Japan: Increase to withholding tax on dividends from Japanese listed equities
Further to our Taxflashes T13007 of 15 January 2013 and T13004 of 9 January 2013 and our announcement A12233 of 20 December 2012, we would like to remind you that, effective
1 January 2014
the withholding tax rate for Japanese listed equities will increase. The current withholding tax rate on dividends on listed equities (7.147% for non-residents) will revert to the original (15.315%) from 1 January 2014.
Following the tax law proposed by the Japanese Governmental Tax Research Commission on 15 November 2011 and passed by the Cabinet Office of the Government of Japan tax rates will be as follows:
Note: In the following tables, N=National tax; L=Local tax.
Dividends from listed equities
| Type of investor | Current rate (January 2013) | Rate from January 2014 | Rate from January 2038 |
| Japanese investors | 10.147% (= 7.147% N + 3% L) | 20.315% (= 15.315% N + 5% L) | 20% (= 15% N + 5% L) |
| Foreign investors | 7.147% | 15.315% | 15% |
Dividends from unlisted equities
The tax rate on dividends from unlisted equities has been 20.42% for all investors since 1 January 2013.
Interest
| Type of investor | Current rate (January 2013) | Rate from January 2014 | Rate from January 2038 |
| Japanese investors | 20.315% (= 15.315% N + 5% L) | 20.315% (= 15.315% N + 5% L) | 20% (= 15% N + 5% L) |
| Foreign investors | 15.315% | 15.315% | 15% |
The procedures for relief at source and tax reclaims are currently under review with Clearstream Banking's1 local depository. Further information will be provided as soon as it becomes available.
For your information the current list of Double Taxation Treaties and the rates, currently in force, are attached below.
Further information
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).