Japan Tax Laws Tax System 2012. - WorldWide-Tax.com

Japan Tax Laws Tax System 2012. - WorldWide-Tax.com

Japan Social Security
The social security covers matters such as health insurance, pension insurance, unemployment insurance and more. The rates are as follows:
Employer - 15.086%
Employee - 14.3%
Dividend, Royalties and Interest in Japan
When payments of the following sorts are made to non- residents, deductions must be made at source at the following rates:
Dividend 20 %
Royalties 20 %
Interest 20 %

Note: Starting January 1, 2013 an additional 2.1% surtax will be imposed on the above mentioned payments resulting in a 20.42% rate.

1. The rates above are before 6% Japan municipal tax. And 4% prefectural tax, 10% in total.
   1. Japan's individual income tax rates including local taxes are among the highest tax rates in the world. The effective top marginal tax rate is around 50%.
   2. Non residents pay for salary, interest, dividend and royalty income in Japan 20%.