Order for Enforcement of the Income Tax Act

In the case where there are general severance pay or other such compensation (meaning the general severance pay or other such compensation prescribed in Article 30, paragraph (7) (Retirement Income) of the Act; the same applies hereinafter in this Article) and short-term severance pay (meaning the short-term severance pay prescribed in paragraph (4) of that Article; the same applies hereinafter in this Article) during the year (excluding the case where there is specified officers' severance pay (meaning the specified officers' severance pay prescribed in paragraph (5) of that Article; the same applies hereinafter in this Article) during the year), the amount of retirement income is the sum of the following amounts:

In respect of the short-term severance pay for that year, the amount specified below for each of the following cases:

Where the amount remaining after deducting the short-term retirement income deduction (meaning the sum of the following amounts; the same applies in (b) and the following item) from the revenue from that short-term severance pay (where the revenue from the general severance pay or other such compensation referred to in that item is less than the general retirement income deduction prescribed in that item, the amount remaining after deducting the shortfall from that remaining amount; the same applies in (a)) is 3,000,000 yen or less: an amount equivalent to one-half of that remaining amount;

The amount calculated by multiplying 400,000 yen by the number of years obtained by deducting the overlapping years of service from the short-term years of service;

The amount calculated by multiplying 200,000 yen by the overlapping years of service;

In cases other than that listed in (a): the sum of the amount remaining after deducting, from the revenue from that short-term severance pay, the amount obtained by adding the short-term retirement income deduction to 3,000,000 yen (where the revenue from the general severance pay or other such compensation referred to in the following item is less than the general retirement income deduction prescribed in that item, the amount remaining after deducting the shortfall from that remaining amount) and 1,500,000 yen;

An amount equivalent to one-half of the amount remaining after deducting the general retirement income deduction (meaning the amount remaining after deducting the short-term retirement income deduction from the retirement income deduction (meaning the retirement income deduction prescribed in Article 30, paragraph (2) of the Act; the same applies hereinafter in this Article)) from the revenue from the general severance pay or other such compensation for that year (where the revenue from the short-term severance pay referred to in item (i), (a) is less than the short-term retirement income deduction, the amount remaining after deducting the shortfall from that remaining amount).

The short-term years of service prescribed in the preceding paragraph means the number of years calculated by the short-term period of service (meaning the period calculated for short-term severance pay pursuant to the provisions of the items of Article 69, paragraph (1) (Calculation of Years of Service Pertaining to Retirement Income Deduction); the same applies hereinafter in this Article), and the overlapping years of service prescribed in the preceding paragraph means the number of years calculated by the period in which the short-term period of service and the general period of service (meaning the period calculated for general severance pay or other such compensation pursuant to the provisions of the items of Article 69, paragraph (1); the same applies hereinafter in this Article) overlap.

In the case where there are general severance pay or other such compensation and specified officers' severance pay during the year (excluding the case where there is short-term severance pay during the year), the amount of retirement income is the sum of the following amounts:

The amount remaining after deducting the retirement income deduction for specified officers (meaning the sum of the following amounts; the same applies in the following item) from the revenue from the specified officers' severance pay for that year (where the revenue from the general severance pay or other such compensation referred to in that item is less than the general retirement income deduction prescribed in that item, the amount remaining after deducting the shortfall from that remaining amount);

The amount calculated by multiplying 400,000 yen by the number of years obtained by deducting the overlapping years of service from the years of service as a specified officer;

The amount calculated by multiplying 200,000 yen by the overlapping years of service;

An amount equivalent to one-half of the amount remaining after deducting the general retirement income deduction (meaning the amount remaining after deducting the retirement income deduction for specified officers from the retirement income deduction) from the revenue from the general severance pay or other such compensation for that year (where the revenue from the specified officers' severance pay referred to in the preceding item is less than the retirement income deduction for specified officers, the amount remaining after deducting the shortfall from that remaining amount).

The years of service as a specified officer prescribed in the preceding paragraph means the number of years calculated by the period of service as a specified officer (meaning the period calculated for specified officers' severance pay pursuant to the provisions of Article 69, paragraph (1), items (i) and (iii); the same applies hereinafter in this Article), and the overlapping years of service prescribed in the preceding paragraph means the number of years calculated by the period in which the period of service as a specified officer and the general period of service overlap.

