Accounting Outsourcing Firm in Tokyo 【TSUJITAX】

Accounting Outsourcing Firm in Tokyo 【TSUJITAX】

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Payment of Withheld Income Tax 2 Special Provision for Due Date

(1) Special provision regarding due dates
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 Withheld 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 withheld from salaries, retirement allowances 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 inwhich 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 of withheld income tax
Due date
Income tax withheld between January and June
July 10
Income tax withheld between July and December
January 10 of the following year
(Note) 1 Income tax to which the special provision for due dates applies is limited to the following:
i) Income tax withheld from salaries and retirement allowances (including those for non-residents).
ii) Income tax 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 Any application submitted by post or correspondence delivery (hereinafter referred to as “mail”) shall be deemed to have been submitted on the date indicated by the date stamp on the mail.
(2) Special provision regarding extension of due date
If a withholding agent that has received approval for an application made in relation to the special provision for due dates under (1) above submits an “Application Under the Special Provision on the Extension of the Due Date Pertaining to an Approval Under the Special Provision on Due Dates” (納期の特例適用者に係る納期限の特例に関する届出書)to the district director of the competent tax office, the due date for payment of income tax withheld between July and December of each year after the year in which the application is submitted shall be January 20 of the following year.
If any of the following events occurs in any year after the year of application, however, the special provision regarding extension of due dates shall not apply, and the due date for income tax withheld between July and December of the relevant year shall be January 10 of the following year.
A. Any delinquency in payment of withholding income tax as of December 31 of the relevant year; or
B. Failure to pay income tax withheld between July and December of the relevant year by January 20 of the following year.
(Notes) 1 Any application submitted by mail shall be deemed to have been submitted on the date indicated by the date stamp on the mail.
2 Any such application may be submitted together with an application for approval under the special provision regarding due dates under (1) above.

(上記 国税庁HPより引用)

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Payment of Withheld Income Tax 1 Due Date for Payment

Income tax 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.

(上記 国税庁HPより引用)

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Timing of Withholding

Withholding of income tax occurs when the income subject to withholding is actually paid. Even if the income should be paid, no withholding is in principle necessary unless actual payment is made.
(Note) “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.

(上記 国税庁HPより引用)

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Scope of Income Subject to Withholding

The scope of income subject to withholding is as shown in the following table.
Each of the main items is considered separately in more detail below.
Beneficiary
Kinds of income subject to withholding
Resident
(an individual having a domicile in Japan or an individual who resides continuously in Japan for 1 year or more)
1 Interest, etc.
2 Dividends, etc.
3 Salary, etc.
4 Retirement allowance, etc.
5 Public pension, etc.
6 Remuneration/fees, etc.
7 Pension based on a life insurance contract, casualty insurance contract, or similar annuity agreement
8 Compensation money for benefits from installment deposits, etc.
9 Distribution of profits under a silent partnership (Tokumei-Kumiai) contract
10 Consideration for the transfer of listed stocks kept in a specific account, etc.
11 Monetary awards, etc. from deposits offering such awards
12 Profit from redemption of discount bonds
Domestic corporation
(a legal person having a head office or principal place of business in Japan)
1 Interest, etc.
2 Dividends, etc.
3 Compensation money for benefits from installment deposits
4 Distribution of profits under a silent partnership (Tokumei-Kumiai) agreement
5 Horse racing prizes received by a horse owner
6 Monetary awards from deposits offering such awards, etc.
7 Profit from redemption of discount bonds
Non-resident
(an individual other than a resident) or a foreign corporation (a legal person other than a domestic corporation)
1 The following forms of consideration sourced from Japan:
(1) Profits arising from partnership contract business conducted in Japan;
(Note: “Partnership contract business” is business conducted under a partnership contract provided for in Item 1-2, Article 161 of the Income Tax Act.)
(2) Consideration for the transfer of land, etc., in Japan;
(3) Consideration received by a person doing business that involves the provision of personal services in Japan;
(4) Consideration for leasing of real estate, vessels, aircraft, etc., in Japan and consideration for arranging land use rights, etc.;
(5) Interest, etc., on funds deposited in a business office in Japan;
(6) Dividends of surplus, dividends of profit, distribution of surplus or interest on funds received from a domestic corporation, distribution of revenue from an investment trust (excluding bond investment trusts and publicly offered bond investment trusts) or trust issuing a specified beneficiary certificate entrusted to a business office in Japan, etc.;
(7) Interest on a loan pertaining to a domestic business for a person doing business in Japan;

(8) Royalties for any industrial property right, copyright or neighboring right, or consideration for the transfer thereof, pertaining to a domestic business from a person doing business in Japan
(9) Any amount sourced from work in Japan among remuneration paid for the provision of personal services including non-resident salary, certain amounts of public pensions, etc., and any retirement allowances sourced from work performed while the beneficiary was a resident;
(10) Awards for the advertising of a business in Japan;
(11) Pensions based on life insurance contracts or casualty insurance contracts made through domestic business offices;
(12) Compensation money for benefits from installment deposits accepted by domestic business offices, etc.; 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 Distribution of profits from foreign special purpose trusts and revenue from foreign special investment trusts.
3 Consideration for the transfer of listed stocks kept in a specific account and received by a non-resident having a permanent establishment in Japan
4 Monetary awards from deposits offering such awards, etc.
5 Profit from redemption of discount bonds

(上記 国税庁HPより引用)

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Submission of Notification on the Relocation (Closure) of a Salary-paying Office

A salary payer shall submit a “Notification on the 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 salary payments due to the dissolution, closure or suspension of a business, etc.;
(2) Cessation of salary payment handling activities by any branch or business office; or
(3) Relocation of an office that handles salary payments.

(上記 国税庁HPより引用)

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Submission of Notification on the Establishment of a Salary-paying Office

A salary payer shall submit a “Notification on the Establishment of a Salary-paying Office” (給与支払事務所等の開設届出書)within one month of the date of occurrence of any of the following events:
(1) The establishment of a new office that handles salary payments (e.g. the establishment of a corporation or the opening of a branch or business office); or
(2) The commencement of salary payment handling activities by any branch, business office, or similar establishment.

(上記 国税庁HPより引用)

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Place for Payment of Withheld Income Tax

Income tax withheld by a withholding agent shall be paid to the competent tax office for the place where tax is paid. The place for payment of withheld income 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.

(上記 国税庁HPより引用)

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Withholding Agents

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)

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Significance of the Withholding Tax System

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)

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bank commission

In Japan,you will pay a commission to bank if you exchange much money.
But you will not pay a commission to bank if you pull out the money by fraction (for example 9999JPY).

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