Order for Enforcement of the Income Tax Act

The years of service specified by Cabinet Order prescribed in Article 30, paragraph (3), item (i) (Retirement Income) of the Act are the years of service calculated as provided below.

With respect to severance pay or other such compensation prescribed in Article 30, paragraph (1) of the Act (excluding that which is deemed to be severance pay or other such compensation under Article 31 (Lump-Sum Payments Deemed to Constitute Severance Pay and Other Such Compensation) of the Act (referred to as "lump-sum retirement payment, etc." in the following item, item (iii), and paragraph (3) of the following Article); hereinafter referred to as "severance pay or other such compensation" in this Article and paragraphs (1) and (2) of the following Article), the years of service are calculated by the period during which the Resident who receives the payment of the severance pay or other such compensation (hereinafter in this item referred to as the "retirement income earner") continuously worked under the person paying severance pay or other such compensation up to the date of retirement that gave rise to the payment of that severance pay or other such compensation (hereinafter in this paragraph referred to as the "period of service"); provided, however, that where any of the cases prescribed in (a) through (c) applies, as provided respectively in (a) through (c):

where the retirement income earner has a period during which the person did not work temporarily under the person paying severance pay or other such compensation between the date of employment and the date of retirement, the years of service are calculated by the period obtained by adding to the period of service the period during which the person continuously worked under that payer before that period of temporary non-work;

where a retirement income earner has worked for another person during a period in which the earner did not work for the person paying severance pay or other such compensation, and the payer, in calculating the period that is the basis for calculating the amount paid as the severance pay or other such compensation, includes the period of work for that other person, the years of service are calculated using the period obtained by adding the period of work for that other person to the period of service;

where a retirement income earner has previously received severance pay or other such compensation from the person paying severance pay or other such compensation, the calculation of the period of service or of the period to be added under (a) or (b) is made on the basis that the period on or before the last day of the period that was the basis for calculating the amount paid as the severance pay or other such compensation previously received is not included in the period of service or the period to be added under (a) or (b); provided, however, that where the person paying severance pay or other such compensation, in calculating the period that is the basis for calculating the amount paid as the severance pay or other such compensation, includes the period that was the basis for calculating the amount paid as the severance pay or other such compensation previously received, those calculations are made on the basis that that period is included in those periods;

With respect to lump-sum retirement payment, etc., the years of service are calculated using the period as a member, etc. (meaning the period that was the basis for calculating the amount paid as the lump-sum retirement payment, etc. (including, where the following amounts are included in the amount paid as the lump-sum retirement payment, etc., the period that was the basis for calculating those amounts), and, where the calculation of that period is based not on a period calculated according to the passage of time but on a period calculated by adding a certain period thereto, meaning the period calculated as if that addition had not been made; provided, however, that where the lump-sum retirement payment, etc. falls under the lump-sum payments set out in Article 72, paragraph (3), item (vii) (Lump-Sum Payments Deemed to Constitute Severance Pay and Other Such Compensation), the period that was the basis for calculating the amount paid means the period obtained by combining the participant of a corporate-type pension plan period prescribed in Article 33, paragraph (2), item (i) (Requirements for Payment) of the Defined Contribution Pension Act that was the basis for calculating the amount paid (limited to that participant of a corporate-type pension plan period relating to the employer's contribution prescribed in Article 3, paragraph (3), item (vii) (Approval of Rules) of that Act that was paid pursuant to the corporate-type pension plan rules prescribed in Article 4, paragraph (3) (Standards for Approval) of that Act, and including the period counted as the period of aggregate participation, etc. referred to in Article 33, paragraph (1) of that Act pursuant to Article 54, paragraph (2) (Transfer of Assets from Other Systems) or Article 54-2, paragraph (2) (Transfer of an Amount Equivalent to Lump-sum Withdrawal Payment) of that Act and the period specified by Ministry of Finance Order as equivalent to that participant of a corporate-type pension plan period; hereinafter in this item referred to as "period as a participant of a corporate-type pension plan, etc.") and the part of the participant of an individual-type pension plan period prescribed in paragraph (2), item (iii) of that Article that was the basis for that calculation (limited to that participant of an individual-type pension plan period relating to the participant of an individual-type pension plan's contribution prescribed in Article 55, paragraph (2), item (iv) (Approval of Rules) of that Act that was paid pursuant to the individual-type pension plan rules prescribed in Article 56, paragraph (3) (Standards for Approval) of that Act, and including the period counted as the period of aggregate participation, etc. referred to in Article 33, paragraph (1) of that Act, as applied mutatis mutandis pursuant to Article 73 (Application Mutatis Mutandis of Provisions Relating to Corporate-type Pension Plans) of that Act, pursuant to Article 74-2, paragraph (2) (Transfer of an Amount Equivalent to Lump-sum Withdrawal Payment or Residual Assets) of that Act and the period specified by Ministry of Finance Order as equivalent to that participant of an individual-type pension plan period) that does not overlap with the period as a participant of a corporate-type pension plan, etc.; the same applies in the following item);

