Regulation for Enforcement of the Income Tax Act

A person who pays, in Japan, remuneration to a Resident or Domestic Corporation that acts as an agent for the conclusion of a life insurance policy (meaning a life insurance policy prescribed in Article 225, paragraph (1), item (iv) (Payment Reports) of the Act), a casualty insurance policy (meaning a casualty insurance policy prescribed in item (v) of that paragraph), or another contract of mutual aid similar to these must, pursuant to Article 225, paragraph (1), item (vi) of the Act, submit a report stating the following matters, for each person receiving the payment of that remuneration, 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:

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 for which payment was finalized during the year;

the basis for calculating that amount of remuneration;

any other matters for reference.

In the case referred to in the preceding paragraph, where the amount of the remuneration prescribed in that paragraph paid to the same person during the year is 200,000 yen or less, the report referred to in that paragraph need not be submitted for that remuneration.

A person who pays, in Japan, to a Nonresident or Foreign Corporation, profit set forth in Article 161, paragraph (1), item (iv) (Domestic Source Income) of the Act (hereinafter referred to as "profit under a partnership contract" in this Article) must, pursuant to Article 225, paragraph (1), item (viii) (Payment Reports on Income of Nonresidents, etc.) of the Act, submit a report stating the following matters, for each person receiving the payment of the profit under a partnership contract, 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 the profit under a partnership contract:

the name or title and residence (for a person who has no residence in Japan, the person's domicile outside Japan; the same applies hereinafter in this item and paragraph (2), item (i)) or location of the head office or principal office (for a person having a domestic office or similar place (meaning an office, place of business or other equivalent place located in Japan; the same applies hereinafter in this paragraph and Article 90, paragraph (2)), including the name and location of the domestic office or similar place located at the place for payment of the income tax or corporation tax of that person; the same applies hereinafter in this item and paragraph (2), item (i)) (for a person having an individual number or corporate number, the name or title, residence or location of the head office or principal office, and individual number or corporate number);

the amount of the profit under a partnership contract for which payment was finalized;

the amount of income tax subject to Withholding on the profit under a partnership contract referred to in the preceding item;

the basis for calculating the amount of the profit under a partnership contract referred to in item (ii);

the calculation period (meaning the calculation period prescribed in Article 212, paragraph (5) (Obligation to Withhold Taxes) of the Act) for the profit under a partnership contract referred to in item (ii), and the date on which payment was finalized;

the name of the partnership (including similar entities) under the partnership contract prescribed in Article 161, paragraph (1), item (iv) of the Act pertaining to the profit under a partnership contract referred to in item (ii), and the location of its domestic office or similar place (where there are two or more such domestic offices or similar places, the principal one) (where the principal office of that partnership is located outside Japan, including the location of the principal office located outside Japan);

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, in Japan, to a Nonresident or Foreign Corporation, any of the items set forth in Article 161, paragraph (1), item (vi), item (vii) or items (x) through (xiii) of the Act (hereinafter referred to as "domestic source income" in this Article) must, pursuant to Article 225, paragraph (1), item (viii) of the Act, submit a report stating the following matters, for each person receiving the payment of that domestic source income, 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 domestic source income:

the name or title and residence or location of the head office or principal office of the person receiving the payment (for a person having an individual number or corporate number, the name or title, residence or location of the head office or principal office, and individual number or corporate number);

the amount of domestic source income for which payment was finalized during the year;

the basis for calculating the amount of the domestic source income referred to in the preceding item;

where a tax agent notified by the person receiving the payment pursuant to Article 117, paragraph (2) 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 paragraph (1), where the amount to be paid at one time as profit under a partnership contract to the same person is 30,000 yen or less, the report referred to in that paragraph need not be submitted for that profit under a partnership contract.

In the case referred to in paragraph (2), where the amount of domestic source income paid to the same person during the year is 500,000 yen or less, the report referred to in that paragraph need not be submitted for that domestic source income.

A corporation, or an individual who is a real estate broker prescribed in Article 225, paragraph (1), item (ix) (Payment Reports on Real Property Income, etc.) of the Act, that pays, in Japan, to a Resident or Domestic Corporation, consideration or fees prescribed in that item must, pursuant to that item, submit a report stating the following matters, for each person receiving the payment of that consideration (where the person receiving the payment is a Domestic Corporation, limited to consideration for the transfer of real estate and other such property prescribed in that item and consideration for the establishment of a superficies, a leasehold right in that real estate and other such property, or another right existing on land) or fees, 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 consideration or fees:

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 consideration or fees for which payment was finalized during the year;

the basis for calculating the amount of the consideration or fees referred to in the preceding item;

any other matters for reference.

A corporation, or an individual who is a real estate broker prescribed in Article 225, paragraph (1), item (ix) of the Act, that pays, in Japan, to a Nonresident or Foreign Corporation, consideration for the transfer of real estate and other such property prescribed in Article 225, paragraph (1), item (ix) of the Act (limited to that which falls under the consideration set forth in Article 161, paragraph (1), item (v) (Domestic Source Income) of the Act; the same applies hereinafter in this paragraph) must, pursuant to Article 225, paragraph (1), item (ix) of the Act, submit a report stating the following matters, for each person receiving the payment of that consideration, 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 consideration:

the name or title and residence (for a person who has no residence in Japan, the person's domicile outside Japan; the same applies hereinafter in this item) or location of the head office or principal office (for a person having a domestic office or similar place, including the name and location of the domestic office or similar place located at the place for payment of the income tax or corporation tax of that person; the same applies hereinafter in this item) of the person receiving the payment (for a person having an individual number or corporate number, the name or title, residence or location of the head office or principal office, and individual number or corporate number);

the amount of consideration for which payment was finalized during the year;

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

the basis for calculating the amount of the consideration referred to in item (ii);

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 cases referred to in the preceding two paragraphs, where any of the cases set forth in the following items applies, the report referred to in the preceding two paragraphs need not be submitted for the consideration or fees that fall under the provisions of the relevant item.

where the amount of consideration for the transfer of real estate and other such property referred to in the preceding two paragraphs paid to the same person during the year is 1,000,000 yen or less;

where the amount of the consideration referred to in paragraph (1) (excluding the consideration prescribed in the preceding item) or fees paid to the same person during the year is 150,000 yen or less.