Regulation for Enforcement of the Income Tax Act

A person who pays, in Japan, an insurance benefit or benefit prescribed in Article 225, paragraph (1), item (iv) (Payment Reports on Life Insurance Proceeds, 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 (xiv) (Domestic Source Income) or Article 209, item (ii) (Pensions Exempt from Withholding) of the Act; hereinafter referred to as "life insurance benefit, etc." in this Article) must, pursuant to Article 225, paragraph (1), item (iv) or (viii) of the Act, for each person receiving the payment of the life insurance benefit, etc., submit a report stating the following matters (excluding the matter set forth in item (viii) for an annuity prescribed in Article 183, paragraph (1) (Premiums, etc. to Be Deducted in Calculating the Amount of Miscellaneous Income from Annuities Under Life Insurance Policies or Similar Contracts) of the Order) 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 life insurance benefit, 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 life insurance benefit, etc. for which payment was finalized during the year;

the amount of any surplus or rebate distributed or rebated during the year under the contract on which the payment of the life insurance benefit, etc. is based, that is distributed or rebated together with that life insurance benefit, etc. or after its payment;

the amount set forth in Article 183, paragraph (4), item (iii) of the Order pertaining to the contract referred to in the preceding item, as calculated pursuant to paragraph (1), item (ii) or (iii) of that Article without applying the provisions of paragraph (4) of that Article, or the total amount of the premiums or contributions prescribed in paragraph (2), item (ii) of that Article or the amount calculated pursuant to paragraph (2), item (iii) of that Article;

the amount of income tax subject to Withholding on the life insurance benefit, etc. set forth in item (ii);

the date on which the payment was finalized;

the name or title, domicile or place of residence, or the location of the head office or principal office, and individual number or corporate number of the person who concluded, with the person who pays the life insurance benefit, etc. set forth in item (ii), the contract forming the basis for that payment;

in the case where, after the conclusion of the contract referred to in item (iii) (excluding a contract pertaining to group insurance prescribed in Article 326, paragraph (6), item (iii) (Withholding on Annuities Based on Life Insurance Policies or Similar Contracts) of the Order (referred to as "group insurance" in paragraph (1), item (viii) of the following Article) and an insurance policy pertaining to benefits prescribed in Article 351, paragraph (1), items (iii) through (ix) (Benefits Similar to Life Insurance Benefits, etc.) of the Order), there has been a change of the contracting party pertaining to that contract (excluding a change made upon the death of the contracting party pertaining to that contract; the same applies hereinafter in this item), the following matters:

the name or title and domicile or place of residence, or the location of the head office or principal office, of the contracting party before that change of contracting party (where the contracting party pertaining to that contract has been changed two or more times, before the last change of contracting party);

the amount of the premiums or contributions paid by the current contracting party pertaining to that contract;

the number of changes of the contracting party pertaining to that contract;

in the case where the 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 identifiable, the name and domicile or place of residence of that tax agent;

any other matters for reference.

A person who pays a life insurance benefit, etc. must, in the case where that life insurance benefit, etc. is an annuity set forth in Article 209, item (ii) of the Act, enter in the report referred to in the preceding paragraph pertaining to that life insurance benefit, etc. (referred to as a "life insurance annuity acquired through inheritance, etc." in this Article), in addition to the matters set forth in the items of that paragraph, the following matters pertaining to that life insurance annuity acquired through inheritance, etc.:

the payment commencement date (meaning the payment commencement date prescribed in Article 185, paragraph (1), item (i) (Calculation of the Amount of Miscellaneous Income from Annuities Based on Life Insurance Policies or Similar Contracts Pertaining to Inheritance, etc.) of the Order);

