Ask a tax advisor on the topic of Other questions to tax advisors

Japanese interest income tax on various country deposits

October 20, 2017 | 50,00 EUR | answered by Ginster Frank

Is there a difference in the amount of interest income tax to be paid for foreign residents living in Japan between securities held in Japan and those held in Germany?

Ginster Frank

Dear Madam or Sir,

Unfortunately, your question is not entirely clear. With regard to tax deductions in Germany, a person residing in Germany is generally not required to pay withholding tax on interest to individuals living abroad. This also applies to branches of Japanese banks with branches in Germany. If withholding tax is still deducted, a refund can be obtained through the Federal Central Tax Office.

When investing in stocks through a German bank or a branch of a Japanese bank in Germany, capital gains tax will be withheld. This can also be partially refunded under the provisions of Article 10 of the Double Taxation Agreement with Japan upon request. An application must also be submitted to the Federal Central Tax Office in this case.

If you have any further questions, we would be happy to assist you for a separate fee.

Please contact our law firm at Tel. 02232/ 9345-0, attention Anke Lindert.

Best regards,

Frank Ginster