the amount relating to the receipt under Article 30, paragraph (1) (Receipt of Amounts Equivalent to Retirement Allowances, etc.) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act, the amount relating to the receipt under Article 31-2, paragraph (1) of that Act as applied mutatis mutandis pursuant to paragraph (6) of that Article (Receipt of Amounts Received from Organizations that Have Abolished Retirement Allowance Mutual Aid Businesses, etc.), or the amount relating to the transfer under Article 31-3, paragraph (1) of that Act as applied mutatis mutandis pursuant to paragraph (6) of that Article (Transfer of Amounts Transferred from Asset Management Organizations, etc.);

the amount delivered in accordance with an application under Article 36, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Employees' Pension Insurance Act, etc. to Ensure the Soundness and Reliability of the Public Pension System (Act No. 63 of 2013; hereinafter referred to as the "2013 Employees' Pension, etc. Amendment Act") as applied mutatis mutandis pursuant to paragraph (7) of that Article (Delivery of Residual Assets of Dissolved Surviving Employees' Pension Funds to the Organization for Workers' Retirement Allowance Mutual Aid);

the amount equivalent to the retirement allowance prescribed in Article 73, paragraph (1), item (viii), (b) (Requirements for Specified Retirement Allowance Mutual Aid Organizations), the amount equivalent to the retirement benefit prescribed in (d) of that item, or the amount equivalent to the carried-over retirement benefit prescribed in (e) of that item;

Where a person receives payment of two or more instances of severance pay or other such compensation or lump-sum retirement payment, etc. in the year, the years of service are calculated using the longest of the periods calculated under the provisions of the preceding two items for each of that severance pay or other such compensation or lump-sum retirement payment, etc.; provided, however, that where all or part of the period of service, etc. (meaning the period of service and the period to be added under the provisions of item (i), (a) through (c), or the period as a member, etc.; the same applies hereinafter in this item) that was the basis for calculating the number of years of a period other than the longest period does not overlap with the period of service, etc. that was the basis for calculating the longest period, the years of service are calculated by adding to the longest period the period calculated for the non-overlapping period of service, etc. in accordance with the provisions of the preceding two items.

Where a fraction of less than one year arises in the period calculated under the provisions of the items of the preceding paragraph, the years of service referred to in that paragraph are calculated by treating it as one year.

The person paying severance pay or other such compensation includes, where that person is an heir, the decedent; where that person is a corporation surviving a merger or a corporation established by a merger, the corporation extinguished by the merger; and where that person is a corporation that has received a transfer of assets and liabilities through a split of a corporation, the corporation that made that transfer of assets and liabilities through the split.

The years of service specified by Cabinet Order prescribed in Article 30, paragraph (4) (Retirement Income) of the Act are, out of the adjusted period of service for the severance pay or other such compensation (meaning the period calculated under Article 69, paragraph (1), item (i); the same applies in the following paragraph, paragraph (3) and Article 71-2, paragraph (13) (Calculation of the Amount of Retirement Income Where There Are Two or More Instances of Severance Pay or Other Such Compensation Among General Severance Pay or Other Such Compensation, Short-term Severance Pay, or Specified Officers' Severance Pay)), the years of service calculated using the period during which the Resident who receives payment of that severance pay or other such compensation worked as a person other than officers or similar persons prescribed in Article 30, paragraph (4) of the Act.

The years of service specified by Cabinet Order prescribed in Article 30, paragraph (5) of the Act are, out of the adjusted period of service for the severance pay or other such compensation, the years of service calculated using the period during which the Resident who receives payment of that severance pay or other such compensation worked as officers or similar persons referred to in that paragraph (referred to as "period of service as an officer, etc." in the following paragraph and Article 71-2, paragraph (13)).

Where there is a period of service as an officer, etc. within the adjusted period of service referred to in paragraph (1), the period during which the person worked as a person other than officers or similar persons referred to in that paragraph includes that period of service as an officer, etc., and where the severance pay or other such compensation prescribed in Article 30, paragraph (1) of the Act that a Resident receives is lump-sum retirement payment, etc., paragraph (1) applies by treating the period as a member, etc. prescribed in Article 69, paragraph (1), item (ii) relating to that lump-sum retirement payment, etc. as the period during which the person worked as a person other than officers or similar persons, out of the adjusted period of service for the severance pay or other such compensation referred to in paragraph (1).

The provisions of paragraphs (2) and (3) of the preceding Article apply mutatis mutandis to the calculation of the years of service referred to in paragraphs (1) and (2).