Income Tax Act

If a Resident conducting business that is meant to generate real property income, business income, or timber income in the relevant year files making an entry for a deduction for small enterprise-based mutual aid premiums and similar payments, life insurance premium deduction, or earthquake insurance premium deduction in a return pursuant tounder paragraph (1) (unlessfiles the return is a Blue Return), or if a, the Resident conducting business that is meant to generate miscellaneous incomemay, in the relevant year whose amountlieu of revenue from that business for the year beforeattaching or presenting the previous year exceeds 10,000,000 yen files a returndocument specified in item (i) of paragraph (3) pursuant to that paragraph, the Resident must include a document that indicates the gross revenue for (limited to the part relating to those deductions), attach to the year arising from those types of income andreturn an itemized statement that states the details of the necessary expenses with the return, pursuant to Ministry of Finance Orderparticulars specified by Ministry of Finance Order as the particulars stated in that document.

If filing a return under to which the itemized statement prescribed in the preceding paragraph (1), a Resident has been attached pursuant to that paragraph is filed, the district director may, when it is found to be necessary, request the person who filed that was a Non-Permanent Resident return (hereinafter referred to as a "person applying the deduction for any part of the year must include a small enterprise-based mutual aid premiums and similar payments or similar deduction" in this paragraph) to present or submit the document giving prescribed in the nationality thereof, preceding paragraph, until the period duringday on which five years have elapsed counting from the Resident was domiciled or resided in Japan, and any other information prescribed by Ministry day following the Filing Deadline for that return (or, if a request for Reassessment under Article 23, paragraph (1) of the Act on General Rules for National Taxes has been made within six months before that day, the day on which six months have elapsed from the date on which that request for Reassessment was made). In this case, when a request under the first sentence of Finance Order, with this paragraph has been made, the person applying the returndeduction for small enterprise-based mutual aid premiums and similar payments or similar deduction must present or submit that document.

If a Resident conducting business that is meant to generate real property income, business income, or timber income in the relevant year files a return under paragraph (1) (unless the return is a Blue Return), or if a Resident conducting business that is meant to generate miscellaneous income in the relevant year whose revenue from that business for the year before the preceding year exceeds 10 million yen files a return under that paragraph, the Resident must include a document that indicates the gross revenue for the year arising from those types of income and the details of the necessary expenses with the return, pursuant to Ministry of Finance Order.

If filing a return under paragraph (1), a Resident that was a Non-Permanent Resident for any part of the year must include a document giving the nationality thereof, the period during which the Resident was domiciled or resided in Japan, and any other information prescribed by Ministry of Finance Order, with the return.

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 (79) 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 paragraphparagraphs (5) and (7) 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".

The provisions of Article 120, paragraphs (3) through (79) apply mutatis mutandis to the filing of a return under paragraph (1). In such a case, the term "Filing Deadline" in paragraphparagraphs (5) and (7) 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".

The provisions of the second sentence of Article 120, paragraph (1) apply mutatis mutandis to the information to be given in a return under paragraph (1) or paragraph (2), and the provisions of paragraphs (3) through (79) of that Article apply mutatis mutandis to the filing of a return under the preceding three paragraphs. In such a case, the term "Filing Deadline" in paragraphparagraphs (5) and (7) 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".

The provisions of the second sentence of Article 120, paragraph (1) apply mutatis mutandis to the information to be given in a return under paragraph (1) or paragraph (2), and the provisions of paragraphs (3) through (79) of that Article apply mutatis mutandis to the filing of a return under the preceding three paragraphs. In such a case, the term "Filing Deadline" in paragraphparagraphs (5) and (7) 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".

The provisions of Part II, Chapter V and Chapter VI (Filing of Returns, Payment of Taxes, and Issuance of Refunds for Residents) apply mutatis mutandis to the filing of returns, payment of taxes, and issuance of refunds for a Nonresident's Income Taxes Imposed on Aggregate Incomeincome taxes imposed on the aggregate income of a Nonresident. In such a case, in Article 112, paragraph (2) (Process of Applying for Approval for a Reduction of Tax Prepayments), the term "transactions" is deemed to be replaced with "transactions (for a Nonresident with a permanent establishment, including those falling under internal dealings as prescribed in Article 161, paragraph (1), item (i) (Domestic Source Incomesource income))" and the phrase "that paragraph" is deemed to be replaced with "the preceding paragraph"; in Article 120, paragraph (1) (Filing an Income Tax Return), the phrase "foreign tax credit" is deemed to be replaced with "credit under Article 165-6, paragraphs (1) through (3) (Foreign Tax Credit for Nonresidents)"; in item (iii) of that paragraph, the phrase "Chapter III (Calculation of Tax Amount)" is deemed to be replaced with "Chapter III (excluding Article 93 (Credit for Amount Equivalent to Foreign Tax Adjusted at Distribution) and Article 95 (Foreign Tax Credit)) (Calculation of Tax Amount), and Article 165-5-3 (Credit for Amount Equivalent to Foreign Tax Adjusted at Distribution for Nonresidents) and Article 165-6"; in paragraph (68) of that Article, the phrase "business that generates timber income" is deemed to be replaced with "business that generates timber income (limited to business related to the domestic source income specified in the items of Article 164, paragraph (1) (How Nonresidents Are Taxed); hereinafter referred to as "specified business" in this paragraph)", the phrase "business that generates miscellaneous income" is deemed to be replaced with "specified business that generates miscellaneous income", the phrase "that business" is deemed to be replaced with "that specified business", and the phrase "must be attached to that return" is deemed to be replaced with "must be attached to that return, and if a Nonresident conducting business both in Japan and outside Japan files a return under that paragraph, a detailed statement of revenue and expenditures as prescribed by Ministry of Finance Order must be attached to that return"; in Article 122, paragraph (1), item (i) (Filing a Return to Receive a Refund), the phrase "foreign tax credit" is deemed to be replaced with "credit under Article 165-6, paragraphs (1) through (3) (Foreign Tax Credit for Nonresidents)"; in paragraph (2) of that Article, the phrase "Article 95, paragraph (2) or (3) (Foreign Tax Credit)" is deemed to be replaced with "Article 165-6, paragraph (2) or (3)"; in Article 123, paragraph (2), item (vi) (Filing Tax Returns Showing Losses), the phrase "Article 95 (Foreign Tax Credit)" is deemed to be replaced with "Article 165-6 (Foreign Tax Credit for Nonresidents)"; in Article 143 (Blue Returns), the term "business" is deemed to be replaced with "business (limited to business related to the domestic source income specified in the items of Article 164, paragraph (1) (How Nonresidents Are Taxed))"; in Article 144 (Application for Approval to File a Blue Return), the phrase "commences business" is deemed to be replaced with "commences business (limited to business related to the domestic source income specified in the items of Article 164, paragraph (1) (How Nonresidents Are Taxed))"; in Article 145, item (ii) (Denial of Applications for Approval to File a Blue Return), the term "transactions" is deemed to be replaced with "transactions (for a Nonresident with a permanent establishment, including those falling under internal dealings as prescribed in Article 161, paragraph (1), item (i) (Domestic Source Incomesource income); the same applies in Article 148, paragraph (1) and Article 150, paragraph (1), item (iii) (Rescission of Approval to File a Blue Return))"; and in Article 147 (When a Resident Is Deemed to Receive Approval to File a Blue Return), the term "business" is deemed to be replaced with "business (limited to business related to the domestic source income specified in the items of Article 164, paragraph (1) (How Nonresidents Are Taxed))".