Order for Enforcement of the Consumption Tax Act

The ratio calculated as provided by Cabinet Order as prescribed in Article 30, paragraph (6) of the Act is the proportion that the amount listed in item (ii) accounts for in the amount listed in item (i):

the remainder after deducting, from the total amount of consideration (meaning the amount of consideration prescribed in Article 28, paragraph (1) of the Act; the same applies hereinafter in this paragraph) for transfers, etc. of assets (excluding those that fall under specified transfers, etc. of assets; the same applies hereinafter in this Article and Article 53, paragraph (3), item (i)) made by that business operator in Japan during that taxable period, the total amount of refund, etc. of consideration pertaining to transfers, etc. of assets made in Japan during that taxable period (meaning the amount of refund of all or part of the amount of consideration for a transfer, etc. of assets, or of reduction of all or part of the amount of accounts receivable or other claims pertaining to the amount of consideration for a transfer, etc. of assets, by reason of having accepted returned goods or granted a discount or rebate with respect to that transfer, etc. of assets);

the remainder after deducting, from the total amount of consideration for taxable transfers, etc. of assets (excluding those that fall under specified transfers, etc. of assets; the same applies hereinafter in this Chapter) made by that business operator in Japan during that taxable period, the total of the amounts obtained by deducting the amount listed in (b) from the amount listed in (a):

the amount of refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act made during the taxable period (including the amount of refund, etc. of consideration for export transactions, etc. prescribed in Article 19 made during that taxable period);

the amount calculated by multiplying by 100/78 the consumption tax on refunds, etc. of consideration for sales, prescribed in Article 38, paragraph (1) of the Act, made during the taxable period.

The transfers, etc. of assets prescribed in item (i) of the preceding paragraph do not include the following transfers of assets made by a business operator:

a transfer of a monetary claim listed in Article 9, paragraph (1), item (iv) that a person who has made a transfer, etc. of assets acquired as consideration for that transfer, etc. of assets;

a transfer of the following (hereinafter in this Article referred to as "bonds, etc. for repurchase transactions"), in the case where they are transferred under an agreement to repurchase them on a date agreed in advance (for those for which the date can be determined on or after the day of the agreement, the date so determined) at a price agreed in advance or a price calculated by a method of calculation agreed in advance, and are repurchased in accordance with that agreement:

national government bonds, etc.;

a negotiable certificate of deposit prescribed in Article 10, paragraph (3), item (i);

a promissory note prescribed in Article 10, paragraph (3), item (vi);

other securities or certificates specified by Ministry of Finance Order.

Where a business operator has purchased bonds, etc. for repurchase transactions under an agreement to resell them on a date agreed in advance (for those for which the date can be determined on or after the day of the agreement, the date so determined) at a price agreed in advance or a price calculated by a method of calculation agreed in advance, and has resold those bonds, etc. for repurchase transactions in accordance with that agreement, the amount of consideration for the transfer, etc. of assets prescribed in paragraph (1), item (i) pertaining to that resale is the remainder obtained by deducting the amount of consideration for that purchase of those bonds, etc. for repurchase transactions from the amount of consideration for that resale of those bonds, etc. for repurchase transactions. In this case, where there is an amount that cannot be fully deducted by that deduction, the amount listed in that item is the remainder obtained by deducting that amount that cannot be fully deducted from that amount.

For the purpose of applying paragraph (1), the consideration in the case where an act listed in Article 2, paragraph (1), item (iv) is carried out is interest (including redemption gain, the difference between the amount received in payment of a monetary claim taken over and its acquisition price, and anything else that is equivalent to interest in economic nature).

Where the redemption amount prescribed in Article 10, paragraph (3), item (vi) of national government bonds, etc. is less than the acquisition price prescribed in that item, the amount listed in paragraph (1), item (i) is the remainder obtained by deducting from that amount the amount obtained by deducting that redemption amount from that acquisition price (including, where those national government bonds, etc. fall under redemption securities prescribed in Article 139-2, paragraph (1) (Inclusion of Adjustment Gain or Loss on Redemption Securities in Gross Profits or Deductible Expenses) of the Order for the Enforcement of the Corporation Tax Act, the adjustment loss prescribed in that paragraph).