第二百二十一条の四（国外事業所等に帰せられるべき純資産に対応する負債の利子）
Of the amount of interest on liabilities (including discount charges on bills and other things whose economic nature is equivalent to interest; the same applies in the following paragraph) pertaining to business that a Resident carries on through a foreign office or similar establishment in each year, if the amount of net assets pertaining to that foreign office or similar establishment (meaning the remainder obtained by deducting the amount calculated by a reasonable method as the average balance of the book value of liabilities pertaining to that foreign office or similar establishment for that year from the amount calculated by a reasonable method as the average balance of the book value of assets pertaining to that foreign office or similar establishment for that year) falls short of the amount of net assets to be attributed to that foreign office or similar establishment, the amount of the portion corresponding to the amount of that shortfall is not to be included in necessary expenses in calculating the amount of income pertaining to income attributable to a foreign office or similar establishment of that Resident for that year.
居住者の各年の国外事業所等を通じて行う事業に係る負債の利子（手形の割引料その他経済的な性質が利子に準ずるものを含む。次項において同じ。）の額のうち、当該国外事業所等に係る純資産の額（その年分の当該国外事業所等に係る資産の帳簿価額の平均的な残高として合理的な方法により計算した金額からその年分の当該国外事業所等に係る負債の帳簿価額の平均的な残高として合理的な方法により計算した金額を控除した残額をいう。）が当該国外事業所等に帰せられるべき純資産の額に満たない場合におけるその満たない金額に対応する部分の金額は、その居住者のその年分の国外事業所等帰属所得に係る所得の金額の計算上、必要経費に算入しない。
The amount of interest on liabilities prescribed in the preceding paragraph is to be the sum of the following amounts:
前項に規定する負債の利子の額は、次に掲げる金額の合計額とする。
the amount of interest on liabilities pertaining to business carried on through a foreign office or similar establishment (excluding the amounts listed in the following item and item (iii));
the amount that is to fall under interest paid, in an internal dealing, from the Resident's foreign office or similar establishment to the Resident's place of business or similar place;
of the amount of common expenses prescribed in paragraph (6) of the preceding Article, the amount of interest on liabilities included in the amount allocated pursuant to that paragraph as necessary expenses in calculating the amount of income pertaining to income attributable to a foreign office or similar establishment.
前条第六項に規定する共通費用の額のうち同項の規定により国外事業所等帰属所得に係る所得の金額の計算上の必要経費として配分した金額に含まれる負債の利子の額
The amount of net assets to be attributed to a foreign office or similar establishment prescribed in paragraph (1) is to be the amount calculated by any of the following methods:
the capital allocation method (meaning a method of treating, as the net assets to be attributed to a foreign office or similar establishment, the amount calculated by multiplying the remainder for the Resident obtained by deducting the amount listed in (b) from the amount listed in (a), by the ratio of the amount listed in (c) to the amount listed in (d));
資本配賦法（居住者のイに掲げる金額からロに掲げる金額を控除した残額に、ハに掲げる金額のニに掲げる金額に対する割合を乗じて計算した金額をもつて国外事業所等に帰せられるべき純資産の額とする方法をいう。）
the amount calculated by a reasonable method as the average balance of the book value of that Resident's total assets for that year;
当該居住者のその年の総資産の帳簿価額の平均的な残高として合理的な方法により計算した金額
the amount calculated by a reasonable method as the average balance of the book value of that Resident's total liabilities for that year;
当該居住者のその年の総負債の帳簿価額の平均的な残高として合理的な方法により計算した金額
the amount calculated, with respect to the amount of assets to be attributed to that foreign office or similar establishment as of December 31 of that year of that Resident (or, if that person dies or has an Absence From Japan in the course of that year, at the time of that death or Absence From Japan; the same applies hereinafter in this paragraph, the following paragraph and paragraph (6)), by taking into account the risk that may arise (hereinafter in this paragraph and the following paragraph referred to as the "risk that may arise") for reasons specified by Ministry of Finance Order, such as nonperformance of a contract by the counterparty to a transaction;
the amount calculated by taking into account the risk that may arise with respect to the amount of total assets of that Resident as of December 31 of that year;
当該居住者のその年十二月三十一日における総資産の額について、発生し得る危険を勘案して計算した金額
