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What is the interest withholding rate between Hong Kong and Japan?
Under the Hong Kong-Japan tax treaty, the withholding rate on interest is 10%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 10% rate compares to a median of 0% across Hong Kong's 23 active treaty partners, and 10% across Japan's 47 active partners.
Network Comparison
Hong Kong
Rank 20 of 23 active treaties (lowest rate = #1)
Lower rates with: China (7%), Canada (10%), Indonesia (10%)
Higher rates with: South Korea (10%), New Zealand (10%), Thailand (10%)
Japan
Rank 19 of 47 active treaties (lowest rate = #1)
Lower rates with: Spain (10%), Finland (10%), United Kingdom (10%)
Higher rates with: Hungary (10%), Indonesia (10%), Ireland (10%)
Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.