①If the amount arrived at when the amount set forth in item (ii) is deducted from the amount set forth in item (i) (hereinafter referred to as the "tax prepayment calculation base" in this Chapter) is 150,000 yen or more, a Resident (other than one required to make payments under Article 107, paragraph (1) (Tax Prepayments by Special Farming Income Earners)) must pay income taxes to the national government in an amount equivalent to one-third of the tax prepayment calculation base, once during the first term (meaning the period from July 1 to July 31 of that year; hereinafter the same applies in this Chapter) and once during the second term (meaning the period from November 1 to November 30 of that year):

②If, due to an extension of the deadline for payment under the provisions of Article 11 (Extension of Deadlines Due to Disasters or Other Reasons) of the Act on General Rules for National Taxes (referred to as an "extension of the deadline" in this paragraph), the payment deadline for a Tax Prepayment that a Resident prescribed in the preceding paragraph must pay in the first period or the second period pursuant to that paragraph falls after December 31 of that year, the Tax Prepayment related to that extension of the deadline is deemed not to exist.

③In a case as referred to in paragraph (1), the amount equivalent to one-third of the Tax Prepayment calculation base which is prescribed in that paragraph is rounded down to the nearest hundred yen.

If paragraph (1) of the preceding Article applies, the calculation of the Tax Prepayment calculation base is based on what has been established as of May 15 of the relevant year, and the determination as to whether a person falls under the category of a Resident is based on the person's circumstances as of June 30 of the relevant year; provided, however, that if the amount calculated based on what has been established as of any date between May 16 and July 31 of the relevant year turns out to be less than the amount calculated pursuant to the provisions of the main clause, the calculation of the Tax Prepayment calculation base is based on what has been established as of that date (or as of the day on which the amount so calculated is the smallest, if there are two or more such dates).

①The district director calculates the Tax Prepayment calculation base for a Resident that is required to make payments under Article 104, paragraph (1) (Making Tax Prepayments) based on the Resident's circumstances as of May 15 of the relevant year, and notifies the Resident via a paper-based notice by June 15 of that year (or, if as of that date the payment deadline for the Tax Prepayment that the Resident must pay in the first period has been extended or is expected to be extended pursuant to Article 11 (Extension of Deadlines Due to Disasters or Other Reasons) of the Act on General Rules for National Taxes, by the day one month before July 31 of that year (or, if that payment deadline has been extended pursuant to that Article, one month before that extended payment deadline)) of the Tax Prepayment calculation base and the Tax Prepayments that the Resident must make during the first period and the second period.

②If it comes to be necessary for the tax prepayment calculation base referred to in the preceding paragraph to be calculated pursuant to the proviso to the preceding Article, the district tax office director must notify the Resident referred to in that paragraph of this via a paper-based notice.

③Notice under the preceding two paragraphs is issued by the district director that has received a Tax Return for the previous year's income taxes from a Resident that is required to make payments under Article 104, paragraph (1), or by the district director that has made a determination on the income taxes (or by the district director prescribed by Cabinet Order, if the locality in which the Resident pays the income taxes changes subsequently).

④The district director prescribed in the preceding paragraph is not required to give notice under paragraphs (1) and (2), notwithstanding those provisions, if the provisions of Article 104, paragraph (2) apply to the Tax Prepayment that the Resident referred to in paragraph (1) must pay in the first period pursuant to paragraph (1) of that Article.

①If the tax prepayment calculation base is 150,000 yen or more, a Resident as follows must pay income taxes to the national government in the second term in an amount equivalent to half of the tax prepayment calculation base:

②If, due to an extension of the deadline for payment under the provisions of Article 11 (Extension of Deadlines Due to Disasters or Other Reasons) of the Act on General Rules for National Taxes (referred to as an "extension of the deadline" in this paragraph), the payment deadline for a Tax Prepayment that a Resident prescribed in the preceding paragraph must pay in the second period pursuant to that paragraph falls after December 31 of that year, the Tax Prepayment related to that extension of the deadline is deemed not to exist.

③In a case as referred to in paragraph (1), the amount equivalent to one-half of the Tax Prepayment calculation base prescribed in that paragraph is rounded down to the nearest hundred yen.

In a case to which paragraph (1) of the preceding Article applies, the determination as to whether a person falls under the category of a Special Farming Income Earner is based on what has been established as of May 1 of the relevant year; the calculation of the Tax Prepayment calculation base is based on what has been established as of September 15 of the relevant year; and the determination as to whether the person falls under the category of a Resident is based on the person's circumstances as of October 31 of a given year; provided, however, that if the amount calculated based on what has been established as of any date between September 16 and November 30 of a given year proves to be less than the amount calculated pursuant to the provisions of the main clause, the calculation of the Tax Prepayment calculation base is based on what has been established as of that date (or as of the day on which the amount so calculated is the smallest, if there are two or more such dates).

①The district director calculates the Tax Prepayment calculation base for a Resident that is required to make a payment under Article 107, paragraph (1) (Paying Tax Prepayments by Special Farming Income Earners) based on the Resident's circumstances as of September 15 of the relevant year, and notifies the Resident via a paper-based notice by October 15 of that year (or, if as of that date the payment deadline for the Tax Prepayment that the Resident must pay in the second period has been extended or is expected to be extended pursuant to Article 11 (Extension of Deadlines Due to Disasters or Other Reasons) of the Act on General Rules for National Taxes, by the day one month before November 30 of that year (or, if that payment deadline has been extended pursuant to that Article, one month before that extended payment deadline)) of the Tax Prepayment calculation base and the Tax Prepayment that the Resident must make during the second period.

②If it comes to be necessary for the tax prepayment calculation base referred to in the preceding paragraph to be calculated pursuant to the proviso to the preceding Article, the district tax office director must notify the Resident referred to in that paragraph of this via a paper-based notice.

