Income Tax Act

A person paying, in Japan, a public pension or retirement package as prescribed in Article 35, paragraph (3) (Definition of Public Pensions and Retirement Packages) (hereinafter referred to as a "public pension or retirement package" in this Chapter) to a Resident must withhold income taxes from that public pension or retirement package at the time of payment and pay them over to the national government by the 10th day of the month following the month in which the day of withholding falls.

The amount of income taxes to be withheld pursuant to the preceding Article is the amount calculated by multiplying the balance remaining after deducting, from the amount of the public pension or retirement package, the amount that each of the following items prescribes for the category of public pension or retirement package set forth in that item, by a tax rate of 5 percent (or 10 percent, for the portion in excess where that balance for a public pension or retirement package set forth in item (iii) or (vi) exceeds the amount calculated by multiplying 162,500 yen by the number of months to which the amount of that public pension or retirement package relates, and for that balance for a public pension or retirement package set forth in item (vii)):

a public pension or retirement package paid to a Resident who has submitted a return for Dependents, etc. by a recipient of a public pension or retirement package by the person paying the public pension or retirement package via whom that declaration was submitted (excluding those set forth in the following item and item (iii)): the amount calculated by multiplying the total of the following amounts by the number of months to which the amount of that public pension or retirement package relates:

if that declaration states that the recipient of the public pension or retirement package is a Person with a Disability, 22,500 yen (or 35,000 yen, if it states that the recipient of the public pension or retirement package is a Person with a Particular Disability);

if that declaration states that the recipient of the public pension or retirement package is a widow, 22,500 yen;

if that declaration states that there is a spouse for withholding deduction (if that spouse for withholding deduction is a person about whom the statement prescribed in Article 203-6, paragraph (3) (Return for Dependents, etc. by a Recipient of a public pension or retirement package) has been made (referred to as a "relative residing outside Japan" in (f) and (g)), limited to a spouse for withholding deduction for whom the documents prescribed in that paragraph have been submitted or presented), 32,500 yen (or 40,000 yen, if it states that the spouse for withholding deduction is a Claimable Elderly Spouse);

if that declaration states that there are relatives for withholding deduction (limited to relatives for withholding deduction prescribed in Article 203-6, paragraph (1), item (iv), and, if a relative for withholding deduction is a relative residing outside Japan, limited to a relative for withholding deduction for whom the documents prescribed in paragraph (3) of that Article have been submitted or presented), the amount calculated by multiplying 32,500 yen (or, if it states that there are among those relatives for withholding deduction any specified dependents, elderly dependents, or specified relatives as prescribed in Article 84-2, paragraph (1) (Special Deduction for Specified Relatives) (referred to as "specified relatives" in (f)), 52,500 yen for those specified dependents and specified relatives and 40,000 yen for those elderly dependents) by the number of those relatives for withholding deduction;

if that declaration states that there is a Person with a Disability among the spouse in the same household or dependents (if that Person with a Disability is a relative residing outside Japan, limited to a Person with a Disability for whom the documents prescribed in Article 203-6, paragraph (3) have been submitted or presented), the amount calculated by multiplying 22,500 yen (or, if it states that there is a cohabiting Person with a Particular Disability or any other Person with a Particular Disability among that spouse in the same household or those dependents (if that cohabiting Person with a Particular Disability or other Person with a Particular Disability is a relative residing outside Japan, limited to a cohabiting Person with a Particular Disability or other Person with a Particular Disability for whom the documents prescribed in that paragraph have been submitted or presented), 62,500 yen for that cohabiting Person with a Particular Disability and 35,000 yen for that other Person with a Particular Disability) by the number of those Persons with a Disability.

