Article 64-9Group Tax Sharing Approval

①In the case where a domestic corporation wishes to receive the application of the provisions of the preceding Division, the domestic corporation and all of the other domestic corporations that have a full controlling interest with the domestic corporation (limited to a parent corporation (meaning an ordinary corporation or a cooperative, etc. that is a domestic corporation and that falls under neither the corporations listed in items (i) through (vii) nor a corporation specified by Cabinet Order as being similar to a corporation listed in item (vi) or item (vii); hereinafter the same applies in this paragraph) and other domestic corporations that have, with the parent corporation, a full controlling interest held by the parent corporation (limited to a relationship specified by Cabinet Order as one in which no corporation listed in items (iii) through (x) or foreign corporation intervenes; hereinafter the same applies in this Division) (excluding the corporations listed in items (iii) through (x); the same applies in the following paragraph)) must obtain the approval of the Commissioner of the National Tax Agency:

②When a domestic corporation (limited to the parent corporation prescribed in the preceding paragraph and other domestic corporations that have, with the parent corporation, a full controlling interest held by the parent corporation) wishes to obtain the approval under that paragraph (hereinafter referred to as "group tax sharing approval" in this Division and the following Division), it must submit an application form stating the first day of the first business year in which the parent corporation wishes to receive the application of the provisions of the preceding Division and other matters specified by Ministry of Finance Order, to the Commissioner of the National Tax Agency via the competent district director with jurisdiction over the place for tax payment of the parent corporation, by the day three months before that first day, jointly in the names of all of the parent corporation and the other domestic corporations.

③In the case where an application form set forth in the preceding paragraph has been submitted, when there is any of the facts falling under any of the following items, the Commissioner of the National Tax Agency may deny the application:

④In the case where a disposition of group tax sharing approval has been made for the parent corporation prescribed in paragraph (1) with regard to the application under paragraph (2), the group tax sharing approval is deemed to have been given to all of the other domestic corporations prescribed in paragraph (2) (limited to those that have a full controlling interest with the parent corporation as of the start of the first business year prescribed in that paragraph; the same applies in the following paragraph and paragraph (6)).

⑤In the case where an application form under paragraph (2) has been submitted (excluding the case where the application form has been submitted by applying the provisions of paragraph (7)), when no disposition of group tax sharing approval or denial has been made with regard to the application by the day preceding the first day of the first business year prescribed in paragraph (2), the group tax sharing approval is deemed to have been given on that first day to all of the parent corporation prescribed in paragraph (1) and the other domestic corporations prescribed in paragraph (2).

⑥In the cases referred to in the preceding two paragraphs, the group tax sharing approval becomes effective for all of the parent corporation prescribed in paragraph (1) and the other domestic corporations prescribed in paragraph (2) from the first day of the first business year prescribed in that paragraph.

⑦The provisions of paragraph (2) apply by deeming the day three months before prescribed in paragraph (2) to be, in the case where the first business year in which the parent corporation prescribed in paragraph (1) wishes to receive the application of the provisions of the preceding Division is the business year of establishment (meaning the business year containing the date of establishment; the same applies hereinafter in this paragraph and paragraph (9)), the day on which one month has elapsed from the first day of the business year of establishment of the parent corporation or the day two months before the last day of the business year of establishment, whichever is earlier (referred to as the "application deadline for the year of establishment" in the following paragraph), and, in the case where the first business year in which the parent corporation prescribed in paragraph (1) (excluding one that holds, as of the end of the business year of establishment, assets evaluated by fair value prescribed in Article 64-11, paragraph (1) (Gains or Losses on the Fair Valuation of Assets Accompanying the Commencement of the Group Tax Sharing System) or any other assets specified by Cabinet Order (excluding one listed in item (i) of that paragraph)) wishes to receive the application of the provisions of that Division is the following business year after the business year of establishment (limited to the case where the business year of establishment is less than three months), the last day of the business year of establishment of the parent corporation or the day two months before the last day of the following business year after the business year of establishment, whichever is earlier (referred to as the "application deadline for the year following establishment" in the following paragraph).

⑧The provisions of the preceding paragraph apply only in the case where the parent corporation prescribed in paragraph (1) has submitted a document stating that it is to receive the application of the provisions of the preceding paragraph and other matters specified by Ministry of Finance Order, to the Commissioner of the National Tax Agency via the competent district director with jurisdiction over the place for tax payment of the parent corporation, by the application deadline for the year of establishment or the application deadline for the year following establishment.

⑨In the case where an application form under paragraph (2) has been submitted by applying the provisions of paragraph (7), when no disposition of group tax sharing approval or denial has been made with regard to the application by the day on which two months have elapsed from the day on which the application form was submitted, the group tax sharing approval is deemed to have been given, on the day on which those two months have elapsed (in the case where the business year following the business year of establishment of the parent corporation is the special application year and the first day of that following business year is after the day on which those two months have elapsed, that first day), to all of the parent corporation prescribed in paragraph (1) and the other domestic corporations prescribed in paragraph (2) (limited to those that have a full controlling interest with the parent corporation as of the start of the special application year pertaining to the application (meaning the first business year in which a corporation wishes to receive the application of the provisions of the preceding Division by obtaining group tax sharing approval by applying the provisions of paragraph (7); the same applies hereinafter in this Article); the same applies in the following paragraph).

⑩In the case where group tax sharing approval has been obtained with regard to an application under paragraph (2) made by applying the provisions of paragraph (7), the group tax sharing approval becomes effective, notwithstanding the provisions of paragraph (6), from the day specified in each of the following items in accordance with the category of corporations listed in those items:

⑪In the case where another domestic corporation prescribed in paragraph (2) has come to have, with a group tax sharing parent corporation, a full controlling interest held by the group tax sharing parent corporation (excluding the case where the provisions of Article 14, paragraph (8) (limited to the part pertaining to item (ii)) (Special Provisions on Business Years) apply), group tax sharing approval is deemed to have been given to the other domestic corporation on the day on which it came to have the full controlling interest (in the case where the provisions of paragraph (8) of that Article (limited to the part pertaining to item (i); the same applies in the items of the following paragraph) apply, the day following the last day of the special closing period prescribed in paragraph (8), item (i) of that Article that contains the day preceding that day; hereinafter the same applies in this paragraph). In this case, the group tax sharing approval is to become effective from the day on which it came to have the full controlling interest.

⑫In the case where another domestic corporation prescribed in paragraph (2) has come to have, in the special application year, with the parent corporation prescribed in paragraph (1) that obtains group tax sharing approval by applying the provisions of paragraph (7), a full controlling interest held by that parent corporation (excluding the case where the provisions of Article 14, paragraph (8) (limited to the part pertaining to item (ii)) apply), the group tax sharing approval is deemed to have been given, notwithstanding the provisions of the preceding paragraph, on the day specified in each of the following items in accordance with the category of corporations listed in those items. In this case, the group tax sharing approval is to become effective from the day specified in each of those items:

⑬Procedures for making a disposition of group tax sharing approval or denial with regard to an application under paragraph (2) and other necessary matters concerning the application of the provisions of the preceding paragraphs are specified by Cabinet Order.