When arranging payments for dividends from unlisted companies in Japan, make sure you withhold 20% withholding income taxes. Always be sure to check with your tax accountant to see if tax treaty applies. Many treaties allow deduction or exemption for withholding income tax. Apart from tax treaty documents, there are cases when you need to prepare documents from your tax jurisdiction so advance preparation is critical to enjoy tax treaty benefits. Please be aware that holding period of 6 month with shareholding requirements of 25% will require in many cases for tax treaties.
Recognition timing of dividends differs depending on the company structure of KK(Kabushikigaisha) & GK(Godogaisha). For KK, stockholders meeting must be held and depending on how you state in your article of incorporation, board meeting must also be held. For GK, equivalent of board meeting must be held.