Order for Enforcement of the Income Tax Act

A corporation referred to in paragraph (1) of the preceding Article that wishes to obtain the approval referred to in that paragraph for the retirement allowance mutual aid business it conducts must attach the retirement allowance mutual aid rules and, in the case of a general incorporated association or general incorporated foundation, a copy of its articles of incorporation to a written application stating the matters specified by Ministry of Finance Order, and submit it to the competent district director with jurisdiction over the location of the principal office of that corporation.

The retirement allowance mutual aid rules referred to in the preceding paragraph must stipulate the matters necessary for determining whether the retirement allowance mutual aid business meets the requirements set out in the items of paragraph (1) of the preceding Article.

Where the written application referred to in paragraph (1) has been submitted, the district director is to approve the application if the retirement allowance mutual aid rules attached to it satisfy all of the requirements set out in the items of paragraph (1) of the preceding Article; provided, however, that this does not apply where the corporation that made the application submits the written application within one year after the day on which it received notice of the rescission of approval under Article 75, paragraph (2) or the day prescribed in paragraph (3) of that Article.

When the district director makes a disposition of approval or rejection under the preceding paragraph, the district director is to notify the corporation that submitted the written application referred to in paragraph (1) to that effect in writing.

A specified retirement allowance mutual aid organization prescribed in paragraph (1) of the preceding Article (hereinafter referred to as a "specified retirement allowance mutual aid organization" in this Subsection) that intends to change matters relating to the requirements set out in the items of paragraph (1) of that Article in the retirement allowance mutual aid rules that have received approval under paragraph (3) (including a change that includes the past service period or period of service before a merger, etc. prescribed in paragraph (1), item (vii) of the preceding Article in the basis for calculating the amount of retirement benefits; the same applies in this Article and Article 75, paragraph (1), item (i)) must obtain the approval of the district director referred to in paragraph (1) for that change.

The provisions of paragraphs (1) and (2), the main clause of paragraph (3), and paragraph (4) apply mutatis mutandis to the approval for a change prescribed in the preceding paragraph.

When the district director finds that there is any of the following facts with respect to a specified retirement allowance mutual aid organization, the district director may rescind the approval under the main clause of Article 74, paragraph (3).

that specified retirement allowance mutual aid organization has changed matters in its retirement allowance mutual aid rules relating to the requirements set out in the items of Article 73, paragraph (1) (Requirements for Specified Retirement Allowance Mutual Aid Organizations) without obtaining the approval under Article 74, paragraph (5);

there is a fact in violation of the requirements set out in Article 73, paragraph (1), item (i), (iv), (v), (x), or (xi) with respect to the retirement allowance mutual aid business of that specified retirement allowance mutual aid organization;

there is a fact in violation of the requirements set out in Article 73, paragraph (1), item (ii), item (iii), or items (vi) through (viii) with respect to all covered persons of that specified retirement allowance mutual aid organization.

When the district director makes a disposition of rescission of approval under the preceding paragraph, the district director is to notify the specified retirement allowance mutual aid organization referred to in that paragraph to that effect in writing.

A specified retirement allowance mutual aid organization that intends to abolish the retirement allowance mutual aid business it conducts must submit to the district director referred to in paragraph (1) of the preceding Article, by the day on which it intends to abolish it, a written notice stating that fact, the name and location of that specified retirement allowance mutual aid organization, and the date on which it intends to abolish that retirement allowance mutual aid business. In this case, when that written notice has been submitted, the approval under the main clause of paragraph (3) of that Article relating to that specified retirement allowance mutual aid organization ceases to be effective on that day.

The lump-sum payments set out in Article 72, paragraph (3), item (i) (Lump-Sum Payments Deemed to Constitute Severance Pay and Other Such Compensation) do not include the following benefits (limited to those that constitute lump-sum payments):

where a specified retirement allowance mutual aid organization has had its approval rescinded under paragraph (1) of the preceding Article or has submitted the written notice prescribed in paragraph (3) of that Article, benefits made by the corporation that had the approval rescinded or submitted the written notice on or after the time when the approval was rescinded or the day prescribed in that paragraph;

benefits made by a specified retirement allowance mutual aid organization, the premiums corresponding to which include the following premiums:

premiums that a covered person has borne personally in violation of the requirement set out in Article 73, paragraph (1), item (i) (Requirements for Specified Retirement Allowance Mutual Aid Organizations);

where, in violation of the requirement set out in Article 73, paragraph (1), item (ii), a covered person of that specified retirement allowance mutual aid organization has already become a covered person of another specified retirement allowance mutual aid organization and, with respect to that person, the mutual aid period under the retirement allowance mutual aid contract of that other specified retirement allowance mutual aid organization overlaps with the mutual aid period relating to that specified retirement allowance mutual aid organization, the premiums relating to that specified retirement allowance mutual aid organization;

