Article 173Issuance of a Refund Due to Elective Treatment for Taxation of Retirement Income
第百七十三条（退職所得の選択課税による還付）
If a Nonresident prescribed in Article 169 (Tax Base) is subject to Part IV, Chapter V (Withholding from the Income of Nonresidents and Corporations), as regards severance pay or other such compensation as prescribed in Article 171 (Elective Treatment for Taxation of Retirement Income) that is paid thereto and elects to have that severance pay or other such compensation taxed as referred to in that Article, the Nonresident may file a return with the district tax office director on or after January 1 of the following year (or on or after the day that the total amount of the severance pay and other such compensation as prescribed in Article 171 becomes fixed, if this is before January 1 of the following year), giving the following information, so as to be issued an income tax refund for that severance pay or other such compensation:
the total severance pay and other such compensation and income taxes as set forth in paragraph (2), item (i) of the preceding Article;
income taxes as set forth in paragraph (2), item (ii) of the preceding Article;
前条第二項第二号に掲げる所得税の額
income taxes as set forth in the preceding item, less income taxes as set forth in item (i);
the information set forth in paragraph (2), item (iv) and item (v) of the preceding Article, and the information prescribed by Ministry of Finance Order.
When a return under the preceding paragraph is filed, the district tax office director issues an income tax refund in an amount equivalent to what is set forth in item (iii) of that paragraph.
In a case as referred to in the preceding paragraph, if any part of the income taxes set forth in paragraph (1), item (ii) which are indicated in the return referred to in the preceding paragraph (limited to income taxes that are required to be withheld pursuant to the provisions of Part IV, Chapter V) has not yet been paid over to the national government, an amount equivalent to the part of the refund under the preceding paragraph which is from income taxes not yet paid over is not refunded until those income taxes are paid over.
When the amount of Interest on a refund under paragraph (2) is calculated, the period referred to in Article 58, paragraph (1) of the Act on General Rules for National Taxes (Interest on Refunds) which serves as the basis for the calculation is the period beginning on the day after that on which the return is filed pursuant to the provisions of paragraph (1) (or beginning on the day after that on which any income taxes which are subject to a refund as prescribed in the preceding paragraph are paid, if this is after the date on which the return is filed) and ending on the day on which the tax-office decision to pay the refund is reached or on the day on which the refund is Appropriated to cover a required tax payment (or ending on the day on which the refund first could have been Appropriated, if this is before the date of the Appropriation).
Beyond what is prescribed in the preceding two paragraphs, Cabinet Order provides for the procedures for issuing a refund as referred to in paragraph (2) and for other necessary particulars concerning the application of the provisions of that paragraph.
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
withholding
「源泉徴収」
Collecting income tax at source when making a payment and paying it over to the government, under Part IV, Chapters I to VI of this Act.
Defined inArticle 2, paragraph (1), item (xlv)· applies throughout the law
Appropriation
「充当」
Using a refund owed to a taxpayer to pay other national tax they owe instead, under Article 57, paragraph (1) of the Act on General Rules for National Taxes.
Defined inArticle 2, paragraph (1), item (xlvii)· applies throughout the law, except in Articles 190 and 191
interest on refundmachine translation
「還付加算金」
Interest added to a tax refund, as defined in Article 58, paragraph (1) of the Act on General Rules for National Taxes.
Defined inArticle 2, paragraph (1), item (xlviii)· applies throughout the law
severance pay or other such compensation
「退職手当等」
Retirement allowances, lump-sum pensions and other payments received all at once on retirement, and payments of the same nature, as described in Article 30, paragraph (1) on retirement income; some provisions leave out those from which no tax need be withheld.
Defined inArticle 171, paragraph (1)· applies only in this section
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.