Regulation for Enforcement of the Income Tax Act

The director of the business office of a financial institution or other such place must, when accepting a statement of tax-exempt savings, a declaration of change to the tax-exempt savings limit or a statement of change concerning tax-exempt savings submitted by an individual, or when submitting the documents under Article 45, paragraph (5) (Statement of Discontinuance of Tax-Exempt Savings) or Article 46, paragraph (2) (Notification of the Death of a Tax-Exempt Saver, etc.) of the Order, prepare a copy of those statements or those documents (including an electronic or magnetic record recording the particulars to be stated in those statements or documents; the same applies in the following paragraph and in paragraph (1), items (i) and (ii) of the following Article); provided, however, that this does not apply where the particulars stated in the statement of tax-exempt savings, the particulars after the change or the changed particulars stated in the declaration of change to the tax-exempt savings limit or the statement of change concerning tax-exempt savings, or the particulars stated in those documents are entered in the books prescribed in Article 48, paragraph (3) (Organization and Retention of Books and Documents Concerning Tax-Exempt Savings at the business office of a Financial Institution or Other Such Place, etc.) of the Order.

Where the director of the business office of a financial institution or other such place prepares a copy of a statement of tax-exempt savings, a declaration of change to the tax-exempt savings limit or a statement of change concerning tax-exempt savings, or enters the particulars in the books, or receives provision of an electronic or magnetic record recording the particulars to be stated in those statements, pursuant to the preceding paragraph, the director must state or record, on the copy of those statements or on the books or the electronic or magnetic record, the name of the document prescribed in Article 10, paragraph (5) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act or the document prescribed in Article 8, paragraph (2) (Particulars to Be Stated in Statements of Change Concerning Tax-Exempt Savings) that was presented at the time of accepting those statements, or the fact that an electronic certificate for signature or similar record was transmitted at the time of that acceptance.

The director of the business office of a financial institution or other such place must organize, by person, the documents, electronic or magnetic records or electronic certificates for signature or similar records set forth in each of the following items that the director has prepared, received provision of, accepted, or received submission or transmission of, and retain them for five years starting from the year following the year that includes the day specified in that item.

a copy of a statement of tax-exempt savings, a declaration of change to the tax-exempt savings limit and a statement of change concerning tax-exempt savings, or an electronic or magnetic record recording the particulars to be stated in those statements that was provided by electronic or magnetic means, or a document created by outputting the content of the information recorded in that electronic or magnetic record: the day on which the statement of discontinuance of tax-exempt savings or the notification of the death of a tax-exempt saver pertaining to those statements was submitted (where a statement of discontinuance of tax-exempt savings is deemed to have been submitted pursuant to Article 45, paragraph (4) (Statement of Discontinuance of Tax-Exempt Savings) of the Order, the day on which it is deemed to have been submitted);

a copy of the documents submitted pursuant to Article 45, paragraph (5) or Article 46, paragraph (2) (Notification of the Death of a Tax-Exempt Saver, etc.) of the Order: the day on which those documents were submitted;

an application form for tax-exempt savings (excluding one that states the limit prescribed in Article 35, paragraph (1) or (2) (Special Provisions on Applications for Tax-Exempt Savings Concerning Ordinary Deposit Contracts, etc.) of the Order) or an application for succession to tax-exempt savings: the day on which those application forms were accepted;

an application to exempt savings from taxation that states the limit prescribed in the preceding item: the earlier of the day on which the period of the ordinary deposit contract, etc. prescribed in Article 35, paragraph (1) of the Order, as stated in that application to exempt savings from taxation, expires and the day on which that ordinary deposit contract, etc. was cancelled;

the books prescribed in Article 48, paragraph (3) (Organization and Retention of Books and Documents Concerning Tax-Exempt Savings at the business office of a Financial Institution or Other Such Place, etc.) of the Order: the day of closing of those books;

the books prescribed in Article 48, paragraph (5) of the Order, or the written application prescribed in that paragraph (including copies of the document confirming that a person is a Person with a Disability or other eligible person and of the identity verification document prescribed in that paragraph, and electronic certificates for signature or similar records), the notification of the death of a tax-exempt saver, or the written notification under the provisions of Article 35, paragraph (4) of the Order: the day of closing of those books or the day on which those written applications or written notifications were accepted;

the written notification prescribed in Article 7, paragraph (8) or (9) (Scope, etc. of Documents Certifying Status as a Person with a Disability or Other Eligible Person) (including copies of the document prescribed in paragraph (8) of that Article, electronic or magnetic records recording the particulars stated in those copies, and electronic certificates for signature or similar records): the day on which those written notifications were accepted.

