Article 37Special Provisions on Deduction of Consumption Tax on Purchases for Small and Medium-Sized Business Operators
第三十七条（中小事業者の仕入れに係る消費税額の控除の特例）
Where 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 foreign business operator that does not have, on the first day of the taxable period, a permanent establishment prescribed in Article 2, paragraph (1), item (viii)-4 (Definitions) of the Income Tax Act or Article 2, item (xii)-19 (Definitions) of the Corporation Tax Act) files with the district director having jurisdiction over its place for tax payment a written notification stating that it will be subject to the application of this paragraph for a taxable period in which the taxable sales in the base period (meaning the taxable sales in the base period prescribed in Article 9, paragraph (1); the same applies hereinafter in this paragraph and in paragraph (1) of the following Article) are 50 million yen or less (excluding the taxable period specified by Cabinet Order of a split-off parent corporation or split-off subsidiary corporation prescribed in Article 12, paragraph (1) relating to a corporate split, etc. prescribed in that paragraph (hereinafter in this paragraph and paragraph (1) of the following Article referred to as a "taxable period connected with a split, etc.")), then for the taxable periods (excluding taxable periods in which the taxable sales in the base period exceed 50 million yen and taxable periods connected with a split, etc.) on or after the taxable period following the taxable period that includes the day on which that written notification was filed (or, where the taxable period that includes the day on which that written notification was filed is the taxable period that includes the day on which the business was commenced or any other taxable period specified by Cabinet Order, that taxable period), the total amount of tax on taxable purchases, etc. that may be deducted from the consumption tax on the tax base amount under the provisions of Articles 30 through the preceding Article is, notwithstanding those provisions, the total of the following amounts. In this case, that total of the amounts is deemed to be the consumption tax on purchases for that taxable period.
事業者（第九条第一項本文の規定により消費税を納める義務が免除される事業者及びその課税期間の初日において所得税法第二条第一項第八号の四（定義）又は法人税法第二条第十二号の十九（定義）に規定する恒久的施設を有しない国外事業者を除く。）が、その納税地を所轄する税務署長にその基準期間における課税売上高（第九条第一項に規定する基準期間における課税売上高をいう。以下この項及び次条第一項において同じ。）が五千万円以下である課税期間（第十二条第一項に規定する分割等に係る同項の新設分割親法人又は新設分割子法人の政令で定める課税期間（以下この項及び次条第一項において「分割等に係る課税期間」という。）を除く。）についてこの項の規定の適用を受ける旨を記載した届出書を提出した場合には、当該届出書を提出した日の属する課税期間の翌課税期間（当該届出書を提出した日の属する課税期間が事業を開始した日の属する課税期間その他の政令で定める課税期間である場合には、当該課税期間）以後の課税期間（その基準期間における課税売上高が五千万円を超える課税期間及び分割等に係る課税期間を除く。）については、第三十条から前条までの規定により課税標準額に対する消費税額から控除することができる課税仕入れ等の税額の合計額は、これらの規定にかかわらず、次に掲げる金額の合計額とする。この場合において、当該金額の合計額は、当該課税期間における仕入れに係る消費税額とみなす。
the amount equivalent to 60 percent of the remainder after deducting, from the consumption tax on the total of the amounts of the tax base for taxable transfers, etc. of assets of the business operator for that taxable period (excluding those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1), or any other Act or treaty), the total amount of consumption tax relating to the amount of the refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) in that taxable period (or, for a business operator conducting a business specified by Cabinet Order, such as wholesale, the amount calculated by multiplying that remainder by the rate specified by Cabinet Order for each type of business, as provided by Cabinet Order, having regard to the proportion that the amount of tax on taxable purchases, etc. ordinarily accounts for in the amount of consumption tax on taxable transfers, etc. of assets in that business);
the remainder after deducting, from the consumption tax on the total of the amounts of the tax base for specified taxable purchases of the business operator for that taxable period, the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for specified taxable purchases prescribed in Article 38-2, paragraph (1) was received in that taxable period.
当該事業者の当該課税期間の特定課税仕入れに係る課税標準である金額の合計額に対する消費税額から当該課税期間における第三十八条の二第一項に規定する特定課税仕入れに係る対価の返還等を受けた金額に係る消費税額の合計額を控除した残額
Where, under item (ii) of the preceding paragraph, there is an amount that cannot be fully deducted after deducting, from the consumption tax on the total of the amounts of the tax base for specified taxable purchases for that taxable period, the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for specified taxable purchases prescribed in Article 38-2, paragraph (1) was received in that taxable period, and there is an amount that still cannot be fully deducted after deducting the amount that cannot be fully deducted from the amount set forth in item (i) of the preceding paragraph (hereinafter in this paragraph referred to as the "undeducted amount"), that undeducted amount is deemed to be consumption tax on a taxable transfer, etc. of assets and is added to the amount of consumption tax on the tax base amount for that taxable period.
