①The portion of the sum of the donations made by a domestic corporation in each business year (excluding the amount of donations subject to the provisions of the following paragraph) that exceeds the amount calculated, as specified by Cabinet Order, based on the sum of the amount of stated capital and the amount of capital reserve or the amount of capital contributions of the domestic corporation as of the end of the business year, or on the amount of income for the business year, is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year.

②The amount of a donation that a domestic corporation has made in each business year to another domestic corporation that has a full controlling interest (limited to a full controlling interest held by a corporation) with the domestic corporation (limited to the amount corresponding to the amount of gain on gifts received prescribed in Article 25-2, paragraph (2) that would be included in gross profits when calculating the amount of income of the other domestic corporation for each business year if the provisions of Article 25-2 (Gain on Gifts Received) did not apply) is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year.

③In the case referred to in paragraph (1), when the amount of a donation as prescribed in the paragraph contains any of the following amounts, the total amount of donations listed in the following items is excluded from the sum of the donations prescribed in the paragraph:

④In the case referred to in paragraph (1), when the amount of a donation as prescribed in the paragraph contains any amount of a donation made to a public service corporation, public interest corporation, etc. (excluding any of the general incorporated associations, general incorporated foundations and workers' cooperatives listed in Appended Table 2; hereinafter the same applies through paragraph (6)), or any other corporation established under special Acts that is specified by Cabinet Order as serving significantly in the promotion of education or science, the enhancement of culture, as a contribution to social welfare or any other improvement in the public interest, with regard to the business of such corporation's major purpose (excluding donations that are clearly to be appropriated to business relating to investment and donations falling under any of the categories prescribed in the items of the preceding paragraph), the sum of such donations (in the case where the sum exceeds the amount calculated, as specified by Cabinet Order, based on the sum of the amount of stated capital and the amount of capital reserve or the amount of capital contributions as of the end of the business year, or on the amount of income for the business year, the amount equivalent to the calculated amount) is excluded from the sum of the donations prescribed in paragraph (1); provided, however, that this does not apply to the amount of a donation made by a public interest corporation, etc.

⑤In the case referred to in paragraph (1), when the amount of a donation as prescribed in the paragraph contains any amount of a donation pertaining to the trust affairs of a public interest trust as prescribed in Article 2, paragraph (1), item (i) (Definitions) of the Act on Public Interest Trusts, made in order to make it the trust property of the public interest trust (excluding donations that are clearly to be appropriated to trust affairs relating to investment and donations falling under any of the categories prescribed in the items of paragraph (3) or in the preceding paragraph), the sum of such donations (in the case where the sum exceeds the amount obtained by deducting, from the amount calculated as specified by Cabinet Order as prescribed in the preceding paragraph, the amount excluded from the sum of the donations prescribed in paragraph (1) pursuant to the provisions of that paragraph, the amount equivalent to the amount after the deduction) is excluded from the sum of the donations prescribed in paragraph (1); provided, however, that this does not apply to the amount of a donation made by a public interest corporation, etc.

⑥The amount that a public interest corporation, etc. has spent from among the assets belonging to its profit-making business for the purpose of a business other than the profit-making business (with regard to a public interest incorporated association or public interest incorporated foundation, the amount that it has spent from among the assets belonging to its profit-making business for the purpose of a business other than the profit-making business that is specified by Cabinet Order as a business related to the public interest) is deemed to be the amount of a donation related to its profit-making business and the provisions of paragraph (1) apply; provided, however, that this does not apply to the amount spent through accounting by concealing or falsifying facts.

⑦The amount of a donation as prescribed in the preceding paragraphs, irrespective of the donation having been made as a donation, contribution, gift, or under any other name, is to be the amount of monies in the case where a domestic corporation has made a gift or the gratuitous conveyance of monies or other assets or economic benefits (excluding expenses for advertising or providing samples or other equivalent expenses, and those deemed to be entertainment and social expenses, reception expenses, and welfare expenses; the same applies in the following paragraph), the value of the assets other than monies as of the time of the gift, or the value of the economic benefits as of the time of the conveyance.

