Article 1This Act provides for taxpayers subject to income taxes, the scope of taxable income, the way of calculating the amount of income taxes, and the procedures for filing income tax returns, making income tax payments, and issuing income tax refunds, as well as making the necessary provisions for ensuring the proper performance of income tax payment obligations.

Article 2In this Act, the meanings of the terms set forth in the following items are as prescribed in those items:

Article 3(1)A national public officer or local public officer (other than one without Japanese citizenship and any person prescribed by Cabinet Order) is deemed to be domiciled in Japan even during a period in which such a public officer is not domiciled in Japan, and the provisions of this Act (other than Article 10 (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons), Article 15 (Locality for Paying Taxes), and Article 16 (Special Provisions on the Locality for Paying Taxes)) apply thereto.

(2)Beyond what is prescribed in the preceding paragraph, Cabinet Order provides for the necessary particulars concerning the classification of Residents and Nonresidents and for the reaching of a determination as to whether an individual is domiciled in Japan.

Article 5(1)A Resident is liable to pay income taxes pursuant to this Act.

(2)A Nonresident is liable to pay income taxes pursuant to this Act if:

(3)A Domestic Corporation is liable to pay income taxes pursuant to this Act if it receives, in Japan, payments constituting the taxable income of a domestic corporation, or if it receives payments constituting the taxable income of a foreign corporation which is attributable to the trust property of a Trust Subject to Corporate Taxation for which it has undertaken to act as trustee.

(4)A Foreign Corporation is liable to pay income taxes pursuant to this Act if it receives payments constituting the taxable income of a foreign corporation, or if it receives, in Japan, payments constituting the taxable income of a domestic corporation which is attributable to the trust property of a Trust Subject to Corporate Taxation for which it has undertaken to act as trustee.

Article 6-2(1)The trustee of a Trust Subject to Corporate Taxation is deemed to be one person in respect of trust assets and other holdings of the Trust Subject to Corporate Taxation (meaning trust property assets and liabilities as well as proceeds and expenses attributable to trust property; hereinafter the same applies in this Chapter) and a different person in respect of personal assets and other holdings (meaning assets and liabilities, as well as proceeds and expenses, which are other than the trust assets and other holdings of a Trust Subject to Corporate Taxation; the same applies in the following Article), and the provisions of this Act (other than the preceding Chapter (Tax Payment Obligations), Chapter V (Locality for Paying Taxes), and Part VI (Penal Provisions); the same applies in the following Article) apply.

(2)In a case as referred to in the preceding paragraph, trust assets and other holdings of a Trust Subject to Corporate Taxation and the trustee's personal assets and other holdings are separately attributed to each of the persons deemed to be different from one another pursuant to the provisions of that paragraph.

Article 6-3When the provisions of this Act are applied to a trust corporation (meaning a corporation that is the trustee of a Trust Subject to Corporate Taxation (or the individual who is the trustee of such a trust, if such is the case) to which the provisions of this Act apply because the trust assets and other holdings of the Trust Subject to Corporate Taxation are attributed to that corporation pursuant to the provisions of the preceding Article; hereinafter the same applies in this Article), or to the settlor or beneficiary of a Trust Subject to Corporate Taxation, they apply as follows:

Article 7(1)Income taxes are imposed on the income that each of the following items prescribes for the category of person set forth in the item:

(2)Cabinet Order provides for the necessary particulars concerning the scope of income set forth in item (ii) of the preceding paragraph.

Article 8If, in the relevant year, an individual falls under two or more of the categories of "Resident other than a Non-Permanent Resident", "Non-Permanent Resident", and any one class of "Nonresident as set forth in an item of Article 164, paragraph (1)" (How Nonresidents Are Taxed), income taxes are imposed separately for each period in that year during which the individual is a Resident other than a Non-Permanent Resident, Non-Permanent Resident, or any one class of Nonresident as set forth in an item of Article 164, paragraph (1), on the income set forth in paragraph (1), item (i) through (iii) of the preceding Article which arises during that period.

Article 9Income taxes are not imposed on the following income:

Article 10(1)If an individual domiciled in Japan who has been issued a proof of physical disability passbook as prescribed in Article 15, paragraph (4) (Issuance of Proof of Physical Disability Passbooks) of the Act on the Welfare of Persons with Physical Disabilities (Act No. 283 of 1949); a wife domiciled in Japan who is eligible for the basic survivors' pension as prescribed in Article 37-2, paragraph (1) (Scope of Surviving Family) of the National Pension Act (Act No. 141 of 1959); a wife domiciled in Japan as prescribed in Article 49, paragraph (1) (Conditions for Receiving Widow's Pension) of that Act who is eligible for a widow's pension as prescribed in that paragraph; or any other person that Cabinet Order prescribes as being equivalent to such an eligible person (hereinafter referred to as a "person with a disability or other eligible person" in this Article) places money into Deposits or Savings (other than Deposits or Savings falling under the provisions of paragraph (1), item (i) or item (ii) of the preceding Article (Nontaxable Income) and other Deposits and Savings prescribed by Cabinet Order; hereinafter the same applies in this Article), places assets into a Jointly Managed Trust (other than one falling under the provisions of paragraph (1), item (i) or item (ii) of the preceding Article and other than a trust as prescribed by Cabinet Order; hereinafter the same applies in this Article) or Bond-Based Investment Trust Under Public Offering (but only an Investment Trust managed without instructions from the settlor as prescribed in Article 2, paragraph (2) (Definitions) of the Act on Investment Trusts and Investment Corporations, and other than a trust as prescribed by Cabinet Order; hereinafter referred to as a "specific form of bond-based investment trust under public offering" in this Article), or purchases Securities (limited to Public and Corporate Bonds and beneficial interests as prescribed by Cabinet Order in Investment Trusts (other than Investment Trusts managed without instructions from the settlor as prescribed in Article 2, paragraph (2) of the Act on Investment Trusts and Investment Corporations) and Specified-Purpose Trusts), at the business office or other office of a financial institution or other person that accepts Deposits or Savings or undertakes to act as the trustee of a trust, the business office or office of a financial instruments business operator, the business office or office of a registered financial institution as provided by Cabinet Order, or any other place equivalent to the business office or office of such a person (hereinafter referred to as a "the business office of a financial institution or other such place" in this Article) (hereinafter such an action by a person with a disability or other eligible person is referred to in this Article as a "deposit, placement into trust, or purchase"), and the person with a disability or other eligible person submits a paper document at the time of the deposit, placement into trust, or purchase pursuant to Cabinet Order, indicating that the person seeks to apply the provisions of this paragraph to the Deposits or Savings, Jointly Managed Trust, specific form of bond-based investment trust under public offering, or Securities; giving the person's name, date of birth, and domicile; indicating the person to be a person with a disability or other eligible person; and giving any other necessary information (hereinafter such a paper document is referred to as an "application to exempt savings from taxation" in this Article), no income taxes are imposed on what each of the following items prescribes, but only in the case set forth in the item in question:

(2)An application to exempt savings from taxation may be submitted only to the business office of the financial institution or other such place through which a person has submitted a statement of tax-exempt savings as prescribed in the following paragraph, and upon submitting the application, the person must present the documents prescribed in paragraph (5) to the director of the business office of the financial institution or other such place.

(3)The provisions of paragraph (1) apply only if an individual submits a paper-based statement giving the following information (hereinafter referred to as a "statement of tax-exempt savings" in this Article) by the day of the deposit, placement into trust, or purchase, as regards the Deposits or Savings, Jointly Managed Trust, specific form of bond-based investment trust under public offering, or Securities to which the person seeks to apply the provisions of that paragraph for the first time, to the competent district tax office director for the individual's domicile, via the business office of the financial institution or other such place where the person makes the deposit, placement into trust, or purchase:

(4)If an individual who has submitted a statement of tax-exempt savings seeks to change the maximum limitation set forth in item (iii) of the preceding paragraph that has been given in the statement (if the person has already submitted a statement as under this paragraph, this means the maximum limitation which is given in that statement as after the change), the individual must submit a paper-based statement indicating this; indicating the sum of the maximum limitation set forth in item (iii) of the preceding paragraph and the maximum limitation set forth in item (iv) of that paragraph after the change; and giving any other necessary information, to the competent district tax office director for the individual's domicile, via the business office of the financial institution or other such place through which the individual has submitted the statement of tax-exempt savings, pursuant to Cabinet Order.

