Article 226-2Special Provisions on Foreign Tax Credits Related to the Special Provisions on Capital Gains and Similar Income upon Departure from Japan

①The amount calculated as specified by Cabinet Order prescribed in Article 95-2, paragraph (1) (Special Provisions on Foreign Tax Credits Related to the Special Provisions on Capital Gains and Similar Income upon Departure from Japan) of the Act (including where applied mutatis mutandis pursuant to paragraph (2) of that Article; the same applies hereinafter in this Article) is to be the amount obtained by deducting, from the amount of foreign income tax imposed on income for the period that forms the basis for calculating the tax base of that foreign income tax under the provisions of laws and regulations relating to foreign income tax (meaning foreign income tax prescribed in Article 95-2, paragraph (1) of the Act; the same applies hereinafter in this paragraph) imposed on income arising from the transfer (meaning the transfer prescribed in Article 60-2, paragraph (4) of the Act; the same applies in item (ii) and paragraph (4)) or settlement of Securities and similar interests (meaning Securities and similar interests prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains upon Departure from Japan) of the Act; the same applies in paragraphs (4) and (5)) or of contracts pertaining to an unsettled margin transaction or similar transaction prescribed in paragraph (2) of that Article or an unsettled derivatives transaction prescribed in paragraph (3) of that Article (hereinafter in this paragraph and the following paragraph referred to as "covered assets"), or the transfer thereof by way of gift or inheritance with limited liability (meaning gift or inheritance with limited liability prescribed in paragraph (8) of that Article; the same applies in paragraph (4)) (hereinafter in this paragraph referred to as "transfer, etc."), the amount of foreign income tax imposed on income for that period on the assumption that there were no income arising from the transfer, etc. of those covered assets (excluding income falling under the domestic source income specified in each item of Article 164, paragraph (1) (How Nonresidents Are Taxed) of the Act according to the category of Nonresident listed in those items) (or, in a case listed in the following items, the amount specified in the relevant item according to the category of case listed in that item).

②In calculating the maximum credit prescribed in Article 95, paragraph (1) (Foreign Tax Credit) of the Act for the year that includes the date of departure from Japan (meaning departure from Japan prescribed in Article 60-2, paragraph (1) of the Act; the same applies in paragraph (4)) where the provisions of Article 95-2, paragraph (1) of the Act apply, income arising from the transfer or settlement of covered assets deemed to have been carried out under the provisions of Article 60-2, paragraphs (1) through (3) of the Act (including where those provisions are applied by replacing terms pursuant to paragraph (8) of that Article (including where applied mutatis mutandis pursuant to paragraph (9) of that Article)) is treated as falling under the foreign source income listed in the items of Article 221-2 (Amount of Foreign-Source Income), and the provisions of that Article apply.

③The provisions of Article 60-2, paragraph (11) of the Act apply mutatis mutandis to the application of Article 95-2, paragraph (1) of the Act.

④The provisions of Article 170, paragraph (8) (Special Provisions on Capital Gains upon Departure from Japan) apply mutatis mutandis to the determination of whether, where an individual (including the individual's heir) who receives the application of Article 95-2, paragraph (1) of the Act with respect to the income tax for the year that includes the date of departure from Japan has, after the time of that departure from Japan, transferred Securities and similar interests or transferred them by way of gift or inheritance with limited liability, the Securities and similar interests so transferred fall under the Securities and similar interests that the person held at the time of that departure from Japan.

⑤The provisions of Article 170, paragraph (9) apply mutatis mutandis to the portion of the former Securities and similar interests that gave rise to the acquisition of the acquired Securities, etc., in the case where, with respect to Securities and similar interests held by the individual prescribed in the preceding paragraph (hereinafter in this paragraph referred to as "former Securities and similar interests"), a cause listed in the items of Article 60-2, paragraph (11) of the Act as applied mutatis mutandis in paragraph (3) has arisen, and the Securities and similar interests acquired by reason of that cause (hereinafter in this paragraph referred to as "acquired Securities, etc.") are deemed under paragraph (11) of that Article to have continued to be owned.