③Notice under the provisions of the preceding two paragraphs is issued by the district director that has received a Tax Return for the previous year's income taxes from a Resident that is required to make a payment under Article 107, paragraph (1), or by the district director that has made a determination on the income taxes (or by the district director prescribed by Cabinet Order, if the locality in which the Resident pays the income taxes changes subsequently).

④The district director prescribed in the preceding paragraph is not required to give notice under paragraphs (1) and (2), notwithstanding those provisions, if the provisions of Article 107, paragraph (2) apply to the Tax Prepayment that the Resident referred to in paragraph (1) must pay in the second period pursuant to paragraph (1) of that Article.

①A Resident that was not a Special Farming Income Earner in the previous year but that is expected to become a Special Farming Income Earner in the current year based on the status thereof as of May 1 of the current year may seek to have the competent district tax office director for the locality in which the Resident pays taxes acknowledge that expectation.

②A Resident seeking the acknowledgment referred to in the preceding paragraph must submit a paper-based application giving the grounds for expecting that the Resident will be a Special Farming Income Earner in that year and giving the information prescribed by Ministry of Finance Order, to the competent district tax office director for the locality in which the Resident pays taxes, by May 15 of the relevant year.

③Following the submission of a paper-based application as referred to in the preceding paragraph, the district tax office director must notify the applicant via a paper-based notice upon approval or denial of the application. This being the case, the district tax office director must give additional information as to the reason when notifying the applicant of a denial.

④If the provisions of paragraph (1) apply, the determination as to whether a person was or was not a Special Farming Income Earner in the previous year is based on what has been established as of May 1 of the relevant year.

①If the estimated tax due on filing that is based on a Resident's circumstances as of June 30 of a given year is expected to be less than the tax prepayment calculation base, a Resident that is required to make payments under the provisions of Article 104, paragraph (1) (Paying Tax Prepayments) may apply to the competent district tax office director for the locality in which the Resident pays taxes for approval for a reduction of the Tax Prepayments that the Resident is required to pay during the first term and the second term, by July 15 of that year.

②If the estimated tax due on filing based on a Resident's circumstances as of October 31 of a given year is expected to be less than the amount set forth in one of the following items, the Resident set forth in that item may apply to the competent district tax office director for the locality in which the Resident pays taxes for approval for a reduction of the Tax Prepayment that the Resident is required to pay during the second term, by November 15 of that year:

③If a paper-based notice from the district tax office director as under Article 106, paragraph (1) (Notifying the Taxpayer of Tax Prepayments) is not issued by June 15 of a given year or if a paper-based notice from the district tax office director as under Article 109, paragraph (1) (Notifying Special Farming Income Earners of Tax Prepayments) is not issued by October 15 of a given year, the deadline for filing an application as referred to in the preceding two paragraphs is to be extended to the day calculated as marking one month's time since the date of issuance of the paper-based notice.

④The estimated tax due on filing as prescribed in paragraph (1) and paragraph (2) means the amount calculated pursuant to Cabinet Order as the amount arrived at when the estimated amount of income taxes that will be Withheld for Each Class of Income that has been used as the basis for estimating the year's taxable gross income is deducted from the amount of income taxes calculated when Chapter III (Calculating the Amount of Taxes) is applied to an estimate of the year's taxable gross income and taxable timber income.

①A Resident seeking to file an application as under paragraph (1) or paragraph (2) of the preceding Article must submit a paper-based application to the competent district tax office director for the locality in which the Resident pays taxes, indicating the estimated tax due on filing prescribed in those provisions, indicating the reason for the application, and giving the information prescribed by Ministry of Finance Order.

②The paper-based application referred to in the preceding paragraph must be accompanied by documents giving the facts used as the basis for calculating the estimated tax due on filing referred to in that paragraph, based on transaction records and other such sources.

①When a paper-based application referred to in paragraph (1) of the preceding Article is submitted, the district tax office director undertakes an examination and either verifies the estimated tax due on filing provided for in that paragraph which is indicated in the application (hereinafter referred to as the "estimated tax due on filing" in this Article) or establishes the estimated tax due on filing; following which the director either gives the approval referred to in Article 111, paragraph (1) or paragraph (2) (Applying for Approval for a Reduction of Tax Prepayments) or denies the application.

②If a paper-based application referred to in paragraph (1) of the preceding Article is submitted and falls under one of the following items, the district tax office director must give the approval referred to in the preceding paragraph:

③Having reached a disposition as referred to in paragraph (1), the district tax office director must either notify the Resident that submitted the paper-based application referred to in that paragraph of the estimated tax due on filing that the director has verified and of the Tax Prepayments calculated based on that estimated tax due on filing; notify the Resident of the estimated tax due on filing that the director has established and of the Tax Prepayments calculated based on that estimated tax due on filing and inform the Resident of the reason therefor; or notify the Resident that the application is denied and inform the Resident of the reason therefor.

④If the approval referred to in paragraph (1) is given based on the filing of an application under Article 111, paragraph (1) or paragraph (2), item (ii) but the estimated tax due on filing of which the Resident is notified pursuant to the preceding paragraph comes to exceed the tax prepayment calculation base calculated pursuant to the provisions of the proviso to Article 105 (Special Provisions on Calculating Tax Prepayment Calculation Base) or the proviso to Article 108 (Special Provisions on Calculating Tax Prepayment Calculation Base for Special Farming Income Earners), that approval is deemed not to have been given.

①If a Resident filing an application under Article 111, paragraph (1) (Applying for Approval for a Reduction of Tax Prepayments) receives the approval referred to in that paragraph, the Tax Prepayments that the Resident is required to make against the relevant year's income taxes during the first term and the second term pursuant to the provisions of Article 104, paragraph (1) (Making Tax Prepayments) are amounts equivalent to one-third of the estimated tax due on filing of which the district tax office director giving approval pursuant to paragraph (3) of the preceding Article has notified the Resident.

