Article 292-9Amount of Foreign Income Tax Not Subject to Foreign Tax Credit

一the amount of foreign income tax imposed in the country or region in which the Nonresident has a domicile, has a residence for more than a certain period, or has nationality or anything similar thereto (hereinafter referred to as the "country of residence" in this paragraph) by reason of having that domicile, residence, or nationality or anything similar thereto (excluding the amount of foreign income tax imposed, by a method similar to withholding, on the basis of the amount of interest, dividends, or anything similar thereto that the Nonresident is to receive as the tax base, which, under the provisions of the laws and regulations of that country of residence or the provisions of a tax treaty prescribed in Article 2, paragraph (1), item (viii)-4, proviso (Definitions) of the Act (referred to as "tax treaty" in the following item), is not to be deducted from the amount of foreign income tax, other than that foreign income tax, imposed on that Nonresident in that country of residence);

二of the amount of foreign income tax imposed in a country or region other than the country of residence of the Nonresident, the amount equivalent to the portion exceeding the amount that could be imposed in that country or region, or the amount equivalent to the amount that is to be exempted, by the application of the provisions of the tax treaty on the reduction or exemption of foreign income tax on that income, if the provisions of the tax treaty between Japan and that country or region were to apply to the income forming the tax base of that foreign income tax, or, if the income forming the tax base of that foreign income tax were treated as the income of a Resident and that foreign income tax were imposed on that income, the amount equivalent to the portion that would be reduced, or the amount equivalent to the amount that would be exempted, in a foreign country (meaning a foreign country prescribed in Article 2, item (iii) (Definitions) of the Act on Exemption, etc. of Income Tax, etc. on Income of Foreign Residents, etc. Based on the Principle of Reciprocity, excluding that foreign country in a case that does not fall under any of the items of Article 5 (Principle of Reciprocity) of that Act; the same applies hereinafter in this item) under conditions equivalent to the conditions under which income tax is reduced or not imposed, pursuant to the provisions on exemption, etc. of income tax, etc. prescribed in Article 5, item (i) of that Act, on the covered domestic source income prescribed in Article 5, item (i) of that Act of a foreign Resident, etc. prescribed in Article 2, item (iii) of that Act relating to that foreign country.