Order for Enforcement of the Income Tax Act

The cases specified by Cabinet Order prescribed in Article 121, paragraph (1) (When Filing an Income Tax Return Is Not Required) of the Act are cases where a person listed in the following items receives, from the corporation prescribed in item (i) that pertains to that person, in addition to the salary or other wage prescribed in Article 28, paragraph (1) (Salary Income) of the Act, interest on loans pertaining to the business of that corporation or consideration for the use of real property, movables, goodwill, or other assets for that business.

an officer of a corporation that is a family company prescribed in Article 157, paragraph (1), item (i) (Negation of Actions or Calculations by a Family Company) of the Act;

a person who is or was a relative of an officer referred to in the preceding item;

a person who has not yet submitted a notification of marriage with an officer referred to in item (i) but is or was in circumstances similar to a de facto marital relationship with that officer;

a person who maintains a livelihood by means of money or other assets received from an officer referred to in item (i).

A return form pursuant to the provisions of Article 124, paragraph (1) or (2) (Filing a Tax Return If the Person Required to File Has Died) or Article 125, paragraphs (1) through (3) (Filing a Tax Return If the Taxpayer Has Died Partway Through the Year) of the Act must state, in addition to the matters listed in the items of Article 120, paragraph (1) (Filing an Income Tax Return) or the items of Article 122, paragraph (1) (Filing a Return to Receive a Refund) of the Act, the matters specified by Ministry of Finance Order; in this case, the provisions of the second sentence of Article 120, paragraph (1) of the Act apply mutatis mutandis to the return form pursuant to the provisions of Article 124, paragraph (1) or (2) of the Act.

Where the return form under the preceding paragraph is submitted and there are two or more heirs, that return form must be submitted by each heir in a single document bearing their joint signatures; provided, however, that this does not preclude the forms from being submitted separately with the names of the other heirs added.

An heir who has submitted the return form prescribed in the preceding paragraph by the method under the proviso to that paragraph must, without delay, notify the other heirs of the outline of the matters stated in that return form.

The amount specified by Cabinet Order prescribed in Article 120, paragraph (1), item (iv) (Filing an Income Tax Return) of the Act is the amount, out of the amount of income tax withheld pursuant to the provisions of Article 212, paragraph (1) (Obligation to Withhold Taxes) of the Act on the consideration listed in Article 161, paragraph (1), item (vi) (Domestic Source Income) of the Act, that corresponds to the salary or remuneration listed in Article 161, paragraph (1), item (xii), (a) or (c) of the Act for which collection is deemed to have been made pursuant to the provisions of Article 215 (Special Provisions on Withholding from Salary or Other Wages for Personal Services Provided by Nonresidents) of the Act.

The requirements specified by Cabinet Order prescribed in Article 132, paragraph (3), item (iii) (Requirements for Transfers on Deferred Payment Terms) of the Act are that the sum of the amounts of the installments for which the due dates for payment arrive by the date for delivery of the subject matter of the transfer specified in the contract is two-thirds or less of the amount of the consideration for the transfer.

The amount calculated as specified by Cabinet Order prescribed in Article 132, paragraph (4) (Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) of the Act is the amount obtained by deducting the amount listed in item (ii) from the amount listed in item (i).

the amount of income tax listed in Article 120, paragraph (1), item (iii) (Amount of Income Tax Pertaining to Filing Income Tax Returns) of the Act that is stated in the return form prescribed in Article 132, paragraph (1), item (i) of the Act;

the amount of income tax calculated in accordance with the provisions of Part II, Chapter III (Calculation of Tax Amount) of the Act on the amount obtained by deducting, from the taxable gross income, taxable retirement income, and taxable timber income listed in Article 120, paragraph (1), item (i) of the Act that are stated in the return form prescribed in the preceding item, the amount calculated by multiplying the amount of capital gains that was the basis for calculating those amounts (for the portion pertaining to income listed in Article 33, paragraph (3), item (ii) (Capital Gains) of the Act, the amount equivalent to one-half of that amount) or the amount of timber income by the proportion that the amount listed in (b) bears to the amount listed in (a).

the gross revenue pertaining to the capital gains or timber income that was the basis for calculating that taxable gross income or taxable timber income;

the sum of the amounts of the installments prescribed in Article 132, paragraph (4) of the Act.

The amount calculated as specified by Cabinet Order prescribed in Article 135, paragraph (1), item (ii) (Cancelling Deferments for Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) of the Act is the amount obtained by deducting the amount listed in item (ii) from the amount listed in item (i).

the year's taxes after amendment prescribed in Article 135, paragraph (1), item (ii) of the Act;

the amount of income tax calculated in accordance with the provisions of Part II, Chapter III of the Act on the amount obtained by deducting, from the taxable gross income, taxable retirement income, and taxable timber income for that year after the filing or Reassessment prescribed in Article 135, paragraph (1), item (ii) of the Act, the amount calculated by multiplying the amount of capital gains that was the basis for calculating those amounts (for the portion pertaining to income listed in Article 33, paragraph (3), item (ii) of the Act, the amount equivalent to one-half of that amount) or the amount of timber income by the proportion that the amount listed in (b) bears to the amount listed in (a).

the gross revenue pertaining to the capital gains or timber income that was the basis for calculating that taxable gross income or taxable timber income;

the sum of the amounts, after that filing or Reassessment, of the installments prescribed in Article 132, paragraph (4) of the Act.

Where the amount of income tax listed in paragraph (1), item (ii) or in item (ii) of the preceding paragraph is calculated, the following provisions apply to the deductions provided for in those provisions.

the amount pertaining to capital gains that is to be deducted is deducted sequentially from the taxable gross income, taxable timber income, or taxable retirement income;

the amount pertaining to timber income that is to be deducted is deducted sequentially from the taxable timber income, taxable gross income, or taxable retirement income;

the proportion prescribed in paragraph (1), item (ii) or in item (ii) of the preceding paragraph is calculated to two decimal places, with the third and subsequent decimal places rounded up.