Order for Enforcement of the Income Tax Act

Where a Resident who receives payment of an annuity under a life insurance contract, etc. prescribed in Article 183, paragraph (3) (Insurance Premiums, etc. Deducted in the Calculation of the Amount of Miscellaneous Income Pertaining to Annuities under Life Insurance Contracts, etc.) (hereinafter referred to as "life insurance contract, etc." in this paragraph and the following paragraph) (an annuity meaning that prescribed in paragraph (1) of that Article; the same applies hereinafter in this Article) falls under an insurance beneficiary, etc. in relation to that annuity (limited to an annuity in respect of the right to which Article 24 (Valuation of Rights Relating to Periodic Payments) of the Inheritance Tax Act prior to the amendment by Article 3 (Partial Amendment of the Inheritance Tax Act) of the Act Partially Amending the Income Tax Act, etc. (Act No. 6 of 2010) (referred to as the "former Inheritance Tax Act" in paragraph (1) of the following Article) applies (referred to as an "annuity valued under the former inheritance tax rules" in the following paragraph)), the calculation of the amount of miscellaneous income pertaining to that annuity for that Resident for the year in which the Resident receives payment thereof is, notwithstanding the provisions of Article 183, paragraph (1), as follows:

Of the amount of a term-certain annuity received in that year (meaning an annuity for which the total amount payable (meaning, of the total amount of the annuity specified in the life insurance contract, etc. that forms the basis of payment of the annuity, the amount that the Resident receives, excluding the amount of the portion equivalent to the amount of surplus distributed or rebate received under that life insurance contract, etc. on or after the payment start date; the same applies hereinafter in this Article) is fixed on the date of commencement of payment of the annuity (where the person who receives payment of the annuity on that date is a person other than the Resident, the date on which the Resident first receives payment of the annuity; hereinafter referred to as the "payment start date" in this paragraph and the following paragraph); the same applies hereinafter in this paragraph and the following paragraph) (excluding the amount to be included in gross revenue pursuant to the provisions of item (vii)), the amount specified respectively in the following for the following categories of term-certain annuity is to be included in the gross revenue pertaining to miscellaneous income for that year:

A term-certain annuity for which the number of years remaining (meaning the number of years of the remaining period as of the payment start date for that Resident, rounding up any fraction of less than one year; the same applies hereinafter in this Article) is 10 years or less: the sum of the amounts corresponding to the annuity paid (meaning the amount calculated by multiplying the calculated amount by the number of months pertaining to the amount of the annuity received and dividing the product by 12; the same applies hereinafter in this paragraph and the following paragraph) pertaining to the amount calculated by multiplying the amount per taxable unit (meaning the amount calculated by dividing the amount calculated by multiplying the total amount payable of that term-certain annuity by 40/100 (30/100 where the number of years remaining is five years or less) by the number of taxable units (meaning the number calculated by multiplying the number of years remaining by the number of years obtained by deducting one year from the number of years remaining and dividing the product by two)) by the elapsed years (meaning the number of years from the payment start date to the date of receipt of payment, rounding down any fraction of less than one year; the same applies hereinafter in this paragraph and the following paragraph);

A term-certain annuity for which the number of years remaining exceeds 10 years and is 55 years or less: the sum of the amounts specified respectively in the following for the following categories of cases on the date of receipt of payment of that term-certain annuity:

Where the date of receipt of payment is a date within the specified period (meaning the period from the payment start date until the date on which the number of years obtained by deducting the adjustment years from the number of years remaining has elapsed; the same applies in (b)): the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying by the elapsed years the amount calculated by dividing the total amount payable of that term-certain annuity by the total number of units (meaning the number calculated by multiplying the number of years obtained by deducting the adjustment years from the number of years remaining by that number of years remaining) (referred to as the "amount per unit" in (b));

