• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/12/2013

Japan - FATCA statement on mutual cooperation, understanding 

June 12: The representatives of the governments of Japan and the United States signed a statement of mutual cooperation and understanding with respect to implementation of the U.S. FATCA (Foreign Account Tax Compliance Act) legislation.

The Japan FATCA statement [PDF 212 KB] acknowledges that FATCA has raised a number of issues—including that Japanese financial institutions may not be able to comply with certain aspects of FATCA due to Japanese domestic legal impediments—and that intergovernmental cooperation between Japan and the United States to facilitate FATCA implementation would address these issues and reduce burdens for Japanese financial institutions.

Accordingly, the Japan statement provides that in implementing FATCA, an arrangement will allow for direct reporting by Japanese financial institutions to the IRS under an exchange of information system that provides for confidentiality and other protections by limiting the use of the exchanged information pursuant to provisions of the United States-Japan income tax treaty.

Read a June 2013 report (Japanese) [PDF 124 KB] prepared by the KPMG member firm in Japan.

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