(5)Before submitting a statement of tax-exempt savings or a statement as set forth in the preceding paragraph, the individual submitting it must present the director of the business office of the financial institution or other such place prescribed in paragraph (3) or the preceding paragraph with the proof of physical disability passbook issued thereto pursuant to Article 15, paragraph (4) (Issuance of Proof of Physical Disability Passbooks) of the Act on the Welfare of People with Disabilities, basic survivors' pension certificate set forth in Article 15, item (iii) of the National Pension Act, or other documents specified by Cabinet Order; notify the director of the individual's name, date of birth, and domicile and that the individual is a person with a disability or other eligible person; and obtain a seal of verification indicating confirmation of the information of which the individual has notified the director on the statement of tax-exempt savings or the statement referred to in the preceding paragraph, pursuant to Cabinet Order.

(6)In a case referred to in paragraph (3) or paragraph (4), once the statement of tax-exempt savings or the statement referred to in the relevant paragraph has been submitted to the district tax office director prescribed in those provisions, it is deemed to have been submitted on the day that it was accepted at the business office of the financial institution or other such place prescribed in those provisions.

(7)An individual as prescribed in paragraph (1) may not submit a statement falling under a category of statement of tax-exempt savings or statement as referred to in paragraph (4) which is as follows, and the director of the business office of a financial institution or other such place prescribed in paragraph (3) or paragraph (4) may not accept such a statement nor may the director accept any further statement of tax-exempt savings submitted by an individual from whom the director has already accepted a statement of tax-exempt savings (other than as prescribed by Cabinet Order):

(8)Beyond what is prescribed in paragraph (2) through the preceding paragraph, Cabinet Order provides for the way of calculating the principal and face value or equivalent amount set forth in paragraph (1); the particulars of the submission, keeping on file, and management of applications to exempt savings from taxation; the particulars of the submission of statements of tax-exempt savings; the particulars of reporting if there has been a change in the information that an individual submitting a statement of tax-exempt savings has given in the statement or if the individual seeks to stop being subject to the provisions of that paragraph after having submitted a statement; and other necessary particulars concerning the application of that paragraph.

Article 11(1)Income taxes are not imposed on interest and similar income, dividends and similar income, compensation for periodic deposits, finance charges, profits, margin profits, and distributions of proceeds set forth in the items of Article 174 (Tax Base for a Domestic Corporation's Income Taxes) paid to a Domestic Corporation as set forth in Appended Table I (as regards interest, distributions of proceeds, or dividends of surplus prescribed in Article 24, paragraph (1) (Dividend Income) (hereinafter referred to as "interest and similar income" in this Article) from Public and Corporate Bonds or from any beneficial interest in a Loan Trust, Bond Investment Trust, or Specified-Purpose Trust as provided by Cabinet Order (hereinafter referred to as a "public and corporate bond or similar interest" in this Article), the non-imposition of income taxes is limited to the part of such interest and similar income which is equivalent to the amount of monies calculated pursuant to Cabinet Order as coming from a period during which the Domestic Corporation continuously held the public and corporate bond or similar interest).

(2)Income taxes are not imposed on income arising from the property of a charitable trust as prescribed in Article 1 (Charitable Trusts) of the Charitable Trust Act (Act No. 62 of 1922) or a participant protection trust as prescribed in Article 2, paragraph (11) (Definitions) of the Act on the Book-Entry Transfer of Bonds and Shares (as regards that which arises due to interest and similar income from a public and corporate bond or similar interest, the non-imposition of income taxes is limited to the part thereof which is equivalent to the amount of monies calculated pursuant to Cabinet Order as coming from a period during which the public and corporate bond or similar interest was continuously a part of the property of the charitable trust or participant protection trust).

(3)The part of the provisions of the preceding two paragraphs that relates to interest and similar income from a public and corporate bond or similar interest applies only if a Domestic Corporation or the trustee of a charitable trust or participant protection trust as prescribed in these provisions manages the public and corporate bond or similar interest through entries or records in a transfer account book as prescribed in the Act on the Book-Entry Transfer of Bonds and Shares or by other means prescribed by Cabinet Order, and has submitted a statement to the district tax office director indicating its intention to seek the application of these provisions to interest or similar income from the public and corporate bond or similar interest and giving other information provided for by Ministry of Finance Order via the person paying the interest or similar income on the public and corporate bond or similar interest.

Article 12If the person to whom proceeds arising from assets or business seem to be legally attributed is the holder of those proceeds in name alone and has no enjoyment thereof, but someone other than that person does have enjoyment of those proceeds, the proceeds are to be attributed to the person with actual enjoyment thereof, and the provisions of this Act apply.

Article 13(1)The beneficiary of a trust (but only one who actually has rights as a beneficiary) is deemed to be the one holding the trust property's assets and liabilities; the proceeds and expenses attributable to the trust property are deemed to be the proceeds and expenses of the beneficiary; and the provisions of this Act apply; provided, however, that this does not apply to the trust property assets and liabilities of a group investment trust, retirement pension trust, or Trust Subject to Corporate Taxation, nor does it apply to proceeds and expenses attributable to the trust property thereof.

(2)A person who actually has the authority to make changes to a trust (other than what Cabinet Order prescribes as the authority to make minor changes) and who is meant to benefit from the trust property (other than a beneficiary) is deemed to be a beneficiary as prescribed in the preceding paragraph, and the provisions of that paragraph apply.

(3)In paragraph (1), the meaning of a term as set forth in one of the following items is as prescribed in the item:

(4)Cabinet Order provides for the application of the provisions of paragraph (1) if there are two or more beneficiaries, for the reaching of a determination as to whether someone falls under the category of a person who is meant to benefit from trust property as prescribed in paragraph (2), and for other necessary particulars concerning the application of paragraph (1) and paragraph (2).

Article 17The locality in which a person paying a salary or other wage as prescribed in Article 28, paragraph (1) (Salary Income), or a person making any other payment as prescribed in Part IV, Chapter I through Chapter VI (Withholding) is to pay over the income taxes that the person is required to Withhold from those payments is the locality of that person's office or place of business or any other equivalent place that handles those payments as of the payment date; provided, however, that the locality in which such a person is required to Withhold from interest on Public and Corporate Bonds, dividends of surplus as prescribed in Article 24, paragraph (1) (Dividend Income) which are paid by a Domestic Corporation (or by a trust corporation that is deemed to be a Domestic Corporation pursuant to the provisions of Article 6-3, item (i) (Application of This Act to Trust Corporations) as prescribed in that Article), or any other payment prescribed by Cabinet Order is the locality of the head office or principal office of the person paying the salary or other wage or any other place provided for by Cabinet Order.

Article 18(1)Omitted

(2)Notwithstanding the provisions of the preceding Article, if the locality for paying over taxes as under the preceding Article is found to be inappropriate as the locality for the person to pay over the income taxes referred to in that Article in view of clerical considerations attending payment by the person paying the salary or other wage as prescribed in that Article or other circumstances, the regional commissioner for the locality in which the person is to pay over the taxes may designate the locality for the person to pay over the income taxes.

Article 21(1)The income taxes imposed on a Resident are calculated based on the following order of calculations:

(2)In the case referred to in the preceding paragraph, if the Resident falls under the provisions of Chapter IV (Special Provisions on Calculating the Amount of Taxes), the income taxes imposed on the Resident are as prescribed in that Chapter.

Article 102Irrespective of the amount of income taxes calculated pursuant to the provisions of the preceding two Chapters (Tax Base and Calculating the Amount of Taxes), the amount of income taxes to be imposed on a person that is a Resident as of December 31 of the relevant year (or as of the date of the person's death, if the person has died partway through the year) but that was a Nonresident for some part of the year; or on a Resident that becomes Absent From Japan partway through the year and that was a Nonresident for some period between January 1 of the relevant year and the date on which the Resident became Absent From Japan, is calculated pursuant to Cabinet Order based on the amount of income set forth in Article 7, paragraph (1), item (i) (Scope of Taxable Income of Residents) that was generated during the period when the person was a Resident (or the amount of income set forth in item (ii) of that paragraph for any period during which the person was a Non-Permanent Resident) and the amount of income categorized as domestic source income set forth in the items of Article 164, paragraph (1) (How Nonresidents Are Taxed) and the items of paragraph (2) of that Article, in accordance with the categories of Nonresidents set forth in the items of paragraph (1) of that Article, which was generated during the period when the person was a Nonresident.