the comparable individual method (meaning a method of treating, as the net assets to be attributed to a foreign office or similar establishment, the amount calculated by multiplying the amount calculated by taking into account the risk that may arise with respect to the amount of assets to be attributed to the foreign office or similar establishment of the Resident as of December 31 of that year, by the ratio of the amount listed in (a) to the amount listed in (b)):
the amount of net assets of a comparable individual (meaning an individual who carries on, in the country or region where the foreign office is located (meaning the country or region where that foreign office or similar establishment is located; the same applies hereinafter in this item and paragraph (6), item (ii)), a business of the same kind as the principal business that the Resident carries on through the Resident's foreign office or similar establishment (limited, where that individual is an individual other than one who has a domicile or residence in the country or region where the foreign office is located, to one who carries on that same kind of business through a foreign office or similar establishment in the country or region where the foreign office is located), and whose business scale and other circumstances relating to that same kind of business are similar; the same applies hereinafter in this item and item (ii) of that paragraph) that are recorded on the balance sheet as of December 31 of any one of the years within the three years up to and including the year preceding that year (excluding a year that falls under a case specified by Ministry of Finance Order as one in which the ratio of the net assets to the total assets of that comparable individual is significantly higher than that ratio of an individual who carries on that same kind of business; hereinafter in this item and item (ii) of that paragraph referred to as a "comparison year") (or, where that comparable individual is an individual other than one who has a domicile or residence in the country or region where the foreign office is located, the amount of net assets pertaining to that individual's foreign office or similar establishment (limited to one located in the country or region where the foreign office is located));
比較対象者（当該居住者の国外事業所等を通じて行う主たる事業と同種の事業を国外事業所等所在地国（当該国外事業所等が所在する国又は地域をいう。以下この号及び第六項第二号において同じ。）において行う個人（当該個人が国外事業所等所在地国に住所又は居所を有する個人以外の個人である場合には、当該国外事業所等所在地国の国外事業所等を通じて当該同種の事業を行うものに限る。）で、その同種の事業に係る事業規模その他の状況が類似するものをいう。以下この号及び同項第二号において同じ。）のその年の前年以前三年内の各年のうちいずれかの年（当該比較対象者の純資産の額の総資産の額に対する割合が当該同種の事業を行う個人の当該割合に比して著しく高い場合として財務省令で定める場合に該当する年を除く。以下この号及び同項第二号において「比較対象年」という。）の十二月三十一日において貸借対照表に計上されている当該比較対象者の純資産の額（当該比較対象者が国外事業所等所在地国に住所又は居所を有する個人以外の個人である場合には、当該個人の国外事業所等（当該国外事業所等所在地国に所在するものに限る。）に係る純資産の額）
the amount calculated by taking into account the risk that may arise with respect to the amount of total assets of the comparable individual as of December 31 of the comparison year (or, where that comparable individual is an individual other than one who has a domicile or residence in the country or region where the foreign office is located, the amount of assets pertaining to that individual's foreign office or similar establishment (limited to one located in the country or region where the foreign office is located)).
比較対象者の比較対象年の十二月三十一日における総資産の額（当該比較対象者が国外事業所等所在地国に住所又は居所を有する個人以外の個人である場合には、当該個人の国外事業所等（当該国外事業所等所在地国に所在するものに限る。）に係る資産の額）について、発生し得る危険を勘案して計算した金額
Where, with respect to the amount listed in item (i), (c) or (d) of the preceding paragraph, or the amount calculated by taking into account the risk that may arise with respect to the amount of assets to be attributed to the foreign office or similar establishment of the Resident as of December 31 of that year prescribed in item (ii) of that paragraph (hereinafter in this paragraph and the following paragraph referred to as "risk-weighted assets"), it is found that, due to the characteristics or scale of the business carried on by the Resident or other circumstances, the Resident is habitually in a situation where it is difficult to calculate those risk-weighted assets by the Filing Deadline for each of that year and subsequent years, the amount calculated by taking into account the risk that may arise with respect to the amount of assets to be attributed to the foreign office or similar establishment of the Resident prescribed in item (i), (c) of the preceding paragraph or item (ii) of that paragraph, or the amount of total assets of the Resident prescribed in item (i), (d) of that paragraph, as of a certain date between July 1 and December 31 of that year may be treated as those risk-weighted assets.
