The 2012 tax reform, which was approved by the Diet in March 2012, introduced a reporting requirement for offshore assets. Starting from January 1, 2014, under the new reporting system, a permanent resident in Japan whose offshore assets exceed JPY 50 million (or US$500,000 at the exchange rate of JPY 100 equal to US$1) as of December 31 of the previous year must submit an Offshore Assets Report Form to the relevant tax office by March 15. This reporting requirement applies not only to Japanese citizens but also to non-Japanese citizens who have lived in Japan for more than five of the past 10 years.
"Offshore assets" means anything that has economic value and is located outside Japan, including, but not limited to, movable property, immovable property, loans receivable, intellectual property, savings, and securities and stock options. The fair market value or estimated value of each offshore asset as of December 31 must be reported on the Offshore Assets Report Form.
Any person who fails to submit the form on time without a justifiable reason or submits a false form may be subject to imprisonment of up to one year or a criminal fine of up to JPY 500,000 (this sanction is applicable to forms to be submitted on or after January 1, 2015). Further, if a form is not submitted on time or is missing a description of relevant offshore assets, and an additional tax for deficient returns or for a non-filing or delayed filing of a tax return is imposed in connection with such offshore assets, the amount of additional tax will be increased by 5 percent of the income tax imposed in connection with the offshore assets.

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