary to calculate the deductions for monthly (or daily) withholding. When the
year-end adjustment is made, the amount of tax will be determined by using the “Quick Calculating Income
Tax Amount Table for the Year-end Adjustment”（年末調整のための算出所得税額の速算表）based on the
amount of salary, etc., after making the deduction for employment income from the yearly income of salary,
etc. In this case, the amount of salary, etc., remaining after making the deduction for employment income
shall be determined according to the “Table of Salary Amounts after Employment Income Deductions for the
Year-end Adjustment.”（年末調整のための給与所得控除後の給与等の金額の表）
2 Income Deduction and Tax Credit

Various tax deductions are available according to the capacity of the taxpayer. The kinds of deductions made
at the time of withholding and the applications to be submitted to apply for these deductions are indicated in
the table below.
Classification Application for deduction

(Reference)
to be submitted by the time
Amounts for 2019
Kind of deduction indicated below
Deduction for Deducted from salary, etc. Premiums deducted (Application not required)
social insurance
premiums Paid directly by taxpayer Premiums paid “Application for Deduction
for Insurance Premiums for
Deduction for Employment Income
small-scale Earner”
Exemption and deduction from income
enterprise mutual
aid premiums, One day prior to the date
etc. of the last payment of
salary, etc. in the relevant
Deduction for life Life insurance New life year
Ceiling amount to be covered: 120,000
Up to a maximum of
insurance premium insurance
40,000 yen
premiums premium
Old life
Up to a maximum of
insurance
50,000 yen
premium
yen
Both new and

old life Up to a maximum of
insurance 40,000 yen
premium
Medical care insurance premium Up to a maximum of

40,000 yen
14
Personal New Personal
pension pension Up to a maximum of
insurance insurance 40,000 yen
premium premium
Old Personal
pension Up to a maximum of
insurance 50,000 yen
premium
Both new and

old Personal
Up to a maximum of
pension
40,000 yen
insurance
premium
Deduction for Earthquake insurance premiums only Up to a maximum of

earthquake 50,000 yen
insurance
premiums Former long-term casualty insurance Up to a maximum of
premiums only 15,000 yen
Both earthquake insurance premiums and Up to a maximum of

former long-term casualty insurance 50,000 yen
premiums
Exemption for Persons with disabilities 270,000 yen “Application for (Change
persons with in) Exemption for
disabilities Persons with special disabilities 400,000 yen Dependents of
Employment Income
Persons with special disabilities living 750,000 yen Earner”
together with the salary earner, etc. 1 Principle
Exemption for Widows 270,000 yen One day prior to the
widows date of the first
Special widows 350,000 yen payment of salary, etc.
in the relevant year
Exemption for widowers 270,000 yen
2 Where employed
Exemption for working students 270,000 yen during the year
Exemption for Dependents covered by exemption 380,000 yen One day prior to the
dependents date of the first
Specific dependents 630,000 yen payment of salary, etc.
after being employed
Elderly dependents Other than elderly 480,000 yen 3 Change in the
parents living
application
together with the
salary earner, etc. One day prior to the
date of the first
Elderly parents living 580,000 yen payment of salary, etc.
together with the after the change
salary earner, etc.
Basic exemption 380,000 yen
Exemption for Spouses covered by exemption Up to a maximum of “Application for

spouses 380,000 yen(*1) Exemption for Spouse of
Employment Income
Elderly spouses covered by exemption Up to a maximum of Earner”
480,000 yen(*1)
15
Special exemption for spouses Up to a maximum of
380,000 yen(*2) One day prior to the date
of the last payment of
year
* If falling under spouses
covered by the withholding
exemption, please see also
“Application for (Change
in) Exemption for
Dependents of
Employment Income
Earner.”
Special credit for loans, etc. related to a dwelling (specific Up to a maximum of “Application for Special
additions or improvements, etc.) 600,000 yen Credit for Loans, etc.
Related to a Dwelling
(specific additions or
Tax credit
improvements, etc.) for

Employment Income
Earner”
One day prior to the date
of the last payment of
year
(Note) 1 Monthly (daily) withholding shall be carried out pursuant to the Withholding Tax Amount Table for
Employment Income (monthly table or daily table), etc. The tax amount table reflects the various deductions
shown in the above table—from the exemption for persons with disabilities to the special exemption for
spouses exemption—so there is no need to calculate the amount of deductions on each occasion of monthly
(daily) withholding.
2 Concerning deductions for social insurance premiums, small-scale enterprise mutual aid premiums, life
insurance premiums, earthquake insurance premiums, (special) exemption for spouses, and special credit for
loans, etc. related to a dwelling (specific additions or improvements, etc.), see the leaflet ("Nenmatsu chousei
no shikata"（年末調整のしかた）, in Japanese only) distributed by tax offices at the time of the year-end
adjustment for details. ("Nenmatsu chousei no shikata" is also posted on the website of the NTA.)
3 In addition, deductions for casualty losses, medical expenses, contributions or donations, credits for
dividends, foreign tax, special credits for contributions to political parties, etc., donations to certified NPOs,
etc., donations to public interest incorporated associations, etc., anti-earthquake improvements made to an
existing house, special tax credits for specified housing improvements, new building, etc. of a certified house
and deduction of specific expenses of employment income earners are also available as deductions that may be
claimed by submitting a final return.
(*1) The amount prescribed in the following category shall be deducted from income.
Total amount of income
of income earner Over 9,000,000 yen and Over 9,500,000 yen
9,000,000 yen or less and 10,000,000 yen or
Total amount of income 9,500,000 yen or less less
of spouse
380,000 yen or less 380,000 yen 260,000 yen 130,000 yen
Elderly spouses covered by exemption 480,000 yen 320,000 yen 160,000 yen
(*2) The amount prescribed in the following category shall be deducted from income.
Total amount of income of 9,500,000 yen or less less
spouse
Over 380,000 yen and 850,000 yen or less 380,000 yen 260,000 yen 130,000 yen
16
Total amount of income of 9,500,000 yen or less less
spouse
Over 950,000 yen and 1,000,000 yen or less 260,000 yen 180,000 yen 90,000 yen
Over 1,000,000 yen and 1,050,000 yen or less 210,000 yen 140,000 yen 70,000 yen
Over 1,230,000 yen 0 yen 0 yen 0 yen
3 Scope of Persons Covered by Exemptions

The persons covered by particular exemptions and specific remarks concerning their eligibility are as follows:
(Spouse living in the same household)

A spouse living in the same household as the earner of salary, etc. (excluding persons receiving salaries as
blue return business family employees and/or white return business family employees (hereinafter “blue
return business family employees, etc.) ) whose total amount of income is 380,000 yen or less.
(Note)
1 The term “spouse” excludes common-law spouses.
2 “Total amount of income” is the sum of the following:
(1) “Amount of gross income” without applying any carry-over deduction for a net loss, carry-over
deduction for a casualty loss, carry-over deduction for a capital loss in the case of replacement of
assets used for living purposes or carry-over deduction for a capital loss on specific assets used for
living purposes.
(2) The amount of dividend income on listed stocks, etc., when the income recipient opts for separate
self-assessment taxation. (if an aggregation of profit and loss for any capital loss pertaining to listed
stocks, etc. is applicable, the amount after the application of the aggregation; and if a carry-over
deduction for any capital loss pertaining to listed stocks, etc. is applicable, the amount before the
application of the carry-over)
(3) The amount of capital gains from land or buildings (total of long-term capital gain/loss (before any
special deduction) and short-term capital gain/loss (before any special deduction))
(4) The amount of capital gain from unlisted stocks, etc. or the amount of capital gain from listed stocks,
etc. (if a carry-over deduction for any capital loss pertaining to listed stocks, etc. or the amount of a
carry-over deduction for a capital loss pertaining to stock issued by a specific small business is
applicable, the amount before the application of that carry-over)
(5) The amount of miscellaneous income pertaining to future transactions (if a carry-over deduction
pertaining to a settlement loss such as a differential in future transactions is applicable, the amount
before the application of that carry-over)
17
(6) The amount of retirement income
(7) The amount of timber income
“Total amount of income” excludes income subject to separate withholding taxation at source for which
tax has been paid in full only by separate withholding and the following types of income in respect of
which the taxpayer chooses not to submit a final return:
A. The following forms of interest income or dividends income
(A) Those subject to separate withholding taxation at source
(B) Certain interest, etc. or dividends, etc. of which the taxpayer chooses not to submit a final
return:
B. Separately withheld compensation money for benefits from installment deposits, monetary awards,
etc. from deposits and savings offering such awards, etc., and profit from redemption of discount
bonds
C. Capital gains, etc. from listed stocks, etc. kept in a specific account for which withholding is chosen
and regarding which the taxpayer chooses not to submit a final return
3 Where the only income of a spouse is employment income or the business income of a spouse who is a
home worker, total amount of income shall be 380,000 yen or less if the yearly revenue is 1,030,000 yen
or less.
4 “Living in the same household” does not necessarily mean living in the same house. For example, if
some relatives do not live together with other relatives due to work, study, or recuperation, they will still
be treated as living in the same household if they return home during holidays from work or study, or
where living costs, study funds, and medical care costs are remitted on an ongoing basis.
5 The spouse of any income earner that falls into the category of a spouse living in the same household as
that income earner and into the category of a dependent of any other income earner shall be considered
as falling into either category.
(Spouse covered by the exemption)
Any spouse living in the same household as the earner of salary, etc., the total amount of income of such
salary, etc. is 10,000,000 yen or less.
(Elderly spouse covered by the exemption)