前項第一号ハ若しくはニに掲げる金額又は同項第二号に規定する居住者のその年十二月三十一日における国外事業所等に帰せられる資産の額について発生し得る危険を勘案して計算した金額（以下この項及び次項において「危険勘案資産額」という。）に関し、居住者の行う事業の特性、規模その他の事情により、その年分以後の各年分の確定申告期限までに当該危険勘案資産額を計算することが困難な常況にあると認められる場合には、その年七月一日から十二月三十一日までの間の一定の日における前項第一号ハ若しくは同項第二号に規定する居住者の国外事業所等に帰せられる資産の額又は同項第一号ニに規定する居住者の総資産の額について発生し得る危険を勘案して計算した金額をもつて当該危険勘案資産額とすることができる。
The provisions of the preceding paragraph apply only where, by March 15 of the year following the first year in which the Resident seeks to receive the application of that paragraph, the Resident has submitted to the competent district director with jurisdiction over the place for tax payment a written notice stating the reasons for which it is difficult to calculate risk-weighted assets by the Filing Deadline prescribed in that paragraph, the certain date prescribed in that paragraph and other matters specified by Ministry of Finance Order.
A Resident prescribed in the items of paragraph (3) may, notwithstanding that paragraph, make the method provided for in item (i) of that paragraph the method listed in item (i), and the method provided for in item (ii) of that paragraph the method listed in item (ii).
the simplified capital allocation method (meaning a method of calculating by multiplying the remainder obtained by deducting the amount listed in paragraph (3), item (i), (b) from the amount listed in item (i), (a) of that paragraph, by the ratio of the amount listed in (a) below to the amount listed in (b) below):
the book value of assets to be attributed to that foreign office or similar establishment of that Resident as of December 31 of that year;
当該居住者のその年十二月三十一日における当該国外事業所等に帰せられる資産の帳簿価額
the book value of total assets recorded on the balance sheet of that Resident as of December 31 of that year;
当該居住者のその年十二月三十一日において貸借対照表に計上されている総資産の帳簿価額
the book value asset-to-capital ratio comparison method (meaning a method of calculating by multiplying the amount calculated by a reasonable method as the average balance of the book value of assets to be attributed to the Resident's foreign office or similar establishment for that year, by the ratio of the amount listed in (a) to the amount listed in (b)):
簿価資産資本比率比準法（当該居住者のその年の国外事業所等に帰せられる資産の帳簿価額の平均的な残高として合理的な方法により計算した金額に、イに掲げる金額のロに掲げる金額に対する割合を乗じて計算する方法をいう。）
the amount of net assets of the comparable individual recorded on the balance sheet as of December 31 of the comparison year (or, where that comparable individual is an individual other than one who has a domicile or residence in the country or region where the foreign office is located, the amount of net assets pertaining to that individual's foreign office or similar establishment (limited to one located in the country or region where the foreign office is located));
比較対象者の比較対象年の十二月三十一日において貸借対照表に計上されている純資産の額（当該比較対象者が国外事業所等所在地国に住所又は居所を有する個人以外の個人である場合には、当該個人の国外事業所等（当該国外事業所等所在地国に所在するものに限る。）に係る純資産の額）
the amount of total assets of the comparable individual recorded on the balance sheet as of December 31 of the comparison year (or, where that comparable individual is an individual other than one who has a domicile or residence in the country or region where the foreign office is located, the amount of assets pertaining to that individual's foreign office or similar establishment (limited to one located in the country or region where the foreign office is located)).
比較対象者の比較対象年の十二月三十一日において貸借対照表に計上されている総資産の額（当該比較対象者が国外事業所等所在地国に住所又は居所を有する個人以外の個人である場合には、当該個人の国外事業所等（当該国外事業所等所在地国に所在するものに限る。）に係る資産の額）
Where a Resident who calculated, by the capital allocation method, etc. (meaning the method listed in paragraph (3), item (i) or item (i) of the preceding paragraph; the same applies hereinafter in this paragraph), the amount of net assets to be attributed to a foreign office or similar establishment for the year preceding that year (meaning the amount of net assets to be attributed to a foreign office or similar establishment prescribed in paragraph (1); the same applies hereinafter in this paragraph) calculates the amount of net assets to be attributed to that foreign office or similar establishment for that year, the Resident may calculate it by the comparable individual method, etc. (meaning the method listed in paragraph (3), item (ii) or item (ii) of the preceding paragraph; the same applies hereinafter in this paragraph) only where there is a change in the type of business that the Resident carries on through that foreign office or similar establishment or any other similar circumstance, and where a Resident who calculated the amount of net assets to be attributed to a foreign office or similar establishment for the year preceding that year by the comparable individual method, etc. calculates the amount of net assets to be attributed to that foreign office or similar establishment for that year, the Resident may calculate it by the capital allocation method, etc. only where there is a change in the type of business that the Resident carries on through that foreign office or similar establishment or any other similar circumstance.
