The payer remits the deducted tax to the government by the 10th of the month following the month in which it was withheld. Article 212, paragraph 1 governs withholding when the recipient is a nonresident or a foreign corporation1.
Consider a hypothetical example in which V Corp, a Japanese company, pays 10 million yen to a nonresident in a category with a domestic-law rate of 20%. V Corp deducts 2 million yen and remits it to the government, and the recipient receives 8 million yen. The reconstruction special income tax is not included. If a tax treaty application form has been filed, withholding is at the treaty's maximum rate, so the amount deducted can be smaller.
Whether a payment is subject to withholding depends on its income category. The article "Withholding Tax" explains how this applies to derivative payments.
Notes
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"所得税法" (Income Tax Act, unofficial translation, in Japanese), Article 212, paragraph 1. A person who, in Japan, pays Japan-source income to a nonresident or a foreign corporation withholds income tax at the time of payment and remits it to the government by the 10th of the following month. Article 213, paragraph 1 sets the rates. ↩