Regulation for Enforcement of the Income Tax Act

The places specified by Ministry of Finance Order as prescribed in Article 45, paragraph (3), item (i), (b) (Exclusion of Household-Related Expenses from Necessary Expenses) of the Act are the location of the place of domicile or place of residence of the Resident referred to in (b) of that item, or of the office or place of business relating to the business that the Resident carries on, the place where business that generates miscellaneous income is conducted, or any other place equivalent thereto.

The matters specified by Ministry of Finance Order as prescribed in Article 99-2, paragraph (2) (Special Methods of Valuing Inventory) of the Order are the name and domicile (or residence, if there is no domicile in Japan; the same applies hereinafter in this Subsection and Subsection 2) of the person who submits the written application prescribed in that paragraph, and any other matters for reference.

The matters specified by Ministry of Finance Order as prescribed in Article 101, paragraph (2) (Procedures for Changing the Method of Valuing Inventory) of the Order are the following matters.

the name and domicile of the person who submits the written application prescribed in Article 101, paragraph (2) of the Order;

the type of business for which the method of valuation is to be changed, and the classification of Inventory such as goods or products (excluding by-products and scrap), semi-finished goods, work in process (including partially completed construction), principal raw materials, auxiliary raw materials and other Inventory;

the method of valuation currently in use and the date on which that method of valuation was adopted;

the new method of valuation to be adopted;

any other matters for reference.

The relationship specified by Ministry of Finance Order as prescribed in Article 112, paragraph (1) (Acquisition Price of Shares, etc. Acquired Through a Merger) of the Order is, in the case where, immediately before a merger, there is, between the merging corporation prescribed in Article 2, item (xii) (Definitions) of the Corporation Tax Act pertaining to that merger and a corporation other than that merging corporation, a full controlling interest held by that corporation (meaning the full controlling interest prescribed in item (xii)-7-6 of that Article; the same applies hereinafter in this Article and the following Article), that full controlling interest.

The relationship specified by Ministry of Finance Order as prescribed in Article 113, paragraph (1) (Acquisition Price of Shares, etc. Acquired Through a Split-Type Company Split) of the Order is, in the case where, immediately before a split-type company split prescribed in Article 2, item (xii)-9 (Definitions) of the Corporation Tax Act, there is, between the succeeding corporation in a company split prescribed in item (xii)-3 of that Article pertaining to that split-type company split and a corporation other than that succeeding corporation, a full controlling interest held by that corporation, that full controlling interest.

A transaction in which Securities prescribed in Article 119 (Acquisition Price of Shares or Public and Corporate Bonds Through Margin Transactions, etc.) of the Order are bought and sold before those Securities are issued, and which is specified by Ministry of Finance Order, is a when-issued transaction prescribed in Article 1, paragraph (2) (Definitions) of the Cabinet Office Order on Transactions Prescribed in Article 161-2 of the Financial Instruments and Exchange Act and Their Margin (Ministry of Finance Order No. 75 of 1953).

The matters specified by Ministry of Finance Order as prescribed in Article 120-3, paragraph (2) (Special Methods of Depreciation of Depreciable Assets) of the Order are the following matters.

the name and domicile of the person who submits the written application prescribed in Article 120-3, paragraph (2) of the Order;

which of the depreciation methods listed in (a) or (b) of each item of Article 132, paragraph (1) (Special Provisions on Depreciation Allowance for Depreciable Assets, etc. Put into Use for Business in the Middle of the Year) of the Order the depreciation method that is intended to be adopted is similar to;

any other matters for reference.

The replacement assets specified by Ministry of Finance Order as prescribed in Article 121, paragraph (3) (Meaning of Replacement Assets) of the Order are the following assets.

among structures belonging to railway facilities or tramway facilities: rails and their accessories, sleepers, switches, bonds, signals, communication lines, signal lines, electric lighting and power lines, power transmission and distribution lines, feeder lines, trolley lines, third rails, and wire supports (excluding steel poles, steel towers, concrete poles and concrete towers);

among structures belonging to power transmission facilities: wooden poles, insulators, power transmission lines, ground wires and attached telephone lines;

among structures belonging to power distribution facilities: wooden poles, power distribution lines, service lines and attached telephone lines;

among machinery and equipment belonging to power distribution facilities for the electric utility business: meters, pole transformers, protective switching devices, power capacitors and indoor wiring;

among machinery and equipment belonging to facilities for the production of gas or coke and facilities for the supply of gas: cast iron gas conduits (limited to those with a diameter of 20.32 centimeters or less), steel gas conduits and gas meters for consumers.

