Regulation for Enforcement of the Income Tax Act

The certification prescribed in the items of Article 57-2, paragraph (2) (Special Provisions on Deducting Specific Expenses of Salary Income Earners) of the Act (in the case of the certification prescribed in Article 57-2, paragraph (2), items (iv) and (v) of the Act, limited to certification by the payer of salary or other wages prescribed in those provisions) is to be given, based on an application by a Resident who intends to have Article 57-2, paragraph (1) of the Act applied, with respect to the matters specified in each of the following items according to the category of expenditure prescribed in Article 57-2, paragraph (2) of the Act listed in those items (including, where there is a portion of the expenditure that is reimbursed by the payer of salary or other wages prescribed in Article 57-2, paragraph (2) of the Act and income tax is not imposed on the reimbursed portion, the amount of the reimbursed portion).

Expenditure listed in Article 57-2, paragraph (2), item (i) of the Act: the following matters

the person's name and domicile (or residence, if there is no domicile in Japan; the same applies hereinafter in this paragraph) and the place where the person works;

the person's route and method of commuting, and the fact that the route and method are found to be the most economical and rational in light of fare, time, distance and other circumstances.

Expenditure listed in Article 57-2, paragraph (2), item (ii) of the Act: the following matters

the person's name and domicile, the place where the person works, and the place where the person performed duties away from that place;

that the trip was directly necessary for performing duties away from the place of work.

Expenditure listed in Article 57-2, paragraph (2), item (iii) of the Act: the following matters

the person's name, and the place of work and domicile before and after the transfer;

the date on which the fact of the person's transfer occurred.

Expenditure listed in Article 57-2, paragraph (2), item (iv) of the Act: the following matters

the person's name and domicile;

that the training was for acquiring skills or knowledge directly necessary for the performance of the person's duties;

the name of the person providing the training, and the place and period in which the training is provided.

Expenditure listed in Article 57-2, paragraph (2), item (v) of the Act: the following matters

the person's name and domicile;

that the acquisition of that person's qualification is directly necessary for the performance of the person's duties.

Expenditure listed in Article 57-2, paragraph (2), item (vi) of the Act: the following matters

the matters listed in item (iii), (a) and (b);

that the person falls under either of the cases prescribed in Article 57-2, paragraph (2), item (vi) of the Act or Article 167-3, paragraph (4) (Scope of Specific Expenses of Salary Income Earners) of the Order;

the place where the person's spouse or other relative resides.

Expenditure for the purchase of books prescribed in Article 57-2, paragraph (2), item (vii), (a) of the Act: the following matters

the person's name and domicile;

that the purchase of the books is directly necessary for the performance of the person's duties, and the content of those duties;

the title and content of the books.

Expenditure for the purchase of clothing prescribed in Article 57-2, paragraph (2), item (vii), (a) of the Act: the following matters

the person's name and domicile;

that the purchase of the clothing is directly necessary for the performance of the person's duties, and the content of those duties;

the type of the clothing.

Expenditure listed in Article 57-2, paragraph (2), item (vii), (b) of the Act: the following matters

The person's name and domicile;

The fact that expenditure for entertainment, hospitality, gift-giving or other similar acts of the person (referred to as "entertainment, etc." in (c)) is directly necessary for the performance of the person's duties, and the content of those duties;

The content of the entertainment, etc., the name or title of the counterparty to the entertainment, etc., and the relationship with that counterparty.

The provisions of the preceding paragraph (limited to the portion pertaining to items (iv) and (v)) apply mutatis mutandis to certification by a career consultant prescribed in Article 57-2, paragraph (2), items (iv) and (v) of the Act. In this case, the phrase "matters (including, where there is a portion of the expenditure that is compensated by the payer of salary or other wage prescribed in Article 57-2, paragraph (2) of the Act, and income tax is not imposed on that compensated portion, the amount of that compensated portion)" in the preceding paragraph is deemed to be replaced with "matters".

The charges specified by Ministry of Finance Order as prescribed in Article 167-3, paragraph (1), item (i) of the Order are special car charges, special cabin charges and other charges for the use of special facilities in the passenger compartments of railways, etc. prescribed in Article 167-5, item (ii), (b) (Documents Certifying the Payment, etc. of Specific Expenses) of the Order (excluding sleeping berth charges of 6,600 yen or less).

The charges specified by Ministry of Finance Order as prescribed in Article 167-3, paragraph (2), item (i) of the Order are the charges prescribed in the preceding paragraph and charges for the use of special facilities in the passenger compartments of aircraft.

Persons whose spouse's life or death is unclear and who are specified by Ministry of Finance Order, as prescribed in Article 167-3, paragraph (4) of the Order, are the spouses of the persons listed in the items of Article 11 (Scope of Widows) of the Order.

