Article 66Tax Rate for Corporation Tax on Income for Each Business Year

①The amount of corporation tax imposed on an ordinary corporation, general incorporated association, etc. (meaning a general incorporated association, general incorporated foundation or workers' cooperative listed in Appended Table 2, or a public interest incorporated association or public interest incorporated foundation; the same applies in the following paragraph and paragraph (3)), or an association or foundation without juridical personality, which is a domestic corporation, on its income for each business year, is to be the amount calculated by multiplying the amount of income for each business year by a tax rate of 23.2 percent.

③The amount of corporation tax imposed on a public interest corporation, etc. (excluding a general incorporated association, etc.) or cooperative, etc. on its income for each business year is to be the amount calculated by multiplying the amount of income for each business year by a tax rate of 19 percent.

④With regard to the application of paragraph (2) to a corporation whose business year is less than one year, the term "amount of eight million yen per annum" in the paragraph is deemed to be replaced with "amount calculated by dividing eight million yen by 12 and then multiplying the result by the number of months of the business year."

⑤The provisions of paragraph (2) do not apply to an ordinary corporation which is a domestic corporation and which falls under any of the following corporations as of the end of each business year:

⑥In the case referred to in paragraph (1), with regard to an amount of the amount of income eligible for reduction or less out of the amount of income for each business year of a small or medium-sized group tax sharing corporation (meaning a group tax sharing corporation that is an ordinary corporation other than a large group tax sharing corporation (meaning an ordinary corporation that is a group tax sharing corporation, in the case where any of the ordinary corporation and the other group tax sharing corporations that have a group tax sharing full controlling interest with the ordinary corporation as of the last day of each business year of the ordinary corporation falls under any of the following corporations); hereinafter the same applies in this Article), the applicable tax rate is 19 percent, notwithstanding the provisions of the paragraph:

⑦The amount of income eligible for reduction prescribed in the preceding paragraph means the amount calculated by multiplying eight million yen by the ratio of the amount listed in item (i) to the amount listed in item (ii) (in the case where the small or medium-sized group tax sharing corporation referred to in that paragraph is a group tax sharing subsidiary corporation, when the last day of each business year referred to in that paragraph is not the last day of the business year of the group tax sharing parent corporation pertaining to the small or medium-sized group tax sharing corporation, the amount calculated by dividing eight million yen by 12 and then multiplying the result by the number of months of the business year of the small or medium-sized group tax sharing corporation):

⑧In applying the provisions of the preceding two paragraphs, when the amount of income referred to in the items of the preceding paragraph differs from the amount entered as the amount of income for the group tax sharing business year in a return under Article 74, paragraph (1) (Final Returns) for each business year referred to in item (i) of that paragraph of the small or medium-sized group tax sharing corporation referred to in that paragraph, or for the business year ending on the day prescribed in item (ii) of that paragraph of the other small or medium-sized group tax sharing corporation referred to in that item (hereinafter referred to as a "group tax sharing business year" in this Article) (hereinafter such amount is referred to as the "initially reported income" in this paragraph and paragraph (10)), the initially reported income is deemed to be the amount of income referred to in the relevant item.

⑨In the case where an amended return is filed or a reassessment is made with regard to any of the group tax sharing business years, when the case falls under any of the following cases, the provisions of the preceding paragraph do not apply to each business year referred to in item (i) of paragraph (7) of the small or medium-sized group tax sharing corporation referred to in that paragraph:

⑩With regard to the application of the provisions of paragraph (8) after an amended return has been filed or a reassessment has been made for a group tax sharing business year by applying the provisions of the preceding paragraph (excluding the part pertaining to item (iii)), the amount entered as the amount of income for the group tax sharing business year in the amended return, or in the written notice of reassessment prescribed in Article 28, paragraph (2) (Procedures for Reassessment or Determination) of the Act on General Rules for National Taxes pertaining to the reassessment, is deemed to be the initially reported income.

⑪With regard to the application of the provisions of paragraph (7) and paragraph (9) to a group tax sharing parent corporation and other group tax sharing corporations in the case where the business year of the group tax sharing parent corporation is less than one year, the term "multiplying eight million yen" in paragraph (7) is deemed to be replaced with "multiplying the amount calculated by dividing eight million yen by 12 and then multiplying the result by the number of months of the business year of the group tax sharing parent corporation pertaining to the small or medium-sized group tax sharing corporation referred to in that paragraph", and the term "eight million yen" in paragraph (9), item (i) is deemed to be replaced with "the amount calculated by dividing eight million yen by 12 and then multiplying the result by the number of months of the business year of the group tax sharing parent corporation pertaining to the small or medium-sized group tax sharing corporation".

⑫The number of months set forth in paragraph (4), paragraph (7) and the preceding paragraph is calculated according to the calendar and a division of less than one month is counted as one month.