②If a Resident set forth in Article 111, paragraph (2), item (i) filing an application as under Article 111, paragraph (2) receives the approval referred to in that paragraph, the Tax Prepayment that the Resident is required to make against the relevant year's income taxes during the second term pursuant to the provisions of Article 104, paragraph (1) is an amount equivalent to one-half of the amount arrived at when the Tax Prepayment that the Resident is required to make during the first term pursuant to the provisions of Article 104, paragraph (1) is deducted from the estimated tax due on filing of which the district tax office director giving approval pursuant to paragraph (3) of the preceding Article has notified the Resident.

③If a Resident set forth in Article 111, paragraph (2), item (ii) filing an application as under the provisions of Article 111, paragraph (2) receives the approval referred to in that paragraph, the Tax Prepayment that the Resident is required to make against the relevant year's income taxes during the second term pursuant to the provisions of Article 107, paragraph (1) (Tax Prepayments by Special Farming Income Earners) is an amount equivalent to one-half of the estimated tax due on filing of which the district tax office director giving approval pursuant to the provisions of paragraph (3) of the preceding Article has notified the Resident.

④In a case as referred to in the preceding three paragraphs, any Tax Prepayment under those provisions is rounded down to the nearest hundred yen, and if the estimated tax due on filing provided for in those provisions is less than 150,000 yen, the Resident is not subject to any Tax Prepayment under those provisions.

Notwithstanding the provisions of Article 104, paragraph (1) (Making Tax Prepayments) and Article 107, paragraph (1) (Tax Prepayments by Special Farming Income Earners), if a Resident that is required to make a Tax Prepayment pursuant to those provisions will become Absent From Japan prior to the payment deadline prescribed in those provisions, the Resident must pay income taxes to the national government in an amount equivalent to any Tax Prepayment with a deadline falling after the start of the Resident's Absence From Japan, by the start of the Resident's Absence From Japan.

If the district tax office director fails to issue a paper-based notice pursuant to Article 106, paragraph (1) (Notifying the Taxpayer of Tax Prepayments) by one month prior to the payment deadline for a Tax Prepayment that a taxpayer is required to make pursuant to Article 104, paragraph (1) (Making Tax Prepayments) or fails to issue a paper-based notice pursuant to Article 109, paragraph (1) (Notifying Special Farming Income Earners of Tax Prepayments) by one month prior to the payment deadline for a Tax Prepayment that a taxpayer is required to make pursuant to Article 107, paragraph (1) (Tax Prepayments by Special Farming Income Earners) (other than a Tax Prepayment that the taxpayer is required to make pursuant to the preceding Article; hereinafter the same applies in this Article), the district tax office director may not issue a demand as under Article 37 (Demand for Payment) of the Act on General Rules for National Taxes for the taxpayer to make the Tax Prepayment that the taxpayer is required to make pursuant to either of the aforementioned provisions until the day calculated as marking one month's time since the date of issuance of the paper-based notice.

Even if a Tax Prepayment (including a tax on delinquency levied against a Tax Prepayment) becomes subject to measures to collect arrears, the property of the taxpayer is not subject to a realization of assets under measures to collect arrears until that year's income tax Filing Deadline (or until the day on which any refund under Article 138, paragraph (1) (Refunding Tax Withheld) or Article 139, paragraph (1) or paragraph (2) (Refunding Prepaid Taxes) linked to the year's income taxes as of the deadline, is Appropriated to cover the arrears).

If a paper-based application as referred to in Article 112, paragraph (1) (Process of Applying for Approval for a Reduction of Tax Prepayments) is submitted, the district tax office director may suspend collection of all or part of the Tax Prepayments to which the application pertains on finding there to be adequate grounds to do so.

When the amount of a tax on delinquency levied against a Tax Prepayment set forth in one of the following items is calculated pursuant to the provisions of Article 60, paragraph (2) (Taxes on Delinquency) of the Act on General Rules for National Taxes, the period set forth in the relevant item is not included as part of the period that is used as the basis for the calculation, and the phrase "up until the payment deadline (or, if permission for a tax payment deferment or tax payment in kind is rescinded, up until the day on which the paper document showing the rescission is issued; hereinafter the same applies in this paragraph and Article 63, paragraph (1), paragraph (4), and paragraph (5) (Exemption from Payment of Taxes on Delinquency If a Grace Period for Tax Payment Is Granted)) or up until the day marking the last day in the two-month period following the day after the payment deadline" in that paragraph is deemed to be replaced with "up until the day marking the last day in the two-month period following the day after the last day of the period set forth in the items of Article 119 of the Income Tax Act":

①If the sum total of a Resident's gross income, retirement income, and timber income for the year exceeds the sum of any Casualty Loss deduction under Chapter II, Section 4 (Deductions from Income) and other deductions; and if the sum total of income taxes calculated when the Resident's gross income, retirement income, and timber income less the aforementioned deductions taken pursuant to Article 87, paragraph (2) (Procedures for Deductions from Income) are deemed to be the Resident's taxable gross income, taxable retirement income, and taxable timber income and Article 89 (Tax Rates) is applied, exceeds dividend tax credits (excluding the case where there is an amount of foreign tax credit that could not be fully deducted in calculating the amount of income taxes set forth in item (iii), the case where there is an amount of tax withheld prescribed in item (iv) that could not be fully deducted in calculating the amount set forth in that item, and the case where there is an amount of prepaid taxes that could not be fully deducted in calculating the amount set forth in item (v)), the Resident must file a return with the district director during the third period (meaning during the period from February 16 to March 15 of the year following the year in question; hereinafter the same applies in this Section) giving the following information, unless the Resident files a return under Article 123, paragraph (1) (Filing Tax Returns Showing Losses). In such a case, if a Resident who has a salary or other wage prescribed in Article 28, paragraph (1) (Salary Income) to be paid in that year to which the provisions of Article 190 (Year-End Adjustments) have been applied files that return, the Resident may, for the information specified by Ministry of Finance Order out of the following information, make the entries specified by Ministry of Finance Order:

