Information on Special Reconstruction Income Tax

July , 2012

Dear customers,

On November 30, 2011, the Japan Diet approved the bill for taking "Special Measures to secure the financial resources for reconstruction post Great East Japan Earthquake". There is an increase in income tax rate called "Special Reconstruction Income Tax" and the regulation will be in force from 2013/1/1 to 2037/12/31 for 25 years where the tax rate of 2.1% will be imposed on the standard National Income tax.

Special Reconstruction Income Tax will be applied on National Income Tax for Interest Income on deposit, Dividend income and Capital Gain of mutual funds and other investment products. Amounts such as "After Tax", "Maturity Value" that are shown in monthly bank statement, Advice card (for some products), Citibank Online, Citibank Mobile, Citi Work Bench and amount that is announced on Automated Voice Guidance Service are calculated using the current tax rate which doesn't include Special Reconstruction Income Tax Rate. Irrespective of the interest calculation period, "Special Reconstruction Income Tax" will be applied to the interest to be earned on or after 2013/1/1. Hence, the deposit products having the maturity etc on or after 2013/1/1 may show the different maturity amount in customer statement, Citibank Online, Citibank Mobile, Citi Work Bench and Automated Voice Guidance Service as the tax rate will be increased.
We apologize for any inconvenience it may cause but would appreciate your understanding.

Withholding Tax Rate Interest Bearing Products National Tax 15% Local Tax 5% National Tax 15.315%*1 Local Tax 5% National Tax 15% Local Tax 5% Cash Dividend and realized gain of publicly offered equity investment Trust National Tax 7% Local Tax 3% National Tax 7.147%*2 Local Tax 3% National Tax 15.315%* 1 Local Tax 5% National Tax 15% Local Tax 5% Cash Dividend of Publicly offered bond Investment Trust (Realized gain is non-taxable) National Tax 15% Local Tax 5% National Tax 15.315%* 1 Local Tax 5% National Tax 15% Local Tax 5%

*1Special Reconstruction Income Tax=15% ×2.1%=0.315%
*2Special Reconstruction Income Tax=7% ×2.1%=0.147%

●Prepared based on the Japanese Tax Law as of June 2012.

"Information on Special Reconstruction Income Tax"(Japanese Bankers Association) Only in Japanese (PDF file 220.46KB)

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