Article 103Irrespective of the amount of income taxes calculated pursuant to the provisions of the preceding two Chapters (Tax Base and Calculating the Amount of Taxes), the amount of income taxes to be imposed on a person who is not liable to file a return under Article 120, paragraph (1) (Filing Income Tax Returns); Article 125, paragraph (1) (Filing a Tax Return If the Taxpayer Has Died Partway Through the Year); or Article 127, paragraph (1) (Filing a Tax Return If the Taxpayer Will Become Absent From Japan Partway Through the Year) is the sum total of the prepaid taxes as prescribed in Article 120, paragraph (2) that the person has prepaid against income taxes for the year and the amount of income taxes that have been or should be Withheld for the year; provided, however, that this does not apply if the person files a Tax Return.

Article 152If grounds as set forth in the items of Article 23, paragraph (1) (Requests for Reassessment) of the Act on General Rules for National Taxes arise due to the occurrence of a fact as prescribed in Article 63 (Special Provisions on Necessary Expenses In the Event of a Business Closure) or Article 64 (Special Provisions on the Calculation of Income If Payment for Transferred Assets Become Uncollectible) involving Income in Each Class in the year of a Tax Return or a Tax-Office Decision, or due to the occurrence of a fact prescribed by Cabinet Order as being equivalent thereto, the Resident (or the heir of a Resident) filing the Tax Return or subject to the Tax-Office Decision may file a request with the district tax office director for the Reassessment, under Article 23, paragraph (1) of that Act, of an amount as set forth in Article 120, paragraph (1), item (i) or items (iii) through (viii) (Information Required to Be Given in Income Tax Returns) or Article 123, paragraph (2), item (i), item (v), item (vii), or item (viii) (Information Required to Be Given in Tax Returns Showing Losses) which has been indicated in the return or which was subject to the Tax-Office Decision (or of any such amount following the filing of an Amended Return or a Reassessment, if an Amended Return has been filed or a Reassessment has been made), but only within two months from the day after the fact occurs. In such a case, the reassessment request prescribed in Article 23, paragraph (3) of that Act must indicate the date that the fact occurred, in addition to giving the information prescribed in that paragraph.

Article 153If circumstances come to fall under a case set forth in either of the following items due to the filing of an Amended Return or a Reassessment or Tax-Office Decision involving an amount as set forth in Article 120, paragraph (1), item (i) or items (iii) through (viii) (Information Required to Be Given in Income Tax Returns) or Article 123, paragraph (2), item (i) or items (v) through (viii) (Information Required to Be Given in Tax Returns Showing Losses) which is required to be entered in a Tax Return, the Resident (or the heir of a Resident) that submitted the Amended Return or was subject to the Reassessment or Tax-Office Decision may file a request with the district tax office director for a Reassessment, under Article 23, paragraph (1) (Requests for Reassessment) of the Act on General Rules for National Taxes, of the amount prescribed in the relevant item, but only within two months from the day following that on which the Resident submits the Amended Return or is notified of the Reassessment or Tax-Office Decision. In such a case, the reassessment request prescribed in Article 23, paragraph (3) of that Act must indicate the date that the Resident submitted the Amended Return or was notified of the Reassessment or Tax-Office Decision, in addition to giving the information prescribed in that paragraph:

Article 154(1)A Reassessment or Tax-Office Decision with respect to income taxes may be made in connection with the information set forth in Article 120, paragraph (1), item (ix) or item (x) (Information Required to Be Given in Income Tax Returns), in addition to the information prescribed in Articles 24 through 26 (Reassessments and Tax-Office Decisions) of the Act on General Rules for National Taxes. This being the case, if a Reassessment or Tax-Office Decision is made that involves that information, the phrase "the amount of tax, etc." in Article 28, paragraph (2) and paragraph (3) (Information Required to Be Given in Paper-Based Notices of Reassessment or Tax-Office Decision) of that Act is deemed to be replaced with "the amount of tax, etc. and the information set forth in Article 120, paragraph (1), item (ix) or item (x) (Information Required to Be Given in Income Tax Returns) of the Income Tax Act".

(2)A paper-based notice of Reassessment or Tax-Office Decision as prescribed in Article 28, paragraph (1) of the Act on General Rules for National Taxes issued in the case of a Reassessment or Tax-Office Decision being made with respect to income taxes must give the information prescribed in paragraph (2) or paragraph (3) of that Article and be accompanied by a breakdown of the amount set forth in Article 120, paragraph (1), item (i) or the Net Loss set forth in Article 123, paragraph (2), item (i) (Information Required to Be Given in Tax Returns Showing Losses) in connection with the Reassessment or Tax-Office Decision, by category of income prescribed in Article 2, paragraph (1), item (xxi) (Definitions).

Article 155(1)Before Reassessing a Resident's gross income, retirement income, timber income, or Net Loss for a year in which the Resident has filed a Blue Return, the district tax office director examines the Resident's books and documents, and may make the Reassessment only if there are found to be errors in the calculation of those amounts in the course of the examination; provided, however, that the district tax office director is not precluded from making a Reassessment without examining the Resident's books and documents if:

(2)When Reassessing a Resident's gross income, retirement income, timber income, or Net Loss for a year in which the Resident has filed a Blue Return (other than when doing so only on the grounds prescribed in item (i) of the preceding paragraph), the district tax office director must note the reason for the Reassessment in a paper-based notice of Reassessment as prescribed in Article 28, paragraph (2) (Information Required to Be Given in Paper-Based Notices of Reassessment) of the Act on General Rules for National Taxes.

Article 156The district tax office director may make a Reassessment or Tax-Office Decision with respect to a Resident's income taxes by estimating the Resident's Income in Each Class or the loss for the year (other than real property income, business income, timber income, or the resulting loss when any of these is calculated, for a year in which the Resident has filed a Blue Return), in light of increases and decreases in assets or liabilities, revenue or expenses, production volumes, sales volumes or other transaction volumes, the number of employees, or the scope of business.

Article 157(1)If an action taken or calculation made by one of the following corporations would, if tolerated, unreasonably reduce the burden of income taxes on a Resident that is a Shareholder, Member, or Other Investor in the corporation or on a Resident that is uniquely related to such a Shareholder, Member or Other Investor as provided for by Cabinet Order (including a Resident uniquely related to a Nonresident that is a Shareholder, Member, or Other Investor in the corporation; the same applies in paragraph (4)), the district tax office director, when Reassessing or reaching a Tax-Office Decision on the Resident's income taxes, may exercise the discretion thereof in calculating an amount as set forth in Article 120, paragraph (1), item (i), or item (iii) through (viii) (Information Required to Be Given in Income Tax Returns) or Article 123, paragraph (2), item (i), item (iii), item (v), or item (vii) (Information Required to Be Given in Tax Returns Showing Losses) as regards the Resident for each year, notwithstanding that action or calculation:

(2)In a case as referred to in the preceding paragraph, the determination as to whether a corporation falls under the category of a corporation as set forth in the items of that paragraph is to be based on the circumstances as of the time that the action prescribed in that paragraph was actually taken or that the calculation prescribed in that paragraph was actually made.

(3)The provisions of paragraph (1) apply mutatis mutandis to Reassessments and Tax-Office Decisions involving a Resident's income taxes as set forth in paragraph (1) if the provisions of Article 132, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Corporation Tax Act, Article 64, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Inheritance Tax Act, or Article 32, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Land Value Tax Act are applied to the action taken or calculation made by a corporation as set forth in the items of paragraph (1).

