Regulation for Enforcement of the Income Tax Act

The requirements specified by Ministry of Finance Order as 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, which set the requirements for the specified stock Investment Trust prescribed in that item, are the following requirements:

that the terms and conditions of the Investment Trust managed under instructions from the settlor prescribed in Article 4, paragraph (1) (Conclusion of Investment Trust Contract) of the Act on Investment Trusts and Investment Corporations for that Securities Investment Trust provide for the matters listed in (a) through (f) (where that Securities Investment Trust is a foreign Investment Trust (meaning a foreign Investment Trust prescribed in Article 336, paragraph (2), item (v) of the Order; the same applies hereinafter in this item), a document similar to those terms and conditions of the Investment Trust managed under instructions from the settlor provides for the matters listed in (b) and (d) through (f), and the rules on listing of the financial instruments exchange (meaning a financial instruments exchange prescribed in Article 2, paragraph (16) (Definitions) of the Financial Instruments and Exchange Act; the same applies hereinafter in this Article) on which its beneficial interests are to be listed provide for the matters listed in (g) and (h)):

with respect to the initial beneficiaries of the trust or additional trust relating to the establishment or additional establishment of that Securities Investment Trust, the beneficial interests are to be transferred or delivered after registering the person's name or title, domicile and individual number or corporate number (for a person who has neither an individual number nor a corporate number, name or title and domicile; the same applies in (g), item (i) of the following paragraph and paragraph (3)) with the trustee;

distribution of proceeds is to be made, for each trust calculation period (where that Securities Investment Trust is a foreign Investment Trust, each calculation period relating to the distribution of proceeds), of the entire amount obtained by deducting the total amount of interest paid, trust fees and other similar expenses from the total amount of dividends, interest received and other similar proceeds arising on the trust property;

Payment of distributions of proceeds is to be made to a person whose name or title, domicile and individual number or corporate number (in the case of a person who has neither an individual number nor a corporate number, or a person who receives delivery of the distribution of proceeds through a payment handler 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, the name or title and domicile; the same applies in (h) and in item (ii) of the following paragraph) are registered with the trustee as a beneficiary on the last day of the calculation period for the distribution of proceeds;

A beneficiary may request, by means of no fewer than a certain number of beneficial interests held by that person, an exchange of those beneficial interests for shares equivalent to the interest of those beneficial interests in the trust property (where, among the shares belonging to the trust property, there are shares for which the record date relating to the right to receive the dividends and similar income prescribed in Article 24, paragraph (1) (Dividend Income) of the Act paid by the issuing corporation of the shares, or relating to any other right of a shareholder, is the date of the exchange (referred to as "ex-rights shares" in (d)), this includes the delivery of monies equivalent to the value of those ex-rights shares; the same applies in (e) and (f));

If a request for the exchange under (d) is made, the settlor of the Securities Investment Trust is to instruct the trustee to effect an exchange of those beneficial interests for those of the shares belonging to the trust property that are equivalent to the interest of those beneficial interests in the trust property (where the Securities Investment Trust is a foreign Investment Trust, the trustee of the foreign Investment Trust is to effect an exchange of those beneficial interests for those of the shares belonging to the trust property that are equivalent to the interest of those beneficial interests in the trust property);

If the number of beneficial interests in the Securities Investment Trust falls below a certain number as a result of effecting the exchange under (e), the settlor may terminate the Securities Investment Trust (where the Securities Investment Trust is a foreign Investment Trust, if the amount of net assets of the trust property of the foreign Investment Trust falls below a certain amount as a result of effecting the exchange under (e), the settlor may terminate the foreign Investment Trust);

With respect to the initial beneficiaries under the trust or additional trust relating to the establishment or additional establishment of the Securities Investment Trust, the transfer or delivery of beneficial interests is to be carried out after registering the name or title, domicile and individual number or corporate number of the person with the entrusted corporation for sales settlement (meaning a corporation that has been entrusted, by the financial instruments exchange on which the beneficial interests are to be listed, with affairs relating to the settlement of sales of the beneficial interests; the same applies in (h));

Payment of distributions of proceeds is to be made to a person whose name or title, domicile and individual number or corporate number are registered with the entrusted corporation for sales settlement as a beneficiary on the last day of the calculation period for the distribution of proceeds;

the Securities Investment Trust is one listed in Article 12, item (i) or (ii) (Exceptions to the Prohibition of Settlor-Directed Investment Trusts Other Than Money Trusts) of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet Order No. 480 of 2000).