Where the date of receipt of payment is after the end date of the specified period: the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying the amount per unit pertaining to that term-certain annuity by the number of years obtained by deducting, from the number of years remaining, the number of years obtained by adding one year to the adjustment years;

A term-certain annuity for which the number of years remaining exceeds 55 years: the sum of the amounts specified respectively in the following for the following categories of cases on the date of receipt of payment of that term-certain annuity:

Where the date of receipt of payment is a date within the period until the date on which 27 years have elapsed from the payment start date: the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying by the elapsed years the amount calculated by dividing the total amount payable of that term-certain annuity by the number of specified units (meaning the number calculated by multiplying the number of years remaining by 27) (referred to as the "amount per specified unit" in (c));

Where the date of receipt of payment is after the date on which 27 years have elapsed from the payment start date: the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying the amount per specified unit pertaining to that term-certain annuity by 26;

Of the amount of a whole-life annuity received in that year (meaning, of annuities for which the total amount payable is not fixed on the payment start date, a whole-life annuity that is paid only during the lifetime of the person covered by the contract (meaning a person whose survival is a condition of payment under the life insurance contract, etc. that forms the basis of payment of the annuity; the same applies hereinafter in this paragraph); the same applies hereinafter in this paragraph and the following paragraph) (excluding the amount to be included in gross revenue pursuant to the provisions of item (vii)), the amount specified respectively in the following for the following categories of whole-life annuity is to be included in the gross revenue pertaining to miscellaneous income for that year:

A whole-life annuity for which the life expectancy at the payment start date (meaning the life expectancy for that person covered by the contract as of the payment start date, as specified in the Appended Table; the same applies hereinafter in this Article) is 10 years or less: the sum of the amounts specified respectively in the following for the following cases on the date of receipt of payment of that whole-life annuity:

Where the date of receipt of payment is a date within the life expectancy period (meaning the period from the payment start date until the date on which the life expectancy at the payment start date has elapsed; the same applies hereinafter in this paragraph and in item (ii) of the following paragraph): the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying by the elapsed years the amount (referred to as the "amount per taxable unit" in (a)) calculated by dividing, by the number of taxable units (meaning the number calculated by multiplying the life expectancy at the payment start date by the number of years obtained by deducting one year from that life expectancy at the payment start date and dividing the product by two), the amount calculated by multiplying the estimated total amount payable of that whole-life annuity (meaning the amount calculated by multiplying the contract annual amount (meaning, of the annual amount of the annuity specified in the life insurance contract, etc. that forms the basis of payment of the annuity, the amount that the Resident receives, excluding the amount of the portion equivalent to the amount of surplus distributed or rebate received under that life insurance contract, etc. on or after the payment start date; the same applies hereinafter in this paragraph and the following paragraph) by the life expectancy at the payment start date; the same applies hereinafter in this item and in item (ii) of the following paragraph) by 40/100 (30/100 where the life expectancy at the payment start date is five years or less);

If the day on which the payment is received falls after the last day of the life expectancy period: the amount corresponding to the annuity paid relating to the amount calculated by multiplying the amount per taxable unit pertaining to that whole-life annuity by the number of years obtained by deducting one year from the life expectancy at the payment start date;

A whole-life annuity for which the life expectancy at the payment start date exceeds 10 years and is 55 years or less: the sum of the amounts specified respectively in the following for the following cases on the date of receipt of payment of that whole-life annuity:

Where the date of receipt of payment is a date within the specified period (meaning the period from the payment start date until the date on which the number of years obtained by deducting the adjustment years from the life expectancy at the payment start date has elapsed; the same applies in (b)): the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying by the elapsed years the amount calculated by dividing the estimated total amount payable of that whole-life annuity by the total number of units (meaning the number calculated by multiplying the number of years obtained by deducting the adjustment years from the life expectancy at the payment start date by that life expectancy at the payment start date) (referred to as the "amount per unit" in (b));

