Royalties

By admin on 2003.12.23 11:26 | Permalink

As outlined in the following documents, royalties are subject to withholding taxation in Japan at 20.42% for people living overseas, and 10.21% 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. However, we cannot file for an exemption unless you fill out the necessary paperwork. We'll work with you to help you get it done, but it's the law and there's no way around it.

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). However, if you print it out, note that the form MUST BE PRINTED ON ONE SHEET OF PAPER. That can be both sides of a sheet, or print both pages on one side of a larger sheet, but it must be a single sheet! This is required under Japanese law for a legal document, which this is. 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 Kingdom, France or Australia (more countries are added every so often, so please check first!):
These nations and Japan have entered into an agreement that allows people living there to receive 100% of royalty payments. Please refer to the following websites for more information:
Application for US Residency Certification
Application for UK Residency Certification
特典条項に関する付表 (in Japanese)
租税条約に関する届出 (in Japanese)

Useful URLs

Exemptions to taxation by tax treaties:
https://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/joyaku/annai/1648_41.htm

PDF exemption request form for tax on royalties (様式３)
(all nations, including America):
http://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/joyaku/annai/pdf2/252.pdf