Pursuant to the Tax Reform Bill adopted in early 2012, Japanese residents and foreign nationals who have established permanent residency in Japan will be required to report, for the first time, foreign assets exceeding JPY 50 million (approximately US$484,000) as of the end of calendar year 2013 by March 17, 2014 (reports for subsequent calendar years will be due by the following March 15).
Covered assets will include any interest in a foreign brokerage account, shares of a non-Japanese company acquired under an equity compensation plan, and vested but exercised equity compensation awards (such as stock options or stock appreciation rights).
Individuals failing to complete their reporting obligations are subject to various penalties, including imprisonment of up to one year or a fine of
up to JPY 500,000 (approximately US$4,840).
Please contact your GES attorney for additional information about these reporting obligations.