A spouse covered by the exemption who is aged 70 or above
(Spouse covered by the withholding exemption)

Any spouse whose total amount of income is 850,000 yen or less (excluding blue return business family
employees, etc.) living in the same household as the earner of salary, etc. (limited to those earners of salary,
etc. whose total amount of income is 9,000,000 yen or less).
(Note)
If the income of the spouse is only employment income, the total amount of income is 850,000 yen or less if
the yearly revenue from salary, etc. within a year is 1,500,000 yen or less.
(Spouse covered by the special exemption for spouses)

Any spouse (excluding blue return business family employees, etc., and limited to those whose total amount
of income is 1,230,000 yen or less) who lives in the same household as the earner of salary, etc. (limited to
18
those who earn total amount of income of 10,000,000 yen or less) and does not fall within the category of a
spouse covered by an exemption.
(Note)
1 Please note that no special exemption for spouses may apply if a spouse qualifies for an exemption for
spouse.
2 If the only income of the spouse is employment income, the special exemption for spouses may not apply
if the yearly revenue from salary, etc. within a year is 1,030,000 yen or less or exceeds 2,015,999 yen.
3 It is not possible for a husband and wife to both qualify for the special exemption for spouses. One of the
two will not be eligible for the exemption.
(Dependents)
Relatives, etc., living in the same household as the earner of salary, etc. (excluding any spouse or person
receiving a salary, etc. as a blue return business family employees, etc.) whose total amount of income is
380,000 yen or less.
(Note)
1 “Relatives” here means any person within the sixth degree of relationship by consanguinity and within
the third degree of relationship by affinity.
2 “Relatives, etc.” here includes adopted children entrusted for care under the provisions of the Child
Welfare Act and nursed seniors entrusted for care under the provisions of the Senior Welfare Act, in
addition to “relatives”.
(Dependents covered by the exemption)
Dependents aged 16 or above
(Specific dependents)
Dependents aged 19 or above but younger than 23
(Elderly dependents)
Dependents aged 70 or above
(Elderly parents living together with the salary earner, etc.)

Elderly dependents who are lineal ascendants (parents, grandparents, etc.) of the earner of salary, etc. or
his/her spouse and live together permanently with the earner of salary. etc. or his/her spouse.
(Persons with disabilities/special disabilities)

An earner of salary, etc., spouse living in the same household and a dependent to whom any of the following
circumstances apply:
(1) Permanently lacks the ability to comprehend matters due to a mental disorder;
All persons in this category are persons with special disabilities.
19
(2) Intellectually disabled in the judgment of a child consultation center, center for the rehabilitation of the
intellectually disabled, mental health and welfare center, or designated mental health doctor;
Persons in this category who are judged to be seriously intellectually disabled are persons with special
disabilities.
(3) Certified as mentally disabled under the Act for the Mental Health and Welfare of Persons with Mental
Disorders;
Persons registered as Grade 1 disabled in this category are persons with special disabilities.
(4) Registered as having a physical disability on a physical disability certificate received under the Act for
the Welfare of Persons with Physical Disabilities;
Persons registered as Grade 1 or Grade 2 in this disabled persons category are persons with special
disabilities.
(5) Certified as a war invalid under the Act for Special Assistance to Wartime Invalids;
Persons registered as having a disability of a level of severity between (and including) a special disorder
and a Grade 3 disorder under Exhibit 1, Table 2 of the Military Pensions Act are persons with special
disabilities.
(6) Recognized by the Minister of Health, Labour and Welfare under the Act to Assist the Victims of the
Atomic Bombs;
(7) Permanently bedridden and in need of complex care;
(8) Out of those persons with a mental or physical disability who are aged 65 or above and who are treated
as having a disability that is equivalent to (1), (2) or (4) above as recognized by the mayor of a
municipality or the head of a welfare center;
Persons who have a disability that are treated as being equivalent to the special disabilities described in
(1), (2) or (4) above and have been recognized as such by the mayor of municipality or the head of a
welfare center are persons with special disabilities.
(Persons with special disabilities living together with the salary earner, etc.)
Spouses covered by the exemption or dependents who fall within the category of persons with special
disabilities, living together permanently with either the earner of salary, etc., his/her spouse, or other relatives
who live in the same household as the earner of salary, etc.
(Widows)
Any earner of salary, etc. who meets any of the following descriptions;
(1) A person who fall within any of the following categories and has (a) dependent(s), or child(ren) living in
the same household:
(a) A person whose husband is dead and who has not since remarried
(b) A person who has divorced from her husband and who has not since remarried
(c) A person whose husband is not known to be living or dead
“Child(ren) living in the same household” does not include a spouse living in the same household or
dependents of another income earner, or persons whose total amount of income exceeds 380,000 yen.
(2) In addition to those listed in (1) above, any person who falls within any of the following circumstances
20
and whose total amount of income is 5 million yen or less:
(a) A person whose husband is dead and who has not since remarried
(b) A person whose husband is not known to be living or dead
(Note)
If income is entirely made up of employment income, total amount of income will be 5 million yen or less if
the yearly revenue from salary, etc. is 6,888,889 yen or less.
(Special widows)
Widows with dependent child(ren) and whose total amount of income is 5 million yen or less
(Widowers)
Any earner of salary, etc. falling under all of (1), (2), and (3) below:
(1) A person whose wife is dead or divorced and who has not since remarried, or whose wife is not known to
be living or dead
(2) A person who has child(ren) living in the same household
(3) A person whose total amount of income is 5 million yen or less
(Note)
The scopes of “child(ren) living in the same household” in this case and the yearly revenue from salary, etc.
in the case of “total amount of income is 5 million or less” are the same as those for “widows” above.
(Working students)
Any earner of salary, etc. falling under both (1) and (2) below:
(1) A person who is a student, pupil or trainee at one of the following types of school:
(a) A kindergarten, an elementary school, junior high school, compulsory education school, high school,
middle education school, university, technical college or special-needs school as provided for in the
School Education Law
(b) A specialized training college or one of a number of schools meeting the standards prescribed by the
Minister of Education, Culture, Sports, Science and Technology (hereinafter referred to as
“specialized training colleges”) established by the state, a municipality, a school corporation, the
Federation of Agricultural Cooperatives in managing medical business, or a medical corporation
that has established a specialized training college, and which offers courses meeting certain
requirements, such as education in required job skills
(c) A vocational training corporation that offers certified vocational training and courses meeting
certain requirements
(2) Total amount of income for the year is 650,000 yen or less and the amount other than the employment
income, etc. he/she has earned is 100,000 yen or less.
(Note)
If income is entirely made up of employment income, total amount of income shall be 650,000 yen or less if
the yearly revenue from salary, etc. is 1,300,000 yen or less. For example, a student with employment income
from any part-time jobs is eligible for this deduction, if he/she has no other income than income from the
part-time job(s) and the total amount of salary, etc. for the year from the part-time job(s) is 1,300,000 yen or
21
less.
4 Documents to be submitted to apply for exemptions

(1) Non-resident Relatives
In order to apply for exemptions for dependents pertaining to non-resident relatives, (special) exemptions for
spouses pertaining to spouses covered by the withholding exemption, or exemptions for persons with
disabilities, "Documents concerning relatives" (Note 1) pertaining to the relatives must be attached to an
"Application for (Change in) Exemption for Dependents of Employment Income Earner.” In order to apply for
exemptions for dependents or persons with disabilities pertaining to non-resident relatives for the year-end
adjustment, "Documents concerning remittances" (Note 2) are required to be submitted by attaching to the
application or presented when submitting the application by the day before receiving the last salary, etc. of a
year, in addition to describing the fact of living in the same household in the application.
(Note 1) "Documents concerning relatives" refer to either of the following (1) or (2), which proves that the
non-resident relatives concerned are relatives of the employment income earner (including Japanese
translation of these documents, if they are prepared in foreign languages).
1 A copy of the supplementary family register or other documents issued by the Japanese
government or a Japanese local government as well as a copy of the passport of the non-resident
relatives
2 A document issued by a foreign government or a foreign local government (limited to
documents showing the name, date of birth and address or domicile of the non-resident relatives)
(Note 2) "Documents concerning remittances" refer to either of the following (1) or (2), which prove that the
residents paid living expenses or educational expenses of their non-resident relatives to each of
them each time required within a year (including Japanese translation of these documents, if they
are prepared in foreign languages).
1 A document issued by a financial institution or its copy proving that the resident
paid those expenses to his/her non-resident relatives via exchange transactions
made by the financial institution
2 A document issued by a so-called credit card company or its copy proving that the
non-resident relatives received or are to receive money equal to purchase prices, etc.
of goods, etc. from the resident by purchasing goods, etc. using a card issued by the
credit card company
(Note 3) In order to apply for (special) exemptions for spouses pertaining to non-resident relatives,
"Documents concerning relatives" pertaining to the spouses and "Documents concerning
remittances" must be submitted or presented by attaching to an “Application for Exemption for
Spouse of Employment Income Earner.”
If “Documents concerning relatives” pertaining to the spouses have been already
submitted or presented when submitting an “Application for Exemption for Dependents
of Employment Income Earner,” the “Documents concerning relatives” are not required
to be submitted or presented.
(2) Working students

In order for a person falling in the category (1) (b) or (c) of the above 3 (Working students) to apply for
exemptions for working students, he/she is required to obtain a copy of a certificate by the competent minister
and a certificate by the headmaster, etc. issued by a school, etc. and to submit or present them by attaching to
an "Application for (Change in) Exemption for Dependents of Employment Income Earner".
5 Timing of Determination of Eligibility for Deductions

The determination on whether a person qualifies as a spouse covered by an exemption, a spouse living in the
same household, a dependent covered by an exemption or a person with disabilities shall, in principle, be
22
based on his/her status on December 31 of the relevant year. If the earner of salary, etc. or his/her relatives
dies during the course of a year or the earner of salary, etc. departs from Japan during the course of the year,
the determination shall be made based on the status of that person at the time of his/her death or departure.
When an “Application for (Change in) Exemption for Dependents of Employment Income Earner”（給与所得
者の扶養控除等申告書）or an “Application for Exemption for Spouse of Employment Income Earner”（給与
所得者の配偶者控除等申告書） is submitted, the determination on whether any spouse covered by a
withholding exemption, spouse living in the same household, dependent covered by an exemption or a person
with disabilities is eligible for a deduction shall be made on the date of submission of the relevant application.
In making the determination, total amount of income for the year shall be estimated according to the status on
the date on which the relevant application is submitted and the relevant person’s age will be determined as at
December 31 of the relevant year.
V. How to Apply the Tax Amount Table

1 Application of the Tax Amount Table
(1) Tax amount table used for withholding of monthly (daily) salaries, bonuses,
The amount of income tax and special income tax for reconstruction withheld from salaries, bonuses, etc. can
be determined by using the “the Tax Amount Table”.
The table is used as follows, according to salary, etc., the submission of an "Application for Exemption for
Dependents of Employment Income Earner", and the manner in which salary, etc. is paid.
Tax amount
Category of payment of salary, etc. Applicable column in the table
table
Monthly table (1) Paid monthly Column 甲(kou): Salary, etc. paid to
(2) Paid twice monthly or every 10 days persons who have submitted an
“Application for Exemption for Dependents
(3) Paid per period where the period is a multiple of of Employment Income Earner”
whole months
Column 乙(otsu): Salary, etc. paid to others
Daily table (1) Paid daily Column 甲(kou): Salary, etc. paid to
(2) Paid weekly (excluding daily wage) persons who have submitted an
“Application for Exemption for Dependents
(3) Paid for number of days of Employment Income Earner”
Column 乙(otsu): Salary, etc. paid to others
“Daily wage” Column 丙(hei)
Table for Bonus Column 甲(kou): Bonus paid to persons

calculating If no ordinary salary is paid in the previous month or if who have submitted an “Application for
withholding tax the bonus exceeds 10 times the ordinary salary in the Exemption for Dependents of Employment
amounts for previous month, use the monthly table. Income Earner”
bonuses Column 乙(otsu): Bonus paid to others
(Note) The “daily wage” is a salary, etc. received by a person employed on a daily basis for each workday as
calculated according to the day or time of work (including payments made on other days than the workdays). If a
payer of salary, etc. pays this continuously for more than two months, payments made beyond the two-month
period are not included in the “daily wage.”
(2) Quick calculating tax amount table used for the year-end adjustment
The annual tax amount used for the year-end adjustment is determined by first deducting the amount of
special credit for loans, etc. related to a dwelling (specific additions or improvements, etc.) from the
23
calculated income tax amount determined by using the quick calculating table below and then multiplying that
amount after deduction (the tax amount for the year after the year-end adjustment) by 102.1%.
(Quick Calculating Income Tax Amount Table for the Year-end Adjustment in 2019)
Taxable employment income amount Rate Deduction Tax amount

(A) (B) (C) = (A)  (B) – (C)
1,950,000 yen or less 5% - (A)  5%

Over 1,950,000 yen and 3,300,000 yen or less 10% 97,500 yen (A)  10% – ¥97,500
Over 9,000,000 yen and 17,420,000 yen or less 33% 1,536,000 yen (A)  33% – ¥1,536,000
(Notes) 1 Fractions of taxable income amounts of less than 1,000 yen are omitted.
2 Taxable income amounts exceeding 17,420,000 yen are not covered by the year-end adjustment in 2019.
2 How to Use the Tax Amount Table

In using the tax amount table when paying monthly (daily) salaries and bonuses, please take note of the
following:
(1) The amount of salary, etc. to which the tax amount table applies is the monthly or daily salary, etc. less
premiums for welfare pensions, health insurance, employment insurance, and other social insurance.
(2) The column 甲(kou) in the tax amount table is applied according to the number of dependents that the
earner of salary, etc. has.
The “number of dependents” here means the total including any spouse covered by a withholding
exemption and dependents covered by an exemption (including elderly dependents and specific
dependents). If the earner of salary, etc. is a person with disabilities (including any person with special
disabilities), widow (including a special widow), widower or working student, this number shall be
added. If the person’s spouse living in the same household and dependents (including those aged younger
than 16) include a person with disabilities (including any person with special disabilities) or a person
with special disabilities living together with the salary earner, etc., the number of dependents shall be
increased by one for each such person.
How to calculate the number of dependents, etc. pertaining to spouses is as per the following table:
[Reference: How to calculate the number of dependents, etc. pertaining to spouses].
24
[Reference: How to calculate the number of dependents, etc. pertaining to spouses]
How to calculate the number of dependents, etc. pertaining to spouses is as per the following table.
Total amount of income of earner of salary, etc.
(Revenue from salary, etc. of earner of salary, etc. who earn only employment income)
Over 9,000,000 yen Over 9,500,000 yen
9,000,000 yen or and 9,500,000 yen and 10,000,000 yen Over 10,000,000
less or less or less yen
(11,200,000 yen or Over 11,200,000 Over 11,700,000 (Over 12,200,000
less) yen and 11,700,000 yen and 12,200,000 yen)
yen or less yen or less
(Revenue from salary, etc. of spouses who earn
380,000 yen or 1 person 0 person 0 person 0 person

less
Total amount of income of spouses
(1,030,000 yen or
only employment income)
less) If spouses fall under persons with disabilities, one person is added.
Over 380,000 yen
and 850,000 yen
or less
Over 1,030,000 1 person 0 person 0 person 0 person
yen and 1,500,000
yen or less
Over 850,000 yen

(Over 1,500,000 0 person 0 person 0 person 0 person
yen)
VI. Calculation of Tax Amount (based on the Tax Amount Table for 2019)
The amount of income tax and special income tax for reconstruction withheld from salary, bonuses, etc. can
be determined by using the Tax Amount Table.
If the payer of salary, etc. calculates payments of salary, etc. by computer or other office machinery, the
amount of income tax and special income tax for reconstruction withheld from the salary, etc. to which
column 甲(kou) applies in the monthly table may be determined using the method announced by the Minister
of Finance.
1 How to Use Column 甲(kou) of the Monthly Table (if an “Application for Exemption for
Dependents of Employment Income Earner” is submitted)
(Example)
(1) Payment amount of salary, etc. (monthly amount) 416,000 yen
(2) Social insurance premiums deducted from salary, etc. 59,058 yen
(3) Number of dependents 2 persons
(Spouse covered by a withholding exemption and one additional dependent covered by an exemption)
[Tax calculation]
25
(1) Social insurance premiums, etc., are deducted from the salary:
356,942 yen (416,000 yen – 59,058yen)
(2) In the column headed “amount of salary, etc. after deduction of social insurance premiums, etc., for the
month”（その月の社会保険料控除後の給与等の金額）in the monthly table, find the row for “356,000 or
more and less than 359,000,” which includes 356,942 yen, then read across to column 甲(kou) headed “2
dependents.” You will then find the withholding amount of 7,450 yen in the box where the row and
column intersect. This is the amount of income tax and special income tax for reconstruction withheld
from salary, etc.
Column for 2
dependents
Row including Tax amount

356,942 yen determined
[Entries in the ledger of withholding tax]

