Double taxation treaty · signed 2003
United States & Japan double tax treaty
United States and Japan have a double taxation agreement, signed in 2003, in force. It decides which country taxes your cross-border income and caps the withholding tax on payments between the two, so the same income is not taxed twice.
Withholding tax caps under the treaty
| Payment | Max withholding tax |
|---|---|
| Dividends (qualifying / direct holding) | 0% |
| Dividends (portfolio) | 10% |
| Interest | 0% |
| Royalties | 0% |
Rates compiled by MyNomadWorld from the treaty text and currently being re-verified. Confirm against the treaty before relying on them. Reduced rates usually require you to be a treaty resident and the beneficial owner; confirm the article and any limitation-on-benefits clause before relying on it.
What the United States-Japan treaty means for you
If you are tax-resident in United States or Japan and receive dividends, interest or royalties from the other country, the treaty caps the tax withheld at source at the rates above, and you generally credit that against tax at home. It also sets tie-breaker rules that decide your single country of residence if both would treat you as resident, which matters when you relocate mid-year.
Compare the two countries head to head: United States or Japan. Full profiles: United States tax · Japan tax.
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