Request for Submission of "Application Form for Income Tax Convention"

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David Young

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Apr 20, 2009, 2:40:54 AM4/20/09
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Dear All

 

I recently received a file headed [Request for Submission of “Application Form for Income Tax Convention”] from a translation agency in Japan.

 

The first paragraph is as follows.

As you may already know, according to Japanese tax law XXX is obliged to collect withholding tax on income at a flat rate of 20% with respect to all payments to translators residing overseas. However, if an income tax convention (treaty) has been concluded between Japan and the country where you reside, you are entitled to receive a reduction in tax rate or an exemption based on the applicable convention by submitting an “Application Form for Income Tax Convention” form.

 

Has anyone received anything similar?

 

TIA David Young

 

Peter Clark

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Apr 20, 2009, 2:46:09 AM4/20/09
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Dear David,
Yes. I filled out one for an agency last year. There should be a list with it showing whether your country has a treaty.

Peter Clark
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martha mcclintock

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Apr 20, 2009, 3:31:33 AM4/20/09
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recently the tax offices in tokyo and nagoya seem to be getting VERY
interested in having these filed. And some of my clients now want to
turn one into the tax office with EACH payment, not once per client....

Some of my clients file them. Some don't, some tax offices ask for
them, some don't.... some have never been hassled by the tax office,
some have been hassled a lot about these....



Please be aware, if you are living in Australia, the withholding
amount is now supposed to be 5% due to changes in the tax treaty
between Japan/Australia.

Ask the client to check with tax office on current withholding amount
for your country of residence....

Some withhold 5 percent, some withhold 20..... some withhold
nothing.....

Read the fine print on the form... If you don't have a "permanent
establishment" in Japan, and you are billing as a company, NOT as an
individual, does your accountant think you are subject to withholding...

and, if you are filing overseas taxes in US or Australia, or such, you
can claim the withheld amount as "foreign tax credits".... Possibly
true in other countries, but i definitely know those....

and the fun bit, read the japanese and the english on the form....
they don't always say the same thing....

grins
Martha McClintock, trying to get out of the Japanese Tax Offices
clutches for 5 plus years....

Fred Uleman

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Apr 20, 2009, 3:39:10 AM4/20/09
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Re:
and the fun bit, read the japanese and the english on the form....
they don't always say the same thing....

Just out of curiosity, do they not always say the same thing because it is a bad translation?* Or is this on purpose?
 
== == == == ==
Fred Uleman
== == == == ==

* bad translation = possible opportunity for an enterprising translator?

martha mcclintock

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Apr 20, 2009, 3:51:09 AM4/20/09
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i would be fascinated by if one of the legal translation specialists
on this list were to read the forms and their notes on the back and
see whether the Japanese and English say the same thing, or is it just
my paranoia....

on a separate note on this whole issue:

How do Japanese clients pay any of you list members who are
"corporation or other entity" translators who are 1) non-resident in
Japan and 2) have no "permanent establishment in Japan"?

i get paid through a japanese bank account that is NOT in my corporate
name, which is the invoicing entity..... does anyone else have such
workarounds? does anyone else have some way to make it easy for
japanese clients to pay overseas workers without such facilities?

grins
Martha McClintock

Matthew Schlecht

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Apr 20, 2009, 8:47:56 AM4/20/09
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----- Original Message -----
From: David Young
To: hon...@googlegroups.com
Sent: Monday, April 20, 2009 2:40 AM
Subject: Request for Submission of "Application Form for Income Tax Convention"

Dear All
 
I recently received a file headed [Request for Submission of “Application Form for Income Tax Convention”] from a translation agency in Japan. 
<> 
Has anyone received anything similar?
 
TIA David Young
***************************************
     Yes, I got a request to complete one of these three years ago from a Japanese client. I'm based in the US.  In my case, it was my proof of my filing US income taxes from a US address for the most recent tax year, which would relieve the Japanese client of withholding Japan taxes from my pay.  I believe that this is what you describe.
     The client was very apologetic about the extra hassle, but said their local tax office had demanded it and they hoped I would be able to comply.  This brought up memories of the マルサの女 movies!
     As with many tax-related things, one requires secret knowledge or contact with a skilled professional to complete the process efficiently.  I submitted the Application, but still nothing had happened after 4-6 weeks, so I called my local tax office (Philadelphia).  I spoke to a very helpful gent, who pointed out that the submission of an additional form was required to "launch" the application.  There had been nothing about this that I had seen in the copious instructions.  Luckily, that form could be downloaded from the internet, and he led me through exactly how to fill this out and where to submit  it; sure enough, the desired certificate arrived within a few weeks.
     The client was profusely grateful.
 
Matthew S
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