②The prepaid taxes as prescribed in the preceding paragraph means the sum total of the following tax amounts (or the sum total of the following tax amounts less any part of those amounts that constitutes an amount to be refunded based on the taxpayer's having filed a return as under Article 127, paragraphs (1) through (3) or based on the income taxes connected with such a return having been subject to a Reassessment):

③If filing a return under paragraph (1), a Resident as set forth in one of the following items must include the document that the item prescribes with that return or submit it at the time of filing the return, as prescribed by Cabinet Order:

④If a Resident making an entry for a medical expenses deduction in a return under paragraph (1) files that return, the Resident must attach the following documents to that return:

⑤If a return referred to in the preceding paragraph has been filed, the district director may, when the district director finds it necessary, request the person who filed the return (referred to as a "person claiming the medical expense deduction" in this paragraph) to present or submit documents by which the persons who received the medical expenses stated in the document set forth in item (i) of the preceding paragraph evidence that receipt, until the day on which five years have elapsed from the day following the Filing Deadline for that return (or, if a request for Reassessment under Article 23, paragraph (1) (Request for Reassessment) of the Act on General Rules for National Taxes has been made within six months before that day, the day on which six months have elapsed from the day on which that request for Reassessment was made). In such a case, if a request under the first sentence of this paragraph has been made, the person claiming the medical expense deduction must present or submit those documents.

⑥If a Resident conducting business that is meant to generate real property income, business income, or timber income in the relevant year files a return pursuant to paragraph (1) (unless the return is a Blue Return), or if a Resident conducting business that is meant to generate miscellaneous income in the relevant year whose amount of revenue from that business for the year before the previous year exceeds 10,000,000 yen files a return pursuant to that paragraph, the Resident must include a document that indicates the gross revenue for the year arising from those types of income and the details of the necessary expenses with the return, pursuant to Ministry of Finance Order.

⑦If filing a return under paragraph (1), a Resident that was a Non-Permanent Resident for any part of the year must include a document giving the nationality thereof, the period during which the Resident was domiciled or resided in Japan, and any other information prescribed by Ministry of Finance Order, with the return.

①Notwithstanding paragraph (1) of the preceding Article, if a Resident who has salary income for the year and who is to be paid a salary or other wage as prescribed in Article 28, paragraph (1) (Salary Income) (hereinafter referred to as a "salary or other wage" in this paragraph) amounting to 20,000,000 yen or less in the year falls under one of the following items, that Resident is not required to file a return pursuant to paragraph (1) of the preceding Article as regards income taxes on taxable gross income and taxable timber income for the year; provided, however, that this does not apply if the Resident makes available real property or other assets for use in the business of the person paying the salary or other wage constituting the Resident's salary income and is paid a consideration for this, nor does it apply in any other case prescribed by Cabinet Order:

②Notwithstanding paragraph (1) of the preceding Article, if a Resident who has retirement income for the year falls under one of the following items, the Resident is not required to file a return under paragraph (1) of the preceding Article for income taxes on taxable retirement income for the year:

③If a Resident who has miscellaneous income from public pensions or retirement packages as prescribed in Article 35, paragraph (3) (Miscellaneous Income) (hereinafter referred to as "public pensions or retirement packages" in this Article) in the year, and whose revenue from public pensions or retirement packages during the year is four million yen or less, has had or is required to have income tax collected pursuant to the provisions of Article 203-2 (Obligation to Withhold Tax on Public Pensions or Retirement Packages) on all of those public pensions or retirement packages (excluding those to which the provisions of Article 203-7 (Public Pensions or Retirement Packages Not Subject to Withholding) apply), and the Resident's income for the year other than miscellaneous income from public pensions or retirement packages (meaning the sum total of the amounts of interest income, dividend income, real property income, business income, salary income, timber income, capital gains, occasional income, and miscellaneous income other than miscellaneous income from public pensions or retirement packages) is 200,000 yen or less, the Resident is not required to file a return under paragraph (1) of the preceding Article for the income taxes on the taxable gross income or taxable timber income for the year, notwithstanding the provisions of that paragraph.

①If an amount set forth in any of items (i) through (iii) arises in connection with a Resident's income tax for the year, the Resident may file a return with the district director, giving the information set forth in the items of Article 120, paragraph (1) (Filing Income Tax Returns) as well as the following information, to receive a refund pursuant to the provisions of Article 138, paragraph (1) (Refunding Tax Withheld) or Article 139, paragraph (1) or paragraph (2) (Refunding Prepaid Taxes), unless the Resident is permitted to file a return under paragraph (1) of the following Article:

②Even if the circumstances do not constitute a case in which a Resident is required to file a return under Article 120, paragraph (1) or is permitted to file a return under the preceding paragraph or paragraph (1) of the following Article, if it is necessary for the Resident to do so in order to apply Article 95, paragraph (2) or paragraph (3) (Foreign Tax Credit) to income taxes in or after the subsequent year, the Resident may file a return with the district director, giving the information set forth in the items of Article 120, paragraph (1).

③The provisions of the second sentence of Article 120, paragraph (1) apply mutatis mutandis to the information to be given in a return under the preceding two paragraphs, and the provisions of paragraphs (3) through (7) of that Article apply mutatis mutandis to the filing of a return under the preceding two paragraphs. In such a case, the term "Filing Deadline" in paragraph (5) of that Article is deemed to be replaced with "Filing Deadline (or the day on which the return is filed, if the return is a return of refund claim as prescribed in Article 61, paragraph (1), item (ii) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax) of the Act on General Rules for National Taxes)", and the term "Act on General Rules for National Taxes" is deemed to be replaced with "that Act".

