10% tax withheld by Japanese client
Thread poster: J.Kampinga

J.Kampinga
United Kingdom
Local time: 00:32
Member (2012)
Japanese to English
May 24, 2012

Dear all,

One of my Japanese clients says they need toe withhold 10% tax. None of my other Japanese cleitns do this, I have pointed them towards the Double Taxation Convention between the UK and Japan, but they still insist the 105 tax needs to be taken.

Am I mistaken in thinking that it shouldn't be?

Any advice greatly appreciated!

Jannette.


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OlivierParrot  Identity Verified
France
Local time: 01:32
Member (2012)
Japanese to French
+ ...
As far as I know May 24, 2012

This should apply to translators working in Japan only.
If you don't live there or rather don't pay your taxes there, you shouldn't have to give up these 10%. Prove you live somewhere else and this 10% should come back at the end of the fiscal year


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J.Kampinga
United Kingdom
Local time: 00:32
Member (2012)
Japanese to English
TOPIC STARTER
. May 24, 2012

Yes, thank you, that's what I thought too..

I will have another look for online information to send to them.

(If you, or anyone else for that matter, knows of any such info, again, I would be very grateful!)

Jannette


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Aliseo Japan  Identity Verified
Japan
Local time: 09:32
Member
Italian to Japanese
+ ...
It applies only to translators living in Japan. May 24, 2012

If you are living and working outside Japan there is no reason why this agency should withhold the 10%. They are unquestionably mistaken or in bad faith.

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J.Kampinga
United Kingdom
Local time: 00:32
Member (2012)
Japanese to English
TOPIC STARTER
. May 24, 2012

Thank you!
I don't think it is done in bad faith BTW - they're just a small company without much experience in working with overseas freelancers.

I'd rather just help them to get the right kind of information to solve the problem, but I haven't found it yet..

Jannette.


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SonokoE  Identity Verified
Japan
Local time: 09:32
Member (2010)
English to Japanese
Links to the National Tax Agency pages May 25, 2012

You can send the following links to the agency so that they can understand the system.

http://www.nta.go.jp/taxanswer/gensen/2872.htm
http://www.nta.go.jp/taxanswer/gensen/2878.htm

Sonoko


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J.Kampinga
United Kingdom
Local time: 00:32
Member (2012)
Japanese to English
TOPIC STARTER
. May 25, 2012

Thank you so much - that's very helpful. Much appreciated! I'll forward the links to them.

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Michael&Yoshiko  Identity Verified
United Kingdom
Local time: 00:32
French to English
+ ...
Japanese tax and translators Jun 9, 2012

Hi Jannette

I think the previous posters are correct. This agency should not be withholding tax from your fee. We have dealings with several agencies in Japan, and they don't withhold tax in our case because we're not resident in Japan. As one agency explains, "在日でない場合、源泉徴収は差し引かれません".

It is probably possible to claim from the Japanese National Tax Agency a refund of tax withheld, but you shouldn't have to do this.

(Legally, as far as I know, your obligation is to pay tax in the UK on income remitted to you from Japan.)

Regards

Michael


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J.Kampinga
United Kingdom
Local time: 00:32
Member (2012)
Japanese to English
TOPIC STARTER
thank you! Jun 9, 2012

Dear Michael,

Thank you very much for your reply; yes, you're absolutely right, it is in the UK that I pay tax, not in Japan. Fortunately it was all sorted out amicably, it was just because the client involved hadn't come across this issue before (they're not an agency).

The support offered by you all was very helpful - thanks again!
Jannette


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10% tax withheld by Japanese client

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