Order for Enforcement of the Income Tax Act

The domestic source income specified by Cabinet Order prescribed in Article 212, paragraph (1) (Obligation to Withhold Taxes) of the Act is to be any of the following types of domestic source income:

consideration or remuneration listed in Article 161, paragraph (1), item (vi) or item (xii), (a) (Domestic Source Income) of the Act for the provision of the services of motion picture or theatre actors, musicians and any other entertainers, or professional athletes, which is paid by many and unspecified persons;

consideration listed in Article 161, paragraph (1), item (vii) of the Act for the land or any right on land or a house (hereinafter referred to as "land or house, etc." in this item) held by a Nonresident or Foreign Corporation, which is paid by an individual who has leased the land or house, etc. for the purpose of using it as the individual's own residence or the residence of the individual's relatives;

salaries or remuneration listed in Article 161, paragraph (1), item (xii), (a) or (c) of the Act to be paid to a Nonresident prescribed in Article 169 (Income Tax Base for Separate Taxation) of the Act, which was the basis of the calculation of the amount of income tax already paid by the Nonresident pursuant to the provisions of Article 172 (Filing and Payment of Taxes on Salary or Other Wages Not Subject to Withholding) of the Act by the time of payment of the salaries or remuneration.

The persons similar to partners specified by Cabinet Order as prescribed in Article 212, paragraph (5) (Obligation to Withhold Taxes) of the Act are to be the partners who had concluded the partnership contract prescribed in that paragraph, and the persons who have concluded, and the persons who had concluded, the contract listed in Article 281-2, paragraph (1), item (iii) (Profits from Business Conducted through a Permanent Establishment under a Partnership).

The amount calculated pursuant to the method specified by Cabinet Order prescribed in Article 213, paragraph (1), item (i), (b) (Tax Amount Collected for Income of Nonresidents or Foreign Corporations) of the Act is to be the amount calculated in accordance with the provisions of Article 321 (Value of a Prize Paid through Property Other than Money) with regard to property other than money prescribed in Article 213, paragraph (1), item (i), (b) of the Act.

The amount calculated pursuant to the method specified by Cabinet Order prescribed in Article 213, paragraph (1), item (i), (c) of the Act is to be the amount calculated in accordance with the provisions of Article 296 (Tax Base for Pension, etc. under Life Insurance Policies, etc.) with regard to the amount of pension to be paid prescribed in Article 213, paragraph (1), item (i), (c) of the Act.

The amount specified by Cabinet Order prescribed in Article 213, paragraph (2), item (iii) of the Act is to be the amount prescribed in Article 298, paragraph (1) (Tax Base for a Domestic Corporation's Income Tax).

The requirements specified by Cabinet Order prescribed in Article 214, paragraph (1) (Domestic Source Income of Nonresidents Which Is Exempt from Withholding) of the Act are to be the following requirements:

the nonresident has submitted a written notice pursuant to the provisions of Article 229 (Business Commencement Report) of the Act;

in the case of a nonresident who does not currently reside in the vicinity of the place for tax payment, the nonresident has given notice about the tax agent pursuant to the provisions of Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes;

the nonresident has submitted a tax return for the income tax for the year preceding the relevant year;

the covered domestic source income prescribed in Article 214, paragraph (1) of the Act for which the application of the provisions of that paragraph is sought is included in income that is subject to income taxes imposed on aggregate income prescribed in Article 165, paragraph (1) (Calculation of the Tax Base and Amount of Income Taxes Imposed on Aggregate Income) of the Act pursuant to the provisions of the Act and other laws and regulations concerning income tax (including the conventions prescribed in the proviso to Article 2, paragraph (1), item (viii)-4 (Definitions) of the Act);

the nonresident has never evaded the income tax by deception or other wrongful acts;

where, for the purpose of seeking the application of the provisions of Article 214, paragraph (1) of the Act, the Nonresident presents the certificate set forth in that paragraph to the payer of the covered domestic source income prescribed in that paragraph, the Nonresident is expected to record in the books, without fail, the payer's name and domicile, office, place of business or any other place of payment of the covered domestic source income, and the date on which the certificate is presented.