the number of remaining years prescribed in Article 185, paragraph (1), item (i), (a) of the Order; the age, on the payment commencement date, of the person subject to the contract prescribed in item (ii), (a) of that paragraph, pertaining to the number of years of life expectancy at the payment commencement date prescribed in item (ii), (a) of that paragraph (referred to as "age at the payment start date" in this item and paragraph (2), item (ii) of the following Article); the number of years of the payment period prescribed in item (iii) of that paragraph, and the age at the payment start date pertaining to the number of years of life expectancy at the payment commencement date; the number of years of the guarantee period prescribed in item (iv), (a) of that paragraph, and the age at the payment start date pertaining to the number of years of life expectancy at the payment commencement date prescribed in item (iv), (b) of that paragraph; or the number of years of the payment period prescribed in item (v) of that paragraph and the age at the payment start date pertaining to the number of years of life expectancy at the payment commencement date, and the number of years of the guarantee period prescribed in item (v), (a) of that paragraph;

the total payment amount prescribed in Article 185, paragraph (1), item (i) of the Order, or the estimated total payment amount that is to serve as the basis for calculating the amount to be included in the gross revenue pertaining to miscellaneous income for that year pursuant to the provisions of items (ii) through (v) of that paragraph;

the ratio prescribed in Article 185, paragraph (1), item (viii) or (ix) of the Order;

where that life insurance annuity acquired through inheritance, etc. is an annuity subject to the provisions of Article 185, paragraph (2) of the Order, the amount at which the rights pertaining to that life insurance annuity acquired through inheritance, etc. have been valued pursuant to the provisions of Article 24 (Valuation of Rights Relating to Periodic Payments) of the Inheritance Tax Act (Act No. 73 of 1950).

In the case referred to in paragraph (1), when falling under a case set forth in one of the following items, the report referred to in that paragraph pertaining to the annuity or lump-sum payment that falls under that item is not required to be submitted:

where the amount paid during the year to the same person as an annuity prescribed in Article 183, paragraph (1) of the Order (excluding a life insurance annuity acquired through inheritance, etc.) is 200,000 yen or less;

where the amount to be paid at one time as a lump-sum payment prescribed in Article 183, paragraph (2) of the Order or as a property accumulation benefit, a Class 1 property accumulation fund benefit or a Class 2 property accumulation fund benefit set forth in Article 351, paragraph (1), item (ix) of the Order is 1,000,000 yen or less;

in addition to the case set forth in the preceding item, where, for a life insurance benefit, etc. to be paid during the year (excluding a life insurance annuity acquired through inheritance, etc.), a report under Article 59, paragraph (1), item (i) (Submission of Reports on Life Insurance Benefits, etc.) of the Inheritance Tax Act has already been submitted.

A person who, in Japan, pays a benefit specified by Cabinet Order prescribed in Article 225, paragraph (1), item (v) (Payment Report on Casualty Insurance Benefits, etc.) of the Act (where the person receiving the payment is a Nonresident or Foreign Corporation, limited to those set forth in Article 161, paragraph (1), item (xiv) (Domestic Source Income) or Article 209, item (ii) (Pensions Exempt from Withholding) of the Act; referred to as "casualty insurance benefit, etc." in this Article) must, pursuant to Article 225, paragraph (1), item (v) or (viii) of the Act, submit a report stating the following matters (excluding the matter set forth in item (viii) for an annuity based on a casualty insurance policy, etc. prescribed in Article 184, paragraph (1) (Premiums, etc. Deductible in Calculating the Amount of Miscellaneous Income from Annuities Based on Casualty Insurance Policies, etc.) of the Order) for each person receiving payment of the casualty insurance benefit, 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 casualty insurance benefit, etc.:

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

the amount of the casualty insurance benefit, etc. for which payment was finalized during the year;

the amount of surplus or rebate that is distributed or rebated during the year under the contract forming the basis for the payment of the casualty insurance benefit, etc., and that is distributed or rebated together with that casualty insurance benefit, etc. or after the payment of that casualty insurance benefit, etc.;

the amount set forth in Article 184, paragraph (3), item (i) of the Order pertaining to the contract referred to in the preceding item, as calculated pursuant to paragraph (1), item (ii) of that Article without applying the provisions of paragraph (3) of that Article, or the total amount of the premiums or contributions prescribed in paragraph (2), item (ii) of that Article;

the amount of income tax subject to Withholding on the casualty insurance benefit, etc. set forth in item (ii);

the date on which the payment was finalized;

the name or title, domicile or place of residence, or the location of the head office or principal office, and individual number or corporate number of the person who concluded, with the person who pays the casualty insurance benefit, etc. set forth in item (ii), the contract forming the basis for that payment;