Monthly payments of salaries, etc., the amounts of social insurance premiums and withheld taxes are recorded
in the “Ledger of Withholding Tax for Employment Income”（給与所得に対する源泉徴収簿）and used for the
year-end adjustment.
2 How to Use Column 乙(otsu) in the Monthly Table (if an “Application for Exemption for
Dependents of Employment Income Earner” is not submitted)
(Example)
(1) Payment amount of salary, etc. (monthly amount) 80,750 yen
(2) Social insurance premiums deducted from salary, etc. none
[Tax calculation]
(1) As there are no social insurance premiums to be deducted from the salary, etc., the amount paid of
80,750 yen is the amount of salary, etc. after deduction of social insurance premiums.
(2) In the column headed “amount of salary, etc. after deduction of social insurance premiums, etc., for the
month,” find the row for “less than 88,000 yen,” which includes 80,750 yen. This will be the “amount
equivalent to 3.063% of the salary, etc. after deduction of social insurance premiums” in column 乙
(otsu). Therefore, 2,473 yen (80,750 yen  3.063%, any fraction of less than one yen is omitted) is the
26
amount of income tax and special income tax for reconstruction to be withheld from the salary, etc.
3 How to Use the Daily Table

You can use the daily table in the same manner as the monthly table.
4 How to Use the Table for Calculating Withholding Tax Amounts for Bonuses (if an
“Application for Exemption for Dependents of Employment Income Earner” is submitted)
(Example)
(1) Payment amount of bonus 554,000 yen
(2) Social insurance premiums deducted from bonus 79,776 yen
(3) Amount of ordinary salary in the previous month
(after deducting social insurance premiums) 200,820 yen
(4) Number of dependents 2 persons
(with spouse covered by a withholding exemption and one additional dependent covered by an
exemption)
[Tax calculation]
(1) In the column headed “2 dependents” in column 甲(kou) of the “Table for Calculating Withholding Tax
Amounts for Bonuses”（賞与に対する源泉徴収税額の算出率の表）, find the row for “133,000 yen or
more and less than 269,000 yen,” which includes 200,820 yen, the amount of salary, etc. in the previous
month after deduction of social insurance premiums, then find the rate coinciding with the “Bonus
Amount Multiplication Rate”（賞与の金額に乗ずべき率）column, 2.042% in this example. This is the
tax rate used as the multiplier applied to the bonus.
(2) The tax amount to be withheld from the bonus is calculated as follows:
(Bonus 554,000 yen – social insurance premiums 79,776 yen)  2.042%
That is: 474,224 yen  2.042% = 9,683 yen (any fraction of less than one yen is omitted)
(The table for calculating withholding tax amounts for bonuses)
Column for 2
dependents
Row including the amount of

Tax rate to be salary, etc. in the previous month
applied to the after deduction of social insurance
bonus premiums: 200,820 yen
27
VII. Year-end Adjustment
The year-end adjustment is the process whereby the payer of salary, etc. settles the discrepancy for each
person between the total amount of income tax and special income tax for reconstruction withheld from each
payment of salary, etc. made during the year and the tax amount to be paid for total salary, etc. paid during the
year at the time of the last payment of salary, etc. in the year. For most people receiving a salary, etc.,
therefore, the year-end adjustment plays an important role as a substitute for filing a final return.
1 Timing of the Year-end Adjustment

The year-end adjustment is, in principle, made at the time of the last payment of salary, etc. in a year. In the
case of any person who has ceased working during the year due to death or who has become a non-resident
due to a transfer to an overseas branch, the year-end adjustment is performed at the time of the person’s death
or transfer to an overseas branch.
2 Persons Not Covered by the Year-end Adjustment

Salaries, etc. paid to the following persons are not subject to the year-end adjustment.
(1) Persons having neither domicile in Japan nor residence for one year or more in Japan (non-residents)
(2) Persons who do not submit an “Application for (Change in) Exemption for Dependents of Employment
Income Earner” (to which column 乙(otsu) or 丙(hei) of the tax amount table applies)
(3) Persons receiving payments of salary, etc. during the year in the amount of 20 million yen or more
(4) Persons for whom collection has been suspended or who have received a tax refund relating to
withholding income tax and special income tax for reconstruction for their salaries, etc. during the year
under the provisions of the Act on Exemption, Reduction or Postponement of Collection of Taxes for
Disaster Victims
(5) Persons who have left their jobs during the course of the year (excluding those who have ceased working
due to death, etc.)
3 Salary Covered by the Year-end Adjustment

The amount of salary, etc. subject to the year-end adjustment is the amount of salary, etc. which should be
paid when the date of payment arrives between January 1 and December 31 of the relevant year. Therefore,
the amount of salary, etc. which should be paid during the year shall be included in the yearly salary, etc. and
subject to the year-end adjustment, even if unpaid.
4 Procedures for the Year-end Adjustment

For practical information on how to perform the year-end adjustment, see the leaflet distributed by tax offices
at the time of the year-end adjustment (“Nenmatsu chousei no shikata,”（年末調整のしかた）in Japanese
only). ("Nenmatsu chousei no shikata" will also be posted on the website of the NTA.)
VIII. Payment of Withheld Income Tax and Special Income Tax for Reconstruction
Withheld income tax and special income tax for reconstruction is to be paid by the 10th day of the month
following the month in which the salary, etc. was paid (in cases where exceptional permission is received, by
July 10 and January 20 in the following year) by using e-Tax, or paid at a local financial institution or over the
28
counter at the competent tax office, together with submission of a “Statement (tax payment slip) of income tax
collected from employment/retirement income, etc.” (please see p.7).
Even if no tax is to be paid, the statement should be submitted to the competent tax office either directly, by
using e-Tax, or by post or correspondence delivery.
For detailed information on e-Tax, please see the "e-Tax" website, www.e-tax.nta.go.jp, in Japanese only.
(Note) If the bonus for directors* prescribed in Item 15 of Article 2 of the Corporate Tax Act is not paid
after 1 year has elapsed since the day on which the payment became definitive, it shall be deemed that
payment was made at the end of that 1-year period and income tax and special income tax for
reconstruction will be withheld in relation to the unpaid bonus.
* “Directors” includes directors, executive officers, accounting advisors, auditors, trustees,
supervisors, liquidators, and certain others engaged in the management of a corporation.
IX. Issuance of Salary Payment Slip

Any person paying a salary, etc. in Japan is required to issue to the recipient a payment slip stating the amount
of the salary, etc., the amount of tax withheld, and certain other necessary matters at the time of payment.
(Note) 1 If the recipient agrees*, the payer of salary, etc. may provide the required information by
electromagnetic means instead of providing a salary payment slip in writing. Any payer of salary,
etc. who provides a payment slip by electromagnetic means shall be deemed to have issued a
payment slip.
When required by the recipient, the payer of salary, etc. must issue a payment slip in writing.
* The payer of salary, etc. must indicate in advance to the recipient the nature and details of the
electromagnetic means to be used and obtain the recipient’s approval in writing or by
electromagnetic means.
2 A person who does not issue any salary payment slips to the recipient of salary, etc. or issues any
slips with false statements (provides using electromagnetic means) shall be punished by
imprisonment with required labor for not longer than one year or a fine of not more than 500
thousand yen.
Reference: Electronic Submission of Documents Relating to Withholding

If a payer of salary, etc. meets certain requirements by taking the necessary measures to receive the
information to be stated in the following applications from the beneficiary by electromagnetic means as
approved by the district director of the competent tax office (Note 1), the beneficiary may provide the
information to be stated in the applications by electromagnetic means instead of by applying in writing.
(Notes 2 and 3)
1 Application for exemption for dependents of employment income earner
2 Application for exemption for dependents concerning secondary salary
3 Application for exemption for spouse of employment income earner
4 Application for deduction for insurance premiums for employment income earner
5 Application concerning receipt of retirement income
(Note) 1 If no notice of approval or rejection is issued by the last day of the month following the month in
which the application for approval was submitted, the application shall be deemed to have been
approved on the last day of the month following the month in which the application was submitted.
2 When providing the information to be stated in these applications by electromagnetic means, the
(1) ID and password used to identify individual beneficiaries and issued by the payer of salary, etc.,
or (2) electronic signature and electronic certificate pertaining to the electronic signature, may be
used in lieu of the signature and seal of the taxpayer on the applications.
29
3 The certificates to be attached to applications must be submitted or presented in writing as before.
30
3. Procedure for Withholding from Retirement Income
The procedure for withholding from retirement income paid to a resident is:
(1) receipt of an “Application Concerning Receipt of Retirement Income”（退職所得の受給に関する申告書）
from the person receiving a retirement allowance, etc., and calculate the retirement income deductions
based on the length of service, etc., stated in the application;
(2) calculate the amount of tax (the amount of income tax and special income tax for reconstruction)
according to the formula indicated in the column headed “Tax amount” in the “Quick Calculating Table
for Withholding Tax Amount for Retirement Income”（退職所得の源泉徴収税額の速算表）by using the
amount corresponding to one half of the result of subtracting the amount of deduction for retirement
income from the amount of revenue from retirement allowance, etc. (the “taxable retirement income
amount”) (Note) as the tax base; and
(3) withhold and pay the amount of tax at the time the retirement allowance, etc. is paid.
(Note) In the case of a retirement allowance, etc. categorized as a specified officer retirement allowance etc. ,
the taxable retirement income amount corresponds to the balance amount after subtracting the amount
of deduction for retirement income from the amount of revenue from specified officer retirement
allowance, etc.
I. Scope of Retirement Income

Retirement income is income paid on one occasion due to retirement or resignation, such as a retirement
allowance or the lump-sum payment of a public pension.
A retirement allowance paid to a person who ceases working due to death is normally subject to inheritance
tax levied on his/her successors, and so is not subject to income tax.
II. Categories of Retirement Allowance, etc.

