On January 1, 2017, Japan will launch a new system for automatically exchanging information on financial accounts of non-residents with foreign tax administrations. Aimed at preventing cross-border tax evasion using offshore financial institutions, the system will require information to be exchanged according to the Common Reporting Standard (CRS) in accordance with bilateral tax agreements, etc.
With regard to customers holding securities trading accounts (whether individuals or entities; the same applies hereinafter), when the new system starts, securities companies will be obligated by law to identify the jurisdiction of residence, or the jurisdiction in which the customer has an address or location of head office or main business establishment (both referred to as “jurisdiction of residence,” hereinafter). In addition, customers will be obligated by the same law to self-certify their jurisdiction of residence, etc. to the securities company.
According to their account opening date as indicated below, customers will be required to submit to the securities company a self-certification which indicates their jurisdiction of residence, etc. They must do so when they open the account or if requested to do so by the securities company. Customers are asked for their understanding and cooperation in this regard.
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