Income Tax Act

A person (other than a corporation as set forth in Appended Table I of the Corporation Tax Act (Table of Public Corporations) and any other person prescribed by Cabinet Order; hereinafter the same applies in this Article) that is paid, in Japan, interest or similar income as prescribed in Article 23, paragraph (1) (Interest Income), or dividends or similar income as prescribed in Article 24, paragraph (1) (Dividend Income) (other than interest on an ordinary deposit and any other interest prescribed by Cabinet Order; interest on a bearer public and corporate bond; a dividend of surplus from a bearer share or similar interest (meaning a dividend of surplus as prescribed in that paragraph; the same applies in the following paragraph); or a distribution of proceeds linked to a bearer beneficiary certificate from a Loan Trust, Investment Trust, or Specified Trust That Issues Beneficiary Certificates; hereinafter the same applies in this paragraph) must notify the person paying the interest or similar income or dividends or similar income (or the person prescribed by Cabinet Order as being equivalent thereto; hereinafter the same applies in this paragraph) of its name, domicile (or of a place as prescribed by Ministry of Finance Order, if the person has no domicile in Japan; hereinafter the same applies in this paragraph), and individual number or corporate number as prescribed in Article 2, paragraph (16) (Definitions) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (or, for a person that has no individual number or corporate number (meaning a corporate number as prescribed in that paragraph; hereinafter the same applies in this Chapter) or any other person prescribed by Cabinet Order, the name and domicile; hereinafter the same applies in this paragraph), by the day on which the decision to pay the interest or similar income or dividend or similar income is finalized, pursuant to Cabinet Order. In such a case, the person that is so paid must present a copy of the certificate of residence or certificate of registered information thereof and any other document prescribed by Cabinet Order to the person making the payment or transmit an electronic certificate for signature or similar record (meaning an electronic certificate for signature as prescribed in Article 3, paragraph (1) (Issuance of Electronic Certificates for Signature for Individual Number Cards) of the Act on Certification Business of the Japan Agency for Local Authority Information Systems in Relation to Electronic Signatures, etc. or any other electronic or magnetic record (meaning a record used in computerized information processing which is created in electronic form, magnetic form, or any other form that cannot be perceived by the human senses) that is prescribed by Ministry of Finance Order; hereinafter the same applies in this Chapter), pursuant to Cabinet Order, and the person making the payment must verify the name, domicile, and individual number or corporate number of which the person has been notified against those documents or that electronic certificate for signature or similar record, pursuant to Cabinet Order.

A person that is paid, in Japan, interest on a bearer public and corporate bond; a dividend of surplus from a bearer share or similar interest; or a distribution of proceeds linked to a bearer beneficiary certificate from a Loan Trust, Investment Trust, or Specified Trust That Issues Beneficiary Certificates; must submit a paper-based notice of receipt of the payment upon having been so paid to the person handling the payment, pursuant to Cabinet Order. In doing so, the person submitting the paper-based notice must present documents relating thereto as prescribed in the preceding paragraph to the person handling the payment, or transmit an electronic certificate for signature or similar record to that person, pursuant to Cabinet Order, and the person handling the payment must verify the information given in the paper-based notice against those documents or that electronic certificate for signature or similar record, pursuant to Cabinet Order.

The person handling the payment referred to in the preceding paragraph may make the payment referred to in that paragraph only after having the recipient submit a paper-based notice as set forth in that paragraph.

A person that is paid as referred to in paragraph (2) may, in lieu of submitting the paper-based notice prescribed in that paragraph, provide the information that is required to be given in the paper-based notice by electronic or magnetic means (meaning a means that uses an electronic data processing system or any other means that uses information and communications technology). In such a case, the person that is paid is deemed to have submitted the paper-based notice.

A person transferring or receiving a negotiable deposit (meaning Deposits and Savings without special provisions prohibiting transfer, as prescribed by Cabinet Order) in Japan must submit a paper-based notice of the transfer or receipt to the business office or other office of the financial institution with which the negotiable deposit is deposited, by the last day of the month after that in which the day of the transfer or receipt falls, pursuant to Ministry of Finance Order. In such a case, the director of the business office or other office of the financial institution must verify the information given in the paper-based notice pursuant to Ministry of Finance Order.