Order for Enforcement of the Income Tax Act

The specified retirement allowance mutual aid organization prescribed in paragraph (3), item (i) of the preceding Article means a municipality (including a special ward) that conducts a retirement allowance mutual aid business, a chamber of commerce, a commercial association, a Central Federation of Societies of Commerce and Industry, a prefectural federation of small business associations, a general incorporated association or general incorporated foundation whose main purpose is a retirement allowance mutual aid business, or any other corporation similar to these that is designated by the Minister of Finance, which has received the approval of the district director as meeting the following requirements with regard to the retirement allowance mutual aid business it conducts.

the organization is aimed at concluding retirement allowance mutual aid contracts (meaning contracts under which an employer pays premiums to an organization conducting a retirement allowance mutual aid business and that organization promises to pay retirement benefits on the retirement of employees employed by that employer (including the delivery of the amount equivalent to the retirement allowance prescribed in item (viii), (a), the amount equivalent to the retirement benefit prescribed in (c) of that item, or the delivery amount prescribed in item (ix)); hereinafter the same in this Subsection) with a large number of employers, and only participating employers (meaning employers that have concluded retirement allowance mutual aid contracts; hereinafter the same in this Subsection) bear the premiums (including premiums corresponding to the aggregated past service period prescribed in item (vii); the same applies in items (iv), (v), and (x));

the covered persons (meaning persons who are to receive retirement benefits under retirement allowance mutual aid contracts; the same applies hereinafter in this Subsection) do not include covered persons of another specified retirement allowance mutual aid organization;

the covered persons do not include an individual who is a participating employer, a relative who shares a livelihood with that individual, or an officer of a corporation that is a participating employer (excluding an officer who has duties as an employee prescribed in Article 34, paragraph (6) (Exclusion of Remuneration for Officers from Deductible Expenses) of the Corporation Tax Act);

the amounts paid in as premiums (including the amount received by delivery pursuant to Article 31, paragraph (1) (Delivery of Amounts Equivalent to Retirement Allowances, etc.) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act and the amount received by delivery pursuant to item (viii), (c), and the profits from the management thereof; the same applies in the following item) are not returned to participating employers;

the remainder obtained by deducting the amount ordinarily necessary as expenses for the administrative work of the organization conducting a retirement allowance mutual aid business from the amounts paid in as premiums (referred to as "total assets" in (f)) is invested as the following assets, and those assets are not offered as security or lent:

public and corporate bonds (including public and corporate bonds placed in trust with a trust company (including a bank that conducts the trust business prescribed in Article 1, paragraph (1) (Authorization for Concurrent Engagement) of the Act on Engagement in Trust Business by Financial Institutions));

Deposits and Savings (including installment savings and anything else equivalent thereto);

Jointly Managed Trusts;

beneficial interests in a Securities Investment Trust;

premiums for life insurance for which a covered person is the insured person and mutual aid premiums for life mutual aid similar thereto (limited to those specified by Ministry of Finance Order);

loans to participating employers that satisfy the following requirements:

that they are applied to funds required for establishing or improving housing or other facilities for covered persons that are necessary to promote the welfare of covered persons;

that the ratio of the sum of the remaining balances of those loans to total assets is at all times 15 percent or less;

the monthly amount of premiums is 30,000 yen or less per covered person;

where, with respect to a covered person, there is a past service period (meaning the period during which that person (excluding persons specified by Ministry of Finance Order) continuously worked under a participating employer until the day before the day on which the person became a covered person; the same applies in (a)) or a period of service before a merger, etc. (meaning, where that person is a person specified by Ministry of Finance Order as having become a covered person in connection with a merger of corporations or a transfer of business (limited, respectively, to a merger or a transfer of business specified by Ministry of Finance Order; the same applies hereinafter in this item) (hereinafter in this item referred to as a "covered person through a merger, etc."), the period during which the person continuously worked, until the day before the day of that merger or transfer of business, under an employer that is the corporation extinguished by that merger, the corporation surviving that merger, or the corporation that made that transfer of business (including a corporation whose business was succeeded to or transferred to any of those corporations by a merger or transfer of business other than that merger or transfer of business); the same applies in (a)), and those periods are included in the basis for calculating the amount of retirement benefits, the period included in the basis for calculating the amount of that retirement benefit (hereinafter in this item referred to as the "aggregated past service period"), the amount of premiums corresponding to that aggregated past service period, and the payment thereof are to satisfy the following requirements:

the aggregated past service period is to be as specified below according to the category of the following cases:

where the aggregated past service period relates to a past service period: it is to be determined, for all persons who are employed by that participating employer at the time of concluding a retirement allowance mutual aid contract (including a contract specified by Ministry of Finance Order; the same applies in (c)) (limited to persons who are to become covered persons), in correspondence with the person's past service period (where that past service period (excluding that relating to the amounts set out in (c)(1) and (3)) exceeds 10 years, 10 years);

where the aggregated past service period relates to a period of service before a merger, etc.: it is to be determined, for all of those covered persons through a merger, etc., in correspondence with the person's period of service before a merger, etc. (limited to a period specified by Ministry of Finance Order);

the amount of premiums corresponding to the aggregated past service period is to be equal to or less than the sum of the amount obtained by multiplying the number of months of that aggregated past service period by the monthly amount of premiums set out in item (vi) (excluding that relating to the amounts set out in (c)(1) and (3), and where that monthly amount exceeds 30,000 yen, 30,000 yen) and the amount specified by Ministry of Finance Order as the investment income relating to that aggregated past service period;

the amount of premiums corresponding to the aggregated past service period (where there are the following amounts, the amount obtained by deducting each of those amounts) is to be paid in equal installments every month on and after the month containing the day specified by Ministry of Finance Order as the day on which the retirement allowance mutual aid contract was concluded or the day on which the person became that covered person through a merger, etc. (hereinafter in this item referred to as the "base date"), over the number of months in the period from the day following the base date until the day on which five years have elapsed on or after that day (where the aggregated past service period is less than five years, the number of months of that aggregated past service period, and where the covered person is to retire before the day on which those five years have elapsed, the number of months in the period from that following day until the day on or after that day on which the person is to retire);

the amount delivered by the Organization for Workers' Retirement Allowance Mutual Aid pursuant to Article 17, paragraph (1) (Cancellation Refunds, etc.) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act;

the amount set out in Article 16, paragraph (1), item (ix), (d) (Requirements for Qualified Retirement Pension Contracts, etc.) of the Supplementary Provisions of the Order for the Enforcement of the Corporation Tax Act;

where an agreement has been concluded with another specified retirement allowance mutual aid organization under which, when a person who has cancelled a retirement allowance mutual aid contract relating to that other specified retirement allowance mutual aid organization and has become a participating employer of the specified retirement allowance mutual aid organization so applies, the amount equivalent to the total assets prescribed in item (v) relating to that participating employer is to be delivered to the specified retirement allowance mutual aid organization, and other matters specified by Ministry of Finance Order are promised, and a person who was a participating employer of that other specified retirement allowance mutual aid organization becomes, immediately after that cancellation, a participating employer of the specified retirement allowance mutual aid organization and files an application as provided by Ministry of Finance Order: the amount equivalent to that total assets that is delivered from that other specified retirement allowance mutual aid organization as provided for in that agreement;

where a covered person retires, and that covered person (limited to a person who can receive retirement benefits under a retirement allowance mutual aid contract on that retirement) falls under any of the following cases, the matters are to be as specified in each of the following:

where that covered person has made the application referred to in Article 30, paragraph (1) (Receipt of Amounts Equivalent to Retirement Allowances, etc.) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act pursuant to that paragraph: the amount equivalent to the retirement allowance prescribed in that paragraph relating to that covered person is to be delivered to the Organization for Workers' Retirement Allowance Mutual Aid as provided for in the contract prescribed in that paragraph;

where that covered person is a person who has become a covered person by receiving, from the Organization for Workers' Retirement Allowance Mutual Aid pursuant to Article 31, paragraph (1) (Delivery of Amounts Equivalent to Retirement Allowances, etc.) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act, delivery of the amount equivalent to the retirement allowance prescribed in that paragraph: the retirement benefit paid on that retirement of that covered person is to include in its basis for calculation the amount equivalent to that retirement allowance;

where an agreement has been concluded with another specified retirement allowance mutual aid organization under which, when a covered person who can receive retirement benefits under a retirement allowance mutual aid contract on that retirement (limited to the person who retired) so applies, the amount equivalent to that retirement benefit relating to that covered person is to be delivered to that other specified retirement allowance mutual aid organization, and other matters specified by Ministry of Finance Order are promised, and that covered person, within the period specified by Ministry of Finance Order after that retirement, becomes a covered person of that other specified retirement allowance mutual aid organization without claiming that retirement benefit and files an application as provided by Ministry of Finance Order: the amount equivalent to that retirement benefit is to be delivered to that other specified retirement allowance mutual aid organization as provided for in that agreement;

