Payroll Tax Summaries for Selected Countries * reimbursements for utilities; * income from the exercise of company stock options; * profit sharing plan payments; * foreign service premiums; and * retirement allowances. Excluded employer-paid benefits include moving expenses and home leave expenses for resident foreigners and nonresidents. Tax rates Income taxes. Individual income taxes are composed of a national and a local tax. The national tax rates are progressive, ranging from 5% to 45%. A surtax of 2.1% applies to the employee's national income tax. The maximum local (inhabitant tax) rate is a flat 10%. Nonresidents are taxed at a flat rate of 20.42% of gross Japan-source income (this includes the surtax). Social security taxes. The maximum social security contribution applicable to employees whose salaries or bonuses including fringe benefits are paid in Japan by a local employer (including a Japanese branch of a foreign corporation) can be up to 15.69% of monthly salary for health, pension, and unemployment insurance. The employer's contribution rate can be up to 16.63% of the employee's wages. Relief from double taxes Japan has both an income tax treaty (see Appendix A, page A-41) and a totalization agreement with the U.S. (see Appendix B, page B-29). KAZAKHSTAN KAZAKHSTAN Basis for tax Kazakhstan defines tax residents as individuals who permanently reside in the country or have their center of vital interests in the country, even if they do not permanently reside there during the tax year. Individuals present in the country for 183 or more days within any 12-month period are considered residents for tax purposes. An individual's center of vital interests is located in Kazakhstan if: the individual is a citizen of the country or has a residence permit; the family of the individual or close relatives live in the country; and the individual and/or family members own real estate in the country that was available to the individual or family members at any time. A non-resident for tax purposes is an individual who does not fall under the above definition of tax resident, or is a foreign citizen or individual without citizenship (as defined under a double tax treaty). C-33