Consumption Tax Act

A business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) and a business operator that has filed a written notification under the provisions of Article 19, paragraph (1), items (iii) through (iv)-2; the same applies in paragraphs (4), (6), and (8)) must, for each of the periods obtained by dividing its taxable period (excluding, for an individual business operator, the taxable period that includes the day on which it commenced business and, for a corporation, a taxable period not exceeding three months and the taxable period that includes the day of establishment of a newly established corporation other than one established through a merger; the same applies in paragraph (4)) into periods of one month each from the day on which that taxable period begins (where a period of less than one month arises at the end, that period of less than one month; excluding the last of the periods so divided into periods of one month each; hereinafter in this paragraph and the following paragraph referred to as a "one-month interim filing period"), file with the district director, within two months from the day following the last day of that one-month interim filing period (or, where that one-month interim filing period is the one-month period beginning on the first day of the taxable period, from the day on which two months have elapsed from the first day of the taxable period), a return stating each of the following matters; provided, however, that this does not apply to a one-month interim filing period for which the amount set forth in item (i) is 4 million yen or less.

the amount calculated by dividing, by the number of months in the immediately preceding taxable period, the amount of consumption tax set forth in Article 45, paragraph (1), item (iv) that is to be stated in the final return for the immediately preceding taxable period (meaning the return under the provisions of Article 45, paragraph (1); the same applies hereinafter in this Article), limited to that finalized by the day specified in each of the following in accordance with the category of one-month interim filing period listed there (referred to as the "finalization date" in item (i) of the following paragraph);

a one-month interim filing period that ended during the period from the first day of that taxable period to the day before the day on which two months have elapsed from that day: the day before the day on which two months elapse from the first day of that taxable period (where the provisions of Article 10, paragraph (2) (Computation of Periods and Special Provisions on Time Limits) of the Act on General Rules for National Taxes apply to the deadline for filing the final return for the immediately preceding taxable period, the day deemed under the provisions of that paragraph to be the deadline for filing that final return);

a one-month interim filing period other than that referred to in (a): the last day of that one-month interim filing period;

the basis of the calculation of the amount listed in the preceding item and other matters as specified by Ministry of Finance Order.

In the case referred to in the preceding paragraph, where the business operator referred to in that paragraph is a merging corporation relating to a merger (excluding the case where a corporation is established by the merger; the same applies hereinafter in this paragraph) that carried out the merger within a period set forth in the following items, the amount set forth in item (i) of that paragraph, with respect to the return under the provisions of the preceding paragraph for that taxable period to be submitted by that corporation, is, notwithstanding the provisions of that item, the amount obtained by adding the amount specified in the relevant one of the following items to the amount equivalent to the amount calculated under the provisions of that item.

the taxable period immediately preceding that taxable period: the amount calculated by dividing the amount set forth in Article 45, paragraph (1), item (iv) to be stated in the final return for the taxable period of the merged corporation that includes the day before the date of the merger (hereinafter in this item referred to as the "specified taxable period of the merged corporation"), which was finalized by the finalization date relating to that one-month interim filing period of the merging corporation (where the number of months of the specified taxable period of the merged corporation is less than three months or there is no such finalized amount, the amount set forth in that item to be stated in the final return for the taxable period immediately preceding the specified taxable period of the merged corporation (excluding one whose number of months is less than three months), which was finalized by the finalization date relating to that one-month interim filing period of the merging corporation; hereinafter in this paragraph and the following paragraph referred to as the "finalized consumption tax amount of the merged corporation") by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by the ratio of the number of months in the period from the first day of the immediately preceding taxable period of the merging corporation to the day before the date of the merger to the number of months of that immediately preceding taxable period;

the period from the first day of that taxable period to the last day of that one-month interim filing period: the amount calculated by dividing the finalized consumption tax amount of the merged corporation by the number of months in the taxable period of that merged corporation that formed the basis of its calculation.

In the case referred to in paragraph (1), where the business operator referred to in that paragraph is a merging corporation relating to a merger (limited to the case where a corporation is established by the merger), the amount set forth in item (i) of that paragraph, with respect to the return under the provisions of that paragraph for the first taxable period after its establishment to be submitted by that corporation, is, notwithstanding the provisions of that item, the total of the amounts calculated by dividing, for each merged corporation, the finalized consumption tax amount of the merged corporation by the number of months in the taxable period of that merged corporation that formed the basis of its calculation.

A business operator must, for each period divided into three-month periods on or after the first day of its taxable period (where a period of less than three months arises at the end, that period of less than three months, and excluding the last of the periods so divided into three-month periods; hereinafter in this paragraph referred to as a "three-month interim filing period"), submit to the district director, within two months from the day following the last day of that three-month interim filing period, a return stating the following matters; provided, however, that this does not apply to a three-month interim filing period where the amount set forth in item (i) is 1 million yen or less or where that three-month interim filing period is a period that includes a one-month interim filing period prescribed in paragraph (1) for which a return under the provisions of that paragraph is to be submitted.

the amount calculated by dividing the amount of consumption tax set forth in Article 45, paragraph (1), item (iv) to be stated in the final return for the immediately preceding taxable period, which was finalized by the last day of that three-month interim filing period, by the number of months in that immediately preceding taxable period, and multiplying the result by three;

the basis of the calculation of the amount listed in the preceding item and other matters as specified by Ministry of Finance Order.

