Regulation for Enforcement of the Income Tax Act

A person who pays, in Japan, dividends and similar income prescribed in Article 24, paragraph (1) (Dividend Income) 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 (ix) (Domestic Source Income) of the Act; hereinafter referred to as "dividends and similar income" in this Article) (including a person in charge of handling payment in Japan of dividends and similar income paid to a Resident or Domestic Corporation on a beneficial interest in an Investment Trust issued outside Japan (excluding a Bond Investment Trust and a Bond-Based Investment Trust Under Public Offering) or a Specified Trust That Issues Beneficiary Certificates, or on shares (including preferred equity prescribed in Article 225, paragraph (1), item (ii) (Payment Reports on Dividends and Similar Income) of the Act, a beneficial interest in a bond-based Investment Trust other than a Bond-Based Investment Trust Under Public Offering, and a bond-type beneficial interest; the same applies in paragraph (3))) must, pursuant to Article 225, paragraph (1), item (ii) or (viii) of the Act, for each person receiving the payment of those dividends and similar income, and according to the category of those dividends and similar income set forth in the following items, submit a report stating the matters specified in each of those items 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 those dividends and similar income:

in the case of a dividend of surplus (meaning a dividend of surplus prescribed in Article 24, paragraph (1) of the Act; the same applies hereinafter in this Article), dividend of profits (meaning a dividend of profits prescribed in that paragraph; the same applies hereinafter in this Article), distribution of surplus (meaning a distribution of surplus prescribed in that paragraph; the same applies hereinafter in this Article), distribution of monies (meaning a distribution of monies prescribed in that paragraph; the same applies hereinafter in this Article) or interest on funds (meaning interest on funds prescribed in that paragraph; the same applies hereinafter in this Article) received from a corporation (excluding a public interest corporation, etc. and an Association or Foundation without Legal Personality prescribed in Article 2, item (vi) (Definitions) of the Corporation Tax Act; the same applies hereinafter in this Article), or a distribution of proceeds of an Investment Trust (excluding a Bond Investment Trust and a Bond-Based Investment Trust Under Public Offering, and limited to one that does not fall under an Open-Ended Securities Investment Trust; hereinafter referred to as "Investment Trust" in this item) or a Specified Trust That Issues Beneficiary Certificates, the following matters (in the case of a dividend of surplus on a bond-type beneficial interest, the matters set forth in (a) through (e) and (g) through (i)):

the name or title, domicile (for a person who does not have a domicile in Japan, the place prescribed in Article 81 (Places of Residence, etc. to Be Notified by a Person Without a Domicile in Japan); hereinafter referred to as "address, etc." in this paragraph) 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 address, etc.; the same applies hereinafter in this paragraph);

the amount of the dividend of surplus, dividend of profits, distribution of surplus, distribution of monies, interest on funds, or distribution of proceeds of an Investment Trust or Specified Trust That Issues Beneficiary Certificates (hereinafter referred to as "dividend of surplus, etc." in this item) for which payment was finalized, and the date on which payment was finalized (for a dividend of surplus on a bearer share or similar interest (meaning a bearer share or similar interest prescribed in Article 36, paragraph (3) (Amount of Revenue) of the Act; the same applies hereinafter in this Article), or a distribution of proceeds on the beneficiary certificate of a bearer Investment Trust or Specified Trust That Issues Beneficiary Certificates, the amount paid and the date of payment);

the amount of income tax subject to Withholding on the amount referred to in (b);