A person who wishes to obtain a certificate set forth in Article 214, paragraph (1) (Domestic Source Income of Nonresidents Which Is Exempt from Withholding) of the Act must submit a written application stating the following matters to the competent district director with jurisdiction over the place for tax payment:

the person's name and domicile, as well as the person's residence in Japan, if any;

the name and location of the office, place of business, or any similar place related to the business conducted through the person's permanent establishment (or, if there are two or more of them, the principal one of them; hereinafter referred to as the "office, etc. in Japan" in Article 333, paragraph (1), item (i) (Procedures Required When a Nonresident No Longer Satisfies the Eligibility Requirements for Exemption from Withholding)), as well as the name of its representative or any other person responsible for it, and the name of the tax agent if the tax agent designated in the notice pursuant to the provisions of Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes is not that responsible person;

the date on which the written notice prescribed in item (i) of the preceding Article has been submitted;

the outline of the circumstances whereby the person satisfies the requirement listed in item (iv) of the preceding Article;

a statement to the effect that the person will keep the records set forth in item (vi) of the preceding Article without fail;

the name of the payer of the principal one of the covered domestic source income prescribed in Article 214, paragraph (1) of the Act for which the person seeks the application of the provisions of that paragraph by way of the certificate, the payer's domicile, office, place of business or any other place of payment of the covered domestic source income and the recipient of the payment, as well as the type of the covered domestic source income and the period during which payment of the covered domestic source income is expected;

the circumstances under which the domestic source income for which the person seeks the application of the provisions of Article 214, paragraph (1) of the Act by way of the certificate falls under the person's covered domestic source income prescribed in that paragraph;

other matters useful for reference purposes.

The provisions of Article 305, paragraph (2) and paragraph (3) (Procedures Required When a Foreign Corporation Seeks the Application of the Special Provisions on Taxation) apply mutatis mutandis to the certificate set forth in Article 214, paragraph (1) of the Act for a nonresident.

The domestic source income specified by Cabinet Order prescribed in Article 214, paragraph (1) (Domestic Source Income of Nonresidents Which Is Exempt from Withholding) of the Act is to be the following domestic source income:

royalties or consideration listed in Article 161, paragraph (1), item (xi) (Domestic Source Income) of the Act which fall under the remuneration or fees listed in Article 204, paragraph (1), item (i) (Obligation to Withhold Taxes) of the Act;

remuneration listed in Article 161, paragraph (1), item (xii), (a) of the Act, other than remuneration that falls under the remuneration or fees for the provision of personal services listed in Article 204, paragraph (1), item (v) of the Act;

a pension listed in Article 161, paragraph (1), item (xiv) of the Act, in which the amount paid is 250,000 yen or more.

A person who has obtained a certificate set forth in Article 214, paragraph (1) (Domestic Source Income of Nonresidents Which Is Exempt from Withholding) of the Act must, in the case prescribed in Article 214, paragraph (2) of the Act, attach the certificate to a written notice stating the following matters, submit these to the competent district director with jurisdiction over the place for tax payment, and notify the payer of domestic source income to whom the person has presented the certificate to that effect without delay:

the name and location of the person's office, etc. located in Japan, as well as the name of the person representative of or any other person responsible for that office, etc., and the name of the tax agent if the tax agent designated in the notice pursuant to the provisions of Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes is not that responsible person;

a detailed statement of the circumstances whereby the person has ceased to satisfy the requirements listed in the items of Article 330 (Requirements Allowing a Nonresident to Be Exempt from Withholding) or ceased to have a permanent establishment;

the name of the payer of domestic source income to whom the person has presented the certificate, and the payer's domicile, office, place of business or any other place of payment of the relevant domestic source income;

other matters useful for reference purposes.

The person prescribed in the preceding paragraph must, where there has been any change to the matters listed in Article 331, paragraph (1), item (i) or item (ii) (Procedures Required When a Nonresident Seeks an Exemption from Withholding) which are stated in a written application set forth in Article 331, paragraph (1) pertaining to a certificate set forth in the preceding paragraph, submit a written notice to that effect to the competent district director with jurisdiction over the place for tax payment without delay.

The amount of salaries or remuneration for which income tax is deemed to have been collected pursuant to the provisions of Article 215 (Special Provisions on Withholding from Salary or Other Wages for Personal Services Provided by Nonresidents) of the Act is, if the total amount of the consideration listed in Article 161, paragraph (1), item (vi) (Domestic Source Income) of the Act that a person who conducts the business prescribed in that item in Japan has received with regard to that business conducted in Japan falls short of the sum of the amounts of salaries or remuneration listed in Article 161, paragraph (1), item (xii), (a) or (c) of the Act that are to be paid to each Nonresident who provides personal services for that business conducted in Japan, for the provision of personal services, to be the amount calculated by multiplying the total amount of the consideration by the ratio of the amount of those salaries or remuneration to be paid to each such Nonresident to that sum.