①In a case falling under one of the following items, if a Resident seeks to apply the provisions of Article 70, paragraph (1) or paragraph (2) (Deduction for Carryover of Net Loss) or Article 71, paragraph (1) (Deduction for Carryover of Casualty Loss), or to receive a refund as under Article 142, paragraph (2) (Procedures for Issuing Refunds Based on Carryback of Net Loss) in or after the year following the relevant year, the Resident may file a return with the district director in the third period, giving the information set forth in the items of the following paragraph:

②The information that must be given in a return under the preceding paragraph is:

③The provisions of Article 120, paragraphs (3) through (7) apply mutatis mutandis to the filing of a return under paragraph (1). In such a case, the term "Filing Deadline" in paragraph (5) of that Article is deemed to be replaced with "Filing Deadline (or the day on which the return is filed, if the return is a return of refund claim as prescribed in Article 61, paragraph (1), item (ii) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax) of the Act on General Rules for National Taxes)", and the term "Act on General Rules for National Taxes" is deemed to be replaced with "that Act".

①If a Resident who is required to file a return under Article 120, paragraph (1) (Filing Income Tax Returns) dies between January 1 of the year following the relevant year and the deadline for filing that year's return without having filed that return, unless the Resident's heir files a return under the following paragraph, the heir must file the return with the district tax office director by the day before that which marks four months' time since the day after the heir learns of the commencement of the succession (or by the start of the heir's Absence From Japan, if the heir becomes Absent From Japan prior to that date; hereinafter the same applies in this Article), as prescribed by Cabinet Order.

②If a Resident who may file a return pursuant to paragraph (1) of the preceding Article dies between January 1 of the year following the relevant year and the deadline for filing that year's return without having filed a return, the Resident's heir may file the return with the district tax office director by the day before that which marks four months' time since the day after the heir learns of the commencement of the succession, as provided by Cabinet Order.

①If the circumstances, when a Resident dies partway through the year, constitute a case in which a return under Article 120, paragraph (1) (Filing Income Tax Returns) must be filed in connection with the Resident's income taxes for the year, unless the Resident's heir files a return under paragraph (3), the heir must file a return with the district tax office director, giving information that includes what is set forth in the items of Article 120, paragraph (1) with regard to those income taxes, by the day before that which marks four months' time since the day after the heir learns of the commencement of the succession (or by the start of the heir's Absence From Japan, if the heir becomes Absent From Japan prior to that date; hereinafter the same applies in this Article), as prescribed by Cabinet Order.

②If the circumstances, when a Resident dies partway through the year, constitute a case in which it is permissible to file a return under Article 122, paragraph (1) or paragraph (2) (Filing a Return to Receive a Refund) in connection with the Resident's income taxes for the year, unless the Resident's heir is permitted to file a return under the following paragraph, the heir may file a return with the district director, giving information that includes what is set forth in the items of Article 120, paragraph (1) and the items of Article 122, paragraph (1) with regard to those income taxes, as prescribed by Cabinet Order.

③If the circumstances, when a Resident dies partway through the year, constitute a case in which it is permissible to file a return under Article 123, paragraph (1) (Filing Tax Returns Showing Losses) in connection with the Resident's income taxes for the year, the Resident's heir may file a return with the district tax office director, giving information that includes what is set forth in the items of paragraph (2) of that Article with regard to those income taxes, by the day before that which marks four months' time since the day after the heir learns of the commencement of the succession, as prescribed by Cabinet Order.

④The provisions of the second sentence of Article 120, paragraph (1) apply mutatis mutandis to the information to be given in a return under paragraph (1) or paragraph (2), and the provisions of paragraphs (3) through (7) of that Article apply mutatis mutandis to the filing of a return under the preceding three paragraphs. In such a case, the term "Filing Deadline" in paragraph (5) of that Article is deemed to be replaced with "Filing Deadline (or the day on which the return is filed, if the return is a return of refund claim as prescribed in Article 61, paragraph (1), item (ii) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax) of the Act on General Rules for National Taxes)", and the term "Act on General Rules for National Taxes" is deemed to be replaced with "that Act".

⑤Paragraph (1) applies mutatis mutandis if the person who is required to file a return under paragraph (1) dies prior to the deadline for filing the return without having filed it, and paragraph (2) of the preceding Article applies mutatis mutandis if the person who is permitted to file a return under paragraph (3) dies prior to the deadline for filing the return without having filed it.

①If a Resident who is required to file a return under Article 120, paragraph (1) (Filing Income Tax Returns) will be Absent From Japan between January 1 of the year following the relevant year and the deadline for filing the year's return, unless the Resident files a return under the provisions of Article 123, paragraph (1) (Filing Tax Returns Showing Losses), the Resident must file the return with the district tax office director by the start of the Resident's Absence From Japan.

②If a Resident who may file a return under Article 123, paragraph (1) will be Absent From Japan between January 1 of the year following the relevant year and February 15, the Resident may file the return with the district tax office director, even during that period.

①If a Resident will become Absent From Japan partway through the year under circumstances constituting a case in which a return under Article 120, paragraph (1) (Filing Income Tax Returns) must be filed for the Resident's gross income, retirement income, and timber income from between January 1 of the relevant year and the start of the Resident's Absence From Japan, unless the Resident files a return under paragraph (3), the Resident must file a return with the district tax office director, giving the information set forth in the items of Article 120, paragraph (1) based on the circumstances as of that time, by the start of the Resident's Absence From Japan.

②If a Resident will become absent from Japan partway through the year under circumstances constituting a case in which it is permissible to file a return under Article 122, paragraph (1) (Filing a Return to Receive a Refund) for the Resident's gross income, retirement income, and timber income from between January 1 of the relevant year and the start of the Resident's Absence From Japan, unless the Resident is permitted to file a return under the following paragraph, the Resident may file a return with the district director, giving the information set forth in the items of Article 120, paragraph (1) and the items of Article 122, paragraph (1) based on the circumstances as of that time.

