I rent a new home but from what I know, the landlord is an American (living in the US). I heard from my acquaintance before that in paying rental fee to a foreigner, we need to withhold tax. I’m a employee and do I still need to withhold taxes?
You don’t need to withhold taxes. When you rent a real estate in Japan from a non-resident or a foreign corporation, you need to withhold 20.42% of the rent paid in principle. But, if the borrower is an individual, and the real estate is borrowed for the living use of the person himself or the relative, it is not necessary to withhold income tax to the rent money.