Income Tax Act

A partner as prescribed in Article 29, paragraph (3) (Preparation and Filing of Accounting Books) of the Limited Liability Partnership Act (Act No. 40 of 2005) that undertakes the executive management of the business of a limited liability business partnership as prescribed in Article 2 (Definitions) of that Act which is formed based on a limited liability business partnership agreement as prescribed in Article 3, paragraph (1) (Limited Liability Business Partnership Agreement) of that Act, or a general partner with unlimited liability that undertakes the executive management of the business of an investment limited partnership as prescribed in Article 2, paragraph (2) (Definitions) of the Act on Limited Liability Partnership Agreements for Investment (Act No. 90 of 1998) which is formed based on a limited liability partnership agreement for investment prescribed in Article 3, paragraph (1) (Limited Liability Partnership Agreements for Investment) of that Act must submit a statement of partner income from the limited liability business partnership or the investment limited partnership to the district tax office director, for the profits arising or losses incurred by each partner of the limited liability business partnership or investment limited partnership (this includes any partner withdrawing from or joining the partnership partway through the accounting period stipulated in the limited liability business partnership agreement or investment limited partnership agreement), pursuant to Ministry of Finance Order, by January 31 of the year after that in which the final day of the accounting period falls (or by either that day or the day specified by Cabinet Order, whichever comes later, if a general partner with unlimited liability in the investment limited partnership submits that statement).

A person that, as the person of record, is paid interest or similar income as prescribed in Article 23, paragraph (1) (Interest Income) or a dividend or similar income as prescribed in Article 24, paragraph (1) (Dividend Income) on behalf of another person and in connection with business, must submit a report on the interest or similar income or on the dividend or similar income (other than any interest or similar income or dividend or similar income for which a person submits a report as prescribed in Article 225, paragraph (1) (Payment Report) or accounting statement as prescribed in the preceding Article) to the district tax office director pursuant to Ministry of Finance Order, by January 31 of the year after that in which the day the person is paid falls.

A person that, as the person of record, is paid a consideration for transferring a share or similar interest as prescribed in Article 224-3, paragraph (2) (Notice by Persons Receiving Consideration for a Share Transfer) (such consideration includes money or other assets as prescribed in paragraph (3) of that Article and redemption money or similar assets as prescribed in paragraph (4) of that Article, and payment thereof includes the delivery prescribed in paragraph (3) and paragraph (4) of that Article; hereinafter the same applies in this paragraph) on behalf of another person and in connection with business, must submit a report on the consideration for the transfer of the share or similar interest (other than a consideration for which a person submits a report as prescribed in Article 225, paragraph (1) or accounting statement as prescribed in the preceding Article) to the district tax office director pursuant to Ministry of Finance Order, by January 31 of the year after that in which the day the person is paid falls.

Upon receipt of a paper-based notice of a transfer or receipt as prescribed in Article 224-2 (Notice of the Transfer of Negotiable Deposits), a person accepting a negotiable deposit as prescribed in that Article must submit a report on the transfer or receipt of that negotiable deposit to the district tax office director pursuant to Ministry of Finance Order, by the last day of the month after that in which the day the person received the paper-based notice falls.

