Income Tax Act

Notwithstanding paragraph (1) of the preceding Article, if a Resident who has salary income for the year and who is to be paid a salary or other wage as prescribed in Article 28, paragraph (1) (Salary Income) (hereinafter referred to as a "salary or other wage" in this paragraph) amounting to 20,000,000 yen or less in the year falls under one of the following items, that Resident is not required to file a return pursuant to paragraph (1) of the preceding Article as regards income taxes on taxable gross income and taxable timber income for the year; provided, however, that this does not apply if the Resident makes available real property or other assets for use in the business of the person paying the salary or other wage constituting the Resident's salary income and is paid a consideration for this, nor does it apply in any other case prescribed by Cabinet Order:

the Resident's is paid the salary or other wage by a single person; all of the salary or other wage has been or is required to be subject to the withholding of income taxes as under Article 183 (Obligation to Withhold Taxes from Salary Income) or Article 190 (Year-End Adjustments); and the sum total of the Resident's interest income, dividend income, real property income, business income, timber income, capital gains, occasional income, and miscellaneous income (hereinafter referred to as the "income other than salary income and retirement income" in this paragraph) for the year is 200,000 yen or less;

the Resident is paid the salary or other wage by two or more persons; all of the salary or other wage has been or is required to be subject to the withholding of income taxes as under Article 183 or Article 190; and the Resident falls under either (a) or (b):

the sum total of the salary or other wage constituting salary income for the year which the Resident is paid by the person paying a secondary salary or other wage as prescribed in Article 195, paragraph (1) (Return for Deduction for Dependents, etc. Regarding Secondary Salaries) and the Resident's income other than salary income and retirement income for the year is 200,000 yen or less;

the salary or other wage constituting the Resident's salary income for the year is not more than the sum total of 1,500,000 yen and the amount of the social insurance premium deduction, deduction for small enterprise-based mutual aid premiums and similar payments, life insurance premium deduction, earthquake insurance premium deduction, disability deduction, widow deduction, single parent deduction, working student deduction, spousal deduction, special spousal deduction, deduction for Dependents, and special deduction for specified relatives; and income other than salary income and retirement income for the year is 200,000 yen or less, other than in a case that falls under (a).

Notwithstanding paragraph (1) of the preceding Article, if a Resident who has retirement income for the year falls under one of the following items, the Resident is not required to file a return under paragraph (1) of the preceding Article for income taxes on taxable retirement income for the year:

all of the Resident's severance pay or other such compensation as prescribed in Article 30, paragraph (1) (Retirement Income) (hereinafter referred to as "severance pay or other such compensation" in this paragraph) which constitutes retirement income for the year has been or is required to be subject to the withholding of income taxes pursuant to the provisions of Article 199 (Obligation to Withhold Taxes from Retirement Income) or Article 201, paragraph (1) (Tax Withheld from Retirement Income);

the amount of income taxes calculated when Article 89 (Tax Rates) is applied for the year's taxable retirement income is not more than the amount of income taxes that have been or are required to be Withheld from the severance pay or other such compensation that constitutes retirement income for the year, other than in a case that falls under the preceding item.

If a Resident who has miscellaneous income from public pensions or retirement packages as prescribed in Article 35, paragraph (3) (Miscellaneous Income) (hereinafter referred to as "public pensions or retirement packages" in this Article) in the year, and whose revenue from public pensions or retirement packages during the year is four million yen or less, has had or is required to have income tax collected pursuant to the provisions of Article 203-2 (Obligation to Withhold Tax on Public Pensions or Retirement Packages) on all of those public pensions or retirement packages (excluding those to which the provisions of Article 203-7 (Public Pensions or Retirement Packages Not Subject to Withholding) apply), and the Resident's income for the year other than miscellaneous income from public pensions or retirement packages (meaning the sum total of the amounts of interest income, dividend income, real property income, business income, salary income, timber income, capital gains, occasional income, and miscellaneous income other than miscellaneous income from public pensions or retirement packages) is 200,000 yen or less, the Resident is not required to file a return under paragraph (1) of the preceding Article for the income taxes on the taxable gross income or taxable timber income for the year, notwithstanding the provisions of that paragraph.

If an amount set forth in any of items (i) through (iii) arises in connection with a Resident's income tax for the year, the Resident may file a return with the district director, giving the information set forth in the items of Article 120, paragraph (1) (Filing Income Tax Returns) as well as the following information, to receive a refund pursuant to the provisions of Article 138, paragraph (1) (Refunding Tax Withheld) or Article 139, paragraph (1) or paragraph (2) (Refunding Prepaid Taxes), unless the Resident is permitted to file a return under paragraph (1) of the following Article:

any part of a foreign tax credit that is not fully offset during the calculation of the amount of income taxes set forth in Article 120, paragraph (1), item (iii);

any part of the amount of tax withheld as prescribed in Article 120, paragraph (1), item (iv) that is not fully offset when the amount set forth in that item is calculated;

any part of the prepaid taxes as prescribed in Article 120, paragraph (2) that is not fully offset when the amount set forth in Article 120, paragraph (1), item (v) is calculated;

the bases for calculating the amounts set forth in the preceding three items, and the information that Ministry of Finance Order prescribes.