(4)If it is found that an action taken or calculation made by one or the other of the corporate parties to a merger (including a consolidation of trusts in connection with a Trust Subject to Corporate Taxation), company split (including a trust split in connection with a Trust Subject to Corporate Taxation), capital contribution in kind, post-formation acquisition of assets or liabilities as prescribed in Article 2, item (xii)-6 of the Corporation Tax Act, share exchange, or share transfer (hereinafter referred to as a "merger or similar process" in this paragraph) (such corporate parties include a corporation issuing shares or capital contributions that are delivered during a merger or similar process; hereinafter the same applies in this paragraph) would, if tolerated, unreasonably reduce the burden of income taxes on a Resident that is a Shareholder, Member, or Other Investor in one or the other of the corporate parties or on a Resident that is uniquely related to such a Shareholder, Member, or Other Investor as prescribed in paragraph (1), the district tax office director, when Reassessing or reaching a Tax-Office Decision on the Resident's income taxes, may exercise the discretion thereof in calculating an amount as set forth in Article 120, paragraph (1), item (i), or items (iii) through (viii) or Article 123, paragraph (2), item (i), item (iii), item (v), or item (vii) as regards the Resident for each year, notwithstanding that action or calculation.

Article 158If a corporation has 15 or more branch offices, factories, and other places of business, and at two-thirds or more of its places of business, the director or chief officer of that place of business or any other person in charge of business at that place of business, the relative of the person in charge or any other individual uniquely related to the person in charge as prescribed by Cabinet Order formerly conducted business at that place of business as an individual, the district tax office director, in making a Reassessment or reaching a Tax-Office Decision, may presume that the person in charge of each of the corporation's places of business has the enjoyment of the proceeds arising from that place of business, unless all deposits and borrowings of funds, purchases and sales of commodities, and other transactions at the corporation's places of business are conducted in the name of the corporation.

Article 159(1)If the district tax office director reaches a Tax-Office Decision on a Resident's income taxes for any year and the Tax-Office Decision involves an amount as set forth in Article 120, paragraph (1), item (vi) (Uncredited Amount of Tax Withheld), the district tax office director refunds an equivalent amount of income tax to the Resident.

(2)If the amount set forth in Article 120, paragraph (1), item (iv) or item (vi) or Article 123, paragraph (2), item (vi) or item (vii) (Amount of Taxes Withheld) increases as a result of the Reassessment of a Resident's income taxes for any year, the district tax office director issues an income tax refund to the Resident in an amount equivalent to the increase.

(3)In a case as referred to in the preceding two paragraphs, if any part of the taxes withheld as prescribed in Article 120, paragraph (1), item (vi) or Article 123, paragraph (2), item (vii) which is used as the basis for calculating an amount refunded as under the preceding two paragraphs has not yet been paid over to the national government, an amount equivalent to the part of the refund under the preceding two paragraphs which is from tax withheld that has not yet been paid over is not refunded until that part of the tax withheld is paid over.

(4)When the amount of Interest on a refund under paragraph (1) or paragraph (2) is calculated, the period referred to in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes which serves as the basis for the calculation is the period beginning on the day after the day that is set forth in each of the following items for the category of refund set forth in the item (or beginning on the day after that on which any tax withheld that is subject to a refund as prescribed in the preceding paragraph is paid over to the national government, if this is after the date set forth in the relevant item), and ending on the day on which the tax-office decision to pay the refund is reached or on the day on which the refund is Appropriated to cover a required tax payment (or ending on the day on which the refund first could have been Appropriated, if this is before the date of the Appropriation):

(5)If a refund under paragraph (1) or paragraph (2) is Appropriated to cover unpaid income taxes for the year of a Tax-Office Decision as set forth in paragraph (1) or a Reassessment as set forth in paragraph (2), Refund Interest does not accrue on the part of the refund so Appropriated and the tax on delinquency is waived for the part of the income taxes covered by the Appropriation.

(6)Beyond what is prescribed in the preceding three paragraphs, Cabinet Order provides for the way of Appropriating a refund under paragraph (1) or paragraph (2) (and Interest on such a refund) and for other necessary particulars concerning the application of these provisions.

Article 160(1)If the district tax office director reaches a Tax-Office Decision on a Resident's income taxes for any year and the Tax-Office Decision involves an amount as set forth in Article 120, paragraph (1), item (viii) (Shortfall in Credit for Prepaid Taxes) or Article 123, paragraph (2), item (viii) (Prepaid Taxes), the district tax office director refunds the part of the prepaid taxes prescribed in those provisions which is equivalent to that amount (hereinafter referred to as "prepaid taxes" in this Article) to the Resident.

(2)If the amount set forth in Article 120, paragraph (1), item (viii) or Article 123, paragraph (2), item (viii) increases as a result of the Reassessment of a Resident's income taxes for any year, the district tax office director issues the Resident a refund of the prepaid taxes in an amount equivalent to the increase.

(3)If the district tax office director issues a refund under the preceding two paragraphs and the taxpayer has paid a tax on delinquency in respect of prepaid taxes in the year prescribed in those provisions, the director also refunds the amount calculated pursuant to Cabinet Order as the part of the tax on delinquency which was for the prepaid taxes that are being refunded pursuant to those provisions.

(4)When the amount of Interest on a refund under paragraph (1) or paragraph (2) is calculated, the period referred to in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes which serves as the basis for the calculation is the period beginning on the day after that on which the prepaid taxes that are required to be refunded pursuant to the provisions of paragraph (1) or paragraph (2) are paid (or beginning on the day after the payment due date, if the prepaid taxes are paid prior to the payment due date) and ending on the day on which the tax-office decision to pay the refund is reached or on the day on which the refund is Appropriated to cover a required tax payment (or ending on the day on which the refund first could have been Appropriated, if this is before the date of the Appropriation); provided, however, that for a refund as set forth in one of the following items, none of the days set forth in the item are included as part of that period:

(5)If a refund under paragraph (1) or paragraph (2) is Appropriated to cover unpaid income taxes for a year in which prepaid taxes are used as the basis for calculating the amount of the refund, Refund Interest does not accrue on the part of the refund so Appropriated and the tax on delinquency is waived for the part of the income taxes covered by the Appropriation.

(6)Interest does not accrue on a refund under paragraph (3).

(7)Beyond what is prescribed in the preceding three paragraphs, Cabinet Order provides for the way of Appropriating refunds under paragraph (1) and paragraph (2) (and Interest on such refunds) and for other necessary particulars concerning the application of the provisions of paragraphs (1) through (3).

Article 161The term "domestic source income" as used in this Part means:

Article 162Notwithstanding the preceding Article, if a convention that Japan has concluded for the avoidance of double taxation with respect to taxes on income contains provisions on domestic source income which differ from the provisions of the preceding Article, the domestic source income of a person subject to such a convention is governed by that convention, to the extent of the differing provisions. In such a case, if the convention contains provisions on domestic source income that replace the provisions of items (ii) through (xii) of that Article, income that the convention treats as domestic source income is deemed to correspond to domestic source income set forth in those items as regards the application of the parts of this Act that involve the particulars prescribed in those items.

Article 163Beyond what is prescribed in the preceding two Articles, Cabinet Order provides for the necessary particulars concerning the scope of domestic source income.

Article 181(1)Omitted

(2)If dividends and similar income (other than a distribution of proceeds from an Investment Trust (other than a Bond Investment Trust or Bond-Based Investment Trust Under Public Offering) or a Specified Trust That Issues Beneficiary Certificates) are not paid by the day that marks one year's time since the date on which the decision to pay was finalized, the payment is deemed to have been made on the day that marks one year's time since that date, and the preceding paragraph applies.

Article 182Income taxes must be withheld pursuant to the preceding Article in the amount that is set forth in either of the following items for the category to which the item refers:

Article 212(1)A person paying a Nonresident, in Japan, domestic source income as set forth in Article 161, item (i)-2 through (xii) (if the Nonresident falls under the category set forth in Article 164, paragraph (1), item (iv) (Nonresidents Without a Permanent Establishment in Japan), this is limited to domestic source income as set forth in Article 161, item (i)-3 through (xii), and excludes what is prescribed by Cabinet Order), or a person paying a Foreign Corporation, in Japan, domestic source income as set forth in Article 161, item (i)-2 through (vii) or item (ix) through (xii) (if the Foreign Corporation falls under the category set forth in Article 141, item (iv) of the Corporation Tax Act (Foreign Corporations Without a Permanent Establishment in Japan), this is limited to domestic source income as set forth in Article 161, item (i)-3 through (vii) and item (ix) through (xii), and excludes anything that falls under the provisions of Article 180, paragraph (1) (Special Provisions on Taxation of Domestic Source Income Received by Foreign Corporations With a Permanent Establishment in Japan) or Article 180-2, paragraph (1) or paragraph (2) (Special Provisions on Taxation of Interest and Similar Income from Trust Property) which is prescribed by Cabinet Order) must withhold income taxes from that domestic source income at the time of payment and pay them over to the national government no later than the tenth day of the month after that in which the date of withholding falls.

