Article 40Details of Application of Special Provisions on Timing of Attribution of Revenue and Expenses
第四十条（収入及び費用の帰属時期の特例の適用の細目）
The calculation of the amount of real property income or the amount of business income for the year in which a Resident who has been subject to the application of the provisions of Article 67, paragraph (1) (Periods to Which Revenue and Expenses of Small Enterprises and Similar Businesses Are Attributed) of the Act ceases to be subject to their application is as prescribed in the following items.
法第六十七条第一項（小規模事業者等の収入及び費用の帰属時期）の規定の適用を受ける居住者がその適用を受けないこととなつた場合におけるその適用を受けないこととなつた年分の不動産所得の金額又は事業所得の金額の計算については、次に定めるところによる。
The amount equivalent to the difference between the amount of accounts receivable, accounts payable, accrued revenue, unearned revenue, prepaid expenses, accrued expenses and other similar assets and liabilities, and Inventory (hereinafter referred to as "accounts receivable, etc." in this item) as of December 31 of the year preceding the year in which the person became subject to the application of the provisions of Article 67, paragraph (1) of the Act (where the person newly commenced business that generates real property income or business income in the course of the year, the date on which the person commenced that business; the same applies in the following item) and the amount of accounts receivable, etc. as of January 1 of the year in which the person ceased to be subject to the application of the provisions of that paragraph is to be included in gross revenue or necessary expenses, respectively, in calculating the amount of real property income or the amount of business income for the year in which the person ceased to be subject to their application;
The amounts of allowances and reserves under the provisions of the Act and other laws and regulations pertaining to income tax as of December 31 of the year preceding the year in which the person became subject to the application of the provisions of Article 67, paragraph (1) of the Act are respectively deemed to be the amounts of those allowances and reserves carried over from the year preceding the year in which the person ceased to be subject to the application of the provisions of that paragraph.
In the case where a Resident who carries on business that generates miscellaneous income and who was subject to the application of the provisions of Article 67, paragraph (2) of the Act in the year preceding a given year ceases to be subject to the application of the provisions of that paragraph in that year, with respect to the calculation of the amount of miscellaneous income pertaining to that business for the year in which the person ceases to be subject to their application, the amount equivalent to the difference between the amount of accounts receivable, accounts payable, accrued revenue, unearned revenue, prepaid expenses, accrued expenses and other similar assets and liabilities, and assets equivalent to the assets listed in the items of Article 3 (Scope of Inventory) of the Order pertaining to that business (hereinafter referred to as "accounts receivable, etc." in this paragraph) as of December 31 of the year preceding the year in which the person became subject to their application (where the person newly commenced business that generates miscellaneous income in the course of the year, the date on which the person commenced that business) and the amount of accounts receivable, etc. as of January 1 of the year in which the person ceases to be subject to the application of the provisions of Article 67, paragraph (2) of the Act is to be included in gross revenue or necessary expenses, respectively, in calculating the amount of miscellaneous income pertaining to that business for the year in which the person ceases to be subject to their application.
その年の前年において法第六十七条第二項の規定の適用を受けていた雑所得を生ずべき業務を行う居住者がその年において同項の規定の適用を受けないこととなる場合におけるその適用を受けないこととなる年分の当該雑所得を生ずべき業務に係る雑所得の金額の計算については、その適用を受けることとなつた年の前年十二月三十一日（年の中途において新たに雑所得を生ずべき業務を開始した場合には、当該業務を開始した日）における売掛金、買掛金、未収収益、前受収益、前払費用、未払費用その他これらに類する資産及び負債並びに当該雑所得を生ずべき業務に係る令第三条各号（棚卸資産の範囲）に掲げる資産に準ずる資産（以下この項において「売掛金等」という。）の額と法第六十七条第二項の規定の適用を受けないこととなる年の一月一日における売掛金等の額との差額に相当する金額は、その適用を受けないこととなる年分の当該雑所得を生ずべき業務に係る雑所得の金額の計算上、それぞれ総収入金額又は必要経費に算入する。
In the case referred to in the preceding paragraph, where the provisions of Article 67, paragraph (2) of the Act applied to the person in every one of the years within the five years on or before the year preceding the year referred to in the preceding paragraph, the person may, at the person's choice, decline to apply the provisions of the preceding paragraph.
A Resident who is subject to the application of the provisions of the preceding two paragraphs must, when submitting a Tax Return for the year for which the Resident seeks application of those provisions, state in that return to the effect that those provisions apply to the Resident.
前二項の規定の適用を受ける居住者は、これらの規定の適用を受けようとする年分の確定申告書を提出する場合には、当該申告書にこれらの規定の適用を受ける旨の記載をしなければならない。
Read this with the articles around it
accounts receivable, etc.machine translation
「売掛金等」
In Article 40, paragraph (1), item (i), accounts receivable, accounts payable, accrued revenue, unearned revenue, prepaid expenses, accrued expenses and similar assets and liabilities, together with inventory (棚卸資産).
Short name set inArticle 40, paragraph (1), item (i)· applies only in this item
accounts receivable, etc.machine translation
「売掛金等」
In Article 40, paragraph (2), accounts receivable, accounts payable, accrued revenue, unearned revenue, prepaid expenses, accrued expenses and similar assets and liabilities, together with assets of an activity producing miscellaneous income (雑所得) akin to the inventory assets that Article 3 of the Order for Enforcement of the Income Tax Act (所得税法施行令) lists.
Short name set inArticle 40, paragraph (2)· applies only in this paragraph