The matters specified by Ministry of Finance Order as prescribed in Article 121, paragraph (4) (Special Provisions on the Method of Depreciation of Replacement Assets) of the Order are the following matters.

the name and domicile of the person who submits the written application prescribed in Article 121, paragraph (4) of the Order;

the quantity, the total amount of the acquisition price and the total amount of the value after depreciation, for each type of Depreciable Asset to which the person intends to have Article 121, paragraph (1) of the Order applied, expected on January 1 of the year in which the person intends to adopt the replacement method prescribed in Article 121, paragraph (2) of the Order (or, if the person has started a business that generates business income in the middle of the year, on the date of the start; the same applies in Article 27 (Matters to Be Stated in a Written Application for Certification of a Special Depreciation Rate));

any other matters for reference.

The matters specified by Ministry of Finance Order as prescribed in Article 121-2, paragraph (2) (Special Provisions on the Method of Depreciation of Lease-Rented Assets) of the Order are the following matters.

the name and domicile of the person who submits the written notification prescribed in Article 121-2, paragraph (2) of the Order;

the total amount of the revised acquisition price prescribed in Article 121-2, paragraph (3) of the Order, for each type of asset (meaning the type of asset prescribed in Article 121-2, paragraph (2) of the Order) for which the person intends to adopt the old lease-period straight-line method prescribed in Article 121-2, paragraph (1) of the Order;

any other matters for reference.

The things specified by Ministry of Finance Order as prescribed in Article 122, paragraph (1) (Method of Depreciation Using a Special Depreciation Rate) of the Order are the following Depreciable Assets.

copper rolls for textile printing;

motion picture films (limited to those shown in sequence at two or more permanent theaters);

rolls for rolling nonferrous metals (excluding rolls for rolling electric wire);

dies and other tools used for the production of products whose models, etc. are changed in a short period and whose production period is fixed in advance on the basis of a production plan, which are extremely difficult to use for the production of products other than those products;

fishing nets, metals commonly used for printing type, and things similar to the assets listed in the preceding items.

The matters specified by Ministry of Finance Order as prescribed in Article 122, paragraph (2) (Method of Depreciation Using a Special Depreciation Rate) of the Order are the following matters.

the name and domicile of the person who submits the written application prescribed in Article 122, paragraph (2) of the Order;

the quantity, the total amount of the acquisition price and the total amount of the value after depreciation, for each type of Depreciable Asset to which the person intends to have Article 122, paragraph (1) of the Order applied, as of January 1 of the year that includes the date on which the written application referred to in the preceding item is submitted;

the depreciation rate for which the person intends to obtain the certification referred to in Article 122, paragraph (1) of the Order;

any other matters for reference.

The categories specified by Ministry of Finance Order as prescribed in Article 123, paragraph (1) (Selection of the Method of Depreciation of Depreciable Assets) of the Order are the categories of types specified in each of the following items according to the category of Depreciable Asset listed in those items.

among Depreciable Assets other than machinery and equipment, those to which Appended Table I (Table of Useful Lives of Tangible Depreciable Assets Other Than Machinery and Equipment) of the Ministerial Order on the Useful Life, etc. of Depreciable Assets (Ministry of Finance Order No. 15 of 1965; hereinafter referred to as the "Useful Life Order" in this Article through Article 33 (Depreciation Allowance for Depreciable Assets of the Same Type, etc.)) applies: the types prescribed in that table;

among machinery and equipment, those to which Appended Table II (Table of Useful Lives of Machinery and Equipment) of the Useful Life Order applies: the types of equipment prescribed in that table;

among Depreciable Assets used for wastewater treatment or smoke and soot treatment prescribed in Article 2, item (i) (Useful Lives of Special Depreciable Assets) of the Useful Life Order, those to which Appended Table V (Table of Useful Lives of Depreciable Assets for Pollution Prevention) of the Useful Life Order applies: the types prescribed in that table;

among Depreciable Assets used for development research prescribed in Article 2, item (ii) of the Useful Life Order, those to which Appended Table VI (Table of Useful Lives of Depreciable Assets for Development Research) of the Useful Life Order applies: the types prescribed in that table;

mine shafts, mining rights listed in Article 6, item (viii), (a) (Scope of Depreciable Assets) of the Order (excluding those listed in the following item), and storage rights: the types of equipment prescribed in Appended Table II of the Useful Life Order that relate to those mine shafts, mining rights and storage rights;

test-drilling rights: the type of equipment prescribed in Appended Table II of the Useful Life Order that relates to those test-drilling rights.

The matters specified by Ministry of Finance Order as prescribed in Article 124, paragraph (2) (Procedures for Changing the Method of Depreciation of Depreciable Assets) of the Order are the following matters.

the name and domicile of the person who submits the written application prescribed in Article 124, paragraph (2) of the Order;

the classification of the type and structure or use, detail, or type of equipment of the Depreciable Asset whose method of depreciation is to be changed (in the case where a Resident who has two or more places of business or ships and has not selected a method of depreciation for each place of business or ship intends to select a method of depreciation for each place of business or ship, those classifications for each place of business or ship);

the method of depreciation currently in use and the date on which that method of depreciation was adopted;

the new method of depreciation to be adopted;

any other matters for reference.