premiums for a person who has been made a covered person in violation of the requirement set out in Article 73, paragraph (1), item (iii);

where the monthly amount of premiums has been paid out in excess of the limit prescribed in Article 73, paragraph (1), item (vi) (or, for the amount of premiums corresponding to the aggregated past service period prescribed in item (vii) of that paragraph, the limit prescribed in (b) of that item), those premiums;

premiums paid in as corresponding to the aggregated past service period, where the aggregated past service period prescribed in Article 73, paragraph (1), item (vii) was determined in violation of the requirement set out in (a) of that item;

premiums paid in as corresponding to a period before the day on which the person became a covered person of that specified retirement allowance mutual aid organization (excluding the aggregated past service period of that covered person prescribed in Article 73, paragraph (1), item (vii)), where that period was included in the basis for calculating the benefit.

The lump-sum payment received under a qualified retirement pension contract prescribed in Article 72, paragraph (3), item (iv) does not include the following benefits (limited to those that constitute lump-sum payments):

where a trust company (including a bank that conducts the trust business prescribed in Article 1, paragraph (1) (Approval for Additional Business) of the Act on Engagement in Trust Business by Financial Institutions), a life insurance company (meaning a life insurance company prescribed in Article 2, paragraph (3) (Definitions) of the Insurance Business Act and a foreign life insurance company, etc. prescribed in paragraph (8) of that Article), or a federation of agricultural cooperatives (hereinafter in this paragraph referred to as a "trust company, etc.") that conducts business of trust, life insurance, or life mutual aid relating to a qualified retirement pension contract prescribed in Article 20, paragraph (1) (Special Provisions on Corporation Tax on Retirement Pension Funds) of the Supplementary Provisions of the Corporation Tax Act has had the approval of a qualified retirement pension contract prescribed in Article 20, paragraph (3) of the Supplementary Provisions of the Corporation Tax Act rescinded under Article 18, paragraph (1) (Rescission of Approval of Qualified Retirement Pension Contracts) of the Supplementary Provisions of the Order for the Enforcement of the Corporation Tax Act, benefits made by that trust company, etc. under that contract on or after the time when the approval was rescinded;

benefits made by a trust company, etc. that conducts the business prescribed in the preceding item, the premiums or insurance premiums corresponding to which include premiums or insurance premiums relating to a person treated as a beneficiary, etc. prescribed in Article 16, paragraph (1), item (ii) of the Supplementary Provisions of the Order for the Enforcement of the Corporation Tax Act in violation of the requirement set out in item (iii) of that paragraph (Requirements for Qualified Retirement Pension Contracts, etc.).

When the district director finds that, among the covered persons of a specified retirement allowance mutual aid organization or the beneficiaries, etc. prescribed in item (ii) of the preceding paragraph, there is a person who is to receive the benefits set out in paragraph (1), item (ii) or item (ii) of the preceding paragraph, the district director is to notify that specified retirement allowance mutual aid organization or the trust company, etc. prescribed in that item to that effect and the name of that person in writing.

The amount paid as the benefits prescribed in paragraphs (1) and (2) is treated as revenue relating to occasional income.

Where a Resident comes to have the right to receive payment of two or more instances of severance pay or other such compensation prescribed in Article 30, paragraph (1) (Retirement Income) of the Act upon retiring from one place of employment, Article 30 of the Act applies to that severance pay or other such compensation that the person receives as revenue for the year containing the day on which the first of them is to be received.

In this Subsection, the meanings of the terms listed in the following items are as prescribed respectively in those items:

Afforestation profit-sharing contract: a contract prescribed in Article 2, paragraph (1) (Definitions) of the Act on Special Measures concerning Shared Forest (Act No. 57 of 1958) and any other contract concluded, with respect to afforestation on a certain parcel of land, by the three parties of the owner of that land, a person other than the owner of that land who carries out afforestation on that land, and a person other than those persons who bears all or part of the expenses concerning that afforestation, or by any two of those parties, in which the parties to that contract agree, in the terms of that contract, to share the profits from afforestation under that contract at a certain ratio;

Forest-tending profit-sharing contract: a contract prescribed in Article 2, paragraph (2) of that Act and any other contract concluded, with respect to the conservation and management of forested land growing on a certain parcel of land (hereinafter in this Subsection referred to as "forest tending"), by the three parties of the owner of that land, a person other than the owner of that land who carries out forest tending on that forested land, and a person other than those persons who bears all or part of the expenses concerning that forest tending, or by any two of those parties, in which the parties to that contract agree, in the terms of that contract, to share the profits from forest tending under that contract at a certain ratio.