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Withholding tax rate on dividend and interest

Withholding tax rate on dividend and interest paid to individuals in Japan are detailed on the chart below.

Investment income

National income tax

Local tax

Dividends from listed company

15.315%

5%

Dividends from private company

20.42%

Interest on bank deposit, bond investment etc

15.315%

5 %

 

Tax rates imposed on non-resident in Japan

Basically, a non-resident is subject for a Japanese income tax at the flat rate of 20.42% of gross amount of their domestic source income beside from the certain income like the domestic source property income which is subject to progressive tax rates.