A stock company issuing or allotting share options as referred to in Article 238, paragraph (1) (Determination of Subscription Requirements) of the Companies Act pursuant to a resolution as referred to in paragraph (2) of that Article (or pursuant to a determination of the subscription requirements prescribed in Article 239, paragraph (1) (Entrusting Determination of Subscription Requirements) of that Act as entrusted based on a resolution as referred to in that paragraph; or pursuant to a board of directors resolution under Article 240, paragraph (1) (Special Provisions on Determination of Subscription Requirements for a Public Company) of that Act) (but only share options treated as having particularly favorable conditions or as being of an amount that is particularly favorable to persons receiving them, and other share options prescribed by Cabinet Order); issuing or allotting share options as referred to in Article 277 (Allotment of Share Options without Contribution) of that Act pursuant to a resolution as referred to in Article 322, paragraph (1) (General Meetings of Class Shareholders When Detriment to Class Shareholders of Certain Classes Likely) of that Act (or pursuant to the provisions of the articles of incorporation under paragraph (2) of that Article); or issuing or allotting share options as referred to in Article 280-21, paragraph (1) (Resolution for a Favorable Issue of Share Options) of the Commercial Code (Act No. 48 of 1899) prior to its revision under Article 64 (Partial Revision of the Commercial Code) of the Act Prescribing Adjustments to the Relevant Acts to Coordinate with the Enforcement of the Companies Act (Act No. 87 of 2005) pursuant to a resolution as referred to in that paragraph; to an individual or corporation (but only an issuance or allotment of share options for which it is decided that no money is required to be paid or a similar issuance or allotment as prescribed by Cabinet Order) must submit a report on the exercise of share options by that individual or corporation to the district tax office director pursuant to Ministry of Finance Order if the share options subject to the issuance or allotment are exercised, by January 31 of the year after that in which the day the share options were exercised falls.

A stock company that has made, to an individual or corporation, by a resolution under Article 322, paragraph (1) (Class Meetings Where There Is a Risk of Causing Detriment to Class Shareholders of a Certain Class) of the Companies Act (including a provision of the articles of incorporation under paragraph (2) of that Article), an allotment of shares without contribution as prescribed in Article 185 (Allotment of Shares Without Contribution) of that Act (including an allotment for a consideration at a significantly low value which is specified by Cabinet Order; hereinafter the same applies in this Article) must submit a report on that allotment of shares without contribution for the individual or corporation that received the allotment to the district director pursuant to Ministry of Finance Order, by January 31 of the year after that in which the day on which the allotment of shares without contribution becomes effective falls.

If an officer (meaning an officer as prescribed in Article 2, item (xv) (Definitions) of the Corporation Tax Act; hereinafter the same applies in this Article) or employee (including a person who was an officer or employee) of a Domestic Corporation that is in a relationship with a Foreign Corporation specified by Cabinet Order, such as a relationship in which the Foreign Corporation directly or indirectly holds shares (limited to those with voting rights) or capital contributions whose number or amount is 50 percent or more of the total number or total amount of the Domestic Corporation's issued shares (limited to those with voting rights) or capital contributions, who falls under either of the following persons, or an officer or employee (including a person who was an officer or employee) of a Foreign Corporation who works at a business office or similar place (meaning a business office, office, or any other place equivalent thereto; hereinafter the same applies in this Article) of that Foreign Corporation in Japan and who falls under either of the following persons (hereinafter collectively referred to as "officers or similar persons" in this Article), has received from the Foreign Corporation related to that officer or similar person (hereinafter referred to as the "foreign parent company or similar corporation" in this Article) a delivery, payment, or provision of shares, money, or other economic benefits (hereinafter referred to as a "provision or similar transfer" in this Article) based on a right, granted under a contract between the officer or similar person and the foreign parent company or similar corporation, to acquire shares issued by the foreign parent company or similar corporation free of charge or at an advantageous price, or on any other right specified by Cabinet Order, the Domestic Corporation or the head of the business office or similar place must submit a report on the provision or similar transfer of economic benefits by the foreign parent company or similar corporation to the officer or similar person who received that provision or similar transfer of economic benefits to the district director pursuant to Ministry of Finance Order, by March 31 of the year after that in which the day of that provision or similar transfer falls (or by April 30 of the following year, for a report concerning a person who falls under the person set forth in item (ii)):

a Resident;

a Nonresident who has received a provision or similar transfer of economic benefits the value of which constitutes, in whole or in part, domestic source income prescribed in Article 161, paragraph (1) (Domestic Source Income).

