Royalties
As outlined in the following documents, royalties are subject to withholding taxation in Japan at 20% for people living overseas, and 10% for people living in Japan. As publisher, Kurodahan Press is obligated to withhold this amount in the recipient's name.
However, if Japan and the nation that the recipient lives in have signed a tax treaty, it is possible to get an exemption which allows us to pay the amount that would be due under the tax law of the country the recipient lives in.
Kurodahan Press will file requests for exemptions for all translators and authors living outside Japan where this would result in lower taxes, but not all nations have signed tax treaties with Japan. Some of the nations which have signed are America (rate is 10%), Australia (10%), Canada (10%), China (10%), France (10%), Germany (10%), India (20%), Italy (10%), Korea (10%) and New Zealand (unspecified; handled at 20%). There would be no point in filing for India, for example, because we would have to withhold 20% in either case.
When we mail the contract to you, we will enclose the above PDF for your signature (or you can download it, print it out and return the signed form to us). We will file this form with the Japanese tax office for you.
We will do what we can to assist you, but if we don't get your forms in time and properly filled out, we will be obligated to withhold taxes.
Note that the above information may be changed at any time by various governments.
Special note for people living in the United States:
The United States and Japan have entered into a new agreement that allows people living in the United States to receive 100% of royalty payments. Please refer to the following websites for more information:
Explanation in English
Explanation in Japanese
Useful URLs (in Japanese)
Exemptions to taxation by tax treaties:
http://www.nta.go.jp/taxanswer/gensen/2887.htm
Tax withholdings for people living overseas:
http://www.nta.go.jp/taxanswer/gensen/gensen36.htm
PDF exemption request form for tax on royalties
(all nations, including America)
:
http://www.nta.go.jp/shiraberu/zeiho-kaishaku/tsutatsu/kobetsu/hojin/010705/pdf/208.pdf
PDF exemption request form for tax on royalties (America only)
:
http://www.nta.go.jp/shiraberu/zeiho-kaishaku/tsutatsu/kobetsu/hojin/010705/pdf/222.pdf
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