Article 23Special Provisions on Exemption from Tax Liability in the Case of a Corporate Split, etc.

①The amount calculated as specified by Cabinet Order prescribed in Article 12, paragraph (1) of the Act is to be the amount calculated by dividing the total amount of the taxable sales in each business year of the split-off parent corporation referred to in that paragraph that ended during the period from the day preceding the day two years before the first day of the business year that includes the day on which a corporate split, etc. of the split-off subsidiary corporation referred to in that paragraph (meaning a corporate split, etc. prescribed in that paragraph; the same applies hereinafter in this Article) took place to the day on which one year has elapsed from that day by the total number of months in those business years and multiplying the result by twelve.

②The amount calculated as specified by Cabinet Order prescribed in Article 12, paragraph (2) of the Act is to be the amount calculated by dividing the total amount of the taxable sales in each business year of the split-off parent corporation referred to in that paragraph that ended during the period from the day preceding the day two years before the first day of the business year of the split-off subsidiary corporation referred to in that paragraph to the day on which one year has elapsed from that day by the total number of months in those business years and multiplying the result by twelve.

③The amount calculated as specified by Cabinet Order as the taxable sales in the base period of the business year of the split-off subsidiary corporation prescribed in Article 12, paragraph (3) of the Act is to be the amount calculated by dividing the remainder after deducting, from the total amount of consideration for taxable transfers, etc. of assets in Japan during that base period of the split-off subsidiary corporation referred to in that paragraph, the total tax-exclusive refunds, etc. of consideration for sales prescribed in Article 9, paragraph (2), item (i) of the Act for that base period by the total number of months in the business years included in that base period and multiplying the result by twelve (where a corporate split, etc. took place during any of the business years of the split-off parent corporation referred to in Article 12, paragraph (3) of the Act that began during the period from the day preceding the day two years before the first day of the business year of that split-off subsidiary corporation to the day on which one year has elapsed from that day (hereinafter in this paragraph and the following paragraph referred to as the "specified business years"), the amount calculated by dividing the amount so calculated by the total number of months in those specified business years and multiplying the result by the number of months in the period from the day on which that corporate split, etc. took place to the last day of the last business year among those specified business years).

④The amount calculated as specified by Cabinet Order as the taxable sales of the split-off parent corporation in the period corresponding to the base period of that business year of that split-off subsidiary corporation prescribed in Article 12, paragraph (3) of the Act is to be the amount calculated by dividing the total amount of the taxable sales in the specified business years of the split-off parent corporation referred to in that paragraph (meaning the remainder after deducting, from the total amount of consideration for taxable transfers, etc. of assets in Japan in those specified business years, the total of the amounts obtained by deducting the amount set out in item (ii) from the amount set out in item (i)) by the total number of months in those specified business years and multiplying the result by twelve.

⑤The amount calculated as specified by Cabinet Order prescribed in Article 12, paragraph (4) of the Act is to be the amount calculated by dividing the total amount of the taxable sales in each business year of the split-off subsidiary corporation referred to in that paragraph that began during the period from the day preceding the day two years before the first day of the business year of the split-off parent corporation referred to in that paragraph to the day on which one year has elapsed from that day by the total number of months in those business years and multiplying the result by twelve (where a corporate split, etc. took place during the period from the day following the first day of the base period of the business year of that split-off parent corporation to the day two days before the day one year before the first day of that business year, the amount calculated by dividing the amount so calculated by the total number of months set out in item (i) and multiplying the result by the number of months set out in item (ii)).

⑥The amount calculated as specified by Cabinet Order prescribed in Article 12, paragraph (5) of the Act is to be the amount calculated by dividing the total amount of the taxable sales in each business year of the splitting corporation referred to in that paragraph that ended during the period from the day preceding the day two years before the first day of the business year that includes the day on which the absorption-type company split of the successor corporation in a company split referred to in that paragraph took place to the day on which one year has elapsed from that day by the total number of months in those business years and multiplying the result by twelve.

⑦The amount calculated as specified by Cabinet Order prescribed in Article 12, paragraph (6) of the Act is to be the amount calculated by dividing the total amount of the taxable sales in each business year of the splitting corporation referred to in that paragraph that ended during the period from the day preceding the day two years before the first day of the business year of the successor corporation in a company split referred to in that paragraph to the day on which one year has elapsed from that day by the total number of months in those business years and multiplying the result by twelve.

⑧The number of months in the preceding paragraphs is to be calculated according to the calendar, and where a fraction of less than one month arises, it is to be counted as one month.

⑨The requirement specified by Cabinet Order prescribed in Article 12, paragraph (7), item (iii) of the Act is that the transfer of assets other than money is planned at the time of the establishment of the new corporation and is carried out within six months from the time of that establishment.