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Overview of Tax Exemption Scheme for Nonresident Individuals and Foreign Corporations

(Note) The terms "JGBs", "T-Bills" and "STRIPS" in this section are book-entry transfer JGBs unless stated otherwise.

1. Tax exemption scheme concerning interest, etc.

(1) Income tax

  Interest, etc. on JGBs (interest on JGBs or profits from redemption on T-Bills or STRIPS) held by nonresident individuals or foreign corporations (including trustees for Qualified Foreign Securities Investment Trusts and Foreign Pension Ｔrusts) without a permanent establishment in Japan in transfer accounts at a JGB Book-Entry System Participant in Japan (JBESP) or a Qualified Foreign Intermediary (QFI) are exempt from income tax, provided that certain requirements have been met.

A figure explaining Tax Exemption Scheme concerning interest, etc. for Nonresident Individuals and Foreign Corporations

 

(2) Corporation tax

  The corporation tax does not apply to interest, etc. on JGBs held by nonresident individuals or foreign corporations (including trustees for Qualified Foreign Securities Investment Trusts and Foreign Pension Ｔrusts) without a permanent establishment in Japan in transfer accounts at a QFI, etc.

 

 

 

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