Where the date of receipt of payment is after the end date of the specified period: the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying the amount per unit pertaining to that whole-life annuity by the number of years obtained by deducting, from the life expectancy at the payment start date, the number of years obtained by adding one year to the adjustment years;

A whole-life annuity for which the life expectancy at the payment start date exceeds 55 years: the sum of the amounts specified respectively in the following for the following cases on the date of receipt of payment of that whole-life annuity:

Where the date of receipt of payment is a date within the period until the date on which 27 years have elapsed from the payment start date: the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying by the elapsed years the amount calculated by dividing the estimated total amount payable of that whole-life annuity by the number of specified units (meaning the number calculated by multiplying the life expectancy at the payment start date by 27) (referred to as the "amount per specified unit" in (c));

Where the date of receipt of payment is after the date on which 27 years have elapsed from the payment start date: the amount corresponding to the annuity paid pertaining to the amount calculated by multiplying the amount per specified unit pertaining to that whole-life annuity by 26;

Of the amount of a term annuity received in that year (meaning, of annuities for which the total amount payable is not fixed on the payment start date, a term annuity under which, if the person covered by the contract dies within its period (hereinafter referred to as the "payment period" in this item and in item (iii) of the following paragraph), payment is not made for the payment period after the death; the same applies hereinafter in this item and in item (iii) of the following paragraph) (excluding the amount to be included in gross revenue pursuant to the provisions of item (vii)), the amount calculated pursuant to the provisions of item (i) by deeming that term annuity to be a term-certain annuity whose number of years remaining is the number of years pertaining to that payment period (rounding up any fraction of less than one year; hereinafter referred to as the "number of years in the payment period" in this item and in item (iii) of the following paragraph) and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that term annuity by the number of months pertaining to that payment period and dividing the product by 12) is to be included in the gross revenue pertaining to miscellaneous income for that year; provided, however, that where that number of years in the payment period exceeds the life expectancy at the payment start date, the amount calculated pursuant to the provisions of the preceding item by deeming that term annuity to be a whole-life annuity whose estimated total amount payable (meaning the estimated total amount payable prescribed in (a), (1) of the preceding item) is the amount calculated by multiplying the contract annual amount of that term annuity by the life expectancy at the payment start date is to be included in the gross revenue pertaining to miscellaneous income for that year;

Of the amount of a specified whole-life annuity received in that year (meaning, of annuities for which the total amount payable is not fixed on the payment start date, a whole-life annuity that is paid during the lifetime of the person covered by the contract and, if that person dies within a certain period on or after the payment start date (hereinafter referred to as the "guaranteed period" in this paragraph and the following paragraph), continues to be paid after the death until the end date of the guaranteed period; the same applies hereinafter in this item and in item (iv) of the following paragraph) (excluding the amount to be included in gross revenue pursuant to the provisions of item (vii)), the amount specified respectively in the following for the following categories of specified whole-life annuity is to be included in the gross revenue pertaining to miscellaneous income for that year:

A specified whole-life annuity other than the specified whole-life annuity set out in (b): the sum of the amounts specified respectively in the following for the following cases on the date of receipt of payment of that specified whole-life annuity:

If the day on which the payment is received falls within the guaranteed period: the amount calculated pursuant to the provisions of item (i) by deeming that specified whole-life annuity to be a term-certain annuity whose number of years remaining is the number of years pertaining to that guaranteed period (rounding up any fraction of less than one year; hereinafter referred to as the "number of years in the guaranteed period" in this paragraph and the following paragraph) and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that specified whole-life annuity by the number of months pertaining to that guaranteed period and dividing the product by 12);

If the day on which the payment is received falls after the end of the guaranteed period: the portion of the amount of the specified whole-life annuity received on the day of the last payment in that guaranteed period that is to be included in gross revenue pertaining to miscellaneous income under the provisions of (1);

A specified whole-life annuity for which the amount set out in (1) exceeds the amount set out in (2): the amount calculated pursuant to the provisions of item (ii) by deeming that specified whole-life annuity to be the whole-life annuity referred to in (1);

