Japan vs United States of America
Side-by-side tax comparison
Data sourced from OECD, Tax Foundation, and PwC Tax Summaries.
See methodology for full source details.
Tax profile comparison
| Dimension | Japan | United States of America |
|---|---|---|
| Corporate income tax | 23.2% | 21% |
| Withholding -- dividends | 20.42% | 30% |
| Withholding -- interest | 20.42% | 30% |
| Withholding -- royalties | 20.42% | 30% |
| VAT / GST (standard) | 10% | n/a |
| Personal income (top rate) | 45% | 37% |
| Capital gains | 20.315% | 20% |
| Digital services tax | none | none |
| Global minimum tax (Pillar 2) | implemented | none |
Double-tax treaty
In force
| Withholding type | Statutory (Japan) | Statutory (United States of America) | Treaty rate |
|---|---|---|---|
| Dividends | 20.42% | 30% | — |
| Interest | 20.42% | 30% | — |
| Royalties | 20.42% | 30% | — |
Treaty in force; reduced withholding rates not published in our source set — statutory rates apply unless the treaty text provides a reduction.
Effective withholding calculator
Shows the effective withholding rate on a cross-border payment from Japan to United States of America, comparing statutory vs treaty-reduced rates (if a treaty exists).
Dividends
20.42%
Statutory rate
Interest
20.42%
Statutory rate
Royalties
20.42%
Statutory rate