The act of selling items designed by creators falls under copyright usage, and is subject to income tax withholding.
Payouts are made with income tax included, but the method of calculating income tax withholding depends on whether you are registered for the invoice system (Japan), as follows:
• If registered: Taxable amount including tax * 10.21% will be deducted as withheld income
• If not registered: Taxable amount excluding tax * 10.21% will be deducted as withheld income.
At the time of payout, the amount of income tax withheld will be deducted and creator points will be distributed.
The following are applicable tax rates for income tax withholding:
Residents of Japan with earnings under 1,000,000 JPY:
Qualified Invoice-Issuing Entities
(Earnings - domestic consumption tax) * 10.21%
Non-Qualified Invoice-Issuing Entities
Earnings * 10.21%
Residents of Japan with earnings of 1,000,000 JPY or more:
Qualified Invoice-Issuing Entities:
((Earnings - 1,000,000 JPY) - domestic consumption tax on total earnings) * 20.42％ + 102,100
Non-Qualified Invoice-Issuing Entities:
(Earnings - 1,000,000 JPY) * 20.42％ + 102,100
Corporations domiciled in Japan
Tax exempt
Overseas residents and corporations
20.42%
Statements of payment and payment report PDF files can be issued.
When earning Creator Points, users are responsible for reporting their earnings to their local tax authorities in accordance with the regulations in their local jurisdiction.
Statements of Payment and Payment Reports
Statements of payment for the previous month and payment reports for the previous year can be can be issued as PDF files.
Payment history going back to January two years prior can be viewed.
If we receive no inquiries within two weeks after issuing statements of payment and payment reports, we will consider the payment details to have been accepted.