where there is an amount of notified foreign income tax prescribed in Article 300, paragraph (9) (Special Provisions for Taxation on Interest, etc. on Trust Property) or Article 306-2, paragraph (7) (Special Provisions for Taxation on Interest, etc. on Trust Property) of the Order in relation to the dividend of surplus, etc. referred to in (b), or an amount equivalent to notified Foreign Corporation tax prescribed in Article 4-9, paragraph (14) (Special Provisions on Withholding at the Source, etc. on Dividends of Profits of Specific Purpose Companies), Article 4-10, paragraph (10) (Special Provisions on Withholding at the Source, etc. on Dividends and Similar Income of Investment Corporations), Article 4-11, paragraph (10) (Special Provisions on Withholding at the Source, etc. on Dividends of Surplus of Specified-Purpose Trusts) or Article 5, paragraph (10) (Special Provisions on Withholding at the Source, etc. on Dividends of Surplus of Specified Investment Trusts) of the Order for Enforcement of the Act on Special Measures Concerning Taxation in relation to that dividend of surplus, etc., that amount;

where the person in charge of handling payment prescribed in Article 9-3-2, paragraph (1) (Special Provisions on Obligation to Withhold Taxes, etc. for Dividends and Similar Income on Listed Shares, etc.) of the Act on Special Measures Concerning Taxation (hereinafter referred to as "person in charge of handling payment" in this paragraph) delivers dividends and similar income on listed shares, etc. prescribed in paragraph (1) of that Article (hereinafter referred to as "dividends and similar income on listed shares, etc." in this paragraph) that fall under the dividend of surplus, etc. referred to in (b), and there is an amount equivalent to deducted foreign income tax prescribed in Article 4-6-2, paragraph (19) (Special Provisions on Obligation to Withhold Taxes, etc. for Dividends and Similar Income on Listed Shares, etc.) of the Order for Enforcement of the Act on Special Measures Concerning Taxation, an amount equivalent to deducted income tax prescribed in paragraph (20) of that Article, or an amount equivalent to notified Foreign Corporation tax prescribed in paragraph (29) of that Article in relation to that dividend of surplus, etc., that amount;

the number of shares by type and by name (including investment units prescribed in Article 2, paragraph (14) (Definitions) of the Act on Investment Trusts and Investment Corporations (hereinafter referred to as "investment units" in this paragraph) and beneficial interests in bond-based Investment Trusts other than a Bond-Based Investment Trust Under Public Offering; the same applies hereinafter in this paragraph) (for investment units, the number of units), the amount and number of units of contributions, the amount and number of units of funds contributed, the number of units of beneficial interests, and other bases for calculating the payment amount;

where the person who received payment of a dividend of surplus on a bearer share or similar interest, or of a distribution of proceeds on the beneficiary certificate of a bearer Investment Trust or Specified Trust That Issues Beneficiary Certificates, differs from the owner of the principal, the name or title and domicile or residence, or the location of the head office or principal office, of that owner of the principal;

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 of a distribution of proceeds of an Open-Ended Securities Investment Trust (excluding a Bond Investment Trust; the same applies hereinafter in this Article), the following matters:

the name or title, address, etc. and individual number or corporate number of the person receiving the payment;

the amount of the distribution of proceeds for which payment was finalized and the date on which payment was finalized (for a distribution of proceeds on the beneficiary certificate of a bearer Open-Ended Securities Investment Trust, the amount paid and the date of payment), the amount of that distribution of proceeds that is subject to Withholding, and, where there is a distribution of proceeds set forth in Article 9, paragraph (1), item (xi) (Exemption from Taxation of Special Distributions of Open-Ended Securities Investment Trusts) of the Act, that amount;

the amount of income tax subject to Withholding on the amount referred to in (b);

where there is an amount of notified foreign income tax prescribed in Article 300, paragraph (9) or Article 306-2, paragraph (7) of the Order in relation to the distribution of proceeds referred to in (b), that amount;

where the person in charge of handling payment delivers dividends and similar income on listed shares, etc. that fall under the distribution of proceeds referred to in (b), and there is an amount equivalent to deducted foreign income tax prescribed in Article 4-6-2, paragraph (19) of the Order for Enforcement of the Act on Special Measures Concerning Taxation or an amount equivalent to deducted income tax prescribed in paragraph (20) of that Article in relation to that distribution of proceeds, that amount;

the name of the beneficial interest, the number of units of the beneficial interest, and the basis for calculating the amount referred to in (b);

where the person who received payment of a distribution of proceeds on a bearer beneficiary certificate differs from the owner of the principal, the name or title and domicile or residence, or the location of the head office or principal office, of that owner of the principal.

