Order for Enforcement of the Income Tax Act

The head of the business office of a financial institution or other such place referred to in paragraph (1) or (2) of the preceding Article (limited to one that is not a person handling payments for beneficial interests in Loan Trusts or specific forms of Bond-Based Investment Trusts Under Public Offering or Securities) must, where those beneficial interests or Securities satisfy the requirements prescribed in Article 10 (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act, notify that person handling payments, at each payment date of the distribution of proceeds, interest, or dividend of surplus, that those beneficial interests or Securities are subject to the application of paragraph (1) of that Article.

The head of the business office of a financial institution or other such place referred to in paragraph (2) of the preceding Article (limited to one that acts as intermediary for the custody referred to in that paragraph) must, in the cases set out in the following items, notify the person handling payments referred to in that paragraph, each time the event prescribed in the relevant item occurs, of the matters specified in that item.

where the head has accepted a notice prescribed in Article 43, paragraphs (1) through (3) (Notice of Change Concerning Tax-Exempt Savings) or a notice of discontinuance of tax-exempt savings prescribed in Article 45, paragraph (1) (Notice of Discontinuance of Tax-Exempt Savings) that was submitted by an individual for Securities subject to the application of the provisions of Article 10, paragraph (1) of the Act: the matters stated in those notices;

where the head has accepted a written notice prescribed in Article 46, paragraph (1) (Notice of Death of a Tax-Exempt Saver, etc.) that was submitted by an heir of the individual prescribed in the preceding item: the matters stated in that written notice;

where documents prescribed in Article 45, paragraph (5) or Article 46, paragraph (2) are submitted for the individual prescribed in item (i) (excluding cases falling under the case listed in the preceding item): the matters stated in those documents;

where the sum of the face value or equivalent amount of the Securities that the individual prescribed in item (i) purchased by submitting an application to exempt savings from taxation at that business office of a financial institution or other such place comes to exceed the maximum limitation listed in Article 10, paragraph (3), item (iii) of the Act that is stated in the statement of tax-exempt savings submitted by that individual via that business office of a financial institution or other such place (where a declaration of change to the tax-exempt savings limit has been submitted, on or after the date of its submission, the maximum limitation after the change), or, after having exceeded it, comes again not to exceed that maximum limitation: that fact.

The head of the business office of a financial institution or other such place (excluding one that acts as intermediary for the custody referred to in paragraph (2) of the preceding Article) that has accepted the notices or written notices listed in the following items, or the notices or written notices set out in item (i) or (ii) of the preceding paragraph, must state or record the matters stated or recorded in those notices or written notices (including an electronic or magnetic record (meaning an electronic or magnetic record prescribed in Article 10, paragraph (2) of the Act; the same applies hereinafter in this Section) recording the matters to be stated in those notices or written notices that has been provided by electronic or magnetic means (meaning the electronic or magnetic means prescribed in Article 10, paragraph (8) of the Act; the same applies hereinafter in this Section)), and a person handling payments that has received the notice under the provisions of the preceding paragraph must state or record the content of that notice, in the books concerning the transfer of beneficial interests in Loan Trusts or specific forms of Bond-Based Investment Trusts Under Public Offering or Securities or the books concerning the custody of Securities.

a notice prescribed in Article 43, paragraphs (1) through (3), or a notice of discontinuance of tax-exempt savings prescribed in Article 45, paragraph (1), that was submitted by an individual for beneficial interests in Loan Trusts or specific forms of Bond-Based Investment Trusts Under Public Offering subject to the application of the provisions of Article 10, paragraph (1) of the Act;

a written notice prescribed in Article 46, paragraph (1) that was submitted by an heir of the individual prescribed in the preceding item.