③If a Resident will become absent from Japan partway through the year under circumstances constituting a case in which it is permissible to file a return under Article 123, paragraph (1) (Filing Tax Returns Showing Losses) in connection with a Net Loss or Casualty Loss incurred between January 1 of the relevant year and the start of the Resident's Absence From Japan or in connection with a Net Loss or Casualty Loss incurred in any of the three years prior to the relevant year (or in any of the five years prior to the relevant year, if the provisions of Article 70-2, paragraphs (1) through (3) (Special Provisions on Deduction for Carryover of Net Loss Related to Specified Extraordinary Disasters) or Article 71-2, paragraph (1) (Special Provisions on Deduction for Carryover of Casualty Loss Related to Specified Extraordinary Disasters) apply), the Resident may file a return with the district director, giving the information set forth in the items of Article 123, paragraph (2) based on the circumstances as of that time, by the start of the Resident's Absence From Japan.

④The provisions of the second sentence of Article 120, paragraph (1) apply mutatis mutandis to the information to be given in a return under paragraph (1) or paragraph (2), and the provisions of paragraphs (3) through (7) of that Article apply mutatis mutandis to the filing of a return under the preceding three paragraphs. In such a case, the term "Filing Deadline" in paragraph (5) of that Article is deemed to be replaced with "Filing Deadline (or the day on which the return is filed, if the return is a return of refund claim as prescribed in Article 61, paragraph (1), item (ii) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax) of the Act on General Rules for National Taxes)", and the term "Act on General Rules for National Taxes" is deemed to be replaced with "that Act".

If a return as under Article 120, paragraph (1) (Filing Income Tax Returns) (other than a return required to be filed in circumstances falling under the provisions of Article 124, paragraph (1) (Filing a Tax Return If the Person Required to File Has Died) or Article 126, paragraph (1) (Filing a Tax Return If the Person Required to File Will Be Absent From Japan)) indicates an amount as set forth in Article 120, paragraph (1), item (iii) (or indicates an amount as set forth in Article 120, paragraph (1), item (iv), if there is any tax withheld as prescribed in that item but no prepaid taxes as prescribed in Article 120, paragraph (1), item (v); or indicates an amount as set forth in Article 120, paragraph (1), item (v), if there are any prepaid taxes as prescribed in that item; hereinafter the same applies in this Subsection), the Resident filing the return must pay income taxes to the national government in an amount equivalent thereto in the third period.

If a return as under Article 124, paragraph (1) (Filing a Tax Return If the Person Required to File Has Died) (including as applied mutatis mutandis pursuant to Article 125, paragraph (5) (Filing a Tax Return If the Taxpayer Has Died Partway Through the Year)) or Article 125, paragraph (1) indicates an amount set forth in Article 120, paragraph (1), item (iii) (Amount of Income Taxes Indicated in Income Tax Returns), the person filing the return due to circumstances falling under any of those provisions must pay income taxes to the national government in an amount equivalent thereto by the deadline for filing the return, as prescribed in Article 5 (Succession to the Obligation to Pay National Taxes Based on Hereditary Succession) of the Act on General Rules for National Taxes.

If a return as under Article 126, paragraph (1) (Filing a Tax Return If the Person Required to File Will Be Absent From Japan) or Article 127, paragraph (1) (Filing a Tax Return If the Taxpayer Will Become Absent From Japan Partway Through the Year) indicates an amount as set forth in Article 120, paragraph (1), item (iii) (Amount of Income Taxes Indicated in Income Tax Returns), the Resident filing the return prescribed in those provisions due to the circumstances falling under those provisions must pay income taxes to the national government in an amount equivalent thereto, by the deadline for filing the return.

①If a Resident filing a return under Article 120, paragraph (1) (Filing Income Tax Returns) pays income taxes to the national government which are equivalent to at least 50% of the income taxes payable pursuant to the provisions of Article 128 (Payment upon Filing) by the payment due date under Article 128 (or if the Resident submits a paper-based application as referred to in Article 133, paragraph (1) (Process for Deferring Tax Payments connected with Assets Transferred on a Deferred-Payment Basis) and the amount the Resident pays by the due date is at least 50% of the income taxes payable less the amount that the paper-based application states as the part of the income taxes payable whose payment the Resident seeks to defer as referred to in Article 133, paragraph (1)), the Resident may defer the payment of the remaining amount until May 31 of the year in which the Resident has made that first payment by the due date.

②The preceding paragraph applies only if the Resident filing a return as prescribed in that paragraph submits a tax payment deferment notice by the payment due date prescribed in that paragraph to the competent district tax office director for the locality in which the Resident pays taxes, indicating the amount of tax payable pursuant to the provisions of Article 128 and the part of the tax payable that the Resident will pay by the due date, and giving the information prescribed by Ministry of Finance Order.

③A Resident applying the provisions of paragraph (1) must pay the income taxes whose payment is subject to a deferment under the provisions of that paragraph, along with a tax levied as interest in an amount equivalent to that arrived at when the income taxes whose payment is deferred are multiplied by an annual rate of 7.3%, based on the number of days in the deferment period.

①If a Resident transfers assets generating timber income or capital gains on a deferred-payment basis and the following requirements are all met, the district tax office director may permit a deferment of payment for all or a part of the income taxes payable pursuant to the provisions of Article 128 (Payment upon Filing) or Article 129 (Payment upon Filing in the Event of the Taxpayer's Death), as indicated in a return as prescribed in item (i) (or for all or a part of the taxes on assets transferred on a deferred-payment basis, if the taxes on assets transferred on a deferred-payment basis are less than the income taxes payable pursuant to the provisions of Article 128) for up to five years, at the application of the Resident (or the Resident's heir):

②Before permitting a tax payment deferment pursuant to the provisions of the preceding paragraph, the district director must collect collateral equivalent to the amount of income taxes whose payment is being deferred; provided, however, that this does not apply if the amount of income taxes whose payment is being deferred is one million yen or less and the deferment period is three years or less, or if that period is three months or less.

