Article 165Calculation of the Tax Base and Amount of Income Taxes Imposed on Aggregate Income
第百六十五条（総合課税に係る所得税の課税標準、税額等の計算）
The tax base and the amount of income taxes imposed on the domestic source income, as specified in the relevant of the items of paragraph (1) of the preceding Article, of the Nonresident set forth in the relevant item (hereinafter referred to as "Income Taxes Imposed on Aggregate Income" in this Section) are the amounts calculated against the domestic source income specified in the relevant item, unless otherwise provided, in accordance with the provisions of Part II, Chapter I through Chapter IV (Calculation of the Tax Base and Amount of Income Taxes for Residents) (excluding Article 44-3 (Exclusion of Reduced Foreign Income Taxes from Gross Revenue), Article 46 (Exclusion of Foreign Taxes Credited against Income Taxes from Necessary Expenses), Article 60-4 (Special Provisions on Capital Gains upon Application of the Provisions on foreign exit tax), Article 73 through 77 (Medical Expense Deduction), Article 79 through 85 (Disability Deduction), Article 93 (Credit for the Amount Equivalent to the Foreign Tax Adjusted at Distribution), Article 95 (Foreign Tax Credit), and Article 95-2 (Special Provisions on Foreign Tax Credit Related to Special Provisions on Capital Gains upon Departure from Japan)).
前条第一項各号に掲げる非居住者の当該各号に定める国内源泉所得について課する所得税（以下この節において「総合課税に係る所得税」という。）の課税標準及び所得税の額は、当該各号に定める国内源泉所得について、別段の定めがあるものを除き、前編第一章から第四章まで（居住者に係る所得税の課税標準、税額等の計算）（第四十四条の三（減額された外国所得税額の総収入金額不算入等）、第四十六条（所得税額から控除する外国税額の必要経費不算入）、第六十条の四（外国転出時課税の規定の適用を受けた場合の譲渡所得等の特例）、第七十三条から第七十七条まで（医療費控除等）、第七十九条から第八十五条まで（障害者控除等）、第九十三条（分配時調整外国税相当額控除）、第九十五条（外国税額控除）及び第九十五条の二（国外転出をする場合の譲渡所得等の特例に係る外国税額控除の特例）を除く。）の規定に準じて計算した金額とする。
If Income in Each Class related to the domestic source income set forth in item (i), (a) of paragraph (1) of the preceding Article of the Nonresident set forth in that item (hereinafter referred to as "income attributable to a permanent establishment" in this Subsection) is calculated in accordance with the provisions of Part II, Chapter II, Section 2, Subsection 1 and Subsection 2 (Calculation of Income in Each Class) pursuant to the preceding paragraph, the following applies:
selling expenses, general administrative expenses, and other expenses incurred for business that generates income as prescribed in Article 37, paragraph (1) (Necessary Expenses) (referred to as "selling and other expenses" in the following item), and expenses for planting forest, expenses required for acquisition, management expenses, felling expenses, and other expenses required for growing or transferring forest as prescribed in paragraph (2) of that Article (referred to as "growing expenses, etc." in that item), which relate to internal dealings as prescribed in Article 161, paragraph (1), item (i) (Domestic Source Income), are to include those for which the obligation has not been fixed;
selling and other expenses, growing expenses, etc., and the amount expended (meaning the amount expended as prescribed in Article 34, paragraph (2) (Occasional Income); hereinafter the same applies in this item) are to include the amount allocated pursuant to Cabinet Order as relating to the business conducted through the permanent establishment, out of the selling and other expenses, growing expenses, etc., and amount expended that are common to the business conducted through a permanent establishment of the Nonresident and any other business.
Beyond what is prescribed in the preceding paragraph, Cabinet Order provides for the necessary particulars concerning the application of the provisions of paragraph (1).
Read this with the articles around it
Resident
「居住者」
An individual who has a domicile in Japan, or who has had a residence in Japan continuously for one year or more up to now.
Defined inArticle 2, paragraph (1), item (iii)· applies throughout the law
Nonresident
「非居住者」
An individual who is not a resident.
Defined inArticle 2, paragraph (1), item (v)· applies throughout the law
permanent establishmentmachine translation
「恒久的施設」
A branch, factory or other fixed place of business in Japan of a nonresident or foreign corporation, a construction or installation site there, or an agent there with authority to conclude contracts for it, each as a Cabinet Order (政令) specifies; where a tax treaty Japan has concluded defines it differently, the treaty's definition applies.
Defined inArticle 2, paragraph (1), item (viii-4)· applies throughout the law
Income in Each Class
「各種所得の金額」
The amount of income in each of the ten classes of income this Act distinguishes (interest, dividend, real property, business, salary, retirement, timber, capital gains, occasional and miscellaneous), worked out under the rules for each.
Defined inArticle 2, paragraph (1), item (xxii)· applies throughout the law
domestic source income
「国内源泉所得」
Income with its source in Japan, as listed in Article 161, paragraph (1), on which nonresidents and foreign corporations are taxed.
Defined inArticle 161, paragraph (1)· applies only in this part
income taxes imposed on aggregate incomemachine translation
「総合課税に係る所得税」
The income tax levied on the domestic source income of the nonresidents listed in Article 164, paragraph (1), worked out broadly as for residents.
Short name set inArticle 165, paragraph (1)· applies only in this section
income attributable to a permanent establishmentmachine translation
「恒久的施設帰属所得」
The domestic source income (国内源泉所得) of a nonresident with a permanent establishment in Japan listed in Article 164, paragraph (1), item (i), (a): income attributable to the permanent establishment (Article 161, paragraph (1), item (i)) and profits distributed under a partnership contract (組合契約) from a business carried on through a permanent establishment (Article 161, paragraph (1), item (iv)).
Short name set inArticle 165, paragraph (2)· applies only in this subsection
growing expenses, etc.machine translation
「育成費等」
In Article 165, paragraph (2), item (ii), the costs of planting, acquiring, managing and felling a forest and the other costs of growing or transferring it (Article 37, paragraph (2)), as they arise in working out the income of a Nonresident (非居住者) attributable to a permanent establishment (恒久的施設).
Short name set inArticle 165, paragraph (2), item (i)· applies only in this provision and in Article 165, paragraph (2), item (ii)
selling and other expensesmachine translation
「販売費等」
The selling expenses, general administrative expenses and other expenses of the business that produces the income, as Article 37, paragraph (1) describes them; where they arise from an internal dealing (内部取引) of a nonresident's permanent establishment they count even though the obligation to pay them is not yet fixed.
Short name set inArticle 165, paragraph (2), item (i)· applies only in this provision and in Article 165, paragraph (2), item (ii)
amount expendedmachine translation
「支出した金額」
In Article 165, paragraph (2), item (ii), the amounts spent to gain occasional income (一時所得) as described in Article 34, paragraph (2), counted here to include a share, set by Cabinet Order (政令), of such costs common to a nonresident's (非居住者) business through a permanent establishment (恒久的施設) and its other business.
Defined inArticle 165, paragraph (2), item (ii)· applies only in this item