farmers' old-age pension set forth in Article 18, item (i) (Types of Benefits) of the Act on the Farmers Pension Fund, Independent Administrative Agency, and any other public pension or retirement package specified by Cabinet Order (hereinafter referred to as "farmers' old-age pension and similar pensions" in this item and item (v)), paid to a Resident who is paid farmers' old-age pension and similar pensions and who has submitted a return for Dependents, etc. by a recipient of a public pension or retirement package with respect to those farmers' old-age pension and similar pensions, by the person paying those farmers' old-age pension and similar pensions via whom that declaration was submitted: the amount remaining after deducting the amount specified by Cabinet Order from the amount prescribed in the preceding item that would apply if those farmers' old-age pension and similar pensions were the public pension or retirement package set forth in that item;

retirement pension set forth in Article 74, item (i) (Types of Retirement and Other Pension Benefits) of the National Public Officers Mutual Aid Association Act, and any other public pension or retirement package specified by Cabinet Order (hereinafter referred to as "retirement pension and similar pensions" in this item and item (vi)), paid to a Resident who is paid retirement pension and similar pensions and who has submitted a return for Dependents, etc. by a recipient of a public pension or retirement package with respect to that retirement pension and similar pensions, by the person paying that retirement pension and similar pensions via whom that declaration was submitted: the amount remaining after deducting the amount specified by Cabinet Order from the amount prescribed in item (i) that would apply if that retirement pension and similar pensions were the public pension or retirement package set forth in that item;

farmers' old-age pension and similar pensions paid to a Resident who is paid farmers' old-age pension and similar pensions and who has not submitted a return for Dependents, etc. by a recipient of a public pension or retirement package with respect to those farmers' old-age pension and similar pensions, by the person paying those farmers' old-age pension and similar pensions: the amount remaining after deducting the amount specified by Cabinet Order from the amount prescribed in the preceding item that would apply if those farmers' old-age pension and similar pensions were the public pension or retirement package set forth in that item;

retirement pension and similar pensions paid to a Resident who is paid retirement pension and similar pensions and who has not submitted a return for Dependents, etc. by a recipient of a public pension or retirement package with respect to that retirement pension and similar pensions, by the person paying that retirement pension and similar pensions: the amount remaining after deducting the amount specified by Cabinet Order from the amount prescribed in item (iv) that would apply if that retirement pension and similar pensions were the public pension or retirement package set forth in that item;

a pension set forth in Article 35, paragraph (3), item (iii) (Miscellaneous Income) and anything else specified by Cabinet Order (referred to as a "defined-benefit corporate pension or similar pension" in Article 203-6, paragraph (1)): the amount equivalent to 25 percent of the amount of that public pension or retirement package.

If a spouse stated as a spouse for withholding deduction (hereinafter referred to as a "covered spouse" in this Article) in the return for Dependents, etc. by a recipient of a public pension or retirement package submitted by a Resident (hereinafter referred to as a "covered Resident" in this Article) receives the application of Article 185, paragraph (1), item (i) or (ii) (Amount of Tax Withheld from Salary or other wages Other Than Bonuses), Article 186, paragraph (1), item (i) or paragraph (2), item (i) (Amount of Tax Withheld from Bonuses), or items (i) through (iii) of the preceding Article with that covered Resident as the spouse for withholding deduction stated in the salary income earner's return for deduction for Dependents, etc., the return for deduction for Dependents, etc. regarding secondary salaries, or the return for Dependents, etc. by a recipient of a public pension or retirement package submitted by the covered spouse, items (i) through (iii) of that Article apply by treating the covered spouse as not being stated as a spouse for withholding deduction in the return for Dependents, etc. by a recipient of a public pension or retirement package submitted by the covered Resident.

If a person stated as a relative for withholding deduction (limited to a specified relative as prescribed in Article 84-2, paragraph (1) (Special Deduction for Specified Relatives); hereinafter the same applies in this Article) (hereinafter referred to as a "covered person" in this Article) in the return for Dependents, etc. by a recipient of a public pension or retirement package submitted by a Resident (hereinafter referred to as a "covered Resident" in this Article) receives the application of Article 185, paragraph (1), item (i) or (ii) (Amount of Tax Withheld from Salary or other wages Other Than Bonuses) or Article 186, paragraph (1), item (i) or paragraph (2), item (i) (Amount of Tax Withheld from Bonuses) with another person as a relative for withholding deduction stated in the salary income earner's return for deduction for Dependents, etc. or the return for deduction for Dependents, etc. regarding secondary salaries submitted by the covered person, Article 203-3, items (i) through (iii) (Amount of Taxes Withheld) apply by treating the covered person as not being stated as a relative for withholding deduction in the return for Dependents, etc. by a recipient of a public pension or retirement package submitted by the covered Resident.