Article 139Refunding of Prepaid Taxes

①If a Tax Return is filed which indicates an amount set forth in Article 122, paragraph (1), item (iii) (Filing a Return to Receive a Refund) or Article 123, paragraph (2), item (viii) (Filing Tax Returns Showing Losses), the district director refunds the part of the prepaid taxes prescribed in those provisions which is equivalent to that amount (hereinafter referred to in this Article as "prepaid taxes") to the person filing the return.

②If the district tax office director issues a refund under the preceding paragraph and the taxpayer has paid a tax on delinquency in respect of prepaid taxes in the year of the Tax Return referred to in that paragraph, the director also refunds the amount calculated pursuant to Cabinet Order as the part of the tax on delinquency which was for the prepaid taxes that are being refunded pursuant to that paragraph.

④If a refund under paragraph (1) is Appropriated to cover unpaid income taxes for a year in which prepaid taxes are used as the basis for calculating the amount of the refund, Refund Interest does not accrue on the part of the refund so Appropriated and the tax on delinquency is waived for the part of the income taxes covered by the Appropriation.

⑤Interest does not accrue on a refund under the provisions of paragraph (2).

⑥Beyond what is prescribed in the preceding three paragraphs, Cabinet Order provides for procedures for issuing a refund as referred to in paragraph (1) or paragraph (2), the way of Appropriating a refund under paragraph (1) (and Interest thereon) and other necessary particulars concerning the application of the provisions of that paragraph or paragraph (2).