withholdingtax

Under the withholding tax system, persons obliged to withhold income tax 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, retirement allowances, 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.

（上記　国税庁ＨＰより引用）

The income tax system is founded on the principle of the “self-assessment system,” whereby an income earner 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. Income tax 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.

（上記　国税庁ＨＰより引用）