2013.03.05 - New Reporting Requirement for Overseas Assets
The Japanese 2012 Tax Reform Act requires a new filing known as the Statement of Overseas Asset to be submitted on or before March 17, 2014 for reporting overseas assets held by permanent residents.
Permanent residents who own overseas assets valued at over JPY 50,000,000 must submit a statement of assets with its fair market value as of the 31st of December on an annual basis. The NTA will provide detailed regulations for determining the value of the assets in a forthcoming guidance report within a few weeks. Assets include deposits in financial institutions, bonds, stocks and movable and immovable assets such as real estate. The understatement of the fair market value of assets or the failure to report overseas assets will be subject to severe penalties. Refer to the NTA website for future guidance and details on this new reporting requirement.
The objective of this new measure is to ensure full compliance of the reporting regulations. This measure will further enable the NTA to ensure its residents are reporting worldwide sources of income. Already, the NTA directly receives financial data from offshore investment companies for residents in Japan. Non-Permanent Residents and Permanent Residents must report income from worldwide sources.