Additional Statement to Modify Certain Parts of the Statement of Mutual 

Cooperation and Understanding between the U.S. Department of the 

Treasury and the Authorities of Japan to Improve International Tax 

Compliance and to Facilitate Implementation of FATCA

Whereas, the United States of America (“United States”) and Japan exchanged 

notes related to a nonbinding Statement of Mutual Cooperation and Understanding 

between the U.S. Department of the Treasury and the Authorities of Japan to 

Improve International Tax Compliance and to Facilitate Implementation of 

FATCA (hereinafter referred to as “the Statement”) on June 10, 2013;

Whereas, the U.S. Department of the Treasury and the Authorities of Japan as 

defined in subparagraph 1(e) of Section 1 of the Statement (each, a “Participant”) 

desire to implement the arrangement in the Statement, which provides for 

cooperation to facilitate the implementation of FATCA based on direct reporting 

by Japanese financial institutions to the U.S. Internal Revenue Service, 

supplemented by the exchange of information upon request pursuant to the 

Convention Between the Government of the United States of America and the 

Government of Japan for the Avoidance of Double Taxation and the Prevention of 

Fiscal Evasion With Respect to Taxes on Income, signed on November 6, 2003, at 

Washington, DC (the “Convention”) and subject to the confidentiality and other 

protections provided for therein, including the provisions limiting the use of the 

information exchanged under the Convention;

Whereas Section 6 of the Statement provides that “the Authorities of Japan and 

Japanese Financial Institutions should be granted the benefit of any more favorable 

treatment under Section 3 or Annex I of the Statement relating to the application of 

FATCA to Japanese Financial Institutions afforded to another Partner Jurisdiction 

under a bilateral arrangement or agreement pursuant to which the other Partner 

Jurisdiction implements the same duties as the Authorities of Japan and Japanese 

Financial Institutions described in Section 2 of the Statement consistently with the 

same terms and conditions as described therein and in Sections 4, 6, 8, and 9 of the

Statement;”

Whereas at least one Partner Jurisdiction has signed a bilateral intergovernmental 

agreement with the United States that, once in force, would obligate such Partner 

Jurisdiction to perform the same duties as the Authorities of Japan and Japanese 

Financial Institutions have assumed as described in Section 2 of the Statement

consistently with the same terms and conditions as described therein and in 
Sections 4, 6, 8, and 9 of the Statement (hereinafter referred to as a “Section 6 

Consistent Intergovernmental Agreement”);

Whereas the Participants intend to modify certain parts of the Statement; and

Now, therefore, the Participants confirm the following:

1. All references in the Statement, including its Annexes, to “December 31, 

2013” should be deleted and replaced with “June 30, 2014”.

2. All references in the Statement, including its Annexes, to “January 1, 2014” 

should be deleted and replaced with “July 1, 2014”.

3. The references to “December 31, 2015” in subparagraph C (1) of Section II 

of Annex I and in subparagraph E(1) of Section IV of Annex I should be 

deleted and replaced with “June 30, 2016”.

4. Subparagraph E(1) of Section II of Annex I should be deleted and replaced 

with “If a Preexisting Individual Account is a High Value Account as of 

June 30, 2014, the Reporting Japanese Financial Institution must complete 

the enhanced review procedures described in paragraph D of this section 

with respect to such account by June 30, 2015. If, based on this review such 

account is identified as a U.S. Account on or before December 31, 2014, the 

Reporting Japanese Financial Institution must report the required 

information about such account with respect to 2014 in the first report on the 

account, and on an annual basis thereafter. In the case of an account 

identified as a U.S. Account after December 31, 2014 and on or before June 

30, 2015, the Reporting Japanese Financial Institution is not required to 

report information about such account with respect to 2014, but must report 

information about the account on an annual basis thereafter.”.

