Order for Enforcement of the Consumption Tax Act

Where a business operator succeeds, through a merger or company split, to the business pertaining to the digital platform (meaning the digital platform prescribed in Article 15-2, paragraph (1) of the Act; the same applies in paragraph (5), item (i)) of a specified platform operator (meaning the specified platform operator prescribed in Article 15-2, paragraph (1) of the Act; the same applies in this paragraph and paragraph (5)), or takes over that business by transfer, the merging corporation or successor corporation in a company split that has succeeded to that business, or the business operator that has taken over that business by transfer (excluding a specified platform operator; referred to as a "merging corporation, etc." in the following paragraph), is deemed to have been designated under Article 15-2, paragraph (2) of the Act on the day on which that merger, company split or transfer took place. In this case, the provisions of the second sentence of that paragraph do not apply.

With regard to the application of Article 15-2, paragraph (3), main clause, and paragraphs (4) and (5) of the Act to a merging corporation, etc., the phrase "A person that is to be designated as a specified platform operator under the preceding paragraph must submit to the Commissioner of the National Tax Agency, via the district director having jurisdiction over its place for tax payment, a written notification stating that fact and other matters specified by Ministry of Finance Order, by the deadline for filing of the return under Article 45, paragraph (1) for its taxable period (or, where it has no obligation to file a return under that paragraph, the deadline for filing of the return under that paragraph that would apply if it had that obligation)" in the main clause of Article 15-2, paragraph (3) of the Act is deemed to be replaced with "A person that has come to fall under a merging corporation, etc. prescribed in Article 29, paragraph (1) of the Order for Enforcement of the Consumption Tax Act must submit to the Commissioner of the National Tax Agency, via the district director having jurisdiction over its place for tax payment, a written notification stating that fact and other matters specified by Ministry of Finance Order, without delay after the day of that merger or company split, or that transfer", the phrase "under paragraph (2)" in Article 15-2, paragraph (4) of the Act is deemed to be replaced with "that is deemed to have been designated under paragraph (2) pursuant to Article 29, paragraph (1) of the Order for Enforcement of the Consumption Tax Act", the phrase "designated" in that paragraph is deemed to be replaced with "ascertained", and the phrase "that has received the notice under the preceding paragraph" in Article 15-2, paragraph (5) of the Act is deemed to be replaced with "referred to in the preceding paragraph".

With regard to the application of Articles 30, 32, 34 and 35 of the Act to a foreign business operator that is subject to the application of Article 15-2, paragraph (1) of the Act, the phrase "taxable transfers, etc. of assets" in Article 30, paragraph (2), item (i), Article 32, paragraph (1), item (ii), (a) and paragraph (4), item (ii), (a), Article 34, paragraph (1) and Article 35 of the Act is deemed to be replaced with "taxable transfers, etc. of assets (including the supply of telecommunications services to which Article 15-2, paragraph (1) is applied)".

Publication under Article 15-2, paragraph (4), (6) or (12) of the Act is to be made by a method of making it available for public inspection using the Internet.

The matters specified by Cabinet Order as prescribed in Article 15-2, paragraph (4) of the Act are the following:

the name of the digital platform pertaining to the specified platform operator;

the name of the specified platform operator;

the date on which the designation under Article 15-2, paragraph (2) of the Act takes effect.

The portion for which an individual business operator prescribed in Article 16, paragraph (2) of the Act is deemed, pursuant to the main clause of that paragraph, to have made transfers, etc. of assets in the taxable period that includes the due date for payment of an installment pertaining to a transfer on deferred payment terms prescribed in paragraph (1) of that Article (hereinafter in this Article through Article 34 referred to as a "transfer on deferred payment terms") is the portion pertaining to those installments of that transfer on deferred payment terms whose due date for payment arrives during that taxable period (excluding, where there is an amount of such an installment that has already been received on or before the day preceding the first day of that taxable period, the portion pertaining to that amount, and including, where there is an amount received during that taxable period of an installment whose due date for payment arrives on or after the day following the last day of that taxable period, the portion pertaining to that amount).

Where an individual business operator who has been subject to the application of the main clause of Article 16, paragraph (2) of the Act with respect to a transfer on deferred payment terms (including its heir; the same applies hereinafter through Article 34) comes to be subject to the application of the proviso to that paragraph, then, of the transfers on deferred payment terms that had been subject to the application of the main clause of that paragraph, the portion pertaining to those installment amounts of that transfer on deferred payment terms whose due date for payment arrives on or after the first day of the taxable period that includes the day on which the permission for deferred payment prescribed in the proviso to that paragraph was rescinded (excluding those already received on or before the day preceding the first day of that taxable period) is deemed to be a transfer, etc. of assets made by that individual business operator in that taxable period.