The requirements specified by Ministry of Finance Order as prescribed in Article 336, paragraph (2), item (v) of the Order, which set the requirements for a specified real estate Investment Trust prescribed in that item, are that the Investment Trust terms of an Investment Trust other than the Securities Investment Trust (meaning the settlor-directed Investment Trust terms prescribed in Article 4, paragraph (1) of the Act on Investment Trusts and Investment Corporations or the non-settlor-directed Investment Trust terms prescribed in Article 49, paragraph (1) (Conclusion of Investment Trust Contract) of that Act) provide for the following matters.

With respect to the initial beneficiaries under the trust or additional trust relating to the establishment or additional establishment of the Investment Trust, the transfer or delivery of beneficial interests is to be carried out after registering the name or title, domicile and individual number or corporate number of the person with the trustee;

Payment of distributions of proceeds is to be made to a person whose name or title, domicile and individual number or corporate number are registered with the trustee as a beneficiary on the last day of the calculation period for the distribution of proceeds.

The registration under Article 336, paragraph (2), item (v) of the Order is to be effected by a person who receives payment of distributions of proceeds of the specified stock Investment Trust or specified real estate Investment Trust prescribed in that item presenting the documents prescribed in Article 337, paragraph (2) (Presentation of a Copy of the Certificate of Residence and Other Documents Pertaining to Notice, etc.) of the Order or similar documents, or transmitting an electronic certificate for signature or similar record (meaning the electronic certificate for signature or similar record prescribed in Article 336, paragraph (4) of the Order; the same applies hereinafter in this Chapter), and registering the person's name or title, domicile and individual number or corporate number with the person handling payment affairs prescribed in Article 336, paragraph (1) of the Order relating to those distributions of proceeds, in accordance with what is provided in the settlor-directed Investment Trust terms prescribed in Article 336, paragraph (2), item (v) of the Order of the specified stock Investment Trust or in the Investment Trust terms prescribed in that item of the specified real estate Investment Trust.

The period specified by Ministry of Finance Order as prescribed in Article 336, paragraph (2), item (v), (a) of the Order is the trust period where the trust period specified in the contract relating to the Securities Investment Trust is the earlier of a date specified in the contract that falls on or after the day on which 100 years have elapsed from the day of establishment of the trust, or a date specified in the contract that falls on or after the day on which 20 years have elapsed from the day of death of the last survivor of the persons designated in the contract, or the trust period where a period comparable to that trust period is specified.

The assets specified by Ministry of Finance Order as prescribed in Article 336, paragraph (2), item (v), (e) of the Order are easements and the construction in progress account listed in Article 12, paragraph (3), item (ii), (f) (Classification of the Assets Section) of the Regulation on Calculation of Investment Trust Property (Order of the Prime Minister's Office No. 133 of 2000).

The ratio specified by Ministry of Finance Order as prescribed in Article 336, paragraph (2), item (v), (e) of the Order is the ratio of the total value of the portion equivalent to the real estate and other such property prescribed in Article 336, paragraph (2), item (v), (e) of the Order to the total amount of the trust property of the specified real estate Investment Trust, which is specified as a listing standard in the operational rules of the financial instruments exchange (limited to those that provide for the matters listed in Article 117, item (iv) (Particulars to be Stated in the Operational Rules) of the Financial Instruments and Exchange Act) for the listing of the beneficial interests of the specified real estate Investment Trust prescribed in Article 336, paragraph (2), item (v) of the Order on that financial instruments exchange.