Even if the circumstances do not constitute a case in which a Resident is required to file a return under Article 120, paragraph (1) or is permitted to file a return under the preceding paragraph or paragraph (1) of the following Article, if it is necessary for the Resident to do so in order to apply Article 95, paragraph (2) or paragraph (3) (Foreign Tax Credit) to income taxes in or after the subsequent year, the Resident may file a return with the district director, giving the information set forth in the items of Article 120, paragraph (1).

The provisions of the second sentence of Article 120, paragraph (1) apply mutatis mutandis to the information to be given in a return under the preceding two paragraphs, and the provisions of paragraphs (3) through (7) of that Article apply mutatis mutandis to the filing of a return under the preceding two paragraphs. In such a case, the term "Filing Deadline" in paragraph (5) of that Article is deemed to be replaced with "Filing Deadline (or the day on which the return is filed, if the return is a return of refund claim as prescribed in Article 61, paragraph (1), item (ii) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax) of the Act on General Rules for National Taxes)", and the term "Act on General Rules for National Taxes" is deemed to be replaced with "that Act".

In a case falling under one of the following items, if a Resident seeks to apply the provisions of Article 70, paragraph (1) or paragraph (2) (Deduction for Carryover of Net Loss) or Article 71, paragraph (1) (Deduction for Carryover of Casualty Loss), or to receive a refund as under Article 142, paragraph (2) (Procedures for Issuing Refunds Based on Carryback of Net Loss) in or after the year following the relevant year, the Resident may file a return with the district director in the third period, giving the information set forth in the items of the following paragraph:

if the Resident incurred a Net Loss in the year;

if the Casualty Losses incurred in the year exceed the sum total of the Resident's gross income, retirement income, and timber income for the year;

if the sum total of the Net Loss and Casualty Loss that were incurred in any of the three years prior to the relevant year (or in any of the five years prior to the relevant year, if the provisions of Article 70-2, paragraphs (1) through (3) (Special Provisions on Deduction for Carryover of Net Loss Related to Specified Extraordinary Disasters) or Article 71-2, paragraph (1) (Special Provisions on Deduction for Carryover of Casualty Loss Related to Specified Extraordinary Disasters) apply; the same applies in item (ii) of the following paragraph) (this excludes any amount deducted in or prior to the previous year pursuant to the provisions of Article 70, paragraph (1) or paragraph (2) or Article 71, paragraph (1), and excludes any amount used as the basis for calculating the amount to be refunded pursuant to the provisions of Article 142, paragraph (2); the same applies in that item) exceeds the sum total of the Resident's gross income, retirement income, and timber income for the year, as calculated without deducting any such Net Loss or Casualty Loss.

The information that must be given in a return under the preceding paragraph is:

the amounts of the Net Loss and Casualty Losses incurred in the year;

the amounts of the Net Loss and Casualty Losses incurred in any of the three years prior to the relevant year;

the sum total of the Resident's gross income, retirement income, and timber income for the year, if the Resident incurred a Casualty Loss in the year;

the sum total of the Resident's gross income, retirement income, and timber income for the year, calculated without deducting any Net Loss or Casualty Loss as set forth in item (ii);

the Net Loss and Casualty Loss that may be deducted in the calculation of the amount of gross income, retirement income, and timber income in or after the year following the relevant year, pursuant to Article 70, paragraph (1) or paragraph (2) or Article 71, paragraph (1);

any amount to be deducted in the year pursuant to the provisions of Article 95 (Foreign Tax Credit);

any amount of tax withheld as prescribed in Article 120, paragraph (1), item (iv) (Filing Income Tax Returns) from Each Class of Income that has been used as the basis for calculating the Net Loss as set forth in item (i) or for calculating the Resident's gross income or retirement income as set forth in item (iii) or item (iv);

any prepaid taxes as prescribed in Article 120, paragraph (2) for the year;

the bases for calculating the amounts set forth in items (i) through (v), and the information that Ministry of Finance Order prescribes.

The provisions of Article 120, paragraphs (3) through (7) apply mutatis mutandis to the filing of a return under paragraph (1). In such a case, the term "Filing Deadline" in paragraph (5) of that Article is deemed to be replaced with "Filing Deadline (or the day on which the return is filed, if the return is a return of refund claim as prescribed in Article 61, paragraph (1), item (ii) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax) of the Act on General Rules for National Taxes)", and the term "Act on General Rules for National Taxes" is deemed to be replaced with "that Act".

If a Resident who is required to file a return under Article 120, paragraph (1) (Filing Income Tax Returns) dies between January 1 of the year following the relevant year and the deadline for filing that year's return without having filed that return, unless the Resident's heir files a return under the following paragraph, the heir must file the return with the district tax office director by the day before that which marks four months' time since the day after the heir learns of the commencement of the succession (or by the start of the heir's Absence From Japan, if the heir becomes Absent From Japan prior to that date; hereinafter the same applies in this Article), as prescribed by Cabinet Order.

If a Resident who may file a return pursuant to paragraph (1) of the preceding Article dies between January 1 of the year following the relevant year and the deadline for filing that year's return without having filed a return, the Resident's heir may file the return with the district tax office director by the day before that which marks four months' time since the day after the heir learns of the commencement of the succession, as provided by Cabinet Order.