The amount obtained by deducting, from that estimated total amount payable, the total of the amounts calculated for each year within the life expectancy period by deeming that specified whole-life annuity to be a whole-life annuity whose estimated total amount payable (meaning the estimated total amount payable prescribed in item (ii), (a), (1)) is the amount calculated by multiplying the contract annual amount of that specified whole-life annuity by the life expectancy at the payment start date, pursuant to the provisions of that item;

The amount obtained by deducting, from the estimated total amount payable prescribed in (a), (1), the total of the amounts calculated for each year within the guaranteed period pursuant to the provisions of item (i) by deeming that specified whole-life annuity to be the term-certain annuity referred to in (a), (1);

Of the amount of a specified fixed-term annuity received in that year (meaning, of annuities for which the total amount payable is not fixed on the payment start date, a term annuity under which, if the person covered by the contract dies within the guaranteed period, payment continues after the death until the end date of the guaranteed period; the same applies hereinafter in this item and in item (v) of the following paragraph) (excluding the amount to be included in gross revenue pursuant to the provisions of item (vii)), the amount calculated pursuant to the provisions of item (i) by deeming that specified fixed-term annuity to be a term-certain annuity whose number of years remaining is the number of years pertaining to that fixed term (hereinafter referred to as the "payment period" in this item and in item (v) of the following paragraph) (rounding up any fraction of less than one year; hereinafter referred to as the "number of years in the payment period" in this item and in item (v) of the following paragraph) and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that specified fixed-term annuity by the number of months pertaining to that payment period and dividing the product by 12) is to be included in the gross revenue pertaining to miscellaneous income for that year; provided, however, that where that number of years in the payment period exceeds the life expectancy at the payment start date, the amount specified respectively in the following for the following categories of specified fixed-term annuity is to be included in the gross revenue pertaining to miscellaneous income for that year:

A specified fixed-term annuity other than the specified fixed-term annuity set out in (b): the sum of the amounts prescribed respectively in the following for the following cases on the date of receipt of payment of that specified fixed-term annuity:

If the day on which the payment is received falls within the guaranteed period: the amount calculated pursuant to the provisions of item (i) by deeming that specified fixed-term annuity to be a term-certain annuity whose number of years remaining is the number of years in the guaranteed period and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that specified fixed-term annuity by the number of months in that guaranteed period and dividing the product by 12);

If the day on which the payment is received falls after the end of the guaranteed period: the portion of the amount of the specified fixed-term annuity received on the day of the last payment in that guaranteed period that is to be included in gross revenue pertaining to miscellaneous income under the provisions of (1);

A specified fixed-term annuity for which the amount set out in (1) exceeds the amount set out in (2): the amount calculated pursuant to the provisions of item (ii) by deeming that specified fixed-term annuity to be the whole-life annuity referred to in (1);

The amount obtained by deducting, from that estimated total amount payable, the total of the amounts calculated for each year within the life expectancy period by deeming that specified fixed-term annuity to be a whole-life annuity whose estimated total amount payable (meaning the estimated total amount payable prescribed in item (ii), (a), (1)) is the amount calculated by multiplying the contract annual amount of that specified fixed-term annuity by that life expectancy at the payment start date, pursuant to the provisions of that item;

The amount obtained by deducting, from the estimated total amount payable prescribed in (a), (1), the total of the amounts calculated for each year within the guaranteed period pursuant to the provisions of item (i) by deeming that specified fixed-term annuity to be the term-certain annuity referred to in (a), (1);

Where the amount corresponding to the annuity paid calculated pursuant to the provisions of item (i) or (ii) (including the case where those provisions are to be followed under the provisions of the preceding three items) for the annuity received is the amount of that annuity received or more, notwithstanding the provisions of the preceding items, the amount corresponding to the annuity paid calculated pursuant to those provisions is the largest amount less than the amount of that annuity out of the amounts calculated by multiplying a whole-number multiple of the amount per taxable unit, the amount per unit or the amount per specified unit prescribed in item (i) or (ii) by the number of months pertaining to the amount of that annuity and dividing the product by 12;

