Withholding tax

Hello, this is Mitsui Fudosan Realty.
Today, we would like to explain about “withholding tax”.

If a “non-resident” owner, those who does not have a residential address in Japan, sold his/her property in Japan,
its buyer has a responsibility to pay 10.21% of each payment to specific tax office.
This is called “withholding tax”.
So, the owner will temporarily receive only 89.79% of each payment.

However, the good news for sellers is that the nature of withholding tax is a prepaid tax.
By doing tax claim, you may get some refund when your money is withheld too much than the actual amount of tax to be levied.

Likewise, if a “non-resident” owner leases a property he/she owns and the tenant is a corporation, the lessee will be obligated to pay 20.42% of the rent, etc. to the tax office.
Even in that case, by doing tax claim, you may get some refund when your money is withheld too much than the actual amount of tax to be levied.

For detailed tax calculations, please contact tax accountant or tax offices.

Please rely on Mitsui Fudosan Realty for assisting you in either purchasing or selling properties in Japan.

For more information on taxes, please click the link below.
https://global.mf-realty.jp/en/tax01.html