Japan: JSDA publishes tax forms for J-BIEM

Effective

immediately

the Japan Securities Dealers Association (JSDA) has published revised tax forms to be used for the tax-exemption scheme for Japanese fixed income instruments (the J-BIEM).

Impact on customers

As part of the annual tax reform in 2011, new forms to be used for the J-BIEM have been introduced. Moreover, tax exemption on interest income from Japanese fixed income instruments, including Japanese Governments Bonds (JGBs) and “temporary dirty” and “clean” Japanese Convertible Bonds (JCBs), has been extended to foreign investors holding such bonds through limited partnerships (or under trust schemes).

Tax exemption is only applicable to the interest paid in the calculation period after 30 June 2011. Therefore, full tax exemption will be granted from the second interest payment after 30 June 2011.

Please be advised that the new forms are introduced to cover all types of eligible tax-exempt investors to apply for exemption from withholding tax on JGBs and “temporary dirty” and “clean” JCBs with immediate effect.

Although a reasonable lead-time for conversion (from old form to revised form) should be allowed by the tax office, qualified intermediaries (QFIs) are recommended to use the revised form from now on to avoid potential refusal by the tax office.

The new forms (provided below in a zip file attachment) are as follows:

• Application Form for Withholding Tax Exemption;
  
• Application Form for Amendment concerning Withholding Tax Exemption;
  
• Notification Form for Withholding Tax Exemption;
  
• Notification Form for Amendment concerning Withholding Tax Exemption.

Further information

For further information, please contact the Clearstream Banking¹ Tax Help Desk on:

or Clearstream Banking¹ Customer Service or your Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).