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Where Taxpayers and Advisers Meet

Withholding tax in Japan - do I need to pay this?

mikey-023
Posts: 1
Joined: Tue Oct 30, 2018 11:17 am

Withholding tax in Japan - do I need to pay this?

Postby mikey-023 » Tue Oct 30, 2018 11:25 am

I have been offered a book deal with a Japanese translation company, who appear to be telling me I must pay 20.42% withholding tax on the advance and royalties.

I checked out the PWC info on this - http://taxsummaries.pwc.com/ID/Japan-Corporate-Withholding-taxes

And this appears to say that there is a deal in place on earnings in Japan - but I have no clue how to read this document.

I pay 0% WHT on US earnings, due to a US-UK tax deal - so does something similar apply here?

Can anyone clarify the position?

Thank you.

AGoodman
Posts: 770
Joined: Fri May 16, 2014 3:47 pm

Re: Withholding tax in Japan - do I need to pay this?

Postby AGoodman » Fri Nov 09, 2018 5:42 pm

You may have to take Japanese tax advice - it may be a matter of reclaiming the withholding tax from the authorities there.

maths
Posts: 7528
Joined: Wed Aug 06, 2008 3:25 pm

Re: Withholding tax in Japan - do I need to pay this?

Postby maths » Fri Nov 16, 2018 5:21 pm

On the basis that the income constitutes "royalties" then under the UK/Japan double tax treaty as a UK resident you are not subject to any Japanese tax on such income i.e. no withholding tax.

However, in practice you are often required to complete an appropriate form for the Japanese tax authorities confirming your right to utilise the UK/Japan treaty and avoid their domestic withholding tax.

Your publisher in Japan should be aware of this and should be able to help.

maths
Posts: 7528
Joined: Wed Aug 06, 2008 3:25 pm

Re: Withholding tax in Japan - do I need to pay this?

Postby maths » Fri Nov 16, 2018 5:24 pm

Vice-versa a Japanese resident receiving UK source royalties would complete the form below:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/453007/japan-1-dt.pdf


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