Will any income tax be withheld?
Because creators exercise their copyright when selling stickers they have designed, the act is considered a taxable transaction under income tax withholding law. The following is a summary of the taxation rates applied.
For creators residing in Japan with personal accounts:
The taxation rate for remittance amounts of JPY 1 million or less is the remittance amount x 10.21%.
The taxation rate for remittance amounts exceeding JPY 1 million is the remittance amount x 20.42% + JPY 102,100.
For creators residing in Japan with corporate accounts:
Untaxed (0%)
For creators residing outside Japan with personal or corporate accounts:
Remittance amounts will be charged a flat taxation rate of 20.42%, regardless of amount.
Please note that the remittance amount is the same as the shared revenue amount BEFORE any applicable tax withholdings, money transfer fees, and/or foreign exchange fees are deducted. However, creators residing outside of Japan with personal or corporate accounts whose country of residence has established a tax convention with Japan may be able to receive a reduction or exemption for the amount of tax withheld by submitting the "Application Form for Income Tax Convention" document.