Consumption Tax Act

The tax base for consumption tax on taxable transfers, etc. of assets is the amount of consideration for the taxable transfer, etc. of assets (meaning the amount of all money, anything other than money, rights, or other economic benefits received or to be received as consideration, and not including the amount of consumption tax to be imposed on the taxable transfer, etc. of assets or the amount equivalent to the amount of local consumption tax to be imposed with that amount of consumption tax as its tax base; the same applies hereinafter in this paragraph and paragraph (3)). However, where a corporation transfers an asset to an officer prescribed in Article 4, paragraph (5), item (ii) and the amount of consideration is significantly lower than the value of that asset at the time of the transfer, the amount equivalent to that value is deemed to be the amount of consideration.

The tax base for consumption tax on specified taxable purchases is the amount of consideration paid for the specified taxable purchase (meaning the amount of all money, anything other than money, rights, or other economic benefits paid or to be paid as consideration).

For acts that fall under any of the items of Article 4, paragraph (5), the amount specified in each of the following items in accordance with the category of act listed in that item is deemed to be the amount of consideration.

consumption or use listed in Article 4, paragraph (5), item (i): the amount equivalent to the value of the asset consumed or used, at the time of that consumption or use;

a gift listed in Article 4, paragraph (5), item (ii): the amount equivalent to the value of the asset given, at the time of that gift.

The tax base for consumption tax on taxable goods taken out of a bonded area is the amount obtained by adding, to the price calculated for the taxable goods in accordance with the provisions of Articles 4 through 4-9 (Method of Calculating the Dutiable Value) of the Customs Tariff Act (Act No. 54 of 1910), an amount equivalent to the amount of consumption tax, etc. other than the consumption tax relating to the taking of the taxable goods out of the bonded area (meaning the consumption tax, etc. prescribed in Article 2, item (iii) (Definitions) of the Act on General Rules for National Taxes; excluding the amount equivalent to the amount of accessory tax) and an amount equivalent to the amount of customs duty (excluding the amount equivalent to the amount of accessory tax prescribed in Article 2, paragraph (1), item (iv)-2 of the Customs Act).

In addition to what is provided for in paragraph (3), matters necessary for the details of the calculation of the amount of the tax base prescribed in paragraph (1), paragraph (2), or the preceding paragraph are specified by Cabinet Order.

The rate of consumption tax is the rate specified in each of the following items in accordance with the category listed in that item.

taxable transfers, etc. of assets (excluding taxable transfers, etc. of assets subject to the reduced rate), specified taxable purchases, and taxable goods taken out of a bonded area (excluding taxable goods subject to the reduced rate): 7.8 percent;

taxable transfers, etc. of assets subject to the reduced rate and taxable goods subject to the reduced rate that are taken out of a bonded area: 6.24 percent.