Retirement income shall be taxed separately from other income, according to the category of retirement
allowance, etc. received during the year, using the below taxable retirement income amount as the tax base.
Category of retirement
Taxable retirement income amount
allowance, etc.
Amount of revenue
General retirement Amount of deduction for
allowance, etc.
from general retirement – retirement income
× 1/2
allowance, etc.
Specified officer Amount of revenue from

Amount of deduction
Retirement allowance, specified officer retirement – for retirement income
etc. allowance, etc.
Amount of
Both general Amount of Amount of Amount of Amount of
revenue from
retirement allowance, revenue from deduction for deduction deduction for
general
etc. and specified specified officer – specified officer + – for – specified officer ×1/2
retirement retirement retirement
officer retirement retirement retirement
allowance, income income
allowance, etc. allowance, etc. income
etc.
A specified officer retirement allowance, etc. refers to a retirement allowance, etc. received by an officer
whose length of service as an officer is 5 years or less, according to his/her length of service as an officer,
while a general retirement allowance, etc. refers to a retirement allowance, etc. other than a specified officer
31
retirement allowance, etc.
(Note) Please see the "Gensen choshu no aramashi,"（源泉徴収のあらまし）in Japanese only, posted on the
website of the NTA for details of withholding for a specified officer retirement allowance, etc., e.g.
calculation method of the amount of deduction for specified officer retirement income(the "Gensen
choshu no aramashi, is also available in the form of a leaflet).
III. Deduction for Retirement Income

In the case of general retirement, the amount of deduction for retirement income is determined as follows
according to the length of service between joining the company and retirement.
Length of service Deduction for retirement income
20 years or less 400,000 yen  length of service in years
More than 20 years 8 million yen + 700,000 yen  (length of service in years – 20 years)
When calculating the deduction for retirement income, please consider the following points:
1 The amount of the deduction for retirement income is determined according to the “Table for Retirement
Income Deduction Amount for Withholding.”（源泉徴収のための退職所得控除額の表）
Moreover, please see the "Withholding Tax Amount Table", in Japanese only, posted on the website of the
NTA for the "Table for Retirement Income Deduction Amount for Withholding,"(the "Withholding Tax
Amount Table" is also available in the form of a leaflet).
2 Any fraction of length of service in years that is less than one year shall be rounded up to 1 year (e.g. 21
years and 3 months→22 years).
3 If the deduction for retirement income is calculated to be less than 800,000 yen, it is treated as 800,000
yen.
4 In the case of retirement as a direct result of becoming disabled, the amount of the deduction for
retirement income shall be the amount for ordinary retirement plus 1 million yen.
IV. Calculation of Tax Amount (based on the Tax Amount Table for 2019)
(Example)
(1) Length of service Joined on October 1, 1989, retired on March 31, 2019
(2) Amount of retirement allowance, etc. 17 million yen (general retirement allowance, etc.)
(3) Reason Reaching the compulsory retirement age
(Note) In this instance, an “Application Concerning Receipt of Retirement Income” shall be submitted.
20.42% of the retirement allowance, etc. would be withheld if the application were not submitted.
The withholding agent is required to keep this application until the district director of the competent
tax office requires its submission.
[Tax calculation]
(1) As length of service is 29 years and 6 months, this figure is rounded up to 30 years.
(2) According to the “Table for Retirement Income Deduction Amount for Withholding,” the deduction for
retirement income for a length of service of 30 years in the case of general retirement is 15 million yen.
32
(Table for Retirement Income Deduction Amount for Withholding)
Length of Deduction for retirement income

service General retirement Disability retirement
Thousand yen Thousand yen

24 years 10,800 11,800
25 years 11,500 12,500
29 years 14,300 15,300

30 years 15,000 16,000
31 years 15,700 16,700
32 years 16,400 17,400
(3) The taxable amount of retirement income is one half of the result of subtracting the deduction for
retirement income from the revenue from retirement allowance, etc.
(17 million yen – 15 million yen)  1/2 = 1 million yen
(4) The calculation is performed using the formula shown in the column headed “Tax amount” in the “Quick
Calculating Table for Withholding Tax Amount for Retirement Income.”
(1 million yen  5%)  102.1% = 51,050 yen
This is the amount of income tax and special income tax for reconstruction to be withheld from the
retirement allowance, etc.
(Quick Calculating Table for Withholding Tax Amount for Retirement Income (for 2019))
Taxable retirement income Income Deduction Tax amount

(A) tax rate (C) = { (A)  (B)－(C) } 102.1%
(B)
1,950,000 yen or less 5% - { (A)  5%}  102.1%
Over 1,950,000 yen and 3,300,000 yen or less 10% ¥97,500 { (A)  10% － ¥97,500}  102.1%
Over 3,300,000 yen and 6,950,000 yen or less 20% ¥427,500 { (A)  20% － ¥427,500} × 102.1%
Over 6,950,000 yen and 9,000,000 yen or less 23% ¥636,000 { (A)  23% － ¥636,000}  102.1%
Over 9,000,000 yen and 18,000,000 yen or 33% ¥1,536,000 { (A)  33% －¥1,536,000}  102.1%
less
Over 18,000,000 yen and 40,000,000 yen or 40% ¥2,796,000 { (A)  40% －¥2,796,000}  102.1%
less
Over 40,000,000 yen 45% ¥4,796,000 { (A)  45% －¥4,796,000}  102.1%
(Note) 1 Any fraction of the taxable amount of retirement income that is less than 1,000 yen is omitted.
2 Any fraction of the tax amount determined that is less than 1 yen is omitted.
33
4. Procedure for Withholding from Remuneration/Fees
Certain remuneration/fees paid to a resident or domestic corporation, such as payments for manuscripts,
lecture fees, fees for education/guidance in the arts, sports, or knowledge, remuneration paid to tax
accountants, salespersons’ fees, performance fees, and hostess remuneration, is subject to withholding income
tax and special income tax for reconstruction at a certain rate at the time of payment, which amount is paid to
the tax authorities by the payer of the remuneration/fees.
The scope of remuneration/fees subject to withholding and the calculation method for the amount of tax are
shown in the following table.
Any individual not paying salary, etc. or only paying salaries, etc. to two or fewer domestic employees on a
regular basis does not have to withhold tax (excluding certain payments of remuneration/fees such as
hostess’s remuneration as described in Item 9 of the following table).
I. Remuneration/Fees Paid to Residents

Remuneration/fees subject to withholding Method for calculation of amount of tax
1 Remuneration/fees for the services of attorneys at Amount of payment  10.21%

law, tax accountants, etc. If the amount paid to a person on one occasion exceeds
Remuneration/fees for the services of attorneys at 1 million yen, the rate applied to the excess is 20.42%.
law (including foreign lawyers licensed in Japan),
certified public accountants, tax accountants,
registered accountants, assistant accountants, social
insurance labor consultants, patent attorneys,
management consultants, surveyors, assistant
surveyors, architects, architect agents, real estate
appraisers, assistant real estate appraisers,
professional engineers, assistant professional
engineers, fire damage appraisers, and automobile
damage appraisers
2 Remuneration/fees for juridical scriveners, real (Amount of payment – 10,000 yen)  10.21%
estate surveyors, and marine procedure commission
agents
3 Remuneration/fees for salespersons, money {Monthly amount of payment – (120,000 yen – amount of
collectors, and meter readers monthly salary, etc.)}  10.21%
4 Fees for manuscripts and lectures, etc. Amount of payment  10.21%

Fees for manuscripts, book illustrations, musical If the amount paid to a person on one occasion exceeds
compositions, record/tape recordings, designs, 1 million yen, the rate applied to the excess is 20.42%.
attendance at broadcasts, lectures,
education/guidance on arts, sports, or knowledge
Royalties for copyrights or copyright-related rights
Remuneration/fees pertaining to investment
consulting, drama scripts, dramatizations,
translations, interpretation, proofreading,
bookbinding, stenography, art works, etc.
5 Remuneration/fees for the services of professional Amount of payment  10.21%

athletes such as those in the categories listed below: If the amount paid to a person on one occasion exceeds
Professional baseball players, professional soccer 1 million yen, the rate applied to the excess is 20.42%.
players, professional tennis players, professional
wrestlers, professional golfers, professional bowlers,
racing car drivers, jockeys, models, etc.
34
6 Fees for performances by entertainers (including fees Amount of payment  10.21%
for appearances in radio or TV programs by ordinary If the amount paid to a person on one occasion exceeds
people) 1 million yen, the rate applied to the excess is 20.42%.
7 Remuneration/fees for the arrangement of services Amount of payment  10.21%

provided by entertainers If the amount paid to a person on one occasion exceeds
1 million yen, the rate applied to the excess is 20.42%.
8 Remuneration/fees for the services of professional (Amount of payment – 50,000 yen)  10.21%
boxers
9 Remuneration/fees for cabaret or bar hostesses, (Amount of payment – deduction)  10.21%

