Regulation for Enforcement of the Consumption Tax Act

Pursuant to the provisions of the Consumption Tax Act (Act No. 108 of 1988) and the Order for Enforcement of the Consumption Tax Act (Cabinet Order No. 360 of 1988), the Regulation for Enforcement of the Consumption Tax Act is established as follows.

In this Ministerial Order, "Japan," "bonded area," "individual business operator," "business operator," "foreign business operator," "merged corporation," "splitting corporation," "association or foundation without legal personality," "qualified invoice issuer," "transfer, etc. of assets," "specified transfer, etc. of assets," "supply of telecommunications services," "taxable transfer, etc. of assets," "taxable transfer, etc. of assets subject to the reduced rate," "taxable goods," "taxable purchase," "business year," "base period," "inventory," "adjustment-target fixed asset," "special return," or "accessory tax" mean, respectively, Japan, bonded area, individual business operator, business operator, foreign business operator, merged corporation, splitting corporation, association or foundation without legal personality, qualified invoice issuer, transfer, etc. of assets, specified transfer, etc. of assets, supply of telecommunications services, taxable transfer, etc. of assets, taxable transfer, etc. of assets subject to the reduced rate, taxable goods, taxable purchase, business year, base period, inventory, adjustment-target fixed asset, special return, or accessory tax prescribed in Article 2, paragraph (1), items (i) through (iv)-2, item (v)-2, item (vi), items (vii) through (viii)-3, item (ix), item (ix)-2, item (xi), items (xii) through (xvi), item (xviii) or item (xix) of the Consumption Tax Act (Act No. 108 of 1988; hereinafter referred to as "the Act").

In this Ministerial Order, "lending of assets" is to include the establishment of rights pertaining to assets and any other act of causing another person to use assets (excluding any such act that falls under the supply of telecommunications services).

In this Ministerial Order, "inheritance" is to include a comprehensive bequest, "heir" is to include a comprehensive legatee, and "decedent" is to include a person who makes a comprehensive bequest.

The age and other requirements specified by Ministry of Finance Order prescribed in Article 2-4, paragraph (2), item (i) of the Order for Enforcement of the Consumption Tax Act (Cabinet Order No. 360 of 1988; hereinafter referred to as "the Order") are that the person falls under any of the following items:

a person aged 60 or more;

a person under 60 years of age who has received the Certification of Needed Long-Term Care prescribed in Article 19, paragraph (1) (Certification by a Municipality) of the Long-Term Care Insurance Act (Act No. 123 of 1997) or the Certification of Needed Support prescribed in paragraph (2) of that Article;

a spouse who lives with a person falling under either of the preceding two items (excluding a person falling under either of the preceding two items, and including a person who has not filed a notification of marriage with that person but is in a situation equivalent to a de facto marital relationship).

The facilities specified by Ministry of Finance Order prescribed in Article 6, paragraph (2), item (v), (c) of the Order are electricity storage, transformation and distribution facilities, gas storage and supply facilities, petroleum storage facilities, communications facilities, broadcasting facilities, industrial water supply facilities, water supply facilities, sewerage facilities, wastewater treatment facilities, agricultural production facilities, forestry production facilities, heat pump facilities, smoke and soot treatment facilities, nitrogen oxide suppression facilities, dust treatment facilities, waste treatment facilities, vessels, railway vehicles, or aircraft.

The contracts specified by Ministry of Finance Order prescribed in Article 10, paragraph (2), item (v) of the Order are the following contracts:

a contract relating to life insurance prescribed in Article 16, item (iii) (Investment of Surplus Funds) of the Order for Enforcement of the Act on the Promotion and Mutual Aid Corporation for Private Schools of Japan (Cabinet Order No. 354 of 1997) that is concluded for the investment of surplus funds prescribed in Article 39 (Investment of Surplus Funds) of the Act on the Promotion and Mutual Aid Corporation for Private Schools of Japan (Act No. 48 of 1997);

a contract relating to life insurance prescribed in Article 9, paragraph (1), item (iv) (Investment of Reserve Funds for Pension Benefits, etc.) of the Order for Enforcement of the Act on the Farmers Pension Fund, Independent Administrative Agency (Cabinet Order No. 343 of 2003) that is concluded for the investment of reserve funds for pension benefits, etc. prescribed in Article 43 (Investment of Reserve Funds for Pension Benefits, etc.) of the Act on the Farmers Pension Fund, Independent Administrative Agency (Act No. 127 of 2002);

a contract of insurance concluded pursuant to Article 128, paragraph (3) (Operations of a National Pension Fund) or Article 137-15, paragraph (4) (Operations of the National Pension Fund Association) of the National Pension Act (Act No. 141 of 1959);

a contract concluded pursuant to Article 25, paragraph (4) (Instructions on Investment) of the Defined Contribution Pension Act (Act No. 88 of 2001) (including where applied mutatis mutandis pursuant to Article 73 (Application Mutatis Mutandis of Provisions Pertaining to Corporate-Type Pension Plans) of that Act) that relates to life insurance or non-life insurance prescribed in Article 23, paragraph (1), item (iv) or (v) (Selection and Presentation of Investment Methods) of that Act;

a contract that is concluded for the investment of surplus funds prescribed in Article 77 (Special Provisions on Investment of Surplus Funds) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act (Act No. 160 of 1959) and that relates to life insurance prescribed in paragraph (1), item (v) of that Article.

The contracts specified by Ministry of Finance Order prescribed in Article 10, paragraph (3), item (xiii) of the Order are the following contracts:

a contract relating to life mutual aid prescribed in Article 9, paragraph (1), item (iv) of the Order for Enforcement of the Act on the Farmers Pension Fund, Independent Administrative Agency that is concluded for the investment of reserve funds for pension benefits, etc. prescribed in Article 43 of the Act on the Farmers Pension Fund, Independent Administrative Agency;

a contract of mutual aid concluded pursuant to Article 128, paragraph (3) or Article 137-15, paragraph (4) of the National Pension Act;

a contract concluded pursuant to Article 25, paragraph (4) of the Defined Contribution Pension Act (including where applied mutatis mutandis pursuant to Article 73 of that Act) that relates to life mutual aid prescribed in Article 23, paragraph (1), item (iv) of that Act.

The things specified by Ministry of Finance Order prescribed in Article 12, paragraph (2), item (iv) of the Order are the provision of services for which the fee prescribed in Article 89, paragraph (4) (Fees) of the Act on the Protection of Personal Information (Act No. 57 of 2003) or the usage fee prescribed in Article 119, paragraph (5) (Fees) of that Act is the consideration.

The requirements specified by Ministry of Finance Order prescribed in Articles 15 and 16 of the Order are the following requirements:

that the facilities (including the number of teachers) are found to be sufficient in relation to the number of students who receive classes at the same time;

that classes begin at fixed times not exceeding twice a year (four times a year, in the case of a facility listed in Article 16, item (i) of the Order), and that the end of the classes is clearly specified;

that an evaluation of students' grades is made for each school year or term, and the results are entered in registers or other documents relating to the examination of grades;

that an evaluation of grades as to whether students have acquired the prescribed skills is made, and graduation certificates or completion certificates are awarded on the basis of that evaluation.