Order for Enforcement of the Income Tax Act

Those specified by Cabinet Order prescribed in Article 161, paragraph (1), item (i) (Domestic Source Income) of the Act are those listed in the following items.

that which corresponds to the fixed place of business prescribed in Article 2, paragraph (1), item (viii)-4, (a) (Definitions) of the Act;

that which corresponds to the place where construction or installation work, or the provision of services for supervising that work, prescribed in Article 2, paragraph (1), item (viii)-4, (b) of the Act is carried out;

a person who corresponds to a person who has the authority to conclude contracts on its behalf prescribed in Article 2, paragraph (1), item (viii)-4, (c) of the Act;

that which is equivalent to those listed in the preceding three items.

Income arising from the management or holding of the assets listed in the following items (excluding that falling under Article 161, paragraph (1), items (viii) through (xvi) (Domestic Source Income) of the Act) is to be included in the domestic source income listed in item (ii) of that paragraph.

Japanese national government bonds, Japanese local government bonds, bonds issued by a domestic corporation, all of which fall under the category of public and corporate bonds, or promissory notes listed in Article 2, paragraph (1), item (xv) (Definitions) of the Financial Instruments and Exchange Act;

claims pertaining to loans to residents which are other than those pertaining to operations performed by those residents;

a right to receive payment of insurance proceeds or a distribution of surplus (including those equivalent thereto) based on a life insurance policy (meaning an insurance policy concluded by a life insurance company prescribed in Article 2, paragraph (3) (Definitions) of the Insurance Business Act or a foreign life insurance company, etc. prescribed in paragraph (8) of that Article, or a similar insurance policy concluded by a small amount and short term insurer prescribed in paragraph (18) of that Article (hereinafter in this item referred to as "small amount and short term insurer")), a former postal life insurance policy prescribed in Article 30, item (i) (Insurance Proceeds, Damages, etc. Treated as Nontaxable), a casualty insurance policy (meaning an insurance policy concluded by a casualty insurance company prescribed in Article 2, paragraph (4) of the Insurance Business Act or a foreign casualty insurance company, etc. prescribed in paragraph (9) of that Article, or a similar insurance policy concluded by a small amount and short term insurer), or any other similar contract, concluded through a business office, office, or other similar facility in Japan or through a person who acts as an agent for the conclusion of contracts in Japan.

The following are not included in the domestic source income listed in Article 161, paragraph (1), item (ii) of the Act.

interest prescribed in Article 283, paragraph (1) (Interest on Loans Pertaining to Domestic Operations);

income arising from the settlement of market derivatives transactions prescribed in Article 2, paragraph (21) of the Financial Instruments and Exchange Act or over-the-counter derivatives transactions prescribed in paragraph (22) of that Article.