In the case where there are short-term severance pay and specified officers' severance pay during the year (excluding the case where there is general severance pay or other such compensation during the year), the amount of retirement income is the sum of the following amounts:

The amount remaining after deducting the retirement income deduction for specified officers (meaning the sum of the following amounts; the same applies in the following item) from the revenue from the specified officers' severance pay for that year (where the revenue from the short-term severance pay referred to in (a) of that item is less than the short-term retirement income deduction prescribed in (a) of that item, the amount remaining after deducting the shortfall from that remaining amount);

The amount calculated by multiplying 400,000 yen by the number of years obtained by deducting the overlapping years of service from the years of service as a specified officer (meaning the years of service as a specified officer prescribed in the preceding paragraph; the same applies in paragraph (7), item (i), (a));

The amount calculated by multiplying 200,000 yen by the overlapping years of service;

In respect of the short-term severance pay for that year, the amount specified below for each of the following cases:

Where the amount remaining after deducting the short-term retirement income deduction (meaning the amount remaining after deducting the retirement income deduction for specified officers from the retirement income deduction; the same applies in (b)) from the revenue from that short-term severance pay (where the revenue from the specified officers' severance pay referred to in the preceding item is less than the retirement income deduction for specified officers, the amount remaining after deducting the shortfall from that remaining amount; the same applies in (a)) is 3,000,000 yen or less: an amount equivalent to one-half of that remaining amount;

In cases other than that listed in (a): the sum of the amount remaining after deducting, from the revenue from that short-term severance pay, the amount obtained by adding the short-term retirement income deduction to 3,000,000 yen (where the revenue from the specified officers' severance pay referred to in the preceding item is less than the retirement income deduction for specified officers, the amount remaining after deducting the shortfall from that remaining amount) and 1,500,000 yen.

The overlapping years of service prescribed in the preceding paragraph means the number of years calculated by the period in which the period of service as a specified officer and the short-term period of service overlap.

In the case where there are general severance pay or other such compensation, short-term severance pay, and specified officers' severance pay during the year, the amount of retirement income is the sum of the following amounts:

The amount remaining after deducting the retirement income deduction for specified officers (meaning the sum of the following amounts; the same applies in item (iii) and paragraph (9), item (i)) from the revenue from the specified officers' severance pay for that year;

The amount calculated by multiplying 400,000 yen by the number of years obtained by deducting from the years of service as a specified officer the sum of the overlapping years of service prescribed in (b) and the overlapping years of service prescribed in (c);

The amount calculated by multiplying 200,000 yen by the overlapping years of service (limited to the number of years calculated by the periods in which the period of service as a specified officer and the short-term period of service overlap (excluding the fully overlapping period) and in which the period of service as a specified officer and the general period of service overlap (excluding the fully overlapping period));

The amount calculated by multiplying 140,000 yen by the overlapping years of service (limited to the number of years calculated by the fully overlapping period);

In respect of the short-term severance pay for that year, the amount specified below for each of the following cases:

Where the amount remaining after deducting the short-term retirement income deduction (meaning the sum of the following amounts; the same applies in (b), the following item, and paragraph (9), item (ii)) from the revenue from that short-term severance pay is 3,000,000 yen or less: an amount equivalent to one-half of that remaining amount;

The amount calculated by multiplying 400,000 yen by the number of years obtained by deducting from the short-term years of service prescribed in paragraph (2) the sum of the overlapping years of service prescribed in (2) and the overlapping years of service prescribed in (3);

the amount calculated by multiplying 200,000 yen by the overlapping years of service (limited to the number of years calculated based on the period in which the short-term period of service and the period of service as a specified officer overlap (excluding the fully overlapping period) and the period in which the short-term period of service and the general period of service overlap (excluding the fully overlapping period));

the amount calculated by multiplying 130,000 yen by the overlapping years of service (limited to the number of years calculated based on the fully overlapping period);

in cases other than the case set out in (a): the sum of 1,500,000 yen and the remainder obtained by deducting, from the revenue from that short-term severance pay, the amount obtained by adding the short-term retirement income deduction to 3,000,000 yen;

an amount equivalent to one-half of the remainder obtained by deducting the general retirement income deduction (meaning the remainder obtained by deducting the sum of the retirement income deduction for specified officers and the short-term retirement income deduction from the retirement income deduction; the same applies in paragraph (9), item (iii)) from the revenue from the general severance pay or other such compensation for that year.

The overlapping years of service prescribed in the preceding paragraph means the number of years calculated based on the period in which the period of service as a specified officer, the short-term period of service, or the general period of service overlap, and the fully overlapping period prescribed in that paragraph means the period in which the period of service as a specified officer, the short-term period of service, and the general period of service overlap.