With regard to reports, withholding receipts, and accounting statements prescribed in the provisions of Article 225, paragraph (1) (Payment Reports and Notice of Payment), Article 226, paragraphs (1) through (3) (Withholding Receipts), or Article 227 through the preceding Article which are submitted pursuant to those provisions (hereinafter referred to as "statements and similar reports" in this Article), if the number calculated pursuant to Ministry of Finance Order as the number of those statements and similar reports that should have been submitted during the period from January 1 to December 31 of the year two years before the year that includes the deadline for submitting the statements and similar reports is 100 or more, the person required to submit the statements and similar reports must, notwithstanding those provisions, provide the particulars prescribed in those provisions that are to be stated in the statements and similar reports (hereinafter referred to as the "required particulars" in this Article) to the district director prescribed in those provisions by either of the following methods:

a method specified by Ministry of Finance Order as a method using an electronic data processing system (meaning an electronic data processing system as prescribed in Article 6, paragraph (1) (Applications Using Electronic Data Processing Systems) of the Act on the Advancement of Government Administration Processes That Utilize Information and Communications Technology (Act No. 151 of 2002)) which is carried out after notifying the district director in advance pursuant to Ministry of Finance Order;

the method of submitting an optical disc or any other recording medium specified by Ministry of Finance Order (hereinafter referred to as an "optical disc or similar medium" in this Article) on which the required particulars have been recorded.

A person required to submit statements and similar reports (other than a person falling under the preceding paragraph) may submit an optical disc or similar medium on which the required particulars of the statements and similar reports that the person is required to submit have been recorded in lieu of submitting those statements and similar reports.

If a person required to submit statements and similar reports has obtained the approval of the competent district director (meaning the district director prescribed in Article 225, paragraph (1), Article 226, paragraphs (1) through (3), or Article 227 through the preceding Article) pursuant to Cabinet Order, that person may, notwithstanding those provisions and the provisions of paragraph (1), provide the required particulars of the statements and similar reports to the district director specified by Ministry of Finance Order by either of the methods set forth in the items of that paragraph.

With regard to the provision of required particulars made pursuant to paragraph (1) or the preceding paragraph and the submission of an optical disc or similar medium made pursuant to paragraph (2), the statements and similar reports are deemed to have been submitted pursuant to Article 225, paragraph (1), Article 226, paragraphs (1) through (3), or Article 227 through the preceding Article, and those provisions, the provisions of Article 242 (Penal Provisions), and the provisions of Chapter VII-2 (Investigation of National Taxes) and Article 128 (Penal Provisions) of the Act on General Rules for National Taxes apply.

If a Resident or Nonresident commences a new business undertaking in Japan which is meant to generate real property income, business income, or timber income; establishes an office, place of business, or other equivalent place for that business in Japan; or relocates or closes such a place, the Resident or Nonresident must submit a paper-based report indicating this and giving other necessary information to the district director pursuant to Ministry of Finance Order, by the Filing Deadline for the income taxes for the year that includes the day on which the event occurred.

A person that establishes, relocates, or closes an office, place of business, or other equivalent place in Japan which handles the affairs of paying salary or other wages must submit a paper-based report indicating this and giving other necessary information to the district director pursuant to Ministry of Finance Order, within one month from the day on which the event occurred.

A person paying, in Japan, a salary or other wage, severance pay or other such compensation, or a public pension or retirement package to a Resident must issue a paper-based payment slip indicating the amount of the salary or other wage, severance pay or other such compensation, or public pension or retirement package and giving other necessary information to the person being paid, pursuant to Ministry of Finance Order.

In lieu of issuing a paper-based payment slip for a salary or other wage, severance pay or other such compensation, or public pension or retirement package under the preceding paragraph, the person paying the salary or other wage, severance pay or other such compensation, or public pension or retirement package referred to in that paragraph may provide the person being paid the salary or other wage, severance pay or other such compensation, or public pension or retirement package with the information that is required to be given in the paper-based payment slip by electronic or magnetic means, with the consent of that person and pursuant to Cabinet Order; provided, however, that at the request of the person being paid, the person doing the paying must issue a paper-based payment slip for the salary or other wage, severance pay or other such compensation, or public pension or retirement package thereto.

In a case as referred to in the main clause of the preceding paragraph, the person paying the salary or other wage, severance pay or other such compensation, or public pension or retirement package referred to that paragraph is deemed to have issued paper-based payment slip for the salary or other wage, severance pay or other such compensation, or public pension or retirement package referred to in paragraph (1).