in the case where, after the conclusion of the contract referred to in item (iii) (excluding a contract pertaining to group insurance and a casualty insurance policy whose contracting party is a management association prescribed in Article 2, item (iii) (Definitions) of the Act on Advancement of Proper Condominium Management (Act No. 149 of 2000) or a manager, etc. prescribed in item (iv) of that Article and whose subject matter of insurance is the common areas prescribed in Article 2, paragraph (4) (Definitions) of the Act on Building Unit Ownership (Act No. 69 of 1962) or the common areas in a housing complex prescribed in Article 67, paragraph (1) (Common Areas in a Housing Complex) of that Act), there has been a change of the contracting party pertaining to that contract (excluding a change made upon the death of the contracting party pertaining to that contract; the same applies hereinafter in this item), the following matters:

the name or title and domicile or residence, or location of the head office or principal office, of the contracting party before that change of contracting party (where the contracting party under that contract has been changed two or more times, before the last change of contracting party);

the amount of the premiums or contributions paid by the present contracting party under that contract;

the number of changes of contracting party under that contract.

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.

A person who pays a casualty insurance benefit, etc. must, where that casualty insurance benefit, etc. is an annuity set forth in Article 209, item (ii) of the Act, state in the report referred to in the preceding paragraph pertaining to that casualty insurance benefit, etc. (hereinafter referred to as "non-life insurance annuity acquired through inheritance, etc." in this Article), in addition to the matters set forth in the items of that paragraph, the following matters pertaining to that non-life insurance annuity acquired through inheritance, etc.:

the payment commencement date (meaning the payment commencement date prescribed in Article 186, paragraph (1), item (i) (Calculation of the Amount of Miscellaneous Income from Annuities Based on Casualty Insurance Policies, etc. Pertaining to Inheritance, etc.) of the Order);

in the case where that non-life insurance annuity acquired through inheritance, etc. is deemed, pursuant to Article 186, paragraph (1), item (i) of the Order, to be a fixed annuity prescribed in Article 185, paragraph (1), item (i) (Calculation of the Amount of Miscellaneous Income from Annuities Based on Life Insurance Policies or Similar Contracts Pertaining to Inheritance, etc.) of the Order and the calculation is made on that basis, the number of years of the remaining period prescribed in Article 185, paragraph (1), item (i), (a) of the Order; or in the case where that non-life insurance annuity acquired through inheritance, etc. is deemed, pursuant to Article 186, paragraph (1), item (ii) of the Order, to be a specified term annuity prescribed in Article 185, paragraph (1), item (v) of the Order and the calculation is made on that basis, the age at the payment start date pertaining to the number of years of the payment period and the number of years of life expectancy at the payment commencement date prescribed in Article 185, paragraph (1), item (v) of the Order, and the number of years of the guaranteed period prescribed in item (v), (a) of that paragraph;

the total payment amount prescribed in Article 186, paragraph (1), item (i) of the Order, or the estimated total payment amount that is to be the basis for calculating the amount to be included in the gross revenue pertaining to the miscellaneous income for that year pursuant to item (ii) of that paragraph;

the ratio prescribed in Article 186, paragraph (1), item (v) or (vi) of the Order;

where that non-life insurance annuity acquired through inheritance, etc. is an annuity subject to the provisions of Article 186, paragraph (2) of the Order, the value assessed under Article 24 (Valuation of Rights Relating to Periodic Payments) of the Inheritance Tax Act for the rights pertaining to that non-life insurance annuity acquired through inheritance, etc.

In the case referred to in paragraph (1), 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 annuity or maturity refund, etc. (meaning the maturity refund, etc. prescribed in Article 184, paragraph (4) of the Order; the same applies in item (ii)) that falls under the provisions of the relevant item.

where the amount paid to the same person during the year as an annuity prescribed in Article 184, paragraph (1) of the Order (excluding a non-life insurance annuity acquired through inheritance, etc.) is 200,000 yen or less;

where the amount paid to the same person during the year as a maturity refund, etc. is 1,000,000 yen or less.