banquet hostesses, companions, etc. (Note) Deduction = (5,000 yen  number of days in period
for calculation of the amount ) – salary, etc. during the
period
10 Lump-sum payment for concluding a contract for Amount of payment  10.21%

receipt of services, etc. (e.g. hiring bonus paid upon If the amount paid to a person on one occasion exceeds
recruitment of an engineer) 1 million yen, the rate applied to the excess is 20.42%.
11 Monetary awards for advertising a business (Amount of payment – 500,000 yen)  10.21%
12 Medical remuneration paid by the Social Insurance (Monthly amount of payment – 200,000 yen)  10.21%
Medical Fee Payment Fund
13 Horse racing prizes paid to horse owners {Amount of payment – (the amount  20% + 600,000 yen)}
 10.21%
(Note) 1 If a payment is made under the name of remuneration/fees but its contents should be recognized as salary, etc.
or retirement allowance, etc., withholding shall be carried out as salary, etc. or retirement allowance, etc.
2 “Remuneration/fees” includes fringe benefits such product gifts.
3 If the remuneration/fees include consumption tax and local consumption tax, the amount including
consumption tax and local consumption tax shall be subject to withholding. However, if bills or similar
documents show remuneration/fees clearly distinguished from consumption tax and local consumption tax, it is
possible to withhold from the remuneration/fees only.
4 If the payer of remuneration/fees bears the cost of travel and accommodation for the recipient, this will be
subject to withholding. However, if the cost is not paid to the recipient and is instead paid directly to the
provider of the transportation and/or accommodation, and the amount is within the cost range normally
considered necessary, the payer need not withhold from the cost.
II. Remuneration/Fees Paid to Domestic Corporations

Remuneration/fees subject to withholding Method for calculation of amount of tax
Horse racing prizes paid to horse owners {Amount of payment – (the amount  20% + 600,000 yen)} 
10.21%
35
5. Procedure for Withholding from Dividend Income
Concerning withholding from dividend income paid to a resident or domestic corporation, the payer of general
dividends, such as dividends of surplus or distribution of surplus (excluding those pertaining to qualified
distribution in kind under the Corporation Tax Act, hereinafter referred to as “dividends”), or “deemed
dividends,” collects and pays income tax and special income tax for reconstruction at the rate indicated below
upon payment.
(Note) “Deemed dividends” are money and assets delivered as a result of a (an) (1) non-qualified merger, (2)
non-qualified split, (3) non-qualified stock distribution, (4) refund of capital, (5) distribution of residual property,
or (6) acquisition of treasury shares, etc. (acquisition of treasury shares or contribution, cancellation of contribution,
entity conversion), which are deemed to be dividends.
In the event that dividends pertaining to stocks or contributions are not paid by the day after 1 year has
elapsed since the date on which the decision to make payment was made (such as the effective date of the
relevant resolution on the dividends of surplus, etc. made at a meeting of shareholders), the day after such 1–
year period has elapsed shall be deemed to be the day that the payment was made and withholding shall be
carried out.
1 Dividends from Listed Stocks, etc.

The withholding rate is 15.315% (in addition to a 5% inhabitant tax).
(Note) 1 If an individual having listed stocks, etc. equivalent in number or amount to 3% or more of the total
number of issued shares receives dividends from the listed stocks, etc., this system shall not apply
(because it falls within "2 Dividends Other Than Those from Listed Stocks, etc." below).
2 “Dividends from listed stocks, etc.” includes dividends from any stock listed on a stock exchange
(exchange for financial products) or registered as an over-the-counter stock, distribution of proceeds
from specified stock investment trusts and publicly offered stock investment trusts, and dividends
from units of investment of specified investment corporations. For details, see the “Gensen choshu no
aramashi,”（源泉徴収のあらまし）in Japanese only) posted on the website of the NTA.
2 Dividends Other Than Those from Listed Stocks, etc.

The withholding tax rate is 20.42% (no inhabitant tax applies).
36
6. Procedure for Withholding from Income Paid to Non-Residents or
Foreign Corporations
Withholding from income paid to non-residents or foreign corporations involves collection and payment to the
tax authorities of income tax and special income tax for reconstruction at a certain rate at the time of payment
to non-residents or foreign corporations of domestic source income subject to withholding.
Kinds of domestic source income subject to withholding and tax rates for withholding, etc. are as follows:
Kinds of domestic source income subject to withholding Withholding tax rate
(1) Distribution of profits arising from business conducted through a permanent 20.42%
establishment in Japan under a partnership contract (Note 1)
(2) Consideration for the transfer of land, rights on land, buildings, auxiliary equipment, 10.21%
or structures in Japan
* excluding consideration of 100 million yen or less that is paid by an individual
receiving land, etc., for the purpose of using it as his/her own residence or his/her
relatives’ residence
(3) Consideration for the provision of personal services which is paid to person 20.42%
conducting business that has as its main content providing any of the personal
services listed below in Japan
a. Services of motion picture or theatre artists, musicians, and any other entertainers,
and professional athletes
b. Services of attorneys at law, certified public accountants and architects, and other
professional services
c. Services of persons having expert knowledge or specialist skills in science and
technology, or business management, etc.
(4) Consideration for the leasing of real property, rights on real property, rights of 20.42%
quarrying, the establishment of a mining lease, or the lending of vessels or aircraft to
residents and domestic corporations in Japan
* excluding consideration for leasing land, houses, etc. that is paid by an individual
renting land, houses, etc., for the purpose of using it as his/her own residence or
his/her relatives’ residence
(5) Interest on Japanese government bonds, Japanese municipal bonds, or bonds issued 15.315%
by domestic corporations, interest on bonds issued by foreign corporations pertaining (Note 2)
to business operations carried out through their permanent establishments in Japan,
and interest on deposits and savings deposited in business offices, etc. in Japan
(6) Dividends of surplus, dividends of profits, distribution of surplus, distribution of cash 20.42%
or interest on funds received from domestic corporations, or distribution of profit
from an investment trust (excluding a bond investment trust and a publicly offered
bond investment trust) or a specified trust issuing a beneficiary certificate which have
been entrusted with a business office located in Japan
(7) Interest on a loan provided for a person who performs operations in Japan pertaining 20.42%
to that operations
37
(8) Any of the royalties or considerations listed below received from a person who 20.42%
performs operations in Japan pertaining to that operations
a. Royalties on or consideration for the transfer of rights concerning technology such
as industrial property rights, production methods involving special technologies, or
know-how
b. Royalties on or consideration for the transfer of copyrights, neighboring rights, or
publishing rights
c. Rental of machinery, equipment, vehicles, carriers, industrial tools, apparatus, or
fixtures
d. Rental of objects used on vessels or aircraft among the assets listed in b. or c.
above and used for the operations of residents or domestic corporations
(9) Remuneration for the provision of personal services such as salaries, etc. arising from 20.42%
work in Japan, or public pensions, etc., retirement allowances, etc., arising from work
performed while the person was a resident (in case of a non-resident)
(10) Money or items awarded for advertising business conducted in Japan 20.42%
(11) Pensions based on an insurance contract, etc. concluded with a life insurance 20.42%
company, a casualty insurance company under the Insurance Business Act, made
through domestic business offices, etc.
(12) Compensation money for benefits from installment deposits which pertains to 15.315%
agreements concluded with business offices in Japan, etc.
(13) Regarding payments made to a person who performs operations in Japan, distribution 20.42%
of profits under any silent partnership (Tokumei-Kumiai) contract, etc.
(Note) 1 A "partnership contract" refers to a partnership contract provided for in Item 4 of Article 161, Paragraph 1 of
the Income Tax Act.
2 Interest on transferred Japanese government bonds and transferred Japanese municipal bonds, and interest on
certain transferred corporate bonds, etc., shall be exempted from withholding under certain conditions.
(Reference)
Withholding tax rates for kinds of domestic source income listed below are shown in the right column of the
following table.
Kinds of domestic source income subject to withholding Withholding tax rate
(1) Distributions of proceeds listed below 15.315%

a. Distribution of proceeds from beneficial rights of bond management investment
trusts (excluding publicly offered ones)
b. Distribution of proceeds from company bond-type beneficial rights in specified
purpose trusts (excluding publicly offered ones)
(2) Dividends from listed stocks, etc. 15.315%

* Excluding dividends, etc. received by an individual who owns stocks or capital
contributions equal to 3% or more of issued shares or capital contributions either
in number or amount
(3) Capital gains, etc. from listed stocks, etc. kept in a specific account for which 15.315%
withholding is chosen
* Only for the case in which a non-resident having a permanent establishment
receives the payment
(4) Monetary awards, etc. from deposits and savings offering awards, etc. deposited 15.315%
in Japan
(5) Profit from redemption of discount bonds 18.378%

