By tax system reform in 2015, “Order for Enforcement of the Act on Special Measures Concerning Taxation” was reformed and those who newly open a bank account at domestic financial institutions are required to submit notification form written with your residential place and so on to a bank.
Contents
The outline of “Order for Enforcement of the Act on Special Measures Concerning Taxation”
“Notification system for automatic exchange of financial account information of non-resident” is a system that financial institutions of other countries report and exchange automatically financial account information of non-resident among their taxation authorities in accordance with “Common Reporting Standard (SRS)” established by “Organization for Economic Cooperation and Development (OECD)” for the purpose of avoidance of international tax evasion and tax mitigation by taking advantage of foreign financial account.
Financial institutions in Japan are bound to receive individual’s financial account information from account users based on reformed “Order for Enforcement of the Act on Special Measures Concerning Taxation” in terms of enforcement of information exchange in accordance with “CRS”.
If your current country of residence is the one indicated by an ordinance, your financial account should be reported to the Regional Taxation Bureaus of Japan.
A current country of residence indicates the country where there is your address that receives a demand notice of taxation. If you are a Japanese resident and running a domestic corporation, you need to report your current country of residence as “Japan”.
If you have any questions about these things, please bring your inquiries to the nearest taxation office.
- If taxation comparable to income and corporate tax is imposed on you by laws and regulations of a country other than Japan because you have nationality and corporate address in the country
- If you are a Japanese resident ( who has an address in Japan and has place where you have lived for more than a year)
If you correspond both two conditions above, you must write all the corresponding country of residence.
A person who needs to submit a non-resident notification
If you transact the following procedure with a bank, you need to submit a notification
- If you open newly a transfer savings account and a saving account after January first in 2017
- If you already have a bank account and plan to move to overseas.
*There is also a case that you need to submit a document about your current country of residence
* Submitting a notification is obligation under an ordinance. Unless you submit a notification document, you are rejected to open an account
* If you change the country of residence, you need to report your current country of residence.
*If you cannot submit these notifications when opening an account or false entry is found out from a notification, punishments for violations are provided.
What you need to write on a notification entry
Individuals
- Your name
- Your date of birth
- Your address
- The current country of residence
- Your taxpayer identifiaction number (of you country)
Corporation
Summary of non-resident notification
| New notification | Inhabitant movement notification | |
|---|---|---|
| Who submit | A person who open newly an account after January first in 2017 | A person who move to the current country of residence written on a notification after submitting new notification or inhabitant movement notification |
| When to submit | When opening an account | Until 3 months later after the day you move to the current country of resident |
| What to write |
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