(2)If domestic source income as prescribed in the preceding paragraph is paid outside Japan but the person making the payment has a domicile or residence in Japan or has an office, place of business, or anything equivalent thereto in Japan, the person is deemed to be paying the domestic source income in Japan, and the provisions of that paragraph apply. In such a case, the phrase "no later than the tenth day of the month" in that paragraph is deemed to be replaced with "no later than the last day of the month".

(3)A person paying a Domestic Corporation, in Japan, interest or similar income, dividends or similar income, compensation for periodic deposits, finance charges, profits, margin profits, a distribution of profits, or a monetary award as set forth in the items of Article 174 (Tax Base for a Domestic Corporation's Income Taxes) (other than anything that falls under the provisions of Article 176, paragraph (1) or paragraph (2) (Special Provisions on Taxation of Interest and Similar Income from Trust Property)) must withhold income taxes from that interest or similar income, dividends or similar income, compensation for periodic deposits, finance charges, profits, margin profits, distribution of profits, or monetary award at the time of payment and pay them over to the national government no later than the tenth day of the month after that in which the date of withholding falls.

(4)The provisions of Article 181, paragraph (2) (If There Has Been Deemed Payment of Dividends and Similar Income) apply mutatis mutandis when the provisions of paragraph (1) or the preceding paragraph apply, and the provisions of Article 183, paragraph (2) (If There Has Been Deemed Payment of Bonus) apply mutatis mutandis when paragraph (1) applies.

(5)If a Nonresident or Foreign Corporation is a partner under a partnership agreement as prescribed in that item (or is a person similar thereto that is as prescribed by Cabinet Order) and is delivered monies or any other assets as the domestic source income set forth in Article 161, item (i)-2 which is distributed thereto as prescribed in that paragraph and which arises during the accounting period stipulated in the partnership agreement or in any period similar thereto (or in any of the year-long terms into which that period is divided (and in any term of less than one year in length, if the final term resulting from the division is less than this), the first day of such term commencing on the first day of the accounting or similar period, if that period is longer than one year; hereinafter referred to as the "accounting period" in this paragraph) (such monies and other assets are hereinafter referred to as "monies or other assets" in this paragraph), the person making the distribution is deemed to be the person paying the domestic source income, that payment is deemed to be made on the day that those monies or other assets are paid (or on the last day in the two-month period following the day after the end of the accounting period, if the monies or other assets constituting domestic source income are not paid by that day), and the provisions of this Act apply.

Article 213(1)Income taxes must be withheld pursuant to the provisions of paragraph (1) of the preceding Article in the amounts that each of the following items prescribes for the category to which the item refers:

(2)Income taxes must be withheld pursuant to paragraph (3) of the preceding Article in the amounts that each of the following items prescribes for the category to which the item refers:

Article 214(1)Notwithstanding the provisions of Article 212, paragraph (1) (Obligation to Withhold Taxes), if a person as set forth in one of the following items who satisfies the requirements prescribed by Cabinet Order and who is paid the domestic source income prescribed in that item is issued a certificate, pursuant to Cabinet Order, by the competent district tax office director for the locality in which the person pays taxes, certifying that the person being paid the domestic source income satisfies those requirements and that the domestic source income that the person is paid falls under the category of domestic source income prescribed in the relevant item, and the person presents that certificate to the person paying the domestic source income, the person paying that domestic source income is not required to withhold and pay over income taxes to the national government from the domestic source income that it pays to the person presenting that certificate, while the certificate remains valid:

(2)If, after being issued the certificate prescribed in the preceding paragraph, a person as set forth in one of the items of that paragraph ceases to satisfy the requirements provided for in that paragraph or ceases to fall under the category of Nonresident prescribed in the item, the person must report this to the competent district tax office director for the locality in which the person pays taxes and notify the person to which it has presented the certificate of the same without undue delay on or after the day that the person ceases to satisfy those requirements or to fall under that category of Nonresident, pursuant to Cabinet Order.

(3)If the competent district tax office director for the locality in which a person pays taxes finds that a person as set forth in the items of paragraph (1) has ceased to satisfy the requirements provided for in that paragraph or ceased to fall under the category of Nonresident prescribed in the relevant item after being issued a certificate as prescribed in that paragraph, the director is to notify the corporation that has been issued the certificate of this via a paper-based notice.

(4)In a case as referred to in the preceding paragraph, the person notified as prescribed in that paragraph must notify the person to which it has presented the certificate prescribed in paragraph (1) that it has been so notified without undue delay on or after the day on which the person is notified.

(5)Having received a report under paragraph (2) or having notified a person pursuant to paragraph (3), the competent district tax office director for the locality in which the person pays taxes is to issue public notice, pursuant to Ministry of Finance Order, giving the name of the person that has so reported or that has been so notified, and giving any other information prescribed by Ministry of Finance Order.

(6)The certificate prescribed in paragraph (1) becomes invalid if:

Article 215If income taxes are withheld pursuant to Article 212, paragraph (1) (Obligation to Withhold Taxes) from the compensation as set forth in Article 161, item (ii) (Domestic Source Income) of a Nonresident or Foreign Corporation that conducts business as prescribed in that item in Japan, the income taxes under Article 212, paragraph (1) are deemed, pursuant to Cabinet Order, to be withheld at the time of payment from the salary or remuneration as set forth in Article 161, item (viii), (a) or (c) which the Nonresident or Foreign Corporation pays a Nonresident providing it with personal services that benefit the business for providing it with those personal services, out of the compensation from which that income tax has been withheld pursuant to Article 212, paragraph (1).

Article 224(1)A person (other than a corporation as set forth in Appended Table I of the Corporation Tax Act (Table of Public Corporations) and any other person prescribed by Cabinet Order; hereinafter the same applies in this Article) that is paid, in Japan, interest or similar income as prescribed in Article 23, paragraph (1) (Interest Income), or dividends or similar income as prescribed in Article 24, paragraph (1) (Dividend Income) (other than interest on an ordinary account and any other interest prescribed by Cabinet Order; interest on a bearer Public and Corporate Bond; a dividend of surplus from a bearer share or similar interest (meaning a dividend of surplus as prescribed in that paragraph; the same applies in the following paragraph); or a distribution of proceeds linked to a bearer beneficiary certificate from a Loan Trust, Investment Trust, or Specified Trust That Issues Beneficiary Certificates; hereinafter the same applies in this paragraph) must notify the person paying the interest or similar income or dividends or similar income (or the person prescribed by Cabinet Order as being equivalent thereto; hereinafter the same applies in this paragraph) of the name and domicile thereof (or of a place as prescribed by Ministry of Finance Order, if the person has no domicile in Japan; hereinafter the same applies in this paragraph), by the day on which the decision to pay the interest or similar income or dividend or similar income is finalized, pursuant to Cabinet Order. In such a case, the person that is so paid must present a copy of the residence certificate or certificate of registered information thereof and any other document prescribed by Cabinet Order to the person making the payment, pursuant to Cabinet Order, and the person making the payment must verify the name and domicile of which the person has been notified against those documents, pursuant to Cabinet Order.

(2)A person that is paid, in Japan, interest on a bearer Public and Corporate Bond; a dividend of surplus from a bearer share or similar interest; or a distribution of proceeds linked to a bearer beneficiary certificate from a Loan Trust, Investment Trust, or Specified Trust That Issues Beneficiary Certificates; must submit a paper-based notice of receipt of the payment upon having been so paid to the person handling the payment, pursuant to Cabinet Order. In doing so, the person submitting the paper-based notice must present documents relating thereto as prescribed in the preceding paragraph to the person handling the payment, pursuant to Cabinet Order, and the person handling the payment must verify the information given in the paper-based notice against those documents, pursuant to Cabinet Order.