The matters specified by Cabinet Order prescribed in Article 10, paragraph (1), item (iii) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act are, for Investment Trusts (excluding Investment Trusts not managed under instructions from the settlor prescribed in that paragraph), the amount calculated by dividing the amount entrusted or additionally entrusted for that Investment Trust at the time of its establishment or additional establishment by the number of units of the beneficial interest for that trust or additional trust at that time, and, for specified-purpose trusts, the amount calculated by dividing the principal amount pertaining to the bond-type beneficial interest listed in Article 33, paragraph (4), item (viii) (Scope of Deposits and Similar Savings Treated as Nontaxable with Respect to Interest Income, etc.) (meaning the principal amount prescribed in Article 52, paragraph (2), item (iii) (Conditions to Be Attached to a Specified-Purpose Trust Contract Providing for Bond-Type Beneficial Interests) of the Order for Enforcement of the Act on the Securitization of Assets (Cabinet Order No. 479 of 2000)) by the number of units of that beneficial interest.

With regard to deposits and similar savings placed under an ordinary deposit contract, etc. prescribed in Article 35, paragraph (1) (Special Provisions on Application to Exempt Savings from Taxation for Ordinary Deposit Contracts, etc.) pertaining to an application to exempt savings from taxation with a statement made under that paragraph, on or after the date on which that application form was submitted, the sum of the principal or the sum of the face value or equivalent amount prescribed in each item of Article 10, paragraph (1) of the Act is to be calculated by deeming that the person who submitted that application form continues to hold deposits and similar savings pertaining to that application form in an amount equivalent to the limit amount pertaining to the current balance of the deposits and similar savings stated in that application form (in the case of Securities, the current balance calculated on the basis of face value or equivalent amount; the same applies in the following paragraph) (where an application to exempt savings from taxation with a statement made under the provisions of Article 35, paragraph (2) has been submitted, on or after the date of its submission, the changed limit amount).

Whether the sum of the principal or the sum of the face value or equivalent amount, prescribed in each item of Article 10, paragraph (1) of the Act, of deposits and similar savings for which an individual has submitted an application to exempt savings from taxation and made a placement does not exceed the maximum limitation prescribed in those items throughout the calculation period of the interest, distributions of proceeds, or dividends of surplus on those deposits and similar savings is to be determined by whether the sum of the final current balances of those deposits and similar savings (excluding those that came to fall under the provisions of the items of Article 36, paragraph (1) (Cases in Which Interest Income, etc. from Small Amounts of Deposits Held by Persons with a Disability or Other Eligible Persons Is Not Treated as Nontaxable) on or before that day) does not exceed that maximum limitation on any day during that calculation period.

Where an individual who has a domicile in Japan submits a statement of tax-exempt savings, the maximum limitation listed in Article 10, paragraph (3), item (iii) (Required Particulars of Statement of Tax-Exempt Savings) of the Act that is to be stated in that statement must be an amount equal to 10,000 yen multiplied by an integer and must be 3,000,000 yen or less (where there is a maximum limitation listed in item (iv) of that paragraph that is to be stated in that statement, the balance remaining after deducting the sum of those maximum limitations from 3,000,000 yen).

A declaration of change to the tax-exempt savings limit must state the following matters:

the submitter's name, date of birth, domicile, and individual number (meaning an individual number prescribed in Article 2, paragraph (5) (Definitions) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No. 27 of 2013); the same applies hereinafter);

the fact that the submitter is a Person with a Disability or other eligible person;

the name and location of the business office of that financial institution or other such place;

The type of those deposits and similar savings that the submitter has stated in the statement of tax-exempt savings submitted via the business office of that financial institution or other such place;

The maximum limitation listed in Article 10, paragraph (3), item (iii) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act that is stated in the statement of tax-exempt savings referred to in the preceding item (where a declaration of change to the tax-exempt savings limit has already been submitted in respect of that statement, the maximum limitation after the change stated in that declaration of change to the tax-exempt savings limit);

The maximum limitation after the change;

Where the person has submitted a statement of tax-exempt savings via the business office of another financial institution or other such place, the sum of the maximum limitations listed in Article 10, paragraph (3), item (iv) of the Act that are stated in that statement;

The date of submission of the statement of tax-exempt savings referred to in item (iv) and other matters that should serve as a reference.