The amount of surplus distributed or rebate received on or after the payment start date of that annuity under the life insurance contract, etc. that forms the basis of payment of that annuity is to be included in the gross revenue pertaining to miscellaneous income for that year;

The amount calculated by multiplying the amount of that annuity received in that year (limited to an annuity where the person who receives payment of that annuity on the date of commencement of payment of that annuity (referred to as the "original annuity recipient" in the following item) is that Resident) (limited to the portion included in gross revenue pursuant to the provisions of items (i) through (vi)) by the ratio of the amount set out in (b) to the amount set out in (a) is to be included in necessary expenses in calculating the amount of miscellaneous income for that year.

the amount prescribed respectively in the following for the following categories of annuity:

an annuity for which the total amount payable has been fixed as of its payment start date: that total amount payable;

an annuity for which the total amount payable has not been fixed as of its payment start date: the estimated total amount payable that is to be the basis for calculating the amount deemed to be included in gross revenues pertaining to miscellaneous income for that year under items (ii) to (v);

the total amount of insurance premiums or installments pertaining to that life insurance contract, etc.;

if the original annuity recipient of the annuity received in that year is a person other than that Resident, the amount to be included in necessary expenses in calculating the amount of miscellaneous income for that year is the amount calculated by multiplying the amount of that annuity (limited to the portion included in gross revenues under items (i) to (vi)) by the ratio prescribed in Article 183, paragraph (1), item (ii) or the preceding item as of the payment start date of that annuity for that original annuity recipient.

if that life insurance contract, etc. provides for payment of a lump sum in addition to the annuity, the total amount of insurance premiums or installments set out in item (viii), (b) is the amount calculated by multiplying the total amount of insurance premiums or installments pertaining to that life insurance contract, etc. by the proportion that the total amount payable or estimated total amount payable prescribed in (a)(1) or (2) of that item occupies in the sum of that total amount payable or estimated total amount payable and the amount of that lump sum.

the ratios prescribed in item (viii) and the preceding item are calculated to two decimal places, rounding up any fraction at the third decimal place or below.

if a Resident who receives payment of an annuity under a life insurance contract, etc. falls under an insurance beneficiary, etc. pertaining to that annuity (excluding an annuity valued under the former inheritance tax rules), the amount of miscellaneous income pertaining to that annuity of that Resident for the year in which the payment is received is calculated as provided below, notwithstanding Article 183, paragraph (1); in this case, the provisions of items (viii) to (xi) of the preceding paragraph apply mutatis mutandis to the calculation of the amount to be included in necessary expenses.

of the amount of the term-certain annuity received in that year (excluding the amount included in gross revenues under item (vii)), the amount prescribed respectively in the following for the following categories of term-certain annuity is to be included in gross revenues pertaining to miscellaneous income for that year.

a term-certain annuity for which the inheritance tax valuation ratio exceeds 50 percent: the total of the amounts corresponding to the annuity paid relating to the amount calculated by multiplying the amount per taxable unit (meaning the amount calculated by dividing the amount calculated by multiplying the total amount payable of that term-certain annuity by the taxable ratio by the number of taxable units (meaning the number calculated by multiplying the number of years remaining by the number of years obtained by deducting one year from that number of years remaining, and dividing the product by two)) by the elapsed years;

a term-certain annuity for which the inheritance tax valuation ratio is 50 percent or less: the total of the amounts prescribed respectively in the following for the following cases on the day on which payment of that term-certain annuity is received;

if the day on which the payment is received falls within the specified period (meaning the period from the payment start date until the day on which the specified period years have elapsed; the same applies in (b)): the amount corresponding to the annuity paid relating to the amount calculated by multiplying by the elapsed years the amount calculated by dividing the total amount payable of that term-certain annuity by the total number of units (meaning the number calculated by multiplying the specified period years by the number of years remaining) (referred to as the "amount per unit" in (b));