(3)The person handling the payment referred to in the preceding paragraph may make the payment referred to in that paragraph only after having the recipient submit a paper-based notice as set forth in that paragraph.

(4)A person that is paid, in Japan, redemption money (or consideration for the purchase, if a bond is retired; hereinafter the same applies in this paragraph) based on the redemption of a discount bond (or based on its retirement; hereinafter the same applies in this paragraph) must submit a paper-based notice of receipt of the redemption money, upon receiving it, to the person handling the payment of the redemption money (or to the issuer of the discount bond, if it is retired), pursuant to Cabinet Order. In such a case, the person submitting the paper-based notice must present the documents relating thereto as prescribed in paragraph (1) to the person handling the payment, pursuant to Cabinet Order, and the person handling the payment must verify the information given in the paper-based notice against those documents, pursuant to Cabinet Order.

(5)The discount bond provided for in the preceding paragraph means a Public and Corporate Bond issued at a discount which is prescribed by Cabinet Order, and retirement as prescribed in that paragraph means a purchase by which a discount bond is redeemed, if it is redeemed through a purchase.

Article 224-2A person transferring or receiving a negotiable deposit (meaning Deposits or Savings without special provisions prohibiting transfer, as prescribed by Cabinet Order) in Japan must submit a paper-based notice of the transfer or receipt to the business office or other office of the financial institution with which the negotiable deposit is deposited, by the last day of the month after that in which the day of the transfer or receipt falls, pursuant to Ministry of Finance Order. In such a case, the director of the business office or other office of the financial institution must verify the information given in the paper-based notice pursuant to Ministry of Finance Order.

Article 224-3(1)A person (other than a corporation as set forth in Appended Table I of the Corporation Tax Act (Table of Public Corporations) or any other person prescribed by Cabinet Order) that transfers a share or similar interest and that is paid, in Japan, a consideration for transferring it by one of the persons set forth in the following items, must notify the person set forth in that item (or the person prescribed by Cabinet Order as being equivalent thereto; hereinafter referred to as the "payer" in this paragraph) of the name and domicile thereof (or of a place as prescribed by Ministry of Finance Order, if the person has no domicile in Japan; hereinafter the same applies in this paragraph) by the time the person is paid, pursuant to Cabinet Order. In such a case, the person that is so paid must present a copy of the residence certificate or the certificate of registered information thereof and any other document prescribed by Cabinet Order to the payer, pursuant to Cabinet Order, and the payer must verify the name and domicile of which the payer has been notified against those documents, pursuant to Cabinet Order:

(2)A share or similar interest as prescribed in the preceding paragraph means the following (and includes those in Foreign Corporations):

(3)Paragraph (1) applies mutatis mutandis to a person that is delivered, in Japan, the money or other assets referred to in Article 25, paragraph (1) (Amounts Deemed to Constitute Dividends) which are prescribed by Cabinet Order (other than any part thereof that is deemed to be a dividend of surplus, dividend of profits, or distribution of surplus pursuant to the provisions of that paragraph) or the money prescribed by Cabinet Order (hereinafter referred to as "the money or other asset" in this paragraph) and to the person delivering the money or other asset. In such a case, in paragraph (1), the phrase "that transfers a share or similar interest" is deemed to be replaced with "that is delivered, in Japan, money or other assets as prescribed in paragraph (3)"; the phrase "and that is paid, in Japan, a consideration for transferring it by one of the persons set forth in the following items, must notify" is deemed to be replace with "must notify"; the phrase "is paid" is deemed to be replaced with "is delivered" and the phrase "is so paid" is deemed to be replaced with "is delivered the money or other asset"; the phrase "the person set forth in that item" is deemed to be replaced with "the person delivering the money or other asset"; and the term "payer" is deemed to be replaced with "deliverer".

(4)Paragraph (1) applies mutatis mutandis to a person that is delivered, in Japan, the money or other assets prescribed by Cabinet Order which are delivered due to the termination or partial cancellation of a securities investment trust for shares and similar interests, a non-bond investment trust, or a Specified Trust That Issues Beneficiary Certificates; or due to the splitting of a Specified Trust That Issues Beneficiary Certificates (other than any part of such money or other asset that Cabinet Order prescribes as being treated as revenue arising from a distribution of proceeds; hereinafter referred to as "redemption money or a similar asset" in this Article) and to the person delivering the redemption money or similar asset. In such a case, in paragraph (1), the phrase "that transfers a share or similar interest" is deemed to be replaced with "that is delivered, in Japan, redemption money or a similar asset as prescribed in paragraph (4)"; the phrase "and that is paid, in Japan, a consideration for transferring it by one of the persons set forth in the following items, must notify" is deemed to be replace with "must notify"; the phrase "is paid" is deemed to be replaced with "is delivered" and the phrase "is so paid" is deemed to be replaced with "is delivered the redemption money or similar asset"; the phrase "the person set forth in that item" is deemed to be replaced with "the person delivering the redemption money or similar asset"; and the term "payer" is deemed to be replaced with "deliverer".

Article 224-4A person (other than a corporation as set forth in Appended Table I of the Corporation Tax Act (Table of Public Corporations) or any other person prescribed by Cabinet Order) transferring a beneficial interest in a trust (other than a group investment trust, retirement pension trust, or Trust Subject to Corporate Taxation as prescribed in the proviso to Article 13, paragraph (1) (Attribution of Trust Property Assets and Liabilities and of Proceeds and Expenses Attributable to Trust Property); hereinafter such a beneficial interest is referred to as a "beneficial interest in a trust" in this Article) that is paid, in Japan, a consideration for transferring the beneficial interest in the trust by one of the persons set forth in the following items, must notify the person set forth in that item (hereinafter referred to as the "payer" in this Article) of the name and domicile thereof (or of a place as prescribed by Ministry of Finance Order, if the person has no domicile in Japan; hereinafter the same applies in this Article) by the time the person is paid, pursuant to Cabinet Order. In such a case, the person that is so paid must present a copy of the residence certificate or certificate of registered information thereof or any other document prescribed by Cabinet Order to the payer, pursuant to Cabinet Order, and the payer must verify the name and domicile of which the payer has been notified against those documents, pursuant to Cabinet Order:

Article 224-5(1)The person paying the difference or otherwise settling a futures contract (other than a corporation as set forth in Appended Table I of the Corporation Tax Act (Table of Public Corporations) or any other person prescribed by Cabinet Order) must notify the person (hereinafter referred to as the "futures commission merchant or similar party" in this paragraph) that each of the following items prescribes for the category of case set forth in the item as regards the futures contract that the person pays the difference in or otherwise settles, of the name and domicile thereof (or of the place prescribed by Ministry of Finance Order, if the person has no domicile in Japan; hereinafter the same applies in this paragraph) by the day on which the person pays the difference or otherwise settles the contract, pursuant to Cabinet Order. In such a case, the person paying the difference or otherwise settling the futures contract must present a copy of the residence certificate or certificate of registered information thereof and any other document prescribed by Cabinet Order to the futures commission merchant or similar party, pursuant to Cabinet Order, and the futures commission merchant or similar party must verify the name and domicile of which the party has been notified against those documents, pursuant to Cabinet Order:

(2)A futures contract as prescribed in the preceding paragraph means a contract or acquisition as set forth in one of the following items, and paying the difference or otherwise settling such a contract as prescribed in paragraph means effecting the settlement, exercise, waiver, or transfer that each of the following items prescribes for the category of transaction or acquisition set forth in the item:

Article 225(1)A person as set forth in one of the following items must submit a report on the payment prescribed in the item (or on the delivery prescribed in item (x) and item (xi) or the payment of the difference or other settlement of a contract as prescribed in item (xiii)) to the district tax office director pursuant to Ministry of Finance Order, by January 31 of the year after that in which the day of the decision to make the payment (or the decision to deliver the subject matter or to pay the difference or otherwise settle the contract) falls (or by January 31 of the year after that in which the day of the payment falls, for a report on a payment as prescribed in item (i) or item (viii) which concerns the interest on a bearer Public and Corporate Bond or a distribution of proceeds linked to a bearer beneficiary certificate from a Loan Trust, Bond Investment Trust, or Investment Trust with Publicly Offered Bonds; for a report on a payment as prescribed in item (ii) or item (viii) which concerns a dividend of surplus from a bearer share or similar interest (meaning a dividend of surplus as prescribed in Article 24, paragraph (1) (Dividend Income)) or a distribution of proceeds linked to a bearer beneficiary certificate from an Investment Trust (other than a Bond Investment Trust or Bond-Based Investment Trust Under Public Offering) or Specified Trust That Issues Beneficiary Certificates; or for a report on a payment as prescribed in item (vii) or item (viii) which concerns redemption money as prescribed in Article 224, paragraph (4) (Notice by Recipients of Interest, Dividend, and Redemption Money) for a bearer Public and Corporate Bond; hereinafter the same applies in this paragraph) (or within one month from the day on which the decision to pay is finalized, for a report on a payment as prescribed in item (ii) or a report on a payment as prescribed in item (viii) which concerns a dividend or similar income as prescribed in item (ii) or the domestic source income set forth in Article 161, item (i)-2 (Domestic Source Income)):

(2)Pursuant to Ministry of Finance Order, a person as set forth in either of the following items must issue a paper-based notification of the payment that the item prescribes to the person being paid within one month from the day on which the decision to pay is finalized (or within one month from the day of payment, for a paper-based notification of the payment prescribed in item (i) which concerns a distribution of proceeds linked to a bearer beneficiary certificate in a Securities Investment Trust, or for a paper-based notification of the payment prescribed in item (ii) which concerns a dividend from a bearer share or similar interest):

(3)In lieu of issuing a paper-based notification under the preceding paragraph, a person making a payment as prescribed in that paragraph may provide the person being paid with the information that is required to be given in the paper-based notification by electronic or magnetic means (meaning using an electronic data processing system or employing another means of information and communications technology in the manner prescribed by Ministry of Finance Order; the same applies in paragraph (4) of the following Article, Article 231, paragraph (2) (Paper-Based Payment Slips for Salary and Other Wages, Severance Pay and Other Such Compensation, and Public Pensions and Retirement Packages), and Article 242 (Penal Provisions)), with the consent of the person being paid and pursuant to Cabinet Order; provided, however, that at the request of the person being paid, the person making the payment must issue a paper-based notification thereto.

(4)In a case as referred to in the main clause of the preceding paragraph, the person making the payment referred to in that paragraph is deemed to have issued a paper-based notification as referred to in paragraph (2).

Article 226(1)A person paying, in Japan, a salary or other wage as prescribed in Article 28, paragraph (1) (Salary Income) (other than a salary or other wage from which income taxes are not required to be withheld and paid over pursuant to the provisions of Article 184 (Person Paying a Salary or Other Wages Exempt from Withholding at the Source); hereinafter referred to as a "salary or other wage" in this Chapter) to a Resident, must prepare two copies of the withholding receipt, pursuant Ministry of Finance Order, for the salary or other wage that it has been decided will be paid in that year, for each person being paid a salary or other wage; and must submit one copy to the district tax office director and issue the other to the person being paid the salary or other wage by January 31 of the following year (or within one month of separation from employment, if a Resident becomes separated from employment partway through the year); provided, however, that this does not apply if the person receives the approval of the district tax office director pursuant to Ministry of Finance Order.

(2)A person paying, in Japan, severance pay or other such compensation as prescribed in Article 30, paragraph (1) (Retirement Income) (other than severance pay or other such compensation from which income taxes are not required to be withheld and paid over pursuant to the provisions of Article 200 (Person Paying Severance Pay or Other Such Compensation Exempt from Withholding at the Source); hereinafter referred to as "severance pay or other such compensation" in this Chapter) to a Resident, must prepare two copies of the withholding receipt, pursuant to Ministry of Finance Order, for the severance pay or other such compensation that it has been decided will be paid that year, for each person being paid the severance pay or other such compensation, and must submit one copy to the district tax office director and issue the other to the person being paid the severance pay or other such compensation, within one month of the day of the Resident's separation from employment. The proviso to the preceding paragraph applies mutatis mutandis in such a case.

(3)A person paying, in Japan, a public pension or retirement package as prescribed in Article 35, paragraph (3) (Definition of Public Pensions and Retirement Packages) (hereinafter referred to as a "public pension or retirement package" in this Chapter) to a Resident, must prepare two copies of the withholding receipt, pursuant to Ministry of Finance Order, for the public pension or retirement package that it has been decided will be paid in that year, for each person being paid a public pension or retirement package, and must submit one copy to the district tax office director and issue the other to the person being paid the public pension or retirement package by January 31 of the following year. The proviso to paragraph (1) applies mutatis mutandis in such a case.

(4)In lieu of issuing a withholding receipt under the preceding three paragraphs, a person paying a salary or other wage as referred to in paragraph (1), severance pay or other such compensation as referred to in paragraph (2), or a public pension or retirement package as referred to in the preceding paragraph may provide a person with the information that is required to be given in the withholding receipt by electronic or magnetic means, with the consent of the person being paid the salary or other wage, severance pay or other such compensation, or public pension or retirement package and pursuant to Cabinet Order; provided, however, that at the request of the person being paid, the person must issue a withholding receipt thereto.

(5)In a case as referred to in the main clause of the preceding paragraph, the person paying the salary or other wage, severance pay or other such compensation, or public pension or retirement package referred to in that paragraph is deemed to have issued a withholding receipt as referred to in paragraphs (1) through (3).

Article 227The trustee of a trust (other than a group investment trust, retirement pension trust, or Trust Subject to Corporate Taxation prescribed in the proviso to Article 13, paragraph (1) (Attribution of Trust Property Assets and Liabilities and of Proceeds and Expenses Attributable to Trust Property)) must submit an accounting statement for the trust to the district tax office director, pursuant to Ministry of Finance Order, within one month after the end of each business year if the trustee is a trust company (or a financial institution as prescribed in Article 1, paragraph (1) (Approval for Additional Business) of the Act on Engagement in Trust Business Activities by Financial Institutions that engages in trust business as prescribed in that paragraph pursuant to that Act; hereinafter the same applies in this Article), or by January 31 of each year if the trustee is not a trust company.

Article 227-2A partner as prescribed in Article 29, paragraph (3) (Preparation and Filing of Accounting Books) of the Limited Liability Partnership Act (Act No. 40 of 2005) that undertakes the executive management of the business of a limited liability business partnership as prescribed in Article 2 (Definitions) of that Act which is formed based on a limited liability business partnership agreement as prescribed in Article 3, paragraph (1) (Limited Liability Business Partnership Agreement) of that Act, or a general partner with unlimited liability that undertakes the executive management of the business of an investment limited partnership as prescribed in Article 2, paragraph (2) (Definitions) of the Act on Limited Liability Partnership Agreements for Investment (Act No. 90 of 1998) which is formed based on a limited liability partnership agreement for investment prescribed in Article 3, paragraph (1) (Limited Liability Partnership Agreements for Investment) of that Act must submit a statement of partner income from the limited liability business partnership or the investment limited partnership to the district tax office director, for the profits arising or losses incurred by each partner of the limited liability business partnership or investment limited partnership (this includes any partner withdrawing from or joining the partnership partway through the accounting period stipulated in the limited liability business partnership agreement or investment limited partnership agreement), pursuant to Ministry of Finance Order, by January 31 of the year after that in which the final day of the accounting period falls (or by either that day or the day specified by Cabinet Order, whichever comes later, if a general partner with unlimited liability in the investment limited partnership submits that statement).

Article 228(1)A person that, as the person of record, is paid interest or similar income as prescribed in Article 23, paragraph (1) (Interest Income) or a dividend or similar income as prescribed in Article 24, paragraph (1) (Dividend Income) on behalf of another person and in connection with business, must submit a report on the interest or similar income or on the dividend or similar income (other than any interest or similar income or dividend or similar income for which a person submits a report as prescribed in Article 225, paragraph (1) (Payment Report) or accounting statement as prescribed in the preceding Article) to the district tax office director pursuant to Ministry of Finance Order, by January 31 of the year after that in which the day the person is paid falls.

