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Withholding tax on foreign income and dividends in Japan for residents

Withholding tax in Japan for foreign residents: about 20.315% on listed dividends, when to file, foreign income for non-permanent residents, tax credit.

By JapanHow editors Updated 3 min read

Listed dividends
15.315% + 5% withheld
Filing
Optional for listed dividends
Non-permanent resident
Foreign income taxed if remitted
Foreign tax
Credit, 3-year carryover
Short answer

As of October 2026, dividends from Japanese listed shares have 15.315% income tax and 5% local tax withheld, about 20.315% in total, and you can choose not to file a return. Residents are taxed on worldwide income, but non-permanent residents (no Japanese nationality, 5 years or less in Japan within 10) are taxed on foreign income only if paid in or remitted to Japan. Foreign tax paid can be credited with a return.

Withholding tax in Japan raises two questions if you hold shares: what is taken out of your Japanese dividends, and how Japan treats your income from abroad. As of October 2026, dividends from Japanese listed shares have 15.315% income tax and 5% local tax withheld, about 20.315% in total, and you may skip filing. Japan taxes residents on income wherever it arises, with one big exception for non-permanent residents (非永住者).

Listed dividend withholding

~20.315%

15.315% income tax (including reconstruction surtax) + 5% local tax. The sum is our arithmetic; the NTA states the two parts.

Dividends from Japanese shares

The National Tax Agency (国税庁, NTA) says withholding on dividends depends on the type of share:

Share type Withheld
Listed 15.315% income tax + 5% local tax
Unlisted 20.42%, no local tax
Listed, but you hold 3% or more of the company (large shareholder) Treated like unlisted: 20.42%

Dividends are normally added to your other income (総合課税). For listed shares you can instead file and choose separate taxation (申告分離課税), but that choice covers all your listed dividends in that return.

Do you have to file?

For listed shares (not large-shareholder holdings), the NTA says you don’t have to file at all, whatever the amount (確定申告不要制度). You choose this per payment, and the withheld tax then can’t be credited against your income tax. If you want to report dividends, you must file a return listing them. For the rest of the return process, see tax return in Japan for foreigners.

Dividends inside NISA are a separate story: see NISA for foreigners.

Income from abroad

Your tax category decides the answer (NTA, No.2010):

Category Foreign income taxed in Japan?
Resident other than non-permanent Yes, all of it, wherever earned
Non-permanent resident (no Japanese nationality, and 5 years or less in Japan within the past 10 years) Only the part paid in Japan or remitted from abroad to Japan
Non-resident No, only Japan-source income

That’s why newcomers on a fresh work visa may treat foreign dividends differently from someone who has lived here for years. Once you pass the 5-year mark within the past 10 years you move to the first row, and then everything counts. For how residence is decided, see Japan tax residency for foreigners, and for reporting overseas accounts see overseas assets report.

Foreign tax already paid: the foreign tax credit

If a foreign country withheld tax on your dividend, a resident can credit it against Japanese income tax and reconstruction tax (外国税額控除). The NTA sets out:

  • The credit can’t exceed a limit: your annual Japanese income tax multiplied by foreign-source income over total income.
  • Unused limit, and foreign tax that exceeded the limit, carry over for 3 years.
  • You claim it on your return with the 外国税額控除に関する明細書 plus proof of the foreign tax (name, amount, date, authority, the foreign return or equivalent).
  • Foreign tax on dividends in NISA-type accounts, tax on income earned while a non-resident, and amounts exempt under a treaty are excluded.
  • For non-permanent residents, only the part of foreign income paid in or remitted to Japan counts in the limit.

For shares sold through an overseas broker, residents are taxed as on domestic sales, and the credit can apply.

Questions people ask

How much tax is withheld on dividends in Japan?

For listed Japanese shares, 15.315% income tax (including reconstruction surtax) plus 5% local tax, about 20.315% in total. Unlisted shares have 20.42% withheld with no local tax.

Do I have to file a tax return for dividends in Japan?

Not for listed-share dividends, unless you are a large shareholder (3% or more). The no-filing system (確定申告不要制度) lets you skip them, but then you can't credit the withheld tax against your income tax.

Does Japan tax my foreign income?

Residents are taxed on income wherever it arises. A non-permanent resident is taxed on Japan income plus foreign income paid in Japan or remitted to Japan. Non-residents are taxed on Japan-source income only.

How do I avoid double taxation on foreign dividends?

Residents who pay foreign income tax can claim a foreign tax credit by attaching a statement and proof of the foreign tax to their return, up to a limit based on your Japanese tax. Unused room and excess carry over 3 years.

Is the foreign tax on dividends in a NISA account creditable?

No. The NTA lists foreign tax on dividends in NISA-type tax-advantaged accounts among the amounts excluded from the foreign tax credit.

Sources

  1. No.1330 配当所得, National Tax Agency (国税庁) (accessed Oct 29, 2026)
  2. No.1240 居住者に係る外国税額控除, National Tax Agency (国税庁) (accessed Oct 29, 2026)
  3. No.2010 納税義務者となる個人, National Tax Agency (国税庁) (accessed Oct 29, 2026)
  4. No.1937 居住者が海外で株式等を売却した場合の課税関係等, National Tax Agency (国税庁) (accessed Oct 29, 2026)
  5. 株式の売却をした方や配当等を受け取った方へ（令和7年分 確定申告特集）, National Tax Agency (国税庁) (accessed Oct 29, 2026)

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