if the day on which the payment is received falls after the last day of the specified period: the amount corresponding to the annuity paid relating to the amount obtained by deducting one yen from the amount calculated by multiplying the amount per unit pertaining to that term-certain annuity by the specified period years;

of the amount of the whole-life annuity received in that year (excluding the amount included in gross revenues under item (vii)), the amount prescribed respectively in the following for the following categories of whole-life annuity is to be included in gross revenues pertaining to miscellaneous income for that year.

a whole-life annuity for which the inheritance tax valuation ratio exceeds 50 percent: the total of the amounts prescribed respectively in the following for the following cases on the day on which payment of that whole-life annuity is received;

if the day on which the payment is received falls within the life expectancy period: the amount corresponding to the annuity paid relating to the amount calculated by multiplying by the elapsed years the amount calculated by dividing the amount calculated by multiplying the estimated total amount payable of that whole-life annuity by the taxable ratio by the number of taxable units (meaning the number calculated by multiplying the life expectancy at the payment start date by the number of years obtained by deducting one year from that life expectancy at the payment start date, and dividing the product by two) (referred to as the "amount per taxable unit" in (a));

if the day on which the payment is received falls after the last day of the life expectancy period: the amount corresponding to the annuity paid relating to the amount calculated by multiplying the amount per taxable unit pertaining to that whole-life annuity by the number of years obtained by deducting one year from the life expectancy at the payment start date;

a whole-life annuity for which the inheritance tax valuation ratio is 50 percent or less: the total of the amounts prescribed respectively in the following for the following cases on the day on which payment of that whole-life annuity is received;

if the day on which the payment is received falls within the specified period (meaning the period from the payment start date until the day on which the specified period years have elapsed; the same applies in (b)): the amount corresponding to the annuity paid relating to the amount calculated by multiplying by the elapsed years the amount calculated by dividing the estimated total amount payable of that whole-life annuity by the total number of units (meaning the number calculated by multiplying the specified period years by the life expectancy at the payment start date) (referred to as the "amount per unit" in (b));

if the day on which the payment is received falls after the last day of the specified period: the amount corresponding to the annuity paid relating to the amount obtained by deducting one yen from the amount calculated by multiplying the amount per unit pertaining to that whole-life annuity by the specified period years;

of the amount of the term annuity received in that year (excluding the amount included in gross revenues under item (vii)), the amount calculated pursuant to the provisions of item (i) by deeming that term annuity to be a term-certain annuity whose number of years remaining is the number of years in the payment period and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that term annuity by the number of months in the payment period and dividing the product by twelve) is to be included in gross revenues pertaining to miscellaneous income for that year; provided, however, that if that number of years in the payment period exceeds the life expectancy at the payment start date, the amount calculated pursuant to the provisions of the preceding item by deeming that term annuity to be a whole-life annuity whose estimated total amount payable (meaning the estimated total amount payable prescribed in item (ii), (a)(1) of the preceding paragraph) is the amount calculated by multiplying the contract annual amount of that term annuity by that life expectancy at the payment start date is to be included in gross revenues pertaining to miscellaneous income for that year.

of the amount of the specified whole-life annuity received in that year (excluding the amount included in gross revenues under item (vii)), the amount prescribed respectively in the following for the following cases on the day on which payment of that specified whole-life annuity is received is to be included in gross revenues pertaining to miscellaneous income for that year; provided, however, that if the life expectancy at the payment start date exceeds the number of years in the guaranteed period, the amount calculated pursuant to the provisions of item (ii) by deeming that specified whole-life annuity to be a whole-life annuity whose estimated total amount payable (meaning the estimated total amount payable prescribed in item (ii), (a)(1) of the preceding paragraph) is the amount calculated by multiplying the contract annual amount of that specified whole-life annuity by that life expectancy at the payment start date is to be included in gross revenues pertaining to miscellaneous income for that year.

