Beneficial owners recognised in Japan
Residents of Double Taxation Treaty (DTT) countries
Relief and reclaim procedures are in place for residents of DTT countries with regard to withholding tax on income from the following security types, as indicated:
- Japanese Convertible Bonds (JCBs):
The standard rate of withholding tax on interest from JCBs is 15.315% in Clearstream Banking.
Relief at source is available to beneficial owners that qualify for the benefit of a reduced rate of withholding tax in accordance with a DTT between their country of residence and Japan.
By submitting the appropriate documentation, customers can apply through Clearstream Banking for a standard refund on behalf of beneficial owners for whom relief at source has not been obtained. - Listed equities, ETFs and REITs:
The standard rate of withholding tax on dividends from Japanese listed equities, ETFs and REITs is 15.315% in Clearstream Banking.
Relief at source is available to beneficial owners that qualify for the benefit of a reduced rate of withholding tax in accordance with a DTT between their country of residence and Japan.
By submitting the appropriate documentation, customers can apply through Clearstream Banking for a standard refund on behalf of beneficial owners for whom relief at source has not been obtained. - Japanese American Depository Receipts (ADRs):
The standard rate of withholding tax on dividends from Japanese ADRs is 15.315% in Clearstream Banking.
Relief at source is available to beneficial owners that qualify for the benefit of a reduced rate of withholding tax in accordance with a DTT between their country of residence and Japan.
Standard refund on behalf of beneficial owners for whom exemption has not been obtained is not available via Clearstream Banking.
Tax-exempt beneficial owners
Relief and reclaim procedures are in place for tax-exempt beneficial owners with regard to withholding tax on income from the following security types, as indicated:
- Listed equities, ETFs and REITs:
The standard rate of withholding tax on dividends from Japanese listed equities, ETFs and REITs is 15.315% in Clearstream Banking.
Exemption at source is available to beneficial owners that duly qualify.
By submitting the appropriate documentation, customers can apply through Clearstream Banking for a standard refund on behalf of beneficial owners for whom exemption at source has not been obtained. - Japanese American Depository Receipts (ADRs):
The standard rate of withholding tax on dividends from Japanese ADRs is 15.315% in Clearstream Banking.
Exemption at source is available to beneficial owners that duly qualify.
Standard refund on behalf of beneficial owners for whom exemption has not been obtained is not available via Clearstream Banking.
Non-residents of Japan
Relief at source is available for non-residents of Japan with regard to withholding tax on income from the following security types, as indicated:
- Japanese government, corporate and municipal bonds:
The standard rate of withholding tax on interest from Japanese Government Bonds (JGBs), Japanese corporate bonds and municipal bonds is 0% in Clearstream Banking, as only tax-exempt beneficial owners are eligible to hold these bonds via Clearstream Banking.
Non-residents qualify as tax-exempt beneficial owners provided that the appropriate documentation has been submitted to Clearstream Banking before investment. - Japanese Eurobonds:
The standard rate of withholding tax on interest from Japanese Eurobonds is 15.315% in Clearstream Banking.
Exemption at source is available to non-residents beneficial owners.
Standard refund on behalf of non-residents beneficial owners for whom exemption has not been obtained is not available via Clearstream Banking. - Samurai bonds:
The standard rate of withholding tax on interest from Samurai bonds is 20.315% in Clearstream Banking.
Exemption at source is available to non-resident beneficial owners.
Standard refund on behalf of non-resident beneficial owners for whom exemption has not been obtained is not available via Clearstream Banking.
Designated Financial Institutions (DFIs) resident in Japan
Relief at source is available for DFIs in Japan with regard to withholding tax on income from the following security types, as indicated:
- Japanese government, corporate and municipal bonds:
The standard rate of withholding tax on interest from Japanese Government Bonds (JGBs), Japanese corporate bonds and municipal bonds is 0% in Clearstream Banking, as only tax-exempt beneficial owners are eligible to hold these bonds via Clearstream Banking.
DFIs qualify as tax-exempt beneficial owners provided that the appropriate documentation has been submitted to Clearstream Banking before investment and provided that the DFI is a Clearstream Banking customer holding proprietary JGBs and/or Japanese corporate or municipal bonds only. - Samurai bonds:
The standard rate of withholding tax on interest from Samurai bonds is 20.315% in Clearstream Banking.
Exemption at source is available to DFIs provided that the DFI is a Clearstream Banking customer holding proprietary Samurai bonds only.
Standard refund on behalf of DFIs for whom exemption has not been obtained is not available via Clearstream Banking. - Japanese Eurobonds:
The standard rate of withholding tax on interest from Japanese Eurobonds is 15.315% in Clearstream Banking.
Exemption at source is available to DFIs provided that the DFI is a Clearstream Banking customer holding proprietary assets only.
Standard refund on behalf of beneficial owners for whom exemption has not been obtained is not available via Clearstream Banking.
Tax residents of Japan (individual or corporation) who receive interest payments through a Payment Handling Agent (PHA) in Japan
Relief at source is available for tax residents paid through a PHA in Japan with regard to withholding tax on income from Japanese Eurobonds, as indicated:
- Japanese Eurobonds:
The standard rate of withholding tax on interest from Japanese Eurobonds is 15.315% in Clearstream Banking.
Exemption at source is available to tax residents paid through a PHA in Japan.
Standard refund on behalf of tax residents paid through a PHA in Japan and for whom exemption at source has not been obtained is not available via Clearstream Banking.
Tax residents of Japan (corporation)
Relief at source is available for Corporations tax residents of Japan with regard to withholding tax on income from Samurai bonds, as indicated:
- Samurai bonds:
The standard rate of withholding tax on interest from Samurai bonds is 20.315% in Clearstream Banking.
Relief at source is available for Japanese corporations (domestic corporation) residents in Japan for Japanese tax purposes.
A Japanese corporation is designated in Act No. 34 of 31 March 1965, Part I Chapter I Article 2-3 of the Corporate Tax Act as a corporation that has its head office or principal office in Japan and is eligible for a reduced rate of Japanese withholding tax (that is, 15.315% for Samurai bonds).
Standard refund on behalf of beneficial owners for whom relief at source has not been obtained is not available via Clearstream Banking.