If a Resident enters into a lease arrangement, the property subject to the lease arrangement (hereinafter referred to as "leased property" in this paragraph) is treated as having been sold at the time of the delivery of that leased property from the lessor to the lessee, and the lessor or lessee Resident's Income in Each Class for the year is calculated accordingly.
If a Resident sells a piece of property conditional upon the transferee's renting out that property to the transferor (but only as falls under the category of a lease arrangement), and, in light of the type of property, developments leading to the sale and leaseback, and any other circumstances, it is found that these arrangements, in essence, constitute the lending of monies, the property is treated as not having been sold, monies are treated as having been lent by the transferee to the transferor, and the transferee or transferor Resident's Income in Each Class for the year is calculated accordingly.
A lease arrangement as prescribed in the preceding two paragraphs means the rental of a piece of property (this excludes land rental not involving a transfer of ownership and any other rental prescribed by Cabinet Order) that meets the following requirements:
前二項に規定するリース取引とは、資産の賃貸借（所有権が移転しない土地の賃貸借その他の政令で定めるものを除く。）で、次に掲げる要件に該当するものをいう。
the rental agreement is one that the parties are not entitled to terminate in the middle of the rental period, or is equivalent to such an agreement;
当該賃貸借に係る契約が、賃貸借期間の中途においてその解除をすることができないものであること又はこれに準ずるものであること。
the lessee to which the property is rented is entitled to the actual enjoyment of any economic benefit arising from the rented property and is expected to bear the actual expenses arising from the use of that property.
当該賃貸借に係る賃借人が当該賃貸借に係る資産からもたらされる経済的な利益を実質的に享受することができ、かつ、当該資産の使用に伴つて生ずる費用を実質的に負担すべきこととされているものであること。
Cabinet Order provides for the reaching of a determination as to whether the lessee is expected to bear the actual expenses arising from the use of the property referred to in item (ii) of the preceding paragraph and provides for other necessary particulars concerning the application of the preceding three paragraphs.