前項第二号の規定により、当該課税期間の特定課税仕入れに係る課税標準である金額の合計額に対する消費税額から当該課税期間における第三十八条の二第一項に規定する特定課税仕入れに係る対価の返還等を受けた金額に係る消費税額の合計額を控除して控除しきれない金額があり、かつ、当該控除しきれない金額を前項第一号に掲げる金額から控除してなお控除しきれない金額（以下この項において「控除未済金額」という。）があるときは、当該控除未済金額を課税資産の譲渡等に係る消費税額とみなして当該課税期間の課税標準額に対する消費税額に加算する。
A business operator that intends to be subject to the application of paragraph (1) may not file the written notification under that paragraph, in a case listed in any of the following items, during the period specified in that item; provided, however, that this does not apply where the business operator files the written notification in order to be subject to the application of that paragraph from the taxable period that includes the day on which it commenced business or any other taxable period specified by Cabinet Order.
where the business operator is a person to whom Article 9, paragraph (7) applies: the period from the first day of the taxable period that includes the day of the purchase, etc. of an adjustment-target fixed asset prescribed in that paragraph to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day;
当該事業者が第九条第七項の規定の適用を受ける者である場合 同項に規定する調整対象固定資産の仕入れ等の日の属する課税期間の初日から同日以後三年を経過する日の属する課税期間の初日の前日までの期間
where the business operator is a newly established corporation prescribed in Article 12-2, paragraph (2) or a specified newly founded corporation prescribed in Article 12-3, paragraph (3), and falls under the case prescribed in Article 12-2, paragraph (2) (including as applied mutatis mutandis pursuant to Article 12-3, paragraph (3); the same applies hereinafter in this item): the period from the first day of the taxable period that includes the day of the purchase, etc. of an adjustment-target fixed asset prescribed in Article 12-2, paragraph (2) to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day;
where the business operator falls under the case prescribed in Article 12-4, paragraph (1) (excluding the case where it falls under the cases listed in the preceding two items): the period from the first day of the taxable period that includes the day of the purchase, etc. of a high-value specified asset prescribed in that paragraph relating to the high-value specified asset (meaning a high-value specified asset prescribed in that paragraph; the same applies in this item and the following item) to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day (or, where the high-value specified asset is a self-constructed high-value specified asset prescribed in that paragraph, from the first day of the taxable period that includes the day on which the construction, etc. (meaning the construction, etc. prescribed in that paragraph; the same applies in the following item) of the self-constructed high-value specified asset was completed);
where the business operator falls under the case prescribed in Article 12-4, paragraph (2) (excluding the case where it falls under the cases listed in the preceding three items): the period from the first day of the taxable period in which Article 36, paragraph (1) or (3) was applied to inventory or taxable goods that are high-value specified assets, or to an adjustment-target self-constructed high-value asset prescribed in Article 12-4, paragraph (2), to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day (or, where the construction, etc. of the adjustment-target self-constructed high-value asset had not been completed by the day preceding the adjustment application date (meaning the day on which it came to fall under the case prescribed in those provisions), from the first day of the taxable period that includes the day on which that construction, etc. was completed);
where the business operator falls under the case prescribed in Article 12-4, paragraph (3) (excluding the case where it falls under the cases listed in the preceding items): the period from the first day of the taxable period falling under the case prescribed in that paragraph to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day.
Where a business operator prescribed in the items of the preceding paragraph has come to fall under a case listed in those items, and has filed the written notification under paragraph (1) with the district director having jurisdiction over its place for tax payment during the period from the first day of the taxable period that includes the day of the purchase, etc. of an adjustment-target fixed asset prescribed in item (i) or (ii) of the preceding paragraph, the day of the purchase, etc. of a high-value specified asset prescribed in item (iii) of that paragraph, or the adjustment application date prescribed in item (iv) of that paragraph, or from the first day of the taxable period that falls under the case prescribed in item (v) of that paragraph, to the day on which it came to fall under the case listed in the items of that paragraph, the filing of that written notification is deemed not to have been made for the purpose of applying the provisions of paragraph (1).
A business operator that has filed the written notification under the provisions of paragraph (1) must, when it intends to cease to be subject to the application of that paragraph or when it has discontinued its business, file a written notification to that effect with the district director having jurisdiction over its place for tax payment.
In the case referred to in the preceding paragraph, a business operator that has filed the written notification under the provisions of paragraph (1) may not, except where it has discontinued its business, file a written notification to the effect that it intends to cease to be subject to the application of that paragraph, except on or after the first day of the taxable period that includes the day on which two years have elapsed from the first day of the following taxable period prescribed in that paragraph.
When a written notification under the provisions of paragraph (5) has been filed, the notification under the provisions of paragraph (1) ceases to be effective on and after the day following the last day of the taxable period that includes the day on which that filing was made.
Special provisions on the application of paragraph (1) or the preceding paragraph in the case where, owing to unavoidable circumstances, the written notification under the provisions of paragraph (1) or (5) could not be filed by the day preceding the first day of the taxable period for which the business operator intends to become subject to, or to cease to be subject to, the application of paragraph (1) are specified by Cabinet Order.