the matters set forth in (h) of the preceding item;

any other matters for reference.

in the case of an amount deemed to be a dividend of surplus, dividend of profits, distribution of surplus or distribution of monies pursuant to Article 25, paragraph (1) (Amounts Deemed to Constitute Dividends and Similar Income) of the Act, the following matters:

the name or title, address, etc. and individual number or corporate number of the person receiving the delivery prescribed in Article 25, paragraph (1) of the Act;

the amount of money delivered, the value of assets other than money, the total amount of these, the portion of that total amount that is deemed to be a dividend of surplus, dividend of profits, distribution of surplus or distribution of monies pursuant to Article 25, paragraph (1) of the Act, and the date on which the delivery was finalized (for an amount deemed to be a dividend of surplus on a bearer share or similar interest, the date on which the delivery was made);

the amount of income tax subject to Withholding on the amount referred to in (b);

where there is an amount equivalent to notified Foreign Corporation tax prescribed in Article 4-9, paragraph (14), Article 4-10, paragraph (10), Article 4-11, paragraph (10) or Article 5, paragraph (10) of the Order for Enforcement of the Act on Special Measures Concerning Taxation in relation to the amount referred to in (b), that amount;

where the person in charge of handling payment delivers dividends and similar income on listed shares, etc. that fall under the amount referred to in (b), and there is an amount equivalent to notified Foreign Corporation tax prescribed in Article 4-6-2, paragraph (29) of the Order for Enforcement of the Act on Special Measures Concerning Taxation in relation to that amount, that amount;

the number or amount, by type, of the shares or contributions that were the basis of the delivery;

for a bearer share or similar interest, where the person who received the delivery prescribed in Article 25, paragraph (1) of the Act differs from the owner of the principal, the name or title and domicile or residence, or the location of the head office or principal office, of that owner of the principal;

the matters set forth in item (i), (h) pertaining to the person receiving that delivery;

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 dividend of surplus, dividend of profits, distribution of surplus, distribution of monies, interest on funds or distribution of proceeds that falls under the provisions of the relevant item.

where, for a dividend of surplus, dividend of profits, distribution of surplus, distribution of monies or interest on funds of a corporation, the amount to be paid at one time is 15,000 yen (30,000 yen where the period that was the basis for calculating that dividend of surplus, dividend of profits, distribution of surplus, distribution of monies or interest on funds is one year or more) or less;

where, for a distribution of proceeds due to the termination of an Investment Trust or a Specified Trust That Issues Beneficiary Certificates, the amount to be paid at one time is 50,000 yen or less;

where, for an amount deemed to be a dividend of surplus, dividend of profits, distribution of surplus or distribution of monies pursuant to Article 25, paragraph (1) of the Act, the amount delivered (where the delivery was made in two or more installments, the cumulative total) is 15,000 yen or less;

where, for a distribution of proceeds or dividend of surplus of an Investment Trust or specified-purpose trust, 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, or Article 4-2, paragraph (1) (Tax Exemption on Interest Income, etc. on Wage Earners' Asset-Building Housing Savings) or Article 4-3, paragraph (1) (Tax Exemption on Interest Income, etc. on Wage Earners' Asset-Building Pension Savings) of the Act on Special Measures Concerning Taxation, apply;

