Income taxes are not imposed on interest and similar income, dividends and similar income, compensation for periodic deposits, finance charges, profits, margin profits, and distributions of proceeds set forth in the items of Article 174 (Tax Base for a Domestic Corporation's Income Taxes) paid to a Domestic Corporation as set forth in Appended Table I (as regards distributions of proceeds from a beneficial interest in a Loan Trust, the non-imposition of income taxes is limited to the part equivalent to the amount of monies calculated pursuant to Cabinet Order as coming from a period during which the Domestic Corporation continuously held the beneficial interest).
Income taxes are not imposed on income arising from the trust property of a public interest trust as prescribed in Article 2, paragraph (1), item (i) (Definitions) of the Act on Public Interest Trusts (Act No. 30 of 2024) (referred to as a "public interest trust" in Article 59, paragraph (1), item (i) (Special Provisions on Capital Gains and Gifts), Article 60, paragraph (1), item (i) (Acquisition Costs of Assets Acquired as Gifts), Article 60-2, paragraph (6) (Special Provisions on Capital Gains upon Departure from Japan), Article 60-3, paragraph (6) (Special Provisions on Capital Gains If Assets Are Transferred to a Nonresident by Gift or Similar), Article 67-3, paragraph (10) (Calculation of the Amount of Income Relating to Trusts), and Article 78, paragraph (2), item (iv) (Donation Deduction)) or of a participant protection trust as prescribed in Article 2, paragraph (11) (Definitions) of the Act on Book-Entry Transfer of Corporate Bonds and Shares (as regards income relating to distributions of proceeds from a beneficial interest in a Loan Trust, the non-imposition of income taxes is limited to the part equivalent to the amount of monies calculated pursuant to Cabinet Order as coming from a period during which the beneficial interest continuously belonged to the trust property of the public interest trust or the participant protection trust).
公益信託に関する法律（令和六年法律第三十号）第二条第一項第一号（定義）に規定する公益信託（第五十九条第一項第一号（贈与等の場合の譲渡所得等の特例）、第六十条第一項第一号（贈与等により取得した資産の取得費等）、第六十条の二第六項（国外転出をする場合の譲渡所得等の特例）、第六十条の三第六項（贈与等により非居住者に資産が移転した場合の譲渡所得等の特例）、第六十七条の三第十項（信託に係る所得の金額の計算）及び第七十八条第二項第四号（寄附金控除）において「公益信託」という。）又は社債、株式等の振替に関する法律第二条第十一項（定義）に規定する加入者保護信託の信託財産につき生ずる所得（貸付信託の受益権の収益の分配に係るものにあつては、当該受益権が当該公益信託又は当該加入者保護信託の信託財産に引き続き属していた期間に対応する部分の額として政令で定めるところにより計算した金額に相当する部分に限る。）については、所得税を課さない。
The part of the provisions of the preceding two paragraphs that relates to interest, distributions of proceeds, or dividends of surplus prescribed in Article 24, paragraph (1) (Dividend Income) (hereinafter referred to as "interest and similar income" in this paragraph) from public and corporate bonds or from any beneficial interest in a Loan Trust, Investment Trust, or specified-purpose trust as provided by Cabinet Order (hereinafter referred to as a "public and corporate bond or similar interest" in this paragraph) applies only if a Domestic Corporation or the trustee of a public interest trust or participant protection trust as prescribed in these provisions manages the public and corporate bond or similar interest through entries or records in a transfer account book as prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares or by other means prescribed by Cabinet Order, and has submitted a statement to the district director, pursuant to Cabinet Order, indicating its intention to seek the application of these provisions to interest and similar income from the public and corporate bond or similar interest and giving other information provided for by Ministry of Finance Order, via the person paying the interest and similar income from the public and corporate bond or similar interest (referred to as the "payer" in the following paragraph).
前二項の規定のうち公社債又は貸付信託、投資信託若しくは特定目的信託の受益権で政令で定めるもの（以下この項において「公社債等」という。）の利子、収益の分配又は第二十四条第一項（配当所得）に規定する剰余金の配当（以下この項において「利子等」という。）に係る部分は、これらの規定に規定する内国法人又は公益信託若しくは加入者保護信託の受託者が、公社債等につき社債、株式等の振替に関する法律に規定する振替口座簿への記載又は記録その他の政令で定める方法により管理されており、かつ、政令で定めるところにより、当該公社債等の利子等につきこれらの規定の適用を受けようとする旨その他財務省令で定める事項を記載した申告書を、当該公社債等の利子等の支払をする者（次項において「支払者」という。）を経由して税務署長に提出した場合に限り、適用する。
In lieu of submitting a statement under the provisions of the preceding paragraph, a Domestic Corporation or the trustee of a public interest trust or participant protection trust as prescribed in that paragraph may provide the payer referred to in that paragraph with the information required to be given in the statement by the electronic or magnetic means prescribed in paragraph (8) of the preceding Article. In such a case, the Domestic Corporation or the trustee of the public interest trust or participant protection trust is deemed to have submitted the statement to the payer.
