4. Role of JGB Book-Entry System Participants in Japan
In connection with the tax procedures related to interest on the JGBs or profit after redemption on T-Bill or STRIPS, JBESPs are required to fulfill the following roles, in addition to submitting the Application Form for Withholding Tax Exemption received from the QFI, nonresident individual or foreign corporation to the district director of Regional Tax Offices (RTO) having jurisdiction over the location of the JBESPs:
Verification of the Application Form for Withholding Tax Exemption or the Application Form for Amendment, etc.
When a transfer account is directly opened by the nonresident individual or the foreign corporation with JBESPs (without going through the QFI), these procedures should be undertaken by the JBESPs. Please refer to the Role of QFIs for detailed explanation of these procedures.
Submission of payment records
JBESP (in case where a QFI is involved, the JBESP under which the QFI concerned has its operation) must, as a general rule, submit the payment record with regard to the interest payment,etc. to the District Director of the RTO having jurisdiction over the locations of head offices or principal offices of the JBESP by January 31 of the year following the year in which the interest payment,etc. date falls (where certain requirements are met, by the end of the next month following the month in which the payment date falls). Furthermore, provided that the District Director has approved, the payment records may be submitted in the form of optic fiber disk, magnetic tape or magnetic disk.
JBESP, when the nonresident individuals or foreign corporations intend to get application of tax-exemption measures for the interest,etc. on JGBs attributed to the partnership property or trust property, shall submit the payment record for each of the partner or beneficiary of partnerships or trusts receiving the payment of interest,etc. to the District Director of RTO having jurisdiction over the locations of head offices or principal offices of the JBESP.