where that covered person is a person who has become a covered person by receiving, as provided in (c), from a specified retirement allowance mutual aid organization other than the specified retirement allowance mutual aid organization relating to that covered person, delivery of the amount equivalent to the retirement benefit prescribed in (c): the retirement benefit paid on that retirement of that covered person is to include in its basis for calculation the amount equivalent to that retirement benefit that was delivered;

where that covered person, within the period specified by Ministry of Finance Order after that retirement, becomes a covered person relating to another participating employer (limited to an employer that has concluded a retirement allowance mutual aid contract with the specified retirement allowance mutual aid organization relating to that covered person) without claiming that retirement benefit (hereinafter in this item referred to as the "carried-over retirement benefit"), and files an application as provided by Ministry of Finance Order: the retirement benefit paid on the retirement of that covered person (limited to where the employment relationship with that other participating employer ends) is to include in its basis for calculation the amount equivalent to that carried-over retirement benefit;

where the retirement allowance mutual aid business has been abolished, when an employer prescribed in Article 31-2, paragraph (1) (Receipt of Amounts Received from Organizations that Have Abolished Retirement Allowance Mutual Aid Businesses, etc.) of the Small and Medium Sized Enterprise Retirement Allowance Cooperative Act (including where applied mutatis mutandis pursuant to paragraph (6) of that Article; the same applies hereinafter in this item) makes the application under paragraph (1) of that Article, the delivery amount (meaning an amount within the range of the total amount of premiums prescribed in that paragraph, the amount specified by Cabinet Order prescribed in that paragraph as equivalent to premiums, and the amount of profits from the management thereof) relating to persons who were covered persons relating to that employer is to be delivered to the Organization for Workers' Retirement Allowance Mutual Aid as provided for in the contract relating to the delivery referred to in that paragraph between the abolished organization prescribed in that paragraph and the Organization for Workers' Retirement Allowance Mutual Aid;

unjustly discriminatory treatment is not given to specific persons among participating employers or covered persons with respect to the amount of premiums or the amount of retirement benefits;

accounting for the retirement allowance mutual aid business is conducted separately from other accounting.

A general incorporated association or general incorporated foundation prescribed in the preceding paragraph, other than one that, among those that continue to exist as a general incorporated association or general incorporated foundation pursuant to Article 40, paragraph (1) (Continuation of Incorporated Associations and Incorporated Foundations) of the Act on the Arrangement of Related Acts upon the Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 50 of 2006), has not completed the registration referred to in Article 106, paragraph (1) (Registration of Transition) of that Act (including where applied mutatis mutandis with replacement of terms pursuant to Article 121, paragraph (1) (Application Mutatis Mutandis of Provisions on Authorization) of that Act) (excluding one whose authorization under Article 45 (Transition to Ordinary General Incorporated Association or General Incorporated Foundation) of that Act has been rescinded pursuant to Article 131, paragraph (1) (Rescission of Authorization) of that Act), is limited to one that satisfies the following requirements.

its articles of incorporation provide that documents relating to the accounting for the retirement allowance mutual aid business referred to in item (xi) of the preceding paragraph are to be kept at its principal office and that participating employers and covered persons may inspect those documents;

its articles of incorporation contain no provision granting to specific individuals or organizations the right to receive a distribution of surplus;

its articles of incorporation contain no provision that, upon dissolution, its residual assets are to revert to specific individuals or organizations (excluding the State or a local government, a public interest incorporated association or public interest incorporated foundation, a corporation set out in Article 5, item (xx), (a) through (g) (Standards for Public Interest Authorization) of the Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 49 of 2006), or another general incorporated association or general incorporated foundation having a purpose similar to its purpose);

during the period in which it met all of the requirements set out in the preceding three items and the following item, it has not decided to grant, and has not granted, special benefits to specific individuals or organizations by distribution of surplus or other means (including the transfer of assets by merger);

for each director, the ratio of the total number of directors who are that director, that director's spouse or a relative within the third degree of kinship, or another person having a special relationship with that director as specified by Ministry of Finance Order, to the total number of directors is one-third or less.

When the Minister of Finance has made the designation under paragraph (1), the Minister is to give public notice of it.