Children whose living expenses are paid from the same resources and who are specified by Ministry of Finance Order, as prescribed in Article 167-3, paragraph (4) of the Order, are the children prescribed in Article 11-2, paragraph (2) (Scope of Single Parents) of the Order and children who are Persons with a Particular Disability.

The documents specified in Article 167-5, item (ii), (a) or (b) (Documents Certifying the Payment, etc. of Specific Expenses) of the Order are to be certification given by a person who operates an air transport business, or a railway operator, a person who operates a ship operation business or a person who operates an automobile transport business, prescribed in (a) or (b) of that item, on the basis of a written application, from a person who made the expenditure listed in Article 57-2, paragraph (2), item (vi) (Special Provisions on Deducting Specific Expenses of Salary Income Earners) of the Act (limited to the portion pertaining to Article 167-3, paragraph (5), item (i) (Scope of Specific Expenses of Salary Income Earners) of the Order), stating the date on which the person used aircraft or the railways, etc. prescribed in Article 167-5, item (ii), (b) of the Order and the section in which the person boarded or rode.

The amount specified by Ministry of Finance Order as prescribed in Article 167-5, item (ii), (b) of the Order is 15,000 yen.

The amount prescribed in the preceding paragraph is to be based on the amount of fares and charges pertaining to the use of one means of transportation. In this case, where the means of transportation pertains to passenger railway business (including the ferry business prescribed in Article 9, paragraph (1) (Succession to Ferry Business) of the Japanese National Railways Reform Act (Act No. 87 of 1986); the same applies hereinafter in this paragraph) operated by a passenger railway company prescribed in Article 1, paragraph (1) (Purposes and Business of Companies) of the Act on Passenger Railway Companies and Japan Freight Railway Company (Act No. 88 of 1986), a new company prescribed in Article 2, paragraph (1) (Publication of Guidelines, etc.) of the Supplementary Provisions of the Act Partially Amending the Act on Passenger Railway Companies and Japan Freight Railway Company (Act No. 61 of 2001), or a new company prescribed in Article 2, paragraph (1) (Publication of Guidelines, etc.) of the Supplementary Provisions of the Act Partially Amending the Act on Passenger Railway Companies and Japan Freight Railway Company (Act No. 36 of 2015) (hereinafter referred to as "passenger railway company, etc." in this paragraph), it is to be based on the total amount of fares and charges pertaining to the use of railways or ships in the passenger railway business operated by each passenger railway company, etc.

The contracts specified by Ministry of Finance Order as prescribed in Article 167-6, paragraph (1) (Conversion, etc. of Assets and Liabilities in a Foreign Currency Whose Yen Equivalent of Foreign Currency at the Time of Occurrence Is Fixed by Foreign Exchange Futures Contract) of the Order are, among contracts pertaining to transactions in which the occurrence, change or extinction of a claim under a sales contract of means of payment denominated in a foreign currency (meaning means of payment prescribed in Article 6, paragraph (1), item (vii) (Definitions) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949)) or foreign currency claims (meaning claims for which payment may be received in a foreign currency) is executed at a certain time after the date of conclusion of that sales contract at a certain foreign exchange rate (referred to as "foreign exchange futures transaction" in paragraph (1) of the following Article), contracts that fix the yen equivalent (meaning the yen equivalent prescribed in Article 57-3, paragraph (1) of the Act; the same applies in paragraph (1) of the following Article) of the amount of foreign currency to be paid or received in connection with a transaction in a foreign currency (meaning a transaction in a foreign currency prescribed in Article 57-3, paragraph (1) (Conversion of Transactions in a Foreign Currency) of the Act; the same applies in the following paragraph and paragraph (2) of the following Article) that is the cause of acquisition or occurrence of the assets and liabilities in a foreign currency prescribed in Article 167-6, paragraph (1) of the Order.

The case where, as specified by Ministry of Finance Order as prescribed in Article 167-6, paragraph (1) of the Order, matters are recorded in books and documents or other documents specified by Ministry of Finance Order is a case where, on the date of conclusion of the foreign exchange futures contract prescribed in that paragraph (referred to as "foreign exchange futures contract" in the following paragraph), the fact that the contract falls under the provisions of Article 167-6, paragraph (1) of the Order, the type and amount of the transaction in a foreign currency that is the cause of acquisition or occurrence of the assets and liabilities in a foreign currency prescribed in that paragraph, and other matters for reference are recorded in the documents prescribed in the following paragraph.

The books and documents or other documents specified by Ministry of Finance Order as prescribed in Article 167-6, paragraph (1) of the Order are the documents specified in each of the following items for the categories of persons listed in those items.

A Resident who carries on business that generates real property income, business income or timber income: books and documents pertaining to the conclusion of foreign exchange futures contracts relating to that business of that person;

A Resident who carries on business that generates miscellaneous income: documents pertaining to the conclusion of foreign exchange futures contracts relating to that business of that person.