Regulation for Enforcement of the Income Tax Act

A person who pays, in Japan, to a Resident or Domestic Corporation, remuneration or fees, contract money or a prize set forth in the items of Article 204, paragraph (1) (Obligation to Withhold Taxes on Remuneration, Fees, etc.) of the Act (excluding those set forth in the items of Article 204, paragraph (2) of the Act; hereinafter referred to as "remuneration, fees, etc." in this Article) must, pursuant to Article 225, paragraph (1), item (iii) (Payment Reports on Remuneration, Fees, etc.) of the Act, submit a report stating the following matters, for each person receiving the payment of that remuneration, fees, etc., to the district director with jurisdiction over the location of the office, place of business or other equivalent place of the person making the payment that handles the payment affairs for that remuneration, fees, etc.:

the name or title, domicile or residence, or location of the head office or principal office, and individual number or corporate number of the person receiving the payment;

the amount of remuneration, fees, etc. for which payment was finalized during the year (for a prize for advertising purposes, where paid in something other than money, the amount calculated pursuant to Article 321 (Value of Prizes Paid in Something Other Than Money) of the Order);

the amount of income tax subject to Withholding on the remuneration, fees, etc. referred to in the preceding item;

the category of the remuneration, fees, etc. prescribed in the items of Article 204, paragraph (1) of the Act;

any other matters for reference.

In the case referred to in the preceding paragraph, where any of the cases set forth in the following items applies, the report referred to in that paragraph need not be submitted for the remuneration, fees, etc. that fall under the provisions of the relevant item.

where the amount paid to the same person during the year as medical fees set forth in Article 204, paragraph (1), item (iii) of the Act, remuneration or fees for the work of a professional boxer, salesperson, bill collector or electricity meter reader set forth in item (iv) of that paragraph, or remuneration or fees set forth in item (vi) of that paragraph is 500,000 yen or less.

where the amount paid to the same person during the year as prizes for advertising purposes set forth in Article 204, paragraph (1), item (viii) of the Act is 500,000 yen or less;

where, for all of the prize money for horse racing received by a racehorse owner, set forth in Article 204, paragraph (1), item (viii) of the Act, paid to the same person during the year, the amount to be paid each time is the amount prescribed in Article 298, paragraph (1) (Deduction Amount for Prize Money for Horse Racing) of the Order or less;

where the amount paid to the same person during the year as remuneration, fees, etc. other than the remuneration, fees, etc. prescribed in the preceding three items is 50,000 yen or less.

A person who pays, in Japan, compensation for periodic deposits, interest, profit or gains prescribed in Article 209-2 (Obligation to Withhold Taxes on Compensation for Periodic Deposits on Installment Savings, etc.) of the Act (where the person receiving the payment is a Nonresident or Foreign Corporation, limited to that set forth in Article 161, paragraph (1), item (xv) (Domestic Source Income) of the Act), or prize money, etc. on prize-linked deposits, etc. prescribed in Article 41-9, paragraph (1) (Separate Taxation, etc. on Prize Money, etc. on Prize-Linked Deposits, etc.) of the Act on Special Measures Concerning Taxation (limited to that where the person receiving the payment is a Domestic Corporation or a Foreign Corporation having a permanent establishment) (hereinafter referred to as "compensation for periodic deposits, etc." in this Article), must, pursuant to Article 225, paragraph (1), item (iii) or (viii) (Payment Reports on Compensation for Periodic Deposits, etc. on Installment Savings) of the Act, submit a report stating the following matters, for each person receiving the payment of that compensation for periodic deposits, etc., to the competent district director with jurisdiction over the place for tax payment, under Article 17 (Locality for Paying Over Withholding Tax) of the Act, of the income tax on that compensation for periodic deposits, etc.:

the name or title, domicile or residence, or location of the head office or principal office, and individual number or corporate number of the person receiving the payment (for a person who has neither an individual number nor a corporate number, the name or title and domicile or residence, or location of the head office or principal office; the same applies hereinafter in the following Article through Article 87 (Payment Report on Casualty Insurance Benefits, etc.));

the amount of compensation for periodic deposits, etc. for which payment was finalized during the year and the date on which payment was finalized;

the amount of income tax subject to Withholding on the compensation for periodic deposits, etc. referred to in the preceding item;

the basis for calculating the amount of the compensation for periodic deposits, etc. referred to in item (ii);

the category of the compensation for periodic deposits, etc., being compensation for periodic deposits, interest, profit or gains prescribed in Article 209-2 of the Act (for those received by a Nonresident or Foreign Corporation, those set forth in Article 161, paragraph (1), item (xv), (a) through (f) of the Act), or prize money, etc. on prize-linked deposits, etc. prescribed in Article 41-9, paragraph (1) of the Act on Special Measures Concerning Taxation (limited to that where the person receiving the payment is a Domestic Corporation or a Foreign Corporation having a permanent establishment; hereinafter referred to as "prize money, etc. on prize-linked deposits, etc." in item (ii) of the following paragraph);

where a tax agent notified by the person receiving the payment pursuant to Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes is identified, the name and domicile or residence of that tax agent;

any other matters for reference.

In the case referred to in the preceding paragraph, where any of the cases set forth in the following items applies, the report referred to in that paragraph need not be submitted for the compensation for periodic deposits, etc. that falls under the provisions of the relevant item.

where the provisions of Article 11, paragraph (1) (Exemption from Taxation of Public Corporations, etc.) of the Act apply;

where the amount paid to the same person during the year as compensation for periodic deposits, interest, profit or gains set forth in Article 174, items (iii) through (viii) (Tax Base for a Domestic Corporation's Income Taxes) of the Act, or as prize money, etc. on prize-linked deposits, etc., is 30,000 yen or less.

A person who pays, in Japan, a distribution of proceeds prescribed in Article 210 (Obligation to Withhold Taxes on Distribution of Proceeds Under Silent Partnership Agreements, etc.) of the Act (where the person receiving the payment is a Nonresident or Foreign Corporation, limited to that set forth in Article 161, paragraph (1), item (xvi) (Domestic Source Income) of the Act) must, pursuant to Article 225, paragraph (1), item (iii) or (viii) (Payment Reports on Distribution of Proceeds Under Silent Partnership Agreements, etc.) of the Act, submit a report stating the following matters, for each person receiving the payment of that distribution of proceeds, to the competent district director with jurisdiction over the place for tax payment, under Article 17 (Locality for Paying Over Withholding Tax) of the Act, of the income tax on that distribution of proceeds:

the name or title, domicile or residence, or location of the head office or principal office, and individual number or corporate number of the person receiving the payment;

the amount of the distribution of proceeds for which payment was finalized during the year;

the amount of income tax subject to Withholding on the distribution of proceeds referred to in the preceding item;

the amount of the contribution that gave rise to the distribution of proceeds referred to in item (ii) and the basis for calculating that distribution of proceeds;

the date on which payment was finalized;

where a tax agent notified by the person receiving the payment pursuant to Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes is identified, the name and domicile or residence of that tax agent;

any other matters for reference.

In the case referred to in the preceding paragraph, where the amount of the distribution of proceeds prescribed in that paragraph paid to the same person during the year is 50,000 yen or less, the report referred to in that paragraph need not be submitted for that distribution of proceeds.