3. Role of QFIs
In connection with the tax procedures for interests on JGBs or profit from redemption on T-Bill or STRIPS, QFIs are required to submit the Application Form for Withholding Tax Exemption received from nonresident individuals or foreign corporations to the JBESPs under which the QFI concerned has its operation, and QFIs are also required to fulfill the following roles:
Verification of the Application Form for Withholding Tax Exemption or the Application Form for Amendment
QFIs are required to verify with the identification documents, the name and address, which are described in the Application Form for Withholding Tax Exemption or the Application Form for Amendment received from nonresident individuals and foreign corporations (in the case where the submitting entities are trustees of QFSITs, the name and address of the trustees, the name of the QFSIT and the fulfillment of the requirements to be qualified as a Foreign Securities Investment Trust are required).
Preparation of the book for each investor
When information relating to JGBs has been recorded/described for nonresident individuals or foreign corporations who have submitted the Application Form for Withholding Tax Exemption or an Application Form for Amendment has been submitted or, when an operating partner of partnerships or a trustee of Trusts Taxable on Beneficiaries(excluding FPT) has (i)submitted the amendment of the following matters in the Notification Form for Amendment:
- Name or address of the business office of the partnership or the trust
- Name or address, etc. of operating partner of partnerships or trustee of the trust
- Proportion of distribution of profits and losses
(ii) submitted copies of partnership agreement or trust agreement,
QFIs must record/describe the following information in the book for each investor (in the case of QFSITs, for each trustee and for each QFSIT or FPT every time, and must keep the book for five years following the year in which the closing date of the book falls:
- Name (in the case of QFSIT/FPT, for each trustee and for each QFSIT/FPT) and address of nonresident individuals or foreign corporations who have submitted the Application Form for Withholding Tax Exemption, and the date of submission thereof;
- Issue of the JGBs and redemption amount for each issue;
- Date in accordance with the classification mentioned below:
- a (When the JGB is acquired) the date when the information relating to the book-entry transfer is described for such acquisition;
- b (When the JGB is transferred) the date when the information relating to the book-entry transfer is described for such transfer;
- c (When redemption for the JGB is made) the date when the information relating to the book-entry transfer is described for such redemption;
- Date of the payment of the interest or profit from redemption (hereinafter referred to as “interests, etc.”) for each issue of the JGBs and the amount thereof;
- (When Application Form for Amendment is submitted) the date of submission thereof;
- (In the case of the nonresident individual with residence in
Japan) any address or location outside Japan ; - (In the case of the foreign corporation operating the Japanese branch or plant, etc.) the address of head office or main office outside Japan ; and
- (When nonresident individuals or foreign corporations who filed Application Form for Withholding Tax Exemption receive the interest payment, etc. on the JGBs attributed to partnership property or trust property) (i) Name and address of business office of such partnership or trust, (ii) name and address, etc. of the operating partner or trustee, (iii) proportion of distribution of profits and losses of the nonresident individuals or foreign corporations who filed the Application Form for Withholding Tax Exemption (in the event of amendment of these matters, the date on which the amendment on these matters as well as the amended proportion of distribution of profits and losses would become effective), and (iv) the date of submission of Notification Form for Tax Exemption on Partnership or Trust submitted by the operating partner or trustee, etc.
- Other relevant information