Article 40-13Calculation of the Amount of Net Assets Attributable to Foreign Offices or Similar Establishments Using the Comparable Individual Method
第四十条の十三（同業個人比準法を用いた国外事業所等に帰せられるべき純資産の額の計算）
The cases specified by Ministry of Finance Order as prescribed in Article 221-4, paragraph (3), item (ii), (a) (Interest on Liabilities Corresponding to Net Assets Attributable to Foreign Offices or Similar Establishments) of the Order are cases where the ratio listed in item (i) exceeds approximately twice the ratio listed in item (ii).
The ratio of the amount listed in (a) to the amount listed in (b):
イに掲げる金額のロに掲げる金額に対する割合
The amount of net assets recorded on the balance sheet as of December 31 of that year of the comparable individual (meaning the comparable individual prescribed in (a) of that item; the same applies hereinafter in this item) pertaining to the Resident prescribed in Article 221-4, paragraph (3), item (ii) of the Order (where the comparable individual is an individual other than an individual who has a domicile or residence in the country or region where the foreign office is located (meaning the country or region where the foreign office is located prescribed in Article 221-4, paragraph (3), item (ii), (a) of the Order; the same applies hereinafter in this Article), the amount of net assets pertaining to the foreign office or similar establishment of that individual (meaning a foreign office or similar establishment prescribed in Article 95, paragraph (4), item (i) (Foreign Tax Credit) of the Act, limited to one located in the country or region where the foreign office is located; the same applies hereinafter in this paragraph));
令第二百二十一条の四第三項第二号に規定する居住者に係る比較対象者（同号イに規定する比較対象者をいう。以下この号において同じ。）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純資産の額（当該比較対象者が国外事業所等所在地国（同項第二号イに規定する国外事業所等所在地国をいう。以下この条において同じ。）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（法第九十五条第四項第一号（外国税額控除）に規定する国外事業所等をいい、当該国外事業所等所在地国に所在するものに限る。以下この項において同じ。）に係る純資産の額）
The amount of total assets recorded on the balance sheet as of December 31 of that year of the comparable individual referred to in (a) (where the comparable individual is an individual other than an individual who has a domicile or residence in the country or region where the foreign office is located, the amount of assets pertaining to that foreign office or similar establishment of that individual).
イの比較対象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、当該個人の当該国外事業所等に係る資産の額）
The ratio of the average amount of net assets to the average amount of total assets of individuals who conduct, in the country or region where the foreign office is located, the same kind of business as the main business conducted through the foreign office or similar establishment of the Resident prescribed in Article 221-4, paragraph (3), item (ii) of the Order.
令第二百二十一条の四第三項第二号に規定する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において行う個人の平均的な純資産の額の平均的な総資産の額に対する割合
The ratio of the average amount of net assets to the average amount of total assets referred to in item (ii) of the preceding paragraph is to be calculated by a reasonable method on the basis of the balance sheets of individuals who conduct, in the country or region where the foreign office is located, the same kind of business prescribed in that item (limited to those pertaining to each of the years within the three years on or before the year preceding the year of the Resident referred to in that item).
前項第二号の平均的な純資産の額の平均的な総資産の額に対する割合は、同号に規定する同種の事業を国外事業所等所在地国において行う個人の貸借対照表（同号の居住者のその年の前年以前三年内の各年に係るものに限る。）に基づき合理的な方法により計算するものとする。
Read this with the articles around it
foreign tax creditmachine translation
「外国税額控除」
Throughout this Ministerial Order (省令), the foreign tax credit provided for in Part II, Chapter III, Section 2 (tax credits) of the Income Tax Act.
Defined inArticle 1, paragraph (3)
foreign office or similar establishmentmachine translation
「国外事業所等」
In Article 40-13, paragraph (1), item (i), a comparable individual's foreign office or similar establishment as Article 95, paragraph (4), item (i) of the Income Tax Act defines it — something abroad corresponding to a permanent establishment (恒久的施設), or something else of a kind a Cabinet Order (政令) specifies — limited to one in the country or region where the resident's foreign office is located (国外事業所等所在地国).
Defined inArticle 40-13, paragraph (1), item (i), (a)· applies only in this paragraph
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 40-13, paragraph (1), item (i), (a)· applies only in this article
comparable individualmachine translation
「比較対象者」
In Article 40-13, paragraph (1), item (i), a comparable individual as defined in Article 221-4, paragraph (3), item (ii), (a) of the Order for Enforcement of the Income Tax Act: an individual who carries on, in the country or region where a resident's foreign office (国外事業所等) is, the same kind of business as the main business the resident conducts through that office, on a similar scale and in similar circumstances; an individual not living there counts only if he or she does it through a foreign office there.
Defined inArticle 40-13, paragraph (1), item (i), (a)· applies only in this item