Today's One Minute International Tax will focus on the "Report System for Overseas Remittances". It is a rule that requires a financial institution to submit a notification to the local tax office when remittances to or from outside Japan through a financial institution exceed 1 million yen per remittance. Upon receipt of the notification, the financial institution submits a "Report on Remittances, etc. from Abroad" to the local tax authority. The statement includes the name, address, remittance amount, and reason for remittance. The tax office has the authority to question and inspect the financial institution when necessary. Now, here is a quiz. If you remit more than 1,000,000 yen in virtual currency, is it subject to the system of the Report of Remittances, etc. outside Japan? The correct answer is no. Only money is subject to the system of reporting on overseas remittances. Crypto assets are currently not covered. Incidentally, there is a system called the "system for reporting on overseas transfers of securities, etc.". This system requires securities companies to submit to the tax office information on transfers of securities accounts outside of Japan and transfers of securities accounts from outside of Japan to Japan. Both systems provide information on flows. In the next issue, we will discuss the system for providing information on stocks.
