Act on Special Measures Concerning Taxation

A domestic corporation that is a constituent entity of a specified multinational enterprise group (limited to one that falls under the category of ultimate parent company, etc. or surrogate parent entity; hereinafter the same applies in this paragraph) must provide the country-by-country report (meaning the revenue, the amount of profit before income tax, the amount of tax paid and other matters specified by Order of the Ministry of Finance for each state or territory in which the business of the constituent entities of the specified multinational enterprise group is conducted; hereinafter the same applies in this Article) for each ultimate parent fiscal year of that specified multinational enterprise group, within one year from the day following the last day of that ultimate parent fiscal year, pursuant to the provisions of Order of the Ministry of Finance, by a method using a specified electronic data processing system (meaning the method specified by Order of the Ministry of Finance as a method using the electronic data processing system prescribed in Article 6, paragraph (1) of the Act on the Advancement of Government Administration Processes That Utilize Information and Communications Technology, which is used upon notification made in advance to the district director pursuant to the provisions of Order of the Ministry of Finance; hereinafter the same applies in this Article and the following Article), to the district director with jurisdiction over the location of the head office or principal office of that domestic corporation.

In the case specified by Cabinet Order as a case where the authority that enforces the laws and regulations concerning taxes of the country of residence of the ultimate parent company, etc. of a specified multinational enterprise group (or, where a surrogate parent entity has been designated, of the surrogate parent entity) is found to be unable to carry out the provision of information equivalent to the country-by-country report to Japan, a domestic corporation that is a constituent entity of that specified multinational enterprise group (excluding one that falls under the category of ultimate parent company, etc. or surrogate parent entity; hereinafter the same applies in this paragraph) or a foreign corporation that has a permanent establishment and that is such a constituent entity must provide the country-by-country report for each ultimate parent fiscal year of that specified multinational enterprise group, within one year from the day following the last day of that ultimate parent fiscal year, pursuant to the provisions of Order of the Ministry of Finance, by a method using a specified electronic data processing system, to the district director with jurisdiction over, for that domestic corporation, the location of its head office or principal office, and, for that foreign corporation, the location of its office, place of business or any other equivalent place pertaining to the business conducted through its permanent establishment (where there are two or more of these, the location of the principal one).

Where there are two or more domestic corporations and foreign corporations that have a permanent establishment which are required to provide the country-by-country report concerning the specified multinational enterprise group referred to in the preceding paragraph pursuant to the provisions of that paragraph, if any one of those domestic corporations and foreign corporations that have a permanent establishment has provided, within one year from the day following the last day of each ultimate parent fiscal year referred to in that paragraph, by a method using a specified electronic data processing system, the name of the corporation that is to provide the country-by-country report under the provisions of that paragraph on behalf of those corporations and other matters specified by Order of the Ministry of Finance to the district director with jurisdiction prescribed in that paragraph pertaining to that one corporation, the corporations other than the corporation designated to provide the country-by-country report under the provisions of that paragraph on behalf of the others are not required to provide the country-by-country report under the provisions of that paragraph, notwithstanding the provisions of that paragraph.

In this Article and the following Article, the meanings of the terms listed in the following items are as prescribed respectively in those items:

corporate group: a group of enterprises that is specified by Cabinet Order as one for which consolidated financial statements of that group of enterprises (meaning financial documents stating the assets and profit and loss of that group of enterprises on a consolidated basis in accordance with generally accepted accounting standards; the same applies in item (iv)) are prepared;

multinational enterprise group: a corporate group in which there are two or more countries of residence of the constituent entities of that corporate group, or any other corporate group specified by Cabinet Order;

specified multinational enterprise group: a multinational enterprise group for which the amount specified by Order of the Ministry of Finance as the gross revenue of the multinational enterprise group in the immediately preceding ultimate parent fiscal year is 100 billion yen or more;

constituent entity: a company, etc. (meaning a company, partnership or any other business entity equivalent thereto (including those equivalent thereto in a foreign state); hereinafter the same applies in this item and item (viii)) whose assets and profit and loss are stated on a consolidated basis in the consolidated financial statements of a corporate group, or any other company, etc. specified by Cabinet Order;

ultimate parent company, etc.: among the constituent entities of a corporate group, one specified by Cabinet Order as controlling the body (meaning a shareholders' meeting or any other body equivalent thereto) that decides the financial and operating or business policies of the other constituent entities of that corporate group (referred to as a "parent company, etc." in this item), which has no parent company, etc. of its own;

surrogate parent entity: any one constituent entity of a specified multinational enterprise group other than its ultimate parent company, etc., which that ultimate parent company, etc. has designated as the entity to provide the country-by-country report of that specified multinational enterprise group, or matters equivalent thereto, to the authority that enforces the laws and regulations concerning taxes of the country of residence of that constituent entity (limited to a state or territory other than the country of residence of that ultimate parent company, etc.);

ultimate parent fiscal year: the period that serves as the unit for calculating the assets and profit and loss of the ultimate parent company, etc.;

country of residence: the state or territory specified in the following for each category of company, etc. listed therein:

a company, etc. that is subject, under the laws and regulations of a foreign state, to a tax equivalent to corporation tax by reason of having its head office or principal office, or the place where its business is managed and controlled, in that foreign state, or of having any other similar place in that foreign state (excluding a company, etc. listed in (c)): that foreign state;

a company, etc. that has its head office or principal office in a foreign state (excluding a company, etc. listed in (a)): that foreign state;

a company, etc. that has its head office or principal office in Japan: Japan.