(16.336% for certain cases)
38
(6) Profit on redemption amount of discount bonds 15.315% (Note)
(Note) Profit on redemption amount of transferred discount bonds shall be exempted from withholding under certain
conditions.
Attention!
If an individual or a corporation normally not having a business or a relationship with a non-resident or a
foreign corporation receives a transfer of or rents real property in Japan, the individual or the corporation is
required to pay withholding tax when paying the consideration.
* An individual is not required to pay withholding tax, if he/she receives a transfer of or rents real property for
the purpose of using it as his/her own residence or his/her relatives’ residence (The amount of consideration
for the transfer must be 100 million yen or less.)
Special Provisions for Taxation of Non-residents and Foreign Corporations
Certain exceptions listed below apply to the taxation of non-residents and foreign corporations.
For details on procedure, etc., please contact the competent tax office.
1 Exemption by Certificate of Exemption from Withholding

Where a non-resident or a foreign corporation having a permanent establishment in Japan receives a
“Certificate of Exemption from Withholding” （源泉徴収免除証明書） from the district director of the
competent tax office stating that he, she or it meets certain requirements, and presents it to the payer of
domestic source income, no withholding is required in respect of certain domestic source income (limited only
to the income attributable to the permanent establishment of the said non-resident or foreign corporation) paid
by the payer during the effective period of the certificate.
2 Relief by Tax Convention

Where the country of residence of a non-resident or a foreign corporation has an income tax convention with
Japan, income tax and special income tax for reconstruction on the domestic source income received by the
non-resident or the foreign corporation may be relieved in accordance with the provisions of the convention.
To apply for this relief for income tax and special income tax for reconstruction, it is necessary to submit the
prescribed application or claim for refund to the district director of the competent tax office through the
withholding agent of domestic source income.
3 Relief by the Mutual Exemption Law for Income of Foreign Resident, etc. (parts related to
Taiwan)
Income tax and special income tax for reconstruction on the domestic source income received by a
non-resident having a domicile, etc. in Taiwan or a foreign corporation having its head office, etc. in Taiwan
may be relieved. To apply for this relief for income tax and special income tax for reconstruction, it is
necessary to submit the prescribed application to the district director of the competent tax office through the
withholding agent of domestic source income.
(Note) If the tax rate prescribed by a tax convention, etc. is same as or lower than the tax rate under the
Income Tax Act or the Act on Special Measures Concerning Taxation, it is not necessary to withhold
special income tax for reconstruction together.
39
7. Withholding from Other Income
Withholding is required for the following types of income:

(1) Interest on bonds and deposits, savings, etc.
(2) Compensation money for benefit from installment deposits, etc.
(3) Capital gains, etc. from listed stocks, etc., kept in specific accounts
(4) Public pensions, etc.
40
8. Other Matters
I. Refunds of Erroneously Withheld Amounts

If there is any overpayment of withholding tax due to erroneously calculating the amount of tax, the
withholding agent should submit an “Application for Refund of Erroneously Paid Withholding Income Tax
and Special Income Tax for Reconstruction”（源泉所得税及び復興特別所得税の誤納額還付請求書）to the
district director of the competent tax office for the place of tax payment stating the reason for the overpayment
and the amount to be refunded. If the amount of the overpayment is confirmed by the competent tax office, a
refund of the overpaid amount shall be made to the withholding agent.
II. Submission of Withholding Records and Report of Payment

A payer of salary, etc., retirement allowance, etc., remuneration/fees, etc., must deliver a “Withholding
Record”（源泉徴収票）or “Report of Payment”（支払調書）stating the particulars of payment to the beneficiary
and/or the district director of the competent tax office by a certain deadline.
The submission of withholding records for salary, etc. and retirement allowance, etc. and report of payment
for remuneration/fees is explained below.
1 Employment Income Withholding Record

(1) The payer of salary, etc. shall prepare two copies of an “Employment Income Withholding Record”（給
与所得の源泉徴収票）stating the amount of salary, etc., accrued and determined during the period between
January 1 and December 31 of the relevant year, and the amount of withholding tax. One copy should be
submitted, together with a totalized table, to the district director of the competent tax office by January 31
of the following year (or within 1 month of retirement in the case of a beneficiary who retires during the
course of a year), and the other copy should be issued to the beneficiary (please refer to 5 (1) below).
The withholding record for a beneficiary who retired during the course of a year may be submitted to the
district director of the competent tax office by January 31 of the year after the year of retirement, together
with withholding records for other beneficiaries.
(Note) Please note that the same shall apply also to a foreign worker who becomes a resident due to
having a domicile in Japan or having had a residence continuously for 1 year or more in Japan.
(2) If any of the following circumstances apply to the salary, etc., notwithstanding (1) above, no withholding
record concerning the salary, etc. need be submitted to the district director of the competent tax office.
A. Where the amount of salary, etc. subject to the year-end adjustment (excluding the salaries, etc.
described in B and C below) for the year is 5 million yen or less.
B. Where the salary, etc. is paid to the officer of a corporation (including any adviser, counselor, etc.)
whose amount of salary, etc. subject to the year-end adjustment for that year is 1.5 million yen or less.
C. Where the salary, etc. is paid to an attorney at law (including a foreign lawyer licensed in Japan),
certified public accountant, tax accountant, patent attorney, etc., whose amount of salary, etc. subject to
the year-end adjustment for the year is 2.5 million yen or less.
D. Where the salary, etc. paid to a person who has submitted an “Application for (Change in) Exemption
for Dependents of Employment Income Earner” and is not subject to a year-end adjustment for the year
is 2.5 million yen or less (0.5 million yen or less for a director, an officer, etc.).
E. Where the salary, etc. paid to a person who does not submit an “Application for (Change in) Exemption
41
for Dependents of Employment Income Earner” for the year is 0.5 million yen or less.
(3) The following exceptions are granted with regard to issuance of a withholding record:
A. After obtaining the approval of the recipient*, a person paying salary, etc., may provide the information
to be stated in the “Employment Income Withholding Record” by electromagnetic means instead of
issuing the record in writing. Any payer who does so shall be deemed to have issued the record.
However, if a recipient requests that the record be provided in writing, the payer shall do so.
If a person earning employment income files a final return, it is necessary to attach the record with the
final return in any case other than the method described in C below. In this case, it is necessary to
attach the record delivered in writing as before instead of attaching the information printed out by
electromagnetic means in any case other than the method described in B below.
* A payer of salary, etc. shall indicate in advance the nature and details of the electromagnetic means to
the earner of salary, etc. and obtain his/her approval in writing or by electromagnetic means.
B. A record provided by electromagnetic means that a record provided in the data format prescribed by the
NTA and accompanied by the electronic signature of the withholding agent (issuer) may be transmitted
online as an attachment if a final return is filed by e-Tax.
C. If a final tax return of income tax and special income tax for reconstruction is submitted using e-Tax,
the information in the employment income withholding record may be input and transmitted instead of
providing an attachment in writing. (In this case, the record must be submitted or presented if requested
by the tax office.)
2 Retirement Income Withholding Record

(1) A person paying a retirement allowance, etc., shall prepare two copies of a “Retirement Income
Withholding Record”（退職所得の源泉徴収票）stating the amount of the retirement allowance, etc. for
which payment is defined and the withholding tax amount. One copy should be submitted to the district
director of the competent tax office within 1 month of retirement, together with a totalized table, and the
other copy should be issued to the beneficiary. In this case, the year’s withholding records may be
submitted to the district director by January 31 of the following year.
(2) Regarding the retirement allowance, etc. paid to any person other than an officer of a corporation
(including any adviser, counselor, etc.), it is unnecessary to submit the record to the district director
notwithstanding (1) above.
(3) The records are treated similarly to 1(3) above.
3 Report of Payment for Remuneration/Fees

(1) A payer of remuneration/fees, contract money, awards or medical remuneration listed in any item of
Article 204, Paragraph 1 of the Income Tax Act shall prepare a “Report of Payment” stating the payments
made, tax amount withheld, and the individual number or corporate number of the payer and the recipient
with respect to each recipient of the remuneration/fees, contract money, etc. and submit it, together with a
totalized table, to the district director of the competent tax office by January 31 of the following year.
(2) For the types of remuneration/fees, etc. listed below, it is unnecessary to submit a report of payment to
the district director, notwithstanding (1) above.
A. Remuneration/fees for medical services, professional boxers, salespersons, money collectors, meter
readers, bar and cabaret hostesses, banquet hostesses, and companions, etc., for whom the yearly
42
payment is 0.5 million yen or less
B. Awards for advertising paid to the same person in an amount of 0.5 million yen or less for the year
C. Regarding horse racing prizes received by horse owners, the amount paid during the year for which all
individual payments to the same person are 0.75 million yen or less
D. Remuneration/fees other than those described in A, B and C above of 50,000 yen or less paid as a
yearly payment to the same person
4 Report of Payment for Income Paid to Non-Residents or Foreign Corporations

A person paying salary, etc. or remuneration/fees, etc., to a non-resident or a foreign corporation shall prepare
a “Report of Payment” stating the payments made, tax amount withheld and the individual number or
corporate number of the payer and the recipient (only for an individual or a corporation having an individual
number or a corporate number) for each recipient and submit it, together with a totalized table, to the district
director of the competent tax office by January 31 of the following year.
It is unnecessary to submit a report if the total amount of payments made during the year is 0.5 million yen or
less.
(Note) The due date and scope of submission may differ for certain reports, such as the “Report of Payment
for Profits under a Partnership Contract to be Paid to Non-residents, etc.”（非居住者等に支払われる組合
契約に基づく利益の支払調書）
5 Points to be Noted When Preparing Withholding Record, etc.