if the day on which the payment is received falls within the guaranteed period: the amount calculated pursuant to the provisions of item (i) by deeming that specified whole-life annuity to be a term-certain annuity whose number of years remaining is that number of years in the guaranteed period and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that specified whole-life annuity by the number of months in that guaranteed period and dividing the product by twelve);

if the day on which the payment is received falls after the end of the guaranteed period: the portion of the amount of the specified whole-life annuity received on the day of the last payment in that guaranteed period that is to be included in gross revenues pertaining to miscellaneous income under the provisions of (a);

of the amount of the specified fixed-term annuity received in that year (excluding the amount included in gross revenues under item (vii)), the amount calculated pursuant to the provisions of item (i) by deeming that specified fixed-term annuity to be a term-certain annuity whose number of years remaining is the number of years in the payment period and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that specified fixed-term annuity by the number of months in the payment period and dividing the product by twelve) is to be included in gross revenues pertaining to miscellaneous income for that year; provided, however, that if that number of years in the payment period exceeds the life expectancy at the payment start date, the amount prescribed respectively in the following for the following categories of specified fixed-term annuity is to be included in gross revenues pertaining to miscellaneous income for that year.

a specified fixed-term annuity other than a specified fixed-term annuity set out in (b): the total of the amounts prescribed respectively in the following for the following cases on the day on which payment of that specified fixed-term annuity is received;

if the day on which the payment is received falls within the guaranteed period: the amount calculated pursuant to the provisions of item (i) by deeming that specified fixed-term annuity to be a term-certain annuity whose number of years remaining is the number of years in the guaranteed period and whose total amount payable is the estimated total amount payable (meaning the amount calculated by multiplying the contract annual amount of that specified fixed-term annuity by the number of months in that guaranteed period and dividing the product by twelve);

if the day on which the payment is received falls after the end of the guaranteed period: the portion of the amount of the specified fixed-term annuity received on the day of the last payment in that guaranteed period that is to be included in gross revenues pertaining to miscellaneous income under the provisions of (1);

a specified fixed-term annuity for which the life expectancy at the payment start date exceeds that number of years in the guaranteed period: the amount calculated pursuant to the provisions of item (ii) by deeming that specified fixed-term annuity to be a whole-life annuity whose estimated total amount payable (meaning the estimated total amount payable prescribed in item (ii), (a)(1) of the preceding paragraph) is the amount calculated by multiplying the contract annual amount of that specified fixed-term annuity by that life expectancy at the payment start date;

if the amount corresponding to the annuity paid calculated pursuant to the provisions of item (i) or (ii) (including the case where those provisions are applied by the preceding three items) for the annuity received is equal to or more than the amount of the annuity received, then notwithstanding the preceding items, the amount corresponding to the annuity paid calculated pursuant to those provisions is the largest amount, among the amounts calculated by multiplying a whole-number multiple of the amount per taxable unit or the amount per unit prescribed in item (i) or (ii) by the number of months pertaining to the amount of that annuity and dividing the product by twelve, that is less than the amount of that annuity.

The amount of surplus distributed or rebate received on or after the payment start date of that annuity under the life insurance contract, etc. that forms the basis of payment of that annuity is to be included in the gross revenue pertaining to miscellaneous income for that year.