where, for dividends and similar income, the provisions of Article 11, paragraph (1) (Exemption from Taxation of Public Corporations, etc.), Article 176, paragraph (1) or (2) (Special Provisions on Taxation of Interest and Similar Income from Trust Property), Article 177 (Special Provisions on Taxation of Dividends and Similar Income Related to Shares, etc. of Wholly Owned Subsidiaries) or Article 180-2, paragraph (1) or (2) (Special Provisions on Taxation of Interest and Similar Income from Trust Property) of the Act, or the provisions of Article 8, paragraphs (1) through (3) (Non-Application of Withholding at the Source to Interest Income, etc. Received by Financial Institutions), Article 9-4 (Special Provisions on Taxation on Interest and Similar Income Pertaining to Managed Assets, etc. of Certain Investment Corporations, etc.), Article 9-4-2, paragraph (1) (Special Provisions on Taxation on Redemption Money or a Similar Asset of Listed Securities Investment Trusts, etc.) or Article 9-5, paragraph (1) (Special Provisions on Withholding at the Source for Distributions of Proceeds Received by Financial Instruments Business Operators, etc. That Purchased Beneficial Interests in Publicly Offered Stock Securities Investment Trusts) of the Act on Special Measures Concerning Taxation, apply.

With respect to the application of items (i) through (iii) of the preceding paragraph to dividends and similar income on a beneficial interest in an Investment Trust issued outside Japan (excluding a Bond Investment Trust and a Bond-Based Investment Trust Under Public Offering) or a Specified Trust That Issues Beneficiary Certificates, or on shares (limited to dividends and similar income on foreign Investment Trusts, etc. prescribed in Article 8-3, paragraph (2) of the Act on Special Measures Concerning Taxation, or dividends and similar income on foreign shares prescribed in Article 9-2, paragraph (1) of that Act, to which Article 8-3, paragraph (3) (Separate Taxation, etc. on Dividend Income from Distributions of Proceeds of Investment Trusts, etc. Issued Outside Japan) or Article 9-2, paragraph (2) (Special Provisions on Withholding at the Source, etc. for Dividend Income from Shares Issued Outside Japan) of that Act applies), or to dividends and similar income on listed shares, etc. prescribed in Article 9-3-2, paragraph (1) of that Act, the amount to be delivered as prescribed in Article 8-3, paragraph (3), Article 9-2, paragraph (2) or Article 9-3-2, paragraph (1) of that Act is deemed to be the amount to be paid or the amount delivered prescribed in items (i) through (iii) of the preceding paragraph.

A person who pays, in Japan, to an individual or corporation, a distribution of proceeds of a specified real estate Investment Trust prescribed in Article 336, paragraph (2), item (v) (Notice by Persons Receiving Interest, Dividends and Similar Income on Deposits and Savings, Shares, etc.) of the Order must, as provided in paragraphs (1) and (2), submit a report on the payment of the distribution of proceeds of that specified real estate Investment Trust to the district director referred to in paragraph (1) within one month from the date on which the payment was finalized. In this case, for the application of paragraph (1), the phrase "bearer Investment Trust" in item (i), (b) and (g) of that paragraph is deemed to be replaced with "bearer Investment Trust (excluding the specified real estate Investment Trust prescribed in paragraph (4))".

A person who pays, in Japan, to an individual or corporation, a distribution of proceeds of a specified stock Investment Trust prescribed in Article 3-2 (Special Provisions on Payment Reports for Interest Income) of the Act on Special Measures Concerning Taxation must, as provided in paragraphs (1) and (2), submit a report on the payment of the distribution of proceeds of that specified stock Investment Trust to the district director referred to in paragraph (1) within one month from the date on which the payment was finalized. In this case, for the application of paragraph (1), the phrase "bearer Open-Ended Securities Investment Trust" in item (ii), (b) of that paragraph is deemed to be replaced with "bearer Open-Ended Securities Investment Trust (excluding the specified stock Investment Trust prescribed in paragraph (5))", and the phrase "bearer beneficiary certificate" in (g) of that item with "bearer beneficiary certificate (excluding the beneficiary certificate of the specified stock Investment Trust prescribed in paragraph (5))".