⑧In the case where a domestic corporation has transferred assets or conveyed economic benefits, when the price for the transfer or conveyance is low compared with the value of the assets as of the transfer or the value of the economic benefits as of the conveyance, the portion of the difference between the price and the value that is deemed to have been, in effect, given as a gift or gratuitous conveyance is included in the amount of the donation set forth in the preceding paragraph.

⑨The provisions of paragraph (3) apply only in the case where a Final Return, amended return or written request for reassessment is attached with a document stating the amount of donations listed in the items of paragraph (3) that is excluded from the sum of the donations prescribed in paragraph (1) and the details of the donations, and the provisions of paragraph (4) and paragraph (5) apply only in the case where a Final Return, amended return or written request for reassessment is attached with a document stating the amount of donations prescribed in paragraph (4) or paragraph (5) that is excluded from the sum of the donations prescribed in paragraph (1) and the details of the donations, and where documents specified by Ministry of Finance Order as documents certifying that the donations stated in that document fall under the donations prescribed in those provisions are retained. In this case, the amount that is excluded from the sum of the donations prescribed in paragraph (1) pursuant to the provisions of paragraphs (3) through (5) does not exceed the amount entered as the amount.

⑩Even in the case where the documents specified by Ministry of Finance Order prescribed in the preceding paragraph are not retained with regard to the whole or a part of the amount to be excluded from the sum of the donations prescribed in paragraph (1) pursuant to the provisions of paragraph (4) or paragraph (5), the district director may apply the provisions of paragraph (4) or paragraph (5) to the amount for which the documents were not retained, when they find any unavoidable grounds for the person's failure to retain the documents.

⑪When the Minister of Finance has made a designation set forth in paragraph (3), item (ii), they make a public notification thereof.

⑫Beyond what is provided for in paragraph (6) through the preceding paragraph, necessary matters concerning the application of the provisions of paragraphs (1) through (5) are specified by Cabinet Order.

①The amount of corporation tax (excluding delinquent tax, additional tax for understatement, additional tax for failure to file, and substantial additional tax; hereinafter the same applies in this paragraph) and the amount of local corporation tax (excluding delinquent tax, additional tax for understatement, additional tax for failure to file, and substantial additional tax; hereinafter the same applies in this paragraph) that a domestic corporation is to pay are excluded from deductible expenses, except for the corporation taxes listed in items (i) through (iii) and the local corporation taxes listed in items (iv) through (vi), when calculating the amount of income of the domestic corporation for each business year:

②The following amounts that a domestic corporation is to pay are excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year:

③In the case where a domestic corporation pays to another domestic corporation the group tax sharing tax effect amount of the domestic corporation (meaning the group tax sharing tax effect amount prescribed in Article 26, paragraph (4) (Exclusion of Refunds from Gross Profits)), the amount paid is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year.

①The net operating loss incurred by a domestic corporation as a result of paying the following national tax or local tax (including the net operating loss arising from a right to reimbursement regarding the payment; the same applies in the following paragraph) is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year:

②The net operating loss that a domestic corporation, which holds any of the amount deemed to be the amount listed in Article 23, paragraph (1), item (i) or item (ii) (Exclusion of Dividends Received from Gross Profits) pursuant to the provisions of Article 24, paragraph (1), item (iv) (The Amount Deemed to Be Dividends) (limited to the part pertaining to the distribution of residual assets due to dissolution) that is excluded from gross profits in the calculation of the amount of income for each business year under the provisions of that paragraph or Article 23-2, paragraph (1) (Exclusion of Dividends Received from Foreign Subsidiaries from Gross Profits) or Article 62-5, paragraph (4) (Transfer of Assets through In-Kind Distribution), has incurred as a result of paying any of the following national tax or local tax, with regard to a corporation that has distributed residual assets pertaining to the amount deemed to be as above, is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year; provided, however, that in the case where the amount of the national tax or local tax exceeds the amount excluded from gross profits, this does not apply to the amount equivalent to the excess out of the net operating loss: