Order for Enforcement of the Income Tax Act

A person who makes the payment prescribed in Article 225, paragraph (3) (Payment Reports and Notice of Payment) of the Act must, when intending to provide the person receiving the payment prescribed in that paragraph with the matters to be stated in the written notice prescribed in that paragraph pursuant to the main clause of that paragraph, in advance, in accordance with Ministry of Finance Order, indicate to the person receiving the payment the type and content of the electronic or magnetic means to be used (meaning the electronic or magnetic means prescribed in that paragraph; the same applies hereinafter in this Article, the following Article and Article 356 (Consent to Provision by Electronic or Magnetic Means of Matters to Be Stated in Payment Slips for Salary or Other Wage, Severance Pay or Other Such Compensation, or Public Pension or Retirement Package, etc.)), and obtain consent in writing or by electronic or magnetic means.

Where a person who makes the payment referred to in the preceding paragraph and has obtained consent under that paragraph has been notified, in writing or by electronic or magnetic means, by the person receiving the payment referred to in that paragraph that the person will not receive provision by electronic or magnetic means under the main clause of Article 225, paragraph (3) of the Act, the person making the payment must not provide the person receiving the payment with the matters to be stated in the written notice prescribed in that paragraph by electronic or magnetic means; provided, however, that this does not apply where the person receiving the payment gives consent again under the preceding paragraph.

A person who pays to a Resident in Japan the salary or other wage prescribed in Article 226, paragraph (1) (Withholding Receipts) of the Act (hereinafter referred to as "salary or other wage" in this Article and Article 356 (Consent to the Provision by Electronic or Magnetic Means of Matters to Be Stated in Payment Slips for Salary and Other Wages, Severance Pay and Other Such Compensation, or Public Pensions and Retirement Packages, etc.)), the severance pay or other such compensation prescribed in Article 226, paragraph (2) of the Act (hereinafter referred to as "severance pay or other such compensation" in this Article and Article 356) or the public pension or retirement package prescribed in Article 226, paragraph (3) of the Act (hereinafter referred to as "public pension or retirement package" in this Article and Article 356) must, when seeking to provide the matters to be stated in the withholding receipt prescribed in paragraph (4) of that Article pursuant to the provisions of the main clause of that paragraph, as provided by Ministry of Finance Order, indicate in advance to the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package the type and content of the electronic or magnetic means to be used, and obtain consent in writing or by electronic or magnetic means.

A person who pays salary or other wage, severance pay or other such compensation, or a public pension or retirement package and who has obtained consent pursuant to the provisions of the preceding paragraph must not, where the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package has notified the payer in writing or by electronic or magnetic means that the person will not receive provision by electronic or magnetic means under the provisions of the main clause of Article 226, paragraph (4) of the Act, provide the matters to be stated in the withholding receipt prescribed in that paragraph to the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package by electronic or magnetic means. However, this does not apply where the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package has again given consent pursuant to the provisions of the preceding paragraph.

The date specified by Cabinet Order prescribed in Article 227-2 (Statement of Partner Income from a Limited Liability Business Partnership) of the Act is to be the date on which two months elapse from the day following the last day of the calculation period prescribed in that Article that is provided for in the investment limited partnership contract prescribed in that Article.

The share options specified by Cabinet Order prescribed in Article 228-2 (Report on the Exercise of Share Options) of the Act are to be the following share options:

share options that are provided to be on terms or in an amount particularly favorable to the person who subscribes for those share options;

share options (excluding those falling under the preceding item) that are provided to be issued or allotted as the whole or part of consideration for the provision of services or other acts.

The issuance or allotment specified by Cabinet Order prescribed in Article 228-2 of the Act is to be the issuance or allotment of a share option in the case where the amount calculated by dividing the sum of the amount to be paid in money in relation to the issuance or allotment of the share option prescribed in that Article and the amount to be paid upon the exercise of that share option by the number of shares to be delivered through the exercise of that share option is less than the amount equivalent to the value per share of the shares of the stock company that issued or allotted that share option at the time of the resolution prescribed in that Article relating to the issuance or allotment of that share option.

The allotment specified by Cabinet Order prescribed in Article 228-3 (Report on Allotments of Shares Without Contribution) of the Act is to be the allotment of shares in the case where, with regard to shares allotted in response to a solicitation of persons to subscribe for shares by a resolution under Article 322, paragraph (1) (General Meetings of Class Shareholders Where Detriment to Class Shareholders of Certain Class Likely) of the Companies Act (including the provisions of the articles of incorporation under paragraph (2) of that Article), the amount to be paid in prescribed in Article 199, paragraph (1), item (ii) (Determination of Subscription Requirements) of that Act for those shares is an amount less than one-half of the value normally required for acquiring those shares.

The relationship specified by Cabinet Order prescribed in Article 228-3-2 (Report on Economic Benefits Subject to Provision or Similar Transfer by Foreign Parent Companies or Similar Corporations to Officers or Similar Persons in Japan) of the Act is to be the relationship in which a Foreign Corporation directly or indirectly holds shares (limited to those with voting rights, and including capital contributions; the same applies hereinafter in this paragraph) of a number or amount that is 50 percent or more of the total number or total amount of the issued shares (limited to those with voting rights) or capital contributions (hereinafter referred to as "issued shares, etc." in this Article) of a Domestic Corporation. In this case, whether that Foreign Corporation directly or indirectly holds shares of a number or amount that is 50 percent or more of the total number or total amount of the issued shares, etc. of that Domestic Corporation is to be determined on the basis of the sum of the direct shareholding ratio of that Foreign Corporation in that Domestic Corporation (meaning the ratio of the number or amount of shares of that Domestic Corporation held by that Foreign Corporation to the total number or total amount of the issued shares, etc. of that Domestic Corporation) and the indirect shareholding ratio of that Foreign Corporation in that Domestic Corporation (meaning the ratio specified in the relevant item in accordance with the categories of cases listed in the following items (where the case falls under all of the cases listed in the items, the total of the ratios specified in those items)).

where shares of a number or amount that is 50 percent or more of the total number or total amount of the issued shares, etc. of a corporation that is a Shareholder, Member, or Other Investor of that Domestic Corporation are owned by that Foreign Corporation: the ratio of the number or amount of shares of that Domestic Corporation held by that corporation that is a Shareholder, Member, or Other Investor to the total number or total amount of the issued shares, etc. of that Domestic Corporation (where there are two or more corporations that are such Shareholders, Members, or Other Investors, the total of the ratios calculated for each of those two or more corporations);

where one or more corporations that are linked in a chain through the ownership of issued shares, etc. with a corporation that is a Shareholder, Member, or Other Investor of that Domestic Corporation (excluding a corporation that is a Shareholder, Member, or Other Investor referred to in the preceding item and that falls under the case listed in that item) and with that Foreign Corporation (hereinafter in this item referred to as "capital-linked corporations") are interposed between that corporation and that Foreign Corporation (limited to the case where each of the capital-linked corporations and that corporation that is a Shareholder, Member, or Other Investor has shares of a number or amount that is 50 percent or more of the total number or total amount of its issued shares, etc. owned by that Foreign Corporation or a capital-linked corporation (limited to one that has shares of a number or amount that is 50 percent or more of the total number or total amount of its issued shares, etc. owned by that Foreign Corporation or another capital-linked corporation)): the ratio of the number or amount of shares of that Domestic Corporation held by that corporation that is a Shareholder, Member, or Other Investor to the total number or total amount of the issued shares, etc. of that Domestic Corporation (where there are two or more corporations that are such Shareholders, Members, or Other Investors, the total of the ratios calculated for each of those two or more corporations).

The rights specified by Cabinet Order prescribed in Article 228-3-2 of the Act are to be the following rights:

the right to acquire, without consideration or at an advantageous price, shares of the foreign parent company or similar corporation prescribed in Article 228-3-2 of the Act (limited to one that has concluded the contract prescribed in that Article with the officers or similar persons prescribed in that Article; hereinafter referred to as the "foreign parent company or similar corporation" in this paragraph) or shares of a corporation that has a capital relationship with that foreign parent company or similar corporation (meaning a relationship in which one of that foreign parent company or similar corporation and a corporation other than it directly or indirectly holds shares (limited to those with voting rights, and including capital contributions) of a number or amount that is 50 percent or more of the total number or total amount of the issued shares, etc. of the other corporation; the same applies in the following paragraph) (hereinafter collectively referred to as "shares of the foreign parent company, etc." in this paragraph);

the right to receive payment or provision of money or other economic benefits in an amount equivalent to the value of the shares of the foreign parent company, etc. or in an amount equivalent to dividends on those shares of the foreign parent company, etc.;

the right to receive delivery, payment or provision of the shares of the foreign parent company, etc., money or other economic benefits where the value of the shares of the foreign parent company, etc., the performance of the foreign parent company or similar corporation or the numerical value of any other index reaches a standard determined in advance within a certain period.

The provisions of the second sentence of paragraph (1) apply mutatis mutandis to the determination of whether there is a capital relationship.

A person who is to submit the statements and similar reports prescribed in Article 228-4, paragraph (3) (Special Provisions on the Submission of Payment Reports and Related Documents) of the Act and who wishes to obtain approval under that paragraph must submit a written application stating the person's name and domicile or name, location and corporate number, the district director to whom the person intends to provide the required particulars prescribed in paragraph (1) of that Article for those statements and similar reports, and other matters specified by Ministry of Finance Order, to the competent district director prescribed in paragraph (3) of that Article with jurisdiction over the person.

The competent district director set forth in the preceding paragraph is to, where the written application set forth in that paragraph has been submitted and the district director has decided to approve or not to approve the application, notify the person who made the application to that effect in writing.

Where the written application set forth in paragraph (1) has been submitted, if there has been no notice that the application has been approved or has not been approved by the day on which two months elapse from the day of submission of the written application, the approval is deemed to have been granted on that day.

A person who pays to a Resident in Japan salary or other wage, severance pay or other such compensation, or a public pension or retirement package must, when seeking to provide the matters to be stated in the payment slip for salary or other wage, severance pay or other such compensation, or public pension or retirement package prescribed in Article 231, paragraph (2) (Paper-Based Payment Slips for Salary and Other Wages, Severance Pay and Other Such Compensation, and Public Pensions and Retirement Packages) of the Act pursuant to the provisions of the main clause of that paragraph, as provided by Ministry of Finance Order, indicate in advance to the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package the type and content of the electronic or magnetic means to be used, and obtain consent in writing or by electronic or magnetic means.

A person who pays salary or other wage, severance pay or other such compensation, or a public pension or retirement package and who has obtained consent pursuant to the provisions of the preceding paragraph must not, where the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package has notified the payer in writing or by electronic or magnetic means that the person will not receive provision by electronic or magnetic means under the provisions of the main clause of Article 231, paragraph (2) of the Act, provide the matters to be stated in the payment slip for salary or other wage, severance pay or other such compensation, or public pension or retirement package prescribed in that paragraph to the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package by electronic or magnetic means. However, this does not apply where the person who receives payment of that salary or other wage, severance pay or other such compensation, or public pension or retirement package has again given consent pursuant to the provisions of the preceding paragraph.