Read this with the articles around it
Nonresident
「非居住者」
An individual who is not a resident.
Defined inArticle 2, paragraph (1), item (v)· applies throughout the law
Domestic Corporation
「内国法人」
A corporation whose head office or principal office is in Japan.
Defined inArticle 2, paragraph (1), item (vi)· applies throughout the law
public and corporate bond
「公社債」
Bonds issued by public bodies and companies, including bonds a non-company corporation issues under a special law.
Defined inArticle 2, paragraph (1), item (ix)· applies throughout the law
Loan Trust
「貸付信託」
A loan trust as defined in Article 2, paragraph (1) of the Loan Trust Act (Act No. 195 of 1952).
Defined inArticle 2, paragraph (1), item (xii)· applies throughout the law
Investment Trust
「投資信託」
An investment trust or a foreign investment trust as defined in Article 2, paragraph (3) of the Act on Investment Trusts and Investment Corporations.
Defined inArticle 2, paragraph (1), item (xii-2)· applies throughout the law
specified-purpose trust
「特定目的信託」
A specified-purpose trust as defined in Article 2, paragraph (13) of the Act on the Securitization of Assets (Act No. 105 of 1998).
Defined inArticle 2, paragraph (1), item (xv-4)· applies throughout the law
public interest trustmachine translation
「公益信託」
A public interest trust as defined in Article 2, paragraph (1), item (i) of the Act on Public Interest Trusts (Act No. 30 of 2024): a trust made under that Act that names no beneficiaries and whose only purpose is public interest work (公益事務) — work for the benefit of an unspecified large number of people, such as promoting learning or welfare, of the kinds that Act lists.
Short name set inArticle 11, paragraph (2)· applies only in this provision and in Article 59, paragraph (1), item (i); Article 60, paragraph (1), item (i); Article 60-2, paragraph (6); Article 60-3, paragraph (6); Article 67-3, paragraph (10); and Article 78, paragraph (2), item (iv)
public and corporate bond or similar interest
「公社債等」
Bonds and similar investments listed where the term is used: in Article 11, paragraph (3), bonds and certain beneficial interests in trusts; in Article 176, the bonds, trust interests, shares and other investments held in a securities investment trust or a retirement pension trust.
Short name set inArticle 11, paragraph (3)· applies only in this paragraph
interest and similar incomemachine translation
「利子等」
Interest on bonds and deposits and distributions from jointly managed trusts, bond investment trusts and publicly offered bond-based investment trusts, as listed in Article 23, paragraph (1) (the provision on interest income); in Article 11, paragraph (3) it also covers dividends of surplus on the bonds and trust interests described there, and some supplementary provisions exclude interest on ordinary deposits.
Short name set inArticle 11, paragraph (3)· applies only in this paragraph
payermachine translation
「支払者」
The person who pays the interest, distributions of proceeds or dividends on bonds and similar investments (公社債等), through whom a domestic corporation or the trustee of a charitable or participant protection trust sends the district tax office director the form claiming those payments free of income tax.
Short name set inArticle 11, paragraph (3)· applies only in this provision and in Article 11, paragraph (4)
district director
税務署長
The head of a tax office (税務署), the local office of the National Tax Agency that deals with taxpayers in its district (Act for Establishment of the Ministry of Finance, Article 24). It is the office a person usually deals with: an income tax return is filed with a district director (Income Tax Act, Article 120, paragraph (1)), and reassessments, determinations and the collection of national tax are done by the district director for the taxpayer's current place for tax payment (Act on General Rules for National Taxes, Articles 30 and 43). A person who objects to what a district director has decided can ask that director to look at it again (再調査の請求) or go straight to the National Tax Tribunal (Article 75, paragraph (1), item (i)) — unless the notice of the decision says officials of a Regional Taxation Bureau or of the National Tax Agency investigated, in which case it counts as the regional commissioner's decision, with the same choice, or as the Commissioner of the National Tax Agency's, which can only be challenged by a request for review to the Commissioner (Article 75, paragraph (2)).
Written by AI using Act for Establishment of the Ministry of Finance, Art. 24, Act on General Rules for National Taxes, Arts. 30, 43, 75 and Income Tax Act, Art. 120 as a reference.