その年の前年分の国外事業所等に帰せられるべき純資産の額（第一項に規定する国外事業所等に帰せられるべき純資産の額をいう。以下この項において同じ。）を資本配賦法等（第三項第一号又は前項第一号に掲げる方法をいう。以下この項において同じ。）により計算した居住者がその年分の当該国外事業所等に帰せられるべき純資産の額を計算する場合には、当該居住者の当該国外事業所等を通じて行う事業の種類の変更その他これに類する事情がある場合に限り同業個人比準法等（第三項第二号又は前項第二号に掲げる方法をいう。以下この項において同じ。）により計算することができるものとし、その年の前年分の国外事業所等に帰せられるべき純資産の額を同業個人比準法等により計算した居住者がその年分の当該国外事業所等に帰せられるべき純資産の額を計算する場合には、当該居住者の当該国外事業所等を通じて行う事業の種類の変更その他これに類する事情がある場合に限り資本配賦法等により計算することができるものとする。
The amount of the portion corresponding to the shortfall prescribed in paragraph (1) is to be the amount calculated by multiplying the amount of interest on liabilities prescribed in that paragraph by the ratio of the remainder obtained by deducting the amount listed in item (i) from the amount of net assets to be attributed to the foreign office or similar establishment prescribed in that paragraph (or, if that remainder exceeds the amount listed in item (ii), the amount listed in item (ii)) to the amount listed in item (ii).
the amount of net assets prescribed in paragraph (1) pertaining to that foreign office or similar establishment of that Resident for that year;
the amount calculated by a reasonable method as the average balance of the book value of liabilities to be attributed to that foreign office or similar establishment of that Resident for that year (limited to those that are the cause of payment of the interest prescribed in paragraph (1) and others pertaining to the raising of funds).
The book value referred to in paragraph (1) and paragraph (3), item (i) is to be the amount of assets or liabilities that the Resident has entered in the Resident's accounting books.
The provisions of paragraph (1) apply only where a document stating the amount not included in necessary expenses pursuant to that paragraph and particulars of its calculation is attached to the Tax Return, Amended Return or written request for Reassessment, and where documents specified by Ministry of Finance Order, such as a document stating the matters forming the basis of the calculation of the amount of net assets to be attributed to a foreign office or similar establishment, are retained.
Even where the documents referred to in the preceding paragraph have not been retained for all or part of the amount not included in necessary expenses pursuant to paragraph (1), if the district director finds that there were unavoidable circumstances for the failure to retain those documents, the district director may apply the provisions of paragraph (1) only where those documents have been submitted.
foreign office or similar establishmentmachine translation
「国外事業所等」
A resident's permanent establishment abroad, or something else of a kind a Cabinet Order (政令) specifies, through which the resident carries on business outside Japan.
Defined inArticle 221-3, paragraph (1)· applies only in this provision and in Articles 221-3 to 221-5
income attributable to a foreign office or similar establishmentmachine translation
「国外事業所等帰属所得」
In Articles 221-3 to 221-5, the foreign source income listed in Article 95, paragraph (4), item (i) of the Income Tax Act — the income that ought to be attributed to a resident's foreign office or similar establishment; its amount is what the taxable base would be if only the income from business carried on through that office were taxed.
Short name set inArticle 221-3, paragraph (1)· applies only in this provision and in Articles 221-3 to 221-5
internal dealingmachine translation
「内部取引」
A transfer of assets, provision of services or other dealing between a resident's foreign office or similar establishment (国外事業所等) and the resident's other places of business that would count as a sale, purchase or other transaction if the two were independent businesses, as Article 95, paragraphs (4) and (5) of the Income Tax Act describe it.
Defined inArticle 221-3, paragraph (3)· applies only in this article and in Article 221-4, paragraph (2); and Article 221-5
place of business or similar placemachine translation
「事業場等」
A resident's place of business or similar place, as defined in Article 95, paragraph (4), item (i) of the Income Tax Act, other than the resident's foreign office or similar establishment (国外事業所等).
Defined inArticle 221-3, paragraph (4)· applies only in this provision and in Article 221-3, paragraph (5); Article 221-4, paragraph (2); and Article 221-5
amount of common expensesmachine translation
「共通費用の額」
The selling, general and administrative and other expenses counted as necessary expenses that arose in connection both with the business producing the income the paragraph singles out and with other business, which must be shared out between them on a reasonable basis such as revenue, asset values or number of employees.
Short name set inArticle 221-3, paragraph (6)· applies only in this paragraph and in Article 221-3, paragraph (7)
risk that may arisemachine translation
「発生し得る危険」
The risk that may arise, from a counterparty's failure to perform a contract or another reason an Order of the Ministry of Finance (財務省令) sets, which is taken into account in calculating the assets attributable to a resident's office or similar place outside Japan (国外事業所等) and the resident's total assets at the end of the year.
