Order for Enforcement of the Income Tax Act

Where a Resident who receives payment of an annuity under a casualty insurance policy or similar contract prescribed in Article 184, paragraph (1) (Insurance Premiums, etc. Deducted in the Calculation of the Amount of Miscellaneous Income Pertaining to Annuities Under Casualty Insurance Policies or Similar Contracts) (hereinafter referred to as "casualty insurance policy or similar contract" in this Article) falls under an insurance beneficiary, etc. prescribed in paragraph (3), item (i) of the preceding Article 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 former Inheritance Tax Act 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 184, paragraph (1), as follows:

Of the amount of a term-certain-type 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 casualty insurance policy or similar contract 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 casualty insurance policy or similar contract on or after the payment start date; the same applies hereinafter in this paragraph) 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 Article); the same applies hereinafter in this Article) (excluding the amount to be included in gross revenue pursuant to the provisions of item (iv)), the amount calculated by deeming that term-certain-type annuity to be a term-certain annuity prescribed in paragraph (1), item (i) of the preceding Article, pursuant to the provisions of that item, is to be included in the gross revenue pertaining to miscellaneous income for that year;

Of the amount of a specified fixed-term-type 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 (meaning a person whose survival is a condition of payment under the casualty insurance policy or similar contract that forms the basis of payment of the annuity) dies within a certain period on or after the payment start date (hereinafter referred to as the "guaranteed period" in this item), payment is made of the amount of the portion equivalent to the period from the date of death to the end date of the guaranteed period; the same applies hereinafter in this Article) (excluding the amount to be included in gross revenue pursuant to the provisions of item (iv)), the amount calculated by deeming that specified fixed-term-type annuity to be a specified fixed-term annuity prescribed in paragraph (1), item (v) of the preceding Article, pursuant to the provisions of that item, is to be included in the gross revenue pertaining to miscellaneous income for that year;

The provisions of paragraph (1), item (vi) of the preceding Article apply mutatis mutandis to the case where the amount corresponding to the annuity paid prescribed in item (i), (a) of that paragraph, pertaining to the amount calculated pursuant to the provisions of the preceding two items, is the amount of the annuity received or more;

The amount of surplus distributed or rebate received on or after the payment start date of that annuity under the casualty insurance policy or similar contract 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 (iii)) 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 form the basis of calculating the amount to be included in gross revenue pertaining to miscellaneous income for that year pursuant to the provisions of item (ii);

The total amount of insurance premiums or installments pertaining to that casualty insurance policy or similar contract;

Where the original annuity recipient of that 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 revenue pursuant to the provisions of items (i) through (iii)) by the ratio prescribed in Article 184, paragraph (1), item (ii) or the preceding item as of the date of commencement of payment of that annuity for that original annuity recipient;

The ratio prescribed in item (v) is to be calculated to two decimal places, rounding up any digits at the third decimal place or below.

Where a Resident who receives payment of an annuity under a casualty insurance policy or similar contract falls under an insurance beneficiary, etc. prescribed in paragraph (3), item (i) of the preceding Article in relation to that annuity (excluding an annuity valued under the former inheritance tax rules), 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 184, paragraph (1), as follows. In this case, the provisions of paragraph (1), items (v) through (vii) apply mutatis mutandis to the calculation of the amount to be included in necessary expenses:

Of the amount of a term-certain-type annuity received in that year (excluding the amount to be included in gross revenue pursuant to the provisions of item (iv)), the amount calculated by deeming that term-certain-type annuity to be the term-certain annuity in paragraph (2), item (i) of the preceding Article, pursuant to the provisions of that item, is to be included in the gross revenue pertaining to miscellaneous income for that year;

Of the amount of a specified fixed-term-type annuity received in that year (excluding the amount to be included in gross revenue pursuant to the provisions of item (iv)), the amount calculated by deeming that specified fixed-term-type annuity to be the specified fixed-term annuity in paragraph (2), item (v) of the preceding Article, pursuant to the provisions of that item, is to be included in the gross revenue pertaining to miscellaneous income for that year;

The provisions of paragraph (2), item (vi) of the preceding Article apply mutatis mutandis to the case where the amount corresponding to the annuity paid in item (i), (a) of that paragraph, pertaining to the amount calculated pursuant to the provisions of the preceding two items, is the amount of the annuity received or more;

The amount of surplus distributed or rebate received on or after the payment start date of that annuity under the casualty insurance policy or similar contract 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 provisions of Article 184, paragraph (3) apply mutatis mutandis to the total amount of insurance premiums or installments prescribed in paragraph (1), item (v), (b).