5. The first sentence in paragraph B of Section IV of Annex I should be 

deleted and replaced with “A Preexisting Entity Account that has an account 

balance or value that exceeds $250,000 as of June 30, 2014, and a 

Preexisting Entity Account that does not exceed $250,000 as of June 30, 

2014 but the account balance or value of which exceeds $1,000,000 as of the 

last day of 2015 or any subsequent calendar year, must be reviewed in 

accordance with the procedures set forth in paragraph D of this section.”.
6. Subparagraph B(4)(b) of Section VI of Annex I should be deleted and 

replaced with “The stock of the NFFE is regularly traded on an established 

securities market or the NFFE is a Related Entity of an Entity the stock of 

which is regularly traded on an established securities market. For purposes 

of this Statement, interests are “regularly traded” if there is a meaningful 

volume of trading with respect to the interests on an ongoing basis, and an 

“established securities market” means an exchange that is officially 

recognized and supervised by a governmental authority of a country in 

which the market is located and that has a meaningful annual value of shares 

traded on the exchange;”.

7. Subparagraph 1(bb) of Section 1 of the Statement should be deleted and 

replaced with “The term “Specified U.S. Person” means a U.S. Person, other 

than: (i) a corporation the stock of which is regularly traded on one or more 

established securities markets; (ii) any corporation that is a member of the 

same expanded affiliated group, as defined in section 1471(e)(2) of the U.S. 

Internal Revenue Code, as a corporation described in clause (i); (iii) the 

United States or any wholly owned agency or instrumentality thereof; (iv) 

any State of the United States, any U.S. Territory, any political subdivision 

of any of the foregoing, or any wholly owned agency or instrumentality of 

any one or more of the foregoing; (v) any organization exempt from taxation 

under section 501(a) of the U.S. Internal Revenue Code or an individual 

retirement plan as defined in section 7701(a)(37) of the U.S. Internal 

Revenue Code; (vi) any bank as defined in section 581 of the U.S. Internal 

Revenue Code; (vii) any real estate investment trust as defined in section 

856 of the U.S. Internal Revenue Code; (viii) any regulated investment 

company as defined in section 851 of the U.S. Internal Revenue Code or any 

entity registered with the U.S. Securities and Exchange Commission under 

the Investment Company Act of 1940 (15 U.S.C. 80a-64); (ix) any common 

trust fund as defined in section 584(a) of the U.S. Internal Revenue Code;

(x) any trust that is exempt from tax under section 664(c) of the U.S. Internal 

Revenue Code or that is described in section 4947(a)(1) of the U.S. Internal 

Revenue Code; (xi) a dealer in securities, commodities, or derivative 

financial instruments (including notional principal contracts, futures, 

forwards, and options) that is registered as such under the laws of the United 

States or any State; (xii) a broker as defined in section 6045(c) of the U.S. 

Internal Revenue Code ; or (xiii) any tax-exempt trust under a plan that is 

described in section 403(b) or section 457(g) of the U.S. Internal Revenue 

Code.”.
8. The first clause in paragraph 5 of Section 3 of the Statement should be 

deleted and replaced with “If a Japanese Financial Institution, that otherwise 

meets the conditions described in Section 2 of this Statement or is described 

in paragraph 3 or 4 of this Section, has a Related Entity or branch that 

operates in a jurisdiction that prevents such Related Entity or branch from 

fulfilling the requirements of a participating FFI or deemed-compliant FFI 

for purposes of section 1471 of the U.S. Internal Revenue Code or has a 

Related Entity or branch that is treated as a Nonparticipating Financial 

Institution solely due to the expiration of the transitional rule for limited 

FFIs and limited branches under relevant U.S. Treasury Regulations, such 

Japanese Financial Institution should continue to be treated as a participating 

FFI, deemed-compliant FFI, or exempt beneficial owner, as appropriate, for 

purposes of section 1471 of the U.S. Internal Revenue Code, provided that:”. 

9. Consistent with the mutual understanding expressed in Section 6 of the 

Statement, the United States intends to grant the Authorities of Japan and 

Japanese Financial Institutions the benefit of any more favorable treatment 

under Section 3 or Annex I of the Statement relating to the application of 

FATCA to Japanese Financial Institutions afforded to a Partner Jurisdiction 

through a Section 6 Consistent Intergovernmental Agreement.