Where the director of the business office of a financial institution or other such place enters, in the books prescribed in Article 48, paragraph (3) of the Order, the particulars stated in the application to exempt savings from taxation set forth in item (iv) of the preceding paragraph, notwithstanding that paragraph, that application to exempt savings from taxation is not required to be retained after the day on which five years have elapsed from the year following the year that includes the day on which that application to exempt savings from taxation was accepted.

The application forms set forth in paragraph (1), items (iii) and (iv), the written applications set forth in item (vi) of that paragraph, and the written notifications set forth in item (vi) of that paragraph and item (vii) of that paragraph are to include the electronic or magnetic records recording the particulars to be stated in those application forms, written applications or written notifications that were provided by electronic or magnetic means.

The director of the business office of a financial institution or other such place and the person handling payment affairs, both as referred to in Article 37, paragraph (4) (Records of Securities, etc.) of the Order, must organize, by person, the books concerning the transfer of beneficial interests in a Loan Trust or specific form of Bond-Based Investment Trust Under Public Offering or of Securities, or the books concerning the custody of Securities, that they have prepared as prescribed in that paragraph, and retain those books for five years starting from the year following the year that includes the day of closing of those books.

The person handling payment affairs prescribed in Article 38, paragraph (1) (Notification, etc. by the Director of the business office of a Financial Institution or Other Such Place to the Person Handling Payment Affairs) of the Order who has received a notice pursuant to that paragraph must retain a document stating the content of the notice received (including an electronic or magnetic record recording the particulars to be stated in that document) for five years starting from the year following the year that includes the day on which the notice was received.

The forms of the statement of tax-exempt savings, the application to exempt savings from taxation, the declaration of change to the tax-exempt savings limit, the statement of change concerning tax-exempt savings, the statement of discontinuance of tax-exempt savings and the application for succession to tax-exempt savings are as set forth in Appended Table II (1) through Appended Table II (6), respectively.

The director of the business office of a financial institution or other such place must, by the day on which the business office is expected to first accept a statement of tax-exempt savings, submit to the Commissioner of the National Tax Agency, via the district director with jurisdiction over the location of the business office of the financial institution or other such place, a written notification stating the following particulars (for the particulars set forth in item (iii), only where the business office of the financial institution or other such place falls under a person that, pursuant to Article 18 (Management of Savings Funds, etc.) of the Labor Standards Act (Act No. 49 of 1947) or Article 34 (Management of Savings Funds, etc.) of the Mariners Act (Act No. 100 of 1947), manages on commission the savings funds of workers or mariners prescribed in those provisions and accepts savings funds to which the provisions of Article 10, paragraph (1) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act apply):

the name and location of the business office of the financial institution or other such place, and the individual number or corporate number of the financial institution, etc. (meaning a financial institution, etc. prescribed in Article 50, paragraph (1) (Notification of the business office of a Financial Institution or Other Such Place and Business Office Number) of the Order; the same applies in the following paragraph) pertaining to the business office of the financial institution or other such place (for an individual who has no individual number, the name and location; the same applies in the following paragraph);

the type of deposits and similar savings prescribed in Article 10, paragraph (1) of the Act that are accepted at the business office of the financial institution or other such place;

the interest rate, the method of payment of interest and the method of management of the savings funds accepted at the business office of the financial institution or other such place;

any other matters for reference.

The director of the business office of a financial institution or other such place who has submitted the written notification under the preceding paragraph must, without delay, if any of the cases set forth in the following items comes to apply, submit to the Commissioner of the National Tax Agency, via the district director with jurisdiction prescribed in that paragraph, a written notification stating the matters prescribed in that item for the category of case set forth in that item and any other matters for reference.

when a change has occurred in the name or location of the business office, etc. of the financial institution, the following matters:

the fact that the change has occurred and the date thereof;

the name and location of the business office, etc. of the financial institution before the change, and the individual number or corporate number of the financial institution, etc. pertaining to that business office, etc. of the financial institution; and

the name and location of the business office, etc. of the financial institution after the change, and the individual number or corporate number of the financial institution, etc. pertaining to that business office, etc. of the financial institution.

when an individual number has been notified for the first time to the financial institution, etc. pertaining to the business office, etc. of the financial institution pursuant to the provisions of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures, the fact that the notification was made and the date thereof, and the name, location and individual number of that financial institution, etc. after it received the notification.

when the business office, etc. of the financial institution is to be abolished (including the case where it ceases to fall under a business office, etc. of a financial institution due to the abolition of the business of accepting Deposits and Savings or for another reason; the same applies hereinafter in this item), the fact that it is to be abolished and the date thereof, the name and location of the business office, etc. of the financial institution that is to be abolished, and the individual number or corporate number of the financial institution, etc. pertaining to that business office, etc. of the financial institution.