The provisions of paragraphs (2) and (3) apply mutatis mutandis to the case where the provisions of the preceding paragraph apply. In this case, the phrase "the business operator referred to in that paragraph" in paragraph (2) is deemed to be replaced with "the business operator referred to in paragraph (4)", the phrase "the provisions of the preceding paragraph" with "the provisions of paragraph (4)"; in item (i) of paragraph (2), the phrase "the finalization date relating to that one-month interim filing period" is deemed to be replaced with "the last day of that three-month interim filing period", and the phrase "the ratio" with "three times the ratio"; in item (ii) of paragraph (2), the phrase "one-month interim filing period" is deemed to be replaced with "three-month interim filing period", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by the number of months in the period from the date of the merger to the last day of that three-month interim filing period (three, where that number of months exceeds three)"; and in paragraph (3), the phrase "the business operator referred to in that paragraph" is deemed to be replaced with "the business operator referred to in paragraph (4)", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by three".

A business operator must, for the six-month period on or after the first day of its taxable period (excluding, in the case of an individual business operator, the taxable period that includes the day on which the business was commenced and, in the case of a corporation, a taxable period not exceeding six months and the taxable period that includes the day of establishment of a corporation that has been newly established other than one established by a merger; hereinafter in this paragraph and paragraphs (8), (10) and (11) referred to as a "six-month interim filing period"), submit to the district director, within two months from the day following the last day of that six-month interim filing period, a return stating the following matters; provided, however, that this does not apply to a six-month interim filing period where the amount set forth in item (i) is 240,000 yen or less or where that six-month interim filing period is a period that includes a one-month interim filing period or three-month interim filing period prescribed in paragraph (1) or (4) for which a return under the provisions of those paragraphs is to be submitted.

the amount calculated by dividing the amount of consumption tax set forth in Article 45, paragraph (1), item (iv) to be stated in the final return for the immediately preceding taxable period, which was finalized by the last day of that six-month interim filing period, by the number of months in that immediately preceding taxable period, and multiplying the result by six;

the basis of the calculation of the amount listed in the preceding item and other matters as specified by Ministry of Finance Order.

The provisions of paragraphs (2) and (3) apply mutatis mutandis to the case where the provisions of the preceding paragraph apply. In this case, the phrase "the business operator referred to in that paragraph" in paragraph (2) is deemed to be replaced with "the business operator referred to in paragraph (6)", the phrase "the provisions of the preceding paragraph" with "the provisions of paragraph (6)"; in item (i) of paragraph (2), the phrase "the finalization date relating to that one-month interim filing period" is deemed to be replaced with "the last day of that six-month interim filing period", the phrase "less than three months" with "less than six months", and the phrase "the ratio" with "six times the ratio"; in item (ii) of paragraph (2), the phrase "one-month interim filing period" is deemed to be replaced with "six-month interim filing period", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by the number of months in the period from the date of the merger to the last day of that six-month interim filing period"; and in paragraph (3), the phrase "the business operator referred to in that paragraph" is deemed to be replaced with "the business operator referred to in paragraph (6)", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by six".

Where a business operator that is not required to submit, for a six-month interim filing period, the return under the provisions of paragraph (6) (hereinafter in this paragraph and paragraph (11) referred to as a "six-month interim return") because the amount set forth in paragraph (6), item (i) is 240,000 yen or less submits to the district director having jurisdiction over its place for tax payment a written notification stating that it will submit that six-month interim return, the provisions of the proviso to paragraph (6) do not apply to the six-month interim filing periods on or after the six-month interim filing period whose last day first arrives on or after the day of that submission by the business operator that submitted that written notification (limited to those for which the amount set forth in that item is 240,000 yen or less; the same applies in paragraph (11)).

A business operator that has submitted the written notification under the provisions of the preceding paragraph must, when it intends to cease to be subject to the application of the provisions of that paragraph or when it has discontinued its business, submit a written notification to that effect to the district director having jurisdiction over its place for tax payment.

When a written notification under the provisions of the preceding paragraph has been submitted, the notification under the provisions of paragraph (8) ceases to be effective with respect to the six-month interim filing periods on or after the six-month interim filing period whose last day first arrives on or after the day of that submission.

Where a business operator that has submitted the written notification under the provisions of paragraph (8) fails to submit a six-month interim return for a six-month interim filing period on or after the six-month interim filing period whose last day first arrives on or after the day of that submission by its deadline for filing, that business operator is deemed to have submitted the written notification under the provisions of paragraph (9) to the district director having jurisdiction over its place for tax payment on the last day of that six-month interim filing period.

The number of months in paragraphs (1) through (7) is calculated according to the calendar, and where a fraction of less than one month arises, it is counted as one month.