Short name set inArticle 221-4, paragraph (3), item (i), (c)· applies only in this paragraph and in Article 221-4, paragraph (4)
country or region where the foreign office is locatedmachine translation
「国外事業所等所在地国」
The country or region in which a resident's foreign office or similar establishment (国外事業所等) is located.
Defined inArticle 221-4, paragraph (3), item (ii), (a)· applies only in this item and in Article 221-4, paragraph (6), item (ii)
comparison yearmachine translation
「比較対象年」
In Article 221-4, paragraph (3), item (ii) and paragraph (6), item (ii), any one of the three years before the year in question for a comparable individual (比較対象者), other than a year in which that individual's ratio of net assets to total assets is markedly high in the way a Ministry of Finance Order (財務省令) specifies.
Short name set inArticle 221-4, paragraph (3), item (ii), (a)· applies only in this item and in Article 221-4, paragraph (6), item (ii)
comparable individualmachine translation
「比較対象者」
In Article 221-4, paragraph (3), item (ii) and paragraph (6), item (ii), an individual who carries on, in the country or region where a resident's overseas office or other establishment (国外事業所等) is located, the same kind of business as the main business the resident carries on through it, on a similar scale and in similar circumstances; one who does not live there counts only if doing so through an establishment there.
Defined inArticle 221-4, paragraph (3), item (ii), (a)· applies only in this item and in Article 221-4, paragraph (6), item (ii)
risk-weighted assetsmachine translation
「危険勘案資産額」
An amount worked out by taking into account the risks that may arise on the assets attributable on 31 December to a resident's foreign office or similar establishment, or to a nonresident's permanent establishment, or on total assets, as the paragraph concerns; where the business makes it regularly hard to work out by the filing deadline, it may be worked out as at a set day between 1 July and 31 December.
Short name set inArticle 221-4, paragraph (4)· applies only in this paragraph and in Article 221-4, paragraph (5)
comparable individual method, etc.machine translation
「同業個人比準法等」
In Article 221-4, paragraph (7), the comparable individual method (同業個人比準法) of paragraph (3), item (ii) or the book-value asset-to-capital ratio method (簿価資産資本比率比準法) of paragraph (6), item (ii), for calculating the net assets to be attributed to a resident's foreign office; a resident may switch between these and the capital allocation methods (資本配賦法等) from one year to the next only on a change in the kind of business or similar circumstances.
Defined inArticle 221-4, paragraph (7)· applies only in this paragraph
net assets to be attributed to a foreign office or similar establishmentmachine translation
「国外事業所等に帰せられるべき純資産の額」
In Article 221-4, paragraph (7), the net assets that ought to be attributed to a resident's foreign office or similar establishment, as paragraph (1) of that Article refers to them and paragraph (3) has them calculated; a resident may change the kind of method used for them from the previous year only on a change in the kind of business or similar circumstances.
Defined inArticle 221-4, paragraph (7)· applies only in this paragraph
capital allocation method, etc.machine translation
「資本配賦法等」
The capital allocation method (資本配賦法) or the simplified capital allocation method (資本配賦簡便法): ways of working out the net assets attributable to a Resident's business office abroad by taking a share of the Resident's own net assets in proportion to the office's assets, as paragraph (3), item (i) and paragraph (6), item (i) of Article 221-4 set them out.
Defined inArticle 221-4, paragraph (7)· applies only in this paragraph
district director
税務署長
The head of a tax office (税務署), the local office of the National Tax Agency that deals with taxpayers in its district (Act for Establishment of the Ministry of Finance, Article 24). It is the office a person usually deals with: an income tax return is filed with a district director (Income Tax Act, Article 120, paragraph (1)), and reassessments, determinations and the collection of national tax are done by the district director for the taxpayer's current place for tax payment (Act on General Rules for National Taxes, Articles 30 and 43). A person who objects to what a district director has decided can ask that director to look at it again (再調査の請求) or go straight to the National Tax Tribunal (Article 75, paragraph (1), item (i)) — unless the notice of the decision says officials of a Regional Taxation Bureau or of the National Tax Agency investigated, in which case it counts as the regional commissioner's decision, with the same choice, or as the Commissioner of the National Tax Agency's, which can only be challenged by a request for review to the Commissioner (Article 75, paragraph (2)).
Written by AI using Act for Establishment of the Ministry of Finance, Art. 24, Act on General Rules for National Taxes, Arts. 30, 43, 75 and Income Tax Act, Art. 120 as a reference.