Japan: Updated CRS FAQs for automatic exchange of information process for nonresidents
Financial institutions need to pay special attention when implementing automatic exchange of information process for nonresidents
Updated CRS FAQs for automatic exchange of information process for nonresidents
The National Tax Agency on June 7, 2024, published an updated version of the common reporting standard (CRS) “frequently asked questions” (FAQs) that lists the points that financial institutions need to pay special attention to when implementing the automatic exchange of information process for nonresidents.
The FAQs have been updated to include the following question:
Q.5. Does information managed by a department, other than the one responsible for the automatic exchange of financial account information related to nonresidents (such as post-secondment address details managed by the Human Resource Department for employees transferred overseas), qualify as new information?
A. Information managed by departments other than the responsible department is considered new information.
New information means any addition of information to the records maintained by reporting financial institutions that causes reporting financial institutions to know, or have reason to know, that certain items in notification forms (self-certifications), such as jurisdiction of residence, are not true and accurate or indicates change in circumstances have occurred.
Reporting financial institutions include all departments, not just specific departments such as the department in charge. Therefore, if information meets the requirements for new information, it must be treated as such, regardless of the department which manages it.
Read a June 2024 report prepared by the KPMG member firm in Japan
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.