Julian Yap

Understanding Japanese App Store Withholding

The Japanese government requires that Apple withhold 20% of your profits from App Store sales unless you have filed forms demonstrating that you are a foreign company and taxable there instead. The forms are a bit complex and the process a bit cumbersome, but unless you complete it 20% of whatever you make in Japan is taken and not returned.

Great read for App Store developers. I don't believe it's exactly correct that you can't receive the 20% back since I've owned international mutual funds (from a broker that provides a Form 1099 that Apple does not provide) where overseas withheld returns are returned when filing my tax return. Nevertheless I am not an accountant and this process makes it a lot easier.

Some clarified steps were slightly modified when I tried this.

Goto “Contracts, Tax, and Banking”.

Then “Tax Info” for "iOS Paid Applications".

Click on "learn more" in the section that says "For developers residing outside of Japan who want to sell apps on the Japan App Store, learn more about optional Japanese tax forms."

Complete the forms and process outlined here and your account will avoid the charges. Make sure you read the Form instructions on each section for further details.

1 FEBRUARY 2012 @ 09:02PM

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