(2)A person that, as the person of record, is paid a consideration for transferring a share or similar interest as prescribed in Article 224-3, paragraph (2) (Notice by Persons Receiving Consideration for a Share Transfer) (such consideration includes money or other assets as prescribed in paragraph (3) of that Article and redemption money or similar assets as prescribed in paragraph (4) of that Article, and payment thereof includes the delivery prescribed in paragraph (3) and paragraph (4) of that Article; hereinafter the same applies in this paragraph) on behalf of another person and in connection with business, must submit a report on the consideration for the transfer of the share or similar interest (other than a consideration for which a person submits a report as prescribed in Article 225, paragraph (1) or accounting statement as prescribed in the preceding Article) to the district tax office director pursuant to Ministry of Finance Order, by January 31 of the year after that in which the day the person is paid falls.

(3)Upon receipt of a paper-based notice of a transfer or receipt as prescribed in Article 224-2 (Notice of the Transfer of Negotiable Deposits), a person accepting a negotiable deposit as prescribed in that Article must submit a report on the transfer or receipt of that negotiable deposit to the district tax office director pursuant to Ministry of Finance Order, by the last day of the month after that in which the day the person received the paper-based notice falls.

Article 228-2A stock company issuing or allotting share options as referred to in Article 238, paragraph (1) (Determination of Subscription Requirements) of the Companies Act pursuant to a resolution as referred to in paragraph (2) of that Article (or pursuant to a determination of the subscription requirements prescribed in Article 239, paragraph (1) (Entrusting Determination of Subscription Requirements) of that Act as entrusted based on a resolution as referred to in that paragraph; or pursuant to a board of directors resolution under Article 240, paragraph (1) (Special Provisions on Determination of Subscription Requirements for a Public Company) of that Act (but only share options treated as having particularly favorable conditions or as being of an amount that is particularly favorable to persons receiving them, and other share options prescribed by Cabinet Order); issuing or allotting share options as referred to in Article 277 (Allotment of Share Options without Contribution) of that Act pursuant to a resolution as referred to in Article 322, paragraph (1) (General Meetings of Class Shareholders When Detriment to Class Shareholders of Certain Classes Likely) of that Act (or pursuant to the provisions of the articles of incorporation under paragraph (2) of that Article); or issuing or allotting share options as referred to in Article 280-21, paragraph (1) (Resolution for a Favorable Issue of Share Options) of the Commercial Code (Act No. 48 of 1899) prior to its revision under Article 64 (Partial Revision of the Commercial Code) of the Act Prescribing Adjustments to the Relevant Acts to Coordinate with the Enforcement of the Companies Act (Act No. 87 of 2005) pursuant to a resolution as referred to in that paragraph; to an individual or corporation (but only an issuance or allotment of share options for which it is decided that no money is required to be paid or a similar issuance or allotment as prescribed by Cabinet Order) must submit a report on the exercise of share options by that individual or corporation to the district tax office director pursuant to Ministry of Finance Order if the share options subject to the issuance or allotment are exercised, by January 31 of the year after that in which the day the share options were exercised falls.

Article 229If a Resident or Nonresident commences a new business undertaking in Japan which is meant to generate real property income, business income, or timber income; establishes an office, place of business, or other equivalent place for that business in Japan; or relocates or closes such a place, the Resident or Nonresident must submit a paper-based report indicating this and giving other necessary information to the district tax office director pursuant to Ministry of Finance Order, within one month from the day on which the event occurred.

Article 231(1)A person paying, in Japan, a salary or other wage, severance pay or other such compensation, or a public pension or retirement package to a Resident must issue a paper-based payment slip indicating the amount of the salary or other wage, severance pay or other such compensation, or public pension or retirement package and giving other necessary information to the person being paid, pursuant to Ministry of Finance Order.

(2)In lieu of issuing a paper-based payment slip for a salary or other wage, severance pay or other such compensation, or public pension or retirement package under the preceding paragraph, the person paying the salary or other wage, severance pay or other such compensation, or public pension or retirement package referred to in that paragraph may provide the person being paid the salary or other wage, severance pay or other such compensation, or public pension or retirement package with the information that is required to be given in the paper-based payment slip by electronic or magnetic means, with the consent of that person and pursuant to Cabinet Order; provided, however, that at the request of the person being paid, the person doing the paying must issue a paper-based payment slip for the salary or other wage, severance pay or other such compensation, or public pension or retirement package thereto.

(3)In a case as referred to in the main clause of the preceding paragraph, the person paying the salary or other wage, severance pay or other such compensation, or public pension or retirement package referred to that paragraph is deemed to have issued paper-based payment slip for the salary or other wage, severance pay or other such compensation, or public pension or retirement package referred to in paragraph (1).

Article 231-2(1)A Resident conducting business that is meant to generate real property income, business income, or timber income during the year, or a Nonresident conducting such business in Japan (other than one with the approval of the district tax office director to file a Blue Return), whose total real property income, business income, or timber income under the Tax Return (or the Amended Return; hereinafter the same applies in this paragraph) for two years prior exceeds three million yen as of December 31 of the previous year or whose total such income under the Tax Return for the previous year exceeds three million yen as of March 31 of the relevant year (such a Resident or Nonresident includes a person prescribed by Ministry of Finance Order as being equivalent thereto) must keep books pursuant to Ministry of Finance Order, and use the simple method prescribed by Ministry of Finance Order to record therein the details of the gross revenue and necessary expenses for transactions in the relevant year from business meant to generate that income, and must keep those books on file (and keep on file documents prepared or received in connection with business in the relevant year which are prescribed by Ministry of Finance Order; the same applies in the following paragraph).

(2)When an official with the National Tax Agency, the Regional Taxation Bureau, or the Tax Office examines the details of the gross revenue and necessary expenses prescribed in the preceding paragraph as they pertain to the income taxes of a person subject to the provisions of that paragraph, the official is to inspect the books referred to in that paragraph; provided, however, that this does not apply if there are circumstances that make it difficult to inspect the books.

(3)A Resident conducting business that is meant to generate real property income, business income, or timber income during the year, or a Nonresident conducting such business in Japan, who has submitted a Tax Return or report on gross revenue (meaning a report on gross revenue as prescribed in the following Article; hereinafter the same applies in this paragraph) for two years prior as of December 31 of the previous year, or who has submitted a Tax Return or report on gross revenue for the previous year as of March 31 of the relevant year (such a Resident or Nonresident includes a person specified by Ministry of Finance Order as being equivalent thereto) must keep on file, pursuant to Ministry of Finance Order, books and documents prepared or received in connection with that business during the relevant year (other than books and documents kept on file subject to the provisions of paragraph (1)); provided, however, that this does not apply if the provisions of Article 148, paragraph (1) (Books and Documents of Blue Return Taxpayers) apply (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents)).

Article 231-3A Resident conducting business that is meant to generate real property income, business income, or timber income during the year, or a Nonresident conducting such business in Japan, whose gross revenues constituting such income in that year (or, for a Nonresident, whose gross revenues constituting domestic source income as prescribed in Article 161 (Domestic Source Income)) total in excess of 30 million yen, must submit, pursuant to Ministry of Finance Order, a report on gross revenue indicating the total income and giving any other information to which reference should be made to the district tax office director by March 15 of the following year, unless the Resident files a Tax Return for that year's income taxes.

Article 232(1)If the total of gross revenue and timber income for the year which is indicated in a return set forth in one of the following items exceeds 20 million yen, pursuant to Ministry of Finance Order, at the time of filing, the person filing the return must submit detailed statements indicating the type, quantity, and value of the assets and the amount of liabilities that the person has (or that a person that has died as prescribed in Article 124, paragraph (1) had, for a return as set forth in item (i) filed due to circumstances falling under Article 124, paragraph (1) (Filing a Tax Return If the Person Required to File Has Died) (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents)); or that a person who has died as prescribed in Article 125, paragraph (1) (Filing a Tax Return If the Taxpayer Has Died Partway Through the Year) had, a for a return as set forth in item (ii)) as of the day or time set forth in the item, to the district tax office director:

(2)The provisions of the preceding paragraph apply mutatis mutandis if a person filing an Amended Return for a return as set forth in the items of that paragraph indicates an amended amount of gross revenue and timber income whose total exceeds 20 million yen.