A domestic corporation that is a constituent entity of a specified multinational enterprise group, or a foreign corporation that has a permanent establishment and that is such a constituent entity, must provide the notification items on the ultimate parent company, etc. (meaning the matters specified by Order of the Ministry of Finance as information concerning the ultimate parent company, etc. and the surrogate parent entity of the specified multinational enterprise group; the same applies in the following paragraph) for each ultimate parent fiscal year of that specified multinational enterprise group, by the last day of that ultimate parent fiscal year, by a method using a specified electronic data processing system, to the district director with jurisdiction over, for that domestic corporation, the location of its head office or principal office, and, for that foreign corporation, the location of its office, place of business or any other equivalent place pertaining to the business conducted through its permanent establishment (where there are two or more of these, the location of the principal one).

Where there are two or more domestic corporations and foreign corporations that have a permanent establishment which are required to provide the notification items on the ultimate parent company, etc. concerning the specified multinational enterprise group referred to in the preceding paragraph pursuant to the provisions of that paragraph, if any one of those domestic corporations and foreign corporations that have a permanent establishment has provided, by the last day of each ultimate parent fiscal year referred to in that paragraph, by a method using a specified electronic data processing system, the name of the corporation that is to provide the notification items on the ultimate parent company, etc. under the provisions of that paragraph on behalf of those corporations and other matters specified by Order of the Ministry of Finance to the district director with jurisdiction prescribed in that paragraph pertaining to that one corporation, the corporations other than the corporation designated to provide the notification items on the ultimate parent company, etc. under the provisions of that paragraph on behalf of the others are not required to provide the notification items on the ultimate parent company, etc. under the provisions of that paragraph, notwithstanding the provisions of that paragraph.

Where the country-by-country report under the provisions of paragraph (1) or (2) has not been provided to the district director by the deadline for its provision without justifiable grounds, the representative of the corporation (including the administrator of an association or foundation without juridical personality; the same applies in the following paragraph), agent, employee or other worker who committed the violation is punished by a fine of 300,000 yen or less; provided, however, that the punishment may be remitted depending on the circumstances.

If a representative, agent, employee or other worker of a corporation has committed the violation set forth in the preceding paragraph with regard to the business of that corporation, not only the offender is punished but also that corporation is subject to the punishment prescribed in that paragraph.

If the provisions of the preceding paragraph apply to an association or foundation without juridical personality, its representative or administrator represents the association or foundation without juridical personality with regard to its procedural acts, and the provisions of the laws concerning criminal proceedings in which a corporation is the defendant or the suspect apply mutatis mutandis.

Beyond what is provided for in the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraphs (1) through (6) are specified by Cabinet Order.

A domestic corporation that is a constituent entity of a specified multinational enterprise group, or a foreign corporation that has a permanent establishment and that is such a constituent entity, must provide the business overview report items (meaning the organizational structure, the outline of the business, the financial position and other matters specified by Order of the Ministry of Finance of the specified multinational enterprise group; the same applies in the following paragraph and paragraph (3)) for each ultimate parent fiscal year of that specified multinational enterprise group, within one year from the day following the last day of that ultimate parent fiscal year, pursuant to the provisions of Order of the Ministry of Finance, by a method using a specified electronic data processing system, to the district director with jurisdiction over, for that domestic corporation, the location of its head office or principal office, and, for that foreign corporation, the location of its office, place of business or any other equivalent place pertaining to the business conducted through its permanent establishment (where there are two or more of these, the location of the principal one).

Where there are two or more domestic corporations and foreign corporations that have a permanent establishment which are required to provide the business overview report items concerning the specified multinational enterprise group referred to in the preceding paragraph pursuant to the provisions of that paragraph, if any one of those domestic corporations and foreign corporations that have a permanent establishment has provided, within one year from the day following the last day of each ultimate parent fiscal year referred to in that paragraph, by a method using a specified electronic data processing system, the name of the corporation that is to provide the business overview report items under the provisions of that paragraph on behalf of those corporations and other matters specified by Order of the Ministry of Finance to the district director with jurisdiction prescribed in that paragraph pertaining to that one corporation, the corporations other than the corporation designated to provide the business overview report items under the provisions of that paragraph on behalf of the others are not required to provide the business overview report items under the provisions of that paragraph, notwithstanding the provisions of that paragraph.

Where the business overview report items under the provisions of paragraph (1) have not been provided to the district director by the deadline for their provision without justifiable grounds, the representative of the corporation (including the administrator of an association or foundation without juridical personality; the same applies in the following paragraph), agent, employee or other worker who committed the violation is punished by a fine of 300,000 yen or less; provided, however, that the punishment may be remitted depending on the circumstances.

If a representative, agent, employee or other worker of a corporation has committed the violation set forth in the preceding paragraph with regard to the business of that corporation, not only the offender is punished but also that corporation is subject to the punishment prescribed in that paragraph.

If the provisions of the preceding paragraph apply to an association or foundation without juridical personality, its representative or administrator represents the association or foundation without juridical personality with regard to its procedural acts, and the provisions of the laws concerning criminal proceedings in which a corporation is the defendant or the suspect apply mutatis mutandis.

Beyond what is provided for in the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraphs (1) and (2) are specified by Cabinet Order.