③A transfer on a deferred-payment basis as prescribed in paragraph (1) means a transfer undertaken under conditions meeting the following requirements based on a contract that defines those conditions:

④The taxes on assets transferred on a deferred-payment basis as prescribed in paragraph (1) means the part of the income taxes set forth in Article 120, paragraph (1), item (iii) that is indicated in a return as prescribed in paragraph (1), item (i) and which is calculated pursuant to Cabinet Order as the part of the taxes on timber income or capital gains from the sum total of the installment payments connected with the deferred-payment transfer whose payment deadline as defined in the contract for the deferred-payment transfer falls in or after the year following the relevant year (this excludes any installment payment already made during the relevant year).

①A Resident seeking to apply for permission to defer a tax payment pursuant to the provisions of paragraph (1) of the preceding Article must submit a paper-based application to the competent district tax office director for the locality in which the Resident pays taxes, indicating the amount of income taxes whose payment the Resident is requesting to defer, the period of the deferment (or, if the Resident is requesting to pay the income taxes in two or more installments, the period between installment payments and the amount of each installment payment that the Resident is requesting to make as a deferred payment), and giving the information prescribed by Ministry of Finance Order, accompanied by a document concerning the provision of collateral, by the payment due date for those income taxes, pursuant to Article 128 (Payment upon Filing) or Article 129 (Payment upon Filing in the Event of the Taxpayer's Death).

②Upon the submission of a paper-based application as referred to in the preceding paragraph, the district tax office director examines whether the Resident submitting the paper-based application and the information given in the application meet the requirements set forth in the items of paragraph (1) of the preceding Article; examines whether either the amount of income taxes whose payment the Resident is requesting to defer and the deferment period or the period between installment payments and the amount of each installment payment that the Resident has indicated in the paper-based application are reasonable, in light of the installment payment due dates and amounts as defined in the contract for the deferred-payment transfer prescribed in that paragraph; and examines any other necessary matters; and, based on the results of that examination, either permits the deferment of payment for all or a part of the income taxes to which the application pertains under the conditions indicated in the application or under alternate conditions, or denies the application.

③Before permitting a Resident to defer payment as referred to in the preceding paragraph, if the district tax office director finds that the collateral that the Resident filing the application seeks to provide is not appropriate, the director may request the Resident to change this. If the Resident fails to respond to the request in such a case, the district tax office director may deny the application.

④When permitting a Resident to defer payment or when denying an application as referred to in paragraph (1), the district tax office director must notify the Resident filing the application via a paper-based notice of either the amount of income taxes subject to the permission to defer payment and the conditions of the deferment, or of the denial of the application and the reason therefor.

⑤If a paper-based application as referred to in paragraph (1) is submitted, the district tax office director may suspend collection of all or a part of the amount of income taxes to which the application pertains on finding there to be adequate grounds to do so.

①If a Resident in receipt of permission to defer payment under Article 132, paragraph (1) (Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) seeks to request that the permitted conditions for deferring payment be altered due to a change in the due date for installment payments as defined in the contract for the deferred-payment transfer prescribed in that paragraph or due to the occurrence of any other grounds, the Resident may submit a paper-based application to the competent district tax office director for the locality in which the Resident pays taxes, indicating the conditions whose alteration the Resident seeks to request and giving the information prescribed by Ministry of Finance Order.

②Paragraph (2) and paragraph (4) of the preceding Article apply mutatis mutandis if a paper-based application as referred to in the preceding paragraph is submitted.

③On finding it to be necessary to alter the permitted conditions for deferring payment due to a change in the due date for installment payments defined in the contract for the deferred-payment transfer as prescribed in Article 132, paragraph (1), due to the payment of those installments prior to the due date, or due to the occurrence of any other grounds, the district tax office director may shorten the deferment period or otherwise alter the conditions for deferring payment. In such a case, the provisions of Article 49, paragraph (2) and paragraph (3) (Hearing of Explanations and Notice upon Cancellation of Grace Periods for Tax Payment) of the Act on General Rules for National Taxes apply mutatis mutandis.

①If a Resident in receipt of permission to defer payment under Article 132, paragraph (1) (Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) comes to fall under one of the following cases, the district tax office director may rescind the permission to defer payment:

②The provisions of Article 49, paragraph (2) (Hearing of Explanations upon Cancellation of Grace Periods for Tax Payment) of the Act on General Rules for National Taxes apply mutatis mutandis if the district tax office director rescinds the permission to defer payment referred to in the preceding paragraph pursuant to the provisions of item (i) or item (iii) of that paragraph.

③When rescinding the permission to defer payment referred to in paragraph (1) pursuant to the provisions of that paragraph, the district tax office director must notify the Resident that has been permitted to defer the payment of this via a paper-based notice, giving the reason therefor.

①A Resident in receipt of permission to defer payment under Article 132, paragraph (1) (Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) must pay a tax levied as interest in an amount equivalent to that which is set forth in each of the following items for the category of case set forth in the item, along with income taxes in the amount of the required installment payment prescribed in that item (or along with income taxes equivalent to the amount subject to deferment prescribed in item (iii), in the case referred to in that item):

②If a Resident in receipt of permission to defer payment under Article 132, paragraph (1) has that permission rescinded pursuant to paragraph (1) of the preceding Article, the deferred due date for payment is deemed to have arrived at the time the deferment is rescinded as regards the total amount of installment payments or amount subject to deferment that the Resident is required to pay at the time that the deferment is rescinded and thereafter, and the provisions of the preceding paragraph apply to the Resident.

As regards any taxes on delinquency that are levied against income taxes when a Resident has been permitted to defer payment as under Article 132, paragraph (1) (Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis), income taxes are broken down into the amount subject to deferment as prescribed in Article 136, paragraph (1), item (i) and everything else, and if the amount subject to deferment is subject to installment payments this is further broken down into individual installment payments, and the provisions of the Act on General Rules for National Taxes concerning taxes on delinquency apply to each such amount of taxes.

