Regulation for Enforcement of the Income Tax Act

The statement specified by Ministry of Finance Order as prescribed in Article 120, paragraph (8) (Filing an Income Tax Return) of the Act, as applied mutatis mutandis with replacement of terms pursuant to Article 166 (Filing of Returns, Payment of Taxes, and Issuance of Refunds) of the Act, is, where the Nonresident prescribed in Article 120, paragraph (8) of the Act conducts a transportation business by ship or aircraft both in Japan and outside Japan, a statement describing the amount of the income arising from that business that is treated as income arising from operations conducted in Japan and the method of its calculation.

The documents specified by Ministry of Finance Order as prescribed in Article 166-2, paragraph (1) (Documentation of Transactions Related to a Permanent Establishment) of the Act are the following documents:

a document stating the content of the transactions attributable to the permanent establishment of the Nonresident prescribed in Article 166-2, paragraph (1) of the Act (hereinafter referred to as "external transaction attributable to a permanent establishment" in this Article);

a document stating the details of the assets used in the external transaction attributable to a permanent establishment by the permanent establishment and the place of business or similar place (meaning the place of business or similar place prescribed in Article 161, paragraph (1), item (i) (Domestic Source Income) of the Act; the same applies hereinafter in this Article and the following Article) of the Nonresident in Article 166-2, paragraph (1) of the Act, and the details of the liabilities pertaining to that external transaction attributable to a permanent establishment;

a document stating the functions performed in the external transaction attributable to a permanent establishment by the permanent establishment and the place of business or similar place of the Nonresident in Article 166-2, paragraph (1) of the Act (meaning personnel functions relating to the assumption and management of risk (meaning the possibility of an increase or decrease in profit or loss pertaining to that external transaction attributable to a permanent establishment arising from fluctuations in exchange rates, fluctuations in market interest rates, changes in economic conditions or other factors; the same applies hereinafter in this item), personnel functions relating to the attribution of assets, and other functions; the same applies in the following item) and matters relating to the risks associated with those functions;

a document stating the departments related to the functions performed in the external transaction attributable to a permanent establishment by the permanent establishment and the place of business or similar place of the Nonresident in Article 166-2, paragraph (1) of the Act, and the content of the operations of those departments.

The documents specified by Ministry of Finance Order as prescribed in Article 166-2, paragraph (2) (Documentation of Transactions Related to a Permanent Establishment) of the Act are the following documents:

an order form, contract, invoice, receipt, estimate or other similar document, or a document equivalent thereto, or a copy thereof, that states the transfer of assets, provision of services or other facts falling under the internal dealing prescribed in Article 161, paragraph (1), item (i) (Domestic Source Income) of the Act (hereinafter referred to as "internal dealing" in this Article) between the permanent establishment and the place of business or similar place of the Nonresident in Article 166-2, paragraph (2) of the Act;

a document stating the details of the assets used in the internal dealing by the permanent establishment and the place of business or similar place of the Nonresident in Article 166-2, paragraph (2) of the Act, and the details of the liabilities pertaining to that internal dealing;

a document stating the functions performed in the internal dealing by the permanent establishment and the place of business or similar place of the Nonresident in Article 166-2, paragraph (2) of the Act (meaning personnel functions relating to the assumption and management of risk (meaning the possibility of an increase or decrease in profit or loss pertaining to that internal dealing arising from fluctuations in exchange rates, fluctuations in market interest rates, changes in economic conditions or other factors; the same applies hereinafter in this item), personnel functions relating to the attribution of assets, and other functions; the same applies in the following item) and matters relating to the risks associated with those functions;

a document stating the departments related to the functions performed in the internal dealing by the permanent establishment and the place of business or similar place of the Nonresident in Article 166-2, paragraph (2) of the Act, and the content of the operations of those departments;

a document certifying the occurrence of any other facts related to the internal dealing (meaning the transfer of assets, provision of services or other facts that have arisen in connection with the internal dealing).

The matters specified by Ministry of Finance Order as prescribed in Article 172, paragraph (1), item (iv) (Tax Payment by Self-Assessment Without Withholding from Salaries, etc.) of the Act are as follows:

the name of the person who submits the return under Article 172, paragraph (1) of the Act and that person's domicile or residence in Japan (for a person who has an individual number, the name, domicile or residence in Japan, and individual number);

the name or corporate name of the payer of the salary or remuneration prescribed in Article 172, paragraph (1), item (i) of the Act (limited to that to which neither the provisions of Part IV, Chapter V (Withholding on the Income of Nonresidents or Corporations) of the Act nor Article 41-22, paragraph (1) (Special Provisions on Withholding at the Source for Remuneration Paid by a Tax-Exempt Entertainment Corporation to Entertainers for Their Provision of Services) of the Act on Special Measures Concerning Taxation applies) and that payer's domicile or residence, or the location of its head office or principal office, or its corporate number;

the day on which the person came to have a domicile in Japan;

any other matters for reference.

The matters specified by Ministry of Finance Order as prescribed in Article 173, paragraph (1), item (iv) (Refund Due to Alternative Taxation on Retirement Income) of the Act are as follows:

the name and domicile of the person who submits the return under Article 173, paragraph (1) of the Act and, if the person has a residence in Japan, that residence (for a person who has an individual number, the name, the domicile and, if the person has a residence in Japan, that residence, and the individual number);

the basis for calculating the amount of the portion of the total amount of severance pay or other such compensation listed in Article 173, paragraph (1), item (i) of the Act that falls under Article 161, paragraph (1), item (xii), (c) (Domestic Source Income) of the Act;

the name and location of the bank or post office (meaning an office of Japan Post Co., Ltd. that carries out the postal counter services prescribed in Article 2 (Definitions) of the Post Office Branch Act (Act No. 213 of 1949) and that has the postal savings bank prescribed in Article 94 (Definitions) of the Postal Service Privatization Act (Act No. 97 of 2005) as its affiliated bank prescribed in Article 2, paragraph (16) (Definitions) of the Banking Act (Act No. 59 of 1981) and carries out the business of bank agency prescribed in paragraph (14) of that Article) through which the person wishes to receive the payment of a refund under Article 173, paragraph (2) of the Act;

any other matters for reference.

The matters specified by Ministry of Finance Order as prescribed in Article 297, paragraph (1) (Refund Due to Alternative Taxation on Retirement Income) of the Order are a breakdown, by payer, of the severance pay or other such compensation prescribed in Article 171 (Elective Treatment for Taxation of Retirement Income) of the Act that is received during the year and from which income tax has been collected pursuant to Article 212, paragraph (1) (Obligation to Withhold Taxes) of the Act, the date and place of its payment, the amount of income tax collected, and the name or corporate name of the payer and its domicile or residence, or the location of its head office or principal office, or its corporate number.

In the case where a copy of a record set forth in Article 225, paragraph (1), item (viii) (Report of Payment) of the Act concerning payment prescribed in the same paragraph is attached to a return form prescribed in Article 173, paragraph (1) (Refund Due to Alternative Taxation on Retirement Income) of the Act, the matters already entered in the copy of the record, out of the matters prescribed in the preceding paragraph, need not be entered in a detailed statement set forth in Article 297, paragraph (1) of the Order.