(1) A payer of salary, etc. or retirement allowance, etc. is required to state the individual number or
corporate number of the beneficiary, etc. in the copy of a withholding record submitted to the district
director of the competent tax office, but shall not state the individual number or corporate number of the
beneficiary, etc. in the copy of a withholding record issued to the beneficiary, etc.
(2) The copy of a report of payment issued to a recipient cannot be issued stating the individual numbers of
the payer and the recipient in it.
(3) When submitting a withholding record or report of payment to the district director of the competent tax
office, if the number of copies of each record or report that should have been submitted in the second
preceding year is 1,000 or more, they should be submitted via e-Tax or using optical disks, etc.
(4) If a payer of salary, etc., retirement allowance, etc. or remuneration/fees and other payments (1) does not
submit a withholding record or a report of payment to the district director of the competent tax office
before the due date or submits with false statements or records, or (2) does not issue a withholding record
to the beneficiary before the due date or issues with false statements (provides false records using
electromagnetic means), the payer shall be punished by imprisonment with required labor for not longer
than one year or a fine of not more than 0.5 million yen.
III. Relief for Disaster Victims

(1) If the property of a person who receives salary, etc., remuneration/fees, public pension, etc., suffers great
damage caused by an earthquake, storm, flood, lightning, or fire, he/she may be granted a postpone of
collection or refund of withholding tax under the Act on Exemption, Reduction or Postponement of
Collection of Taxes for Disaster Victims (hereinafter referred to as the “Disaster Exemption Act”).
Given that any person who is granted a postponement or refund is not be subject to a year-end adjustment,
the person shall settle by receiving a deduction of casualty losses and a reduction of or exemption from
43
income taxes pursuant to the Disaster Exemption Act with the final tax return.
(2) If a recipient of salary, etc. or public pension, etc. claims a postponement of collection under the Disaster
Exemption Act, the person shall submit the prescribed application to the district director of the competent
tax office for the place of tax payment of the disaster victim through the payer (Note). (In order to be
granted a refund, or a postponement of collection of withholding tax for remuneration/fees, an application
shall be submitted directly to the district director of the competent tax office for the place of tax payment
of the disaster victim.)
For details on the procedure, please contact your local tax office.
(Note) The application may be submitted to the district director of the competent tax office for the place
of tax payment of the payer. (In such a case also, the addressee of the application shall be the
district director of the competent tax office for the place of tax payment of the disaster victim.)
IV. Refunds of Tax Amounts Withheld in Response to Employment Income

Earners’ Tax Returns
An employment income earner with the amount of tax withheld who falls within any of the following
descriptions may receive a refund of the amount of tax withheld by filing a final return.
(1) Any person who has left a company during the course of a year and has not undergone a year-end
adjustment, resulting in the amount of tax withheld on salary, etc. exceeding the tax amount for the year
due to such reasons as no other income for the rest of the year after having left the company
(2) Any person who has an intention of applying for a reduction in or exemption of income tax under the
Disaster Exemption Act because his/her property has suffered damage the cost of which is equivalent to
50% or more of the value of the house or other assets affected by the disaster
(3) Any person who has suffered from the loss of a house or other assets due to a disaster, theft or
embezzlement, has made necessary expenditure pertaining to the disaster, etc. and has an intention of
applying for a deduction for casualty losses under the Income Tax Act because the loss or the expenditure
exceeds a certain amount (this deduction is not available to any person granted a reduction or exemption
described in (2) above for the loss amount due to the disaster.)
(4) Any person who has an intention of applying for a deduction for medical expenses under the Income Tax
Act because the amount paid for medical expenses exceeds the lower of either 100,000 yen or the amount
equivalent to 5% of total amount of income
(5) Any person who has an intention of applying for a deduction for contributions or donations under the
Income Tax Act, etc. because his/her payment amount exceeds 2,000 yen for: donations paid to the
national government, a specific public interest promotion corporation, etc.; Furusato
Nouzei(Contributions to prefectural and municipal goverments); donations relating to certain specified
nonprofit activities conducted by certified NPOs, etc.; amount needed to purchase stocks issued by
specified new small and medium-sized companies; or specified political contributions.
(6) Any person earning below a certain amount of income who has an intention of applying for a credit for
dividends under the Income Tax Act
(7) Any person who has paid tax equivalent of income tax in foreign countries and has an intention of
applying for a credit for foreign tax under the Income Tax Act
(8) Any person who has an intention of applying for a special credit for loans, etc. related to a dwelling
(specific additions or improvements, etc.) under the Act on Special Measures Concerning Taxation due to
the acquisition of a house, etc., or any person who has not claimed the credit at the time of the year-end
adjustment from the second and subsequent years after the application of a special credit for loans, etc.
44
related to a dwelling (specific additions or improvements, etc.)
(9) Any person who has failed to submit an “Application Concerning Receipt of Retirement Income” upon
receipt of retirement allowance, etc. and was withheld a tax at a rate of 20.42% on the amount received,
where the amount of tax withheld exceeds the amount of tax calculated by applying the deduction for
retirement income, etc.
(10) Any person who has an intention of applying for a special credit for contributions to political parties, etc.
because the person has made a certain contribution to a political party, etc. related to political activities
(11) Any person who has an intention of applying for a special credit of income tax amount under the Act on
Special Measures Concerning Taxation because his/her payment amount exceeds 2,000 yen for certain
donations to certified NPOs, etc. or for certain donations to certain public interest incorporated
associations, etc.
(12) Any person who has completed a certain anti-earthquake improvement and has an intention of applying
for a special credit for anti-earthquake improvements made to an existing house
(13) Any person who has completed a certain specified housing improvements and has an intention of
applying for a special tax credit for specified housing improvements, or any person who has newly built
an certified house and has an intention of applying for a special tax credit for new building, etc. of a
certified house
(14) Any person whose total specific expenses exceeds the amount equal to one half of the amount of the
deduction for employment income and who has an intention of applying for special provisions on
deduction of specific expenses of employment income earners
(15) Any person who has taken a health examination to maintain/improve his/her health and to prevent
diseases, and has an intention of applying for a special provisions on deduction for medical expenses
under the Act on Special Measures Concerning Taxation in the case that his/her total purchase amount of
certain drugs (switch OTC drugs) exceeds 12,000 yen
45

Withholding Tax Guide - Japan PDF

Uploaded by

Copyright:

Available Formats

Withholding Tax Guide - Japan PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Withholding Tax Guide - Japan PDF

Uploaded by

Copyright:

Available Formats

National Tax Agency

1. Outline of the Withholding Tax System ........................................................................................... 3

2. Procedure for Withholding from Employment Income .................................................................... 8

3. Procedure for Withholding from Retirement Income .................................................................... 31

4. Procedure for Withholding from Remuneration/Fees ................................................................... 34

5. Procedure for Withholding from Dividend Income ........................................................................ 36

7. Withholding from Other Income .................................................................................................... 40

8. Other Matters ................................................................................................................................ 41

I. Significance of the Withholding Tax System

II. Withholding Agents

IV. Notification of Salary-Paying Office

2 Submission of “Notification of Relocation (Closure) of a Salary-Paying Office”

V. Scope of Income Subject to Withholding

Beneficiary Kinds and scope of income subject to withholding

Resident 1 Interest, etc.

Domestic corporation 1 Interest, etc.

Non-resident 1 The following domestic source income:

VI. Timing of Withholding

2 Special Provision for Due Date

Classification Due date

Income tax and special income tax for reconstruction July 10

I. Outline of Withholding Procedure

<Process> <Forms used>

 Year-end adjustment process, etc.

<Process> <Forms used>

7 Withholding record delivered to the taxpayer Employment Income Withholding Record

II. Scope of Employment Income

1 Commutation Allowances, etc.

Classification Non-taxable amount

(2) Commutation allowance Commuting distance of 55 km ¥31,600

Commuting distance of 35km ¥24,400

Commuting distance of 25km ¥18,700

Commuting distance of 15km ¥12,900

Commuting distance of 10km ¥7,100

Commuting distance of 2km ¥4,200

Commuting distance of less (taxable in full)

2 Special Allowances, etc.

(2) Confirmation of the identity of the individual

IV. Various Withholding Deductions

1,625,000 yen or less 650,000 yen

2 Income Deduction and Tax Credit

Classification Application for deduction

Both new and

Medical care insurance premium Up to a maximum of

Both new and

Deduction for Earthquake insurance premiums only Up to a maximum of

Both earthquake insurance premiums and Up to a maximum of

Basic exemption 380,000 yen

Exemption for Spouses covered by exemption Up to a maximum of “Application for

improvements, etc.) for

Over 1,230,000 yen 0 yen 0 yen 0 yen

3 Scope of Persons Covered by Exemptions

(Spouse living in the same household)

(Elderly spouse covered by the exemption)

(Spouse covered by the withholding exemption)

(Spouse covered by the special exemption for spouses)

(Dependents covered by the exemption)

Dependents aged 16 or above