Archive for November 1st, 2010

The definition of Japan source interest income

November 1, 2010  |  Japan Source Rules, Withholding tax  |  No Comments

Okonomiyaki: A Japanese disk made of cabbage mixed with other flavouring and binding ingredients. Often cooked by the restaurant patrons themselves.

Where a foreign company earns income with the economic nature of interest (referred to below as ‘Funding Income’) from lending to a business carried out in Japan, investing in a bond with a Japanese issuer or from a similar transaction (referred to below as a ‘Funding Transaction’), Japanese withholding tax (‘WHT’) will apply if the income is treated as falling within defined categories of Japan source income. Read More