Where calculating the amount of retirement income referred to in paragraph (7), in the cases set out in the following items, it is as specified in the relevant item.

where the revenue from the specified officers' severance pay referred to in paragraph (7), item (i) is less than the retirement income deduction for specified officers: the amount specified below according to the category of the following remainders is deducted from the relevant remainder:

the remainder referred to in paragraph (7), item (ii), (a) or (b): an amount equivalent to one-half of the amount of that shortfall (where the remainder set out in (b) is less than the amount equivalent to that one-half, the amount obtained by adding the amount of that shortfall);

the remainder obtained by deducting the general retirement income deduction referred to in paragraph (7), item (iii): an amount equivalent to one-half of the amount of that shortfall (where the remainder set out in (a) is less than the amount equivalent to that one-half, the amount obtained by adding the amount of that shortfall);

where the revenue from the short-term severance pay referred to in paragraph (7), item (ii), (a) is less than the short-term retirement income deduction: the amount specified below according to the category of the following remainders is deducted from the relevant remainder:

the remainder referred to in paragraph (7), item (i): an amount equivalent to one-half of the amount of that shortfall (where the remainder set out in (b) is less than the amount equivalent to that one-half, the amount obtained by adding the amount of that shortfall);

the remainder obtained by deducting the general retirement income deduction referred to in paragraph (7), item (iii): an amount equivalent to one-half of the amount of that shortfall (where the remainder set out in (a) is less than the amount equivalent to that one-half, the amount obtained by adding the amount of that shortfall);

where the revenue from the general severance pay or other such compensation referred to in paragraph (7), item (iii) is less than the general retirement income deduction: the amount specified below according to the category of the following remainders is deducted from the relevant remainder:

the remainder referred to in paragraph (7), item (i): an amount equivalent to one-half of the amount of that shortfall (where the remainder set out in (b) is less than the amount equivalent to that one-half, the amount obtained by adding the amount of that shortfall);

the remainder referred to in paragraph (7), item (ii), (a) or (b): an amount equivalent to one-half of the amount of that shortfall (where the remainder set out in (a) is less than the amount equivalent to that one-half, the amount obtained by adding the amount of that shortfall).

The provisions of Article 69, paragraphs (2) and (3) apply mutatis mutandis to the calculation of the short-term years of service prescribed in paragraph (2), the overlapping years of service prescribed in that paragraph, paragraph (4), paragraph (6), or paragraph (8), or the years of service as a specified officer prescribed in paragraph (4).

Where Article 30, paragraph (6) of the Act (limited to the part relating to item (i)) applies and the case falls under any of the cases set out in the following items, the short-term retirement income deduction prescribed in paragraph (1), item (i), (a) or paragraph (7), item (ii), (a) is the amount obtained by deducting the amount specified in the relevant item according to the category of the cases set out in those items from the sum set out in paragraph (1), item (i), (a) or paragraph (7), item (ii), (a).

where all or part of the previously received severance pay or other such compensation prescribed in Article 70, paragraph (1), item (i) (Special Provisions for Calculation of Retirement Income Deduction) falls under short-term severance pay: the amount calculated under that item on the basis of the period, within the short-term period of service, relating to the previously received severance pay or other such compensation (limited to that falling under short-term severance pay);

where all or part of the short-term period of service overlaps with the earlier period of service, etc. prescribed in Article 70, paragraph (1), item (ii): the amount calculated under that item on the basis of the overlapping period.

Where Article 30, paragraph (6) of the Act (limited to the part relating to item (i)) applies and the case falls under any of the cases set out in the following items, the retirement income deduction for specified officers prescribed in paragraph (3), item (i), paragraph (5), item (i), or paragraph (7), item (i) is the amount obtained by deducting the amount specified in the relevant item according to the category of the cases set out in those items from the sum set out in paragraph (3), item (i), paragraph (5), item (i), or paragraph (7), item (i).

where all or part of the previously received severance pay or other such compensation prescribed in Article 70, paragraph (1), item (i) falls under specified officers' severance pay: the amount calculated under that item on the basis of the period, within the period of service as a specified officer, relating to the previously received severance pay or other such compensation (limited to that falling under specified officers' severance pay);

where all or part of the period of service as a specified officer overlaps with the earlier period of service, etc. prescribed in Article 70, paragraph (1), item (ii): the amount calculated under that item on the basis of the overlapping period.

Where severance pay or other such compensation is received that, within the adjusted period of service, has a period of service as an officer, etc. of five years or less and a period other than that period of service as an officer, etc., that severance pay or other such compensation is to consist of the following severance pay or other such compensation:

specified officers' severance pay equivalent to the remainder obtained by deducting the amount set out in the following item from the amount of the severance pay or other such compensation;

general severance pay or other such compensation or short-term severance pay equivalent to an amount found appropriate in consideration of the level, etc. of payment of severance packages to other employees, based on the period other than the period of service as an officer, etc.

Where the preceding paragraph applies, in the case of receiving the severance pay or other such compensation referred to in that paragraph, paragraphs (3), (5), and (7) apply by deeming it to be a case where there are specified officers' severance pay and general severance pay or other such compensation or short-term severance pay in that year.