In this Article, the meanings of the terms set forth in the following items are as prescribed in those items:

Insurance beneficiary, etc.: means the following persons:

An insurance beneficiary prescribed in Article 3, paragraph (1), item (i) (Cases Deemed to Have Been Acquired by Inheritance or Bequest) of the Inheritance Tax Act;

A periodic payment recipient, where a person has become the periodic payment recipient prescribed in Article 3, paragraph (1), item (v) of the Inheritance Tax Act;

A person who has acquired the right relating to periodic payments prescribed in Article 3, paragraph (1), item (vi) of the Inheritance Tax Act;

An insurance beneficiary prescribed in Article 5, paragraph (1) (Cases Deemed to Have Been Acquired by Gift) of the Inheritance Tax Act (including as applied mutatis mutandis pursuant to paragraph (2) of that Article);

A periodic payment recipient prescribed in Article 6, paragraph (1) (Cases Deemed to Have Been Acquired by Gift) of the Inheritance Tax Act (including as applied mutatis mutandis pursuant to paragraph (2) of that Article);

A periodic payment recipient prescribed in Article 6, paragraph (3) of the Inheritance Tax Act;

A person who has become an insurance beneficiary or periodic payment recipient by inheritance, bequest or a gift from an individual;

Adjustment years: means the number of years specified respectively in the following for the following cases of the number of years remaining or the life expectancy at the payment start date:

Where it exceeds 10 years and is 15 years or less: one year;

Where it exceeds 15 years and is 25 years or less: five years;

Where it exceeds 25 years and is 35 years or less: 13 years;

Where it exceeds 35 years and is 55 years or less: 28 years;

Inheritance tax valuation ratio: means the ratio of the amount valued pursuant to the provisions of Article 24 (Valuation of Rights Relating to Periodic Payments) of the Inheritance Tax Act for the right pertaining to the annuity to the total amount payable or the estimated total amount payable of the annuity for that Resident (meaning the estimated total amount payable that is to form the basis of calculating the amount to be included in the gross revenue pertaining to miscellaneous income for that year pursuant to the provisions of items (ii) through (v) of the preceding paragraph);

Taxable ratio: means the ratio specified respectively in the following for the following cases of the inheritance tax valuation ratio:

Where the inheritance tax valuation ratio exceeds 50/100 and is 55/100 or less: 45/100;

Where the inheritance tax valuation ratio exceeds 55/100 and is 60/100 or less: 40/100;

Where the inheritance tax valuation ratio exceeds 60/100 and is 65/100 or less: 35/100;

Where the inheritance tax valuation ratio exceeds 65/100 and is 70/100 or less: 30/100;

Where the inheritance tax valuation ratio exceeds 70/100 and is 75/100 or less: 25/100;

Where the inheritance tax valuation ratio exceeds 75/100 and is 80/100 or less: 20/100;

Where the inheritance tax valuation ratio exceeds 80/100 and is 83/100 or less: 17/100;

Where the inheritance tax valuation ratio exceeds 83/100 and is 86/100 or less: 14/100;

Where the inheritance tax valuation ratio exceeds 86/100 and is 89/100 or less: 11/100;

Where the inheritance tax valuation ratio exceeds 89/100 and is 92/100 or less: 8/100;

Where the inheritance tax valuation ratio exceeds 92/100 and is 95/100 or less: 5/100;

Where the inheritance tax valuation ratio exceeds 95/100 and is 98/100 or less: 2/100;

Where the inheritance tax valuation ratio exceeds 98/100: zero;

Specified period years: means the number of years obtained by deducting one year from the number of years calculated by multiplying the number of years remaining or the life expectancy at the payment start date by the ratio specified respectively in the following for the following cases of the inheritance tax valuation ratio (rounding up any fraction of less than one year).

Where the inheritance tax valuation ratio is 10/100 or less: 20/100;

Where the inheritance tax valuation ratio exceeds 10/100 and is 20/100 or less: 40/100;

Where the inheritance tax valuation ratio exceeds 20/100 and is 30/100 or less: 60/100;

Where the inheritance tax valuation ratio exceeds 30/100 and is 40/100 or less: 80/100;

Where the inheritance tax valuation ratio exceeds 40/100 and is 50/100 or less: one.

The provisions of Article 183, paragraph (4) apply mutatis mutandis to the total amount of insurance premiums or installments prescribed in paragraph (1), item (viii), (b) or item (x).