Japanese permanent residents who own overseas assets that have a fair market value in excess of JPY 50 million as of the end of a calendar year are required to file the statements for overseas assets. The permanent resident is defined as person who is a Japanese tax resident and includes foreign nationals who have been in Japan more than 5 years of the preceding 10 years. Foreign assets are defined as assets located outside of Japan, with location determined based on Inheritance Tax Act.
For example, the location of a financial institution is defined as the location of an office where the deposit is accepted. Therefore, a deposit to a foreign financial institution's branch in Japan is not considered to be a foregin asset. The location of corporate shares or bonds is determined to be the location of the issuing corporation's head office. However, the foreign corporation's shares or bonds are not treated as overseas assets if the shares or bonds are managed in accounts of a financial institution located in Japan. A Japanese domestic corporation's share or bonds are treated as overseas assets if the shares or bonds are managed in accounts of a financial institution located outside of Japan. Generally, the due date for the Foreign Asset Report is March 15th following the end of the year.
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