The maximum limitation after the change referred to in item (vi) of the preceding paragraph that may be stated in a declaration of change to the tax-exempt savings limit is to be an amount that is 10,000 yen multiplied by an integer and that is 3,000,000 yen or less (where there is a sum of the maximum limitations listed in item (vii) of that paragraph that is to be stated in that declaration, the balance remaining after deducting that sum from 3,000,000 yen).

A declaration of change to the tax-exempt savings limit may not be submitted, at the time the person is about to submit it, by an individual who does not have an address in Japan or an individual who does not fall under a Person with a Disability or other eligible person.

The documents specified by Cabinet Order prescribed in Article 10, paragraph (2) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act are any one of the documents, such as a physical disability certificate or a survivors' basic pension certificate of a Person with a Disability or other eligible person, specified by Ministry of Finance Order (hereinafter in this paragraph, paragraph (3), and paragraph (5) referred to as a "paper confirming a disability or similar position") (where the date of birth or address of that Person with a Disability or other eligible person is not stated in that paper confirming a disability or similar position, that paper confirming a disability or similar position and a document confirming address, etc. (meaning any one of the documents, such as a copy of the certificate of residence or a driver's license certifying the name, date of birth, and address of that Person with a Disability or other eligible person, specified by Ministry of Finance Order; the same applies in the following paragraph)).

The transmission, carried out as specified by Cabinet Order prescribed in Article 10, paragraph (2) of the Act, of the electronic certificate for signature or similar record prescribed in that paragraph is to be the transmission of that electronic certificate for signature or similar record carried out in lieu of the presentation of a document confirming address, etc.

The documents specified by Cabinet Order prescribed in Article 10, paragraph (5) of the Act are a paper confirming a disability or similar position and an identity verification document (meaning the Individual Number Card prescribed in Article 2, paragraph (7) (Definitions) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures and other documents specified by Ministry of Finance Order; the same applies hereinafter in this Article and Article 43, paragraph (1) (Notice of Change Concerning Tax-Exempt Savings)).

The transmission, carried out as specified by Cabinet Order prescribed in Article 10, paragraph (5) of the Act, of the electronic certificate for signature or similar record prescribed in that paragraph is to be the transmission of that electronic certificate for signature or similar record carried out in lieu of the presentation of an identity verification document.

Where the head of the business office of a financial institution or other such place keeps, as specified by Ministry of Finance Order, a book stating the name, date of birth, address, and individual number of a person who has submitted a statement of tax-exempt savings, the fact that the person falls under a Person with a Disability or other eligible person, and other matters (limited to one prepared upon receiving from that person either the submission of a written application to which copies of that person's paper confirming a disability or similar position and identity verification document are attached, or the provision, by electronic or magnetic means, of the matters to be stated in a written application, made together with the presentation of that person's paper confirming a disability or similar position and the presentation of the identity verification document (including the transmission, carried out as provided for in the preceding paragraph, of the electronic certificate for signature or similar record prescribed in that paragraph)), that person may, notwithstanding the provisions of Article 10, paragraph (2) of the Act, in lieu of the presentation of the documents under that paragraph (including the transmission, carried out as provided for in paragraph (2), of the electronic certificate for signature or similar record prescribed in that paragraph; the same applies in Article 47, paragraph (2) (Application for Continuing Tax-Exempt Savings on Inheritance)), make a statement to that effect in the application to exempt savings from taxation that the person submits to the business office of that financial institution or other such place; provided, however, that this does not apply where the name, date of birth, address, and individual number stated in that application to exempt savings from taxation and the fact of falling under a Person with a Disability or other eligible person differ from the name, date of birth, address, and individual number of that person and the fact of falling under a Person with a Disability or other eligible person that are stated in that book.