Newsletter

Does a Japanese company need to withhold tax when it pays dividends, interest or royalties to a Hong Kong company? If so, at what rate? And what about payments made by a Hong Kong company? Japan and Hong Kong have a comprehensive double tax agreement (signed in 2010, effective in Japan from 1 January 2012 and in Hong Kong from the 2012/13 year of assessment). The withholding tax rate on a payment is the lower of the domestic law rate and the treaty rate.

In Japan, the due date for corporate tax returns is generally two months after the end of the financial year.