Where an individual business operator who has been subject to the application of Article 16, paragraph (1) of the Act with respect to a transfer on deferred payment terms chooses not to apply that paragraph in any taxable period on or after the taxable period following the taxable period for which it chose to apply that paragraph (excluding a case that falls under the case prescribed in the preceding paragraph), then, of the transfers on deferred payment terms made on or before the day preceding the first day of the taxable period for which it chose not to apply that paragraph that had been subject to the application of the main clause of Article 16, paragraph (2) of the Act, the portion pertaining to those installment amounts of the transfers on deferred payment terms for which it chose not to apply that paragraph whose due date for payment arrives on or after the first day of that taxable period (excluding those already received on or before the day preceding the first day of that taxable period) is, notwithstanding the main clause of Article 16, paragraph (2) of the Act, deemed to be a transfer, etc. of assets made by that individual business operator in that taxable period.

Where an individual business operator who has been subject to the application of the main clause of Article 16, paragraph (2) of the Act with respect to a transfer on deferred payment terms comes to fall under any of the following cases, then, of the transfers on deferred payment terms made on or before the day preceding the first day of the taxable period in which it came to fall under that case that had been subject to the application of the main clause of that paragraph, the portion pertaining to those installment amounts of that transfer on deferred payment terms whose due date for payment arrives on or after the first day of that taxable period (excluding those already received on or before the day preceding the first day of that taxable period) is, notwithstanding the main clause of that paragraph, deemed to be a transfer, etc. of assets made by that individual business operator on the day preceding the first day of that taxable period:

a case where that individual business operator (excluding an individual business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of the Act) comes to be subject to the application of the main clause of that paragraph;

a case where that individual business operator (limited to an individual business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of the Act) comes not to be subject to the application of the main clause of that paragraph.

Where an individual business operator who has been subject to the application of the main clause of Article 16, paragraph (2) of the Act with respect to a transfer on deferred payment terms comes to fall under any of the following cases, then, of the transfers on deferred payment terms made by that individual business operator on or before the day preceding the first day of the taxable period that includes the day on which it came to fall under that case that had been subject to the application of the main clause of that paragraph, the portion pertaining to those installment amounts of that transfer on deferred payment terms whose due date for payment arrives on or after the first day of that taxable period (excluding those already received on or before the day preceding the first day of that taxable period) is, notwithstanding the main clause of that paragraph, deemed to be a transfer, etc. of assets made by that individual business operator in that taxable period:

where that individual business operator has died and there is no heir who has succeeded to the business pertaining to the transfer on deferred payment terms;

where that individual business operator (excluding an individual business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of the Act) has died and the heir who has succeeded to the business pertaining to that transfer on deferred payment terms is an individual business operator exempted from the obligation to pay consumption tax under the main clause of that paragraph;

where that individual business operator (limited to an individual business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of the Act) has died and the heir who has succeeded to the business pertaining to that transfer on deferred payment terms is an individual business operator to whom the main clause of that paragraph does not apply;

where that individual business operator has transferred or discontinued the whole of the business pertaining to that transfer on deferred payment terms.

Where an individual business operator who has been subject to the application of Article 17, paragraph (1) or the main clause of paragraph (2) of the Act with respect to the subject matter of specified construction work (meaning long-term large-scale construction prescribed in Article 17, paragraph (1) of the Act or construction work prescribed in paragraph (2) of that Article; the same applies in this Article and the following Article) has died, and the heir who has succeeded to the business of that individual business operator pertaining to the contract for that specified construction work has delivered the subject matter of that specified construction work, Article 17, paragraph (3) of the Act applies, with respect to the portion of the transfers, etc. of assets pertaining to the contract for that specified construction work that was treated as transfers, etc. of assets made by that individual business operator under paragraph (1) or the main clause of paragraph (2) of that Article, on the basis that that heir is deemed to have made the transfers, etc. of assets.

The provisions of the preceding paragraph apply mutatis mutandis where a corporation that has been subject to the application of Article 17, paragraph (1) or the main clause of paragraph (2) of the Act with respect to the subject matter of specified construction work has been extinguished by a merger, or where a corporation that has been subject to the application of those provisions has caused a successor corporation in a company split to succeed, by a company split, to the business pertaining to specified construction work.