①With regard to the part of the income tax for the year that includes the date of a departure from Japan as prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains and Similar Income upon Departure from Japan) (hereinafter referred to as a "departure from Japan" in this Article) that is payable pursuant to the provisions of Article 128 (Payment upon Filing) or Article 129 (Payment upon Filing in the Event of the Taxpayer's Death) by a Resident who makes the departure from Japan and to whom those provisions have been applied with regard to Securities and similar interests as prescribed in that paragraph that the Resident holds at the time of the departure from Japan, or unsettled margin transactions or similar transactions as prescribed in Article 60-2, paragraph (2) or unsettled derivatives transactions as prescribed in paragraph (3) of that Article for which the Resident has concluded contracts (hereinafter referred to as "covered assets" in this paragraph and paragraph (3)) (including the Resident's heir), the income tax equivalent to the income tax subject to deferral (meaning the amount obtained by deducting the amount set forth in item (ii) from the amount set forth in item (i); the same applies hereinafter in this Article) for those covered assets (limited to those that the Resident continues to hold, or has not settled, until the Filing Deadline for the income tax for that year; hereinafter referred to as "applicable assets" in this paragraph, paragraph (5), and paragraph (6)) is granted a tax payment grace period, notwithstanding the provisions of Article 128 or Article 129, from the date of the departure from Japan until the day on which four months have elapsed from the day after the reference expiry date (meaning the day on which five years have elapsed from the date of the departure from Japan or the date on which the Resident comes to fall under a case of return to Japan or similar case (meaning a case set forth in Article 60-2, paragraph (6), item (i) or item (iii) or any other case specified by Cabinet Order; the same applies in the following paragraph), whichever comes first; the same applies in paragraph (5)), but only if the Resident has given notification of a tax agent under Article 117, paragraph (2) (Tax Agents) of the Act on General Rules for National Taxes by the time of the departure from Japan and has provided collateral equivalent to the income tax subject to deferral by the Filing Deadline for the income tax for that year, pursuant to Cabinet Order.

②If an individual to whom the preceding paragraph applies submits to the competent district director for the locality in which the individual pays taxes, by the day on which five years have elapsed from the date of the departure from Japan (or by the day before the date on which the individual comes to fall under a case of return to Japan or similar case, if the individual comes to fall under such a case before that day), a paper-based notification giving a statement that the individual seeks an extension of the time limit of the tax payment grace period under that paragraph and other information prescribed by Ministry of Finance Order, the term "five years" in that paragraph is deemed to be replaced with "10 years".

③Paragraph (1) (including when it is applied pursuant to the preceding paragraph; the same applies hereinafter in this Article) applies only if the Tax Return of the individual seeking to have paragraph (1) applied states that the individual seeks to have that paragraph applied, and is accompanied by a document giving details of the transfer or settlement of covered assets deemed to have been carried out pursuant to the provisions of Article 60-2, paragraphs (1) through (3), details concerning the calculation of the income tax subject to deferral, and other information prescribed by Ministry of Finance Order.

④Even if the Tax Return referred to in the preceding paragraph is not filed, or a Tax Return is filed without the statement or document referred to in that paragraph, the district director may apply paragraph (1) if the district director finds that there were unavoidable circumstances for the failure to file the return or to include the statement or document, but only if a document giving that statement and the document prescribed by Ministry of Finance Order referred to in that paragraph are submitted.

⑤If, by the reference expiry date for the tax payment grace period under paragraph (1), an individual to whom that paragraph is being applied transfers (including any act specified by Cabinet Order as similar to a transfer; the same applies in paragraph (6) of the following Article) or settles applicable assets that the individual held at the time of the departure from Japan, or transfers them by gift, or any other event specified by Cabinet Order occurs, then, notwithstanding paragraph (1), with regard to the income tax equivalent to the amount calculated pursuant to Cabinet Order as the part of the income tax subject to deferral for the applicable assets for which the event occurred that corresponds to those applicable assets, the time limit of the tax payment grace period under that paragraph is the day on which four months have elapsed from the date on which the event occurred.

⑥An individual to whom paragraph (1) applies must submit to the competent district director for the locality in which the individual pays taxes a paper-based notification (hereinafter referred to as a "notification of continued application" in the following paragraph through paragraph (10)) giving a statement that the individual seeks to continue to have paragraph (1) applied to the applicable assets that the individual holds or for which the individual has concluded contracts as of December 31 of each year in the period from the Filing Deadline for the income tax for the year that includes the date of the departure from Japan to which that paragraph is applied until the day on which the time limit of the tax payment grace period under that paragraph, the preceding paragraph, paragraph (8), or paragraph (9) is fixed for the whole of the income tax equivalent to the income tax subject to deferral, and other information prescribed by Ministry of Finance Order, by March 15 of the year following the year that includes that December 31 (hereinafter referred to as the "submission deadline" in the following paragraph through paragraph (10)).

⑦Even if a notification of continued application is not submitted by the submission deadline, if the district director referred to in the preceding paragraph finds that there were unavoidable circumstances for its not having been submitted by the submission deadline, the notification of continued application is deemed to have been submitted by the submission deadline, but only if it is submitted.

⑧If a notification of continued application is not submitted to the competent district director for the locality in which the taxpayer pays taxes by the submission deadline, then, notwithstanding paragraph (1), with regard to the income tax equivalent to the income tax subject to deferral as of the submission deadline (excluding, if paragraph (5) has already been applied, the amount to which that paragraph was applied; the same applies in the following paragraph), the time limit of the tax payment grace period under paragraph (1) is the day on which four months have elapsed from the submission deadline (or, if the individual liable for that income tax dies during the period from the submission deadline to the day on which those four months elapse, the day on which six months have elapsed from the day on which the individual's heir learns of the commencement of the succession due to the individual's death).

⑨The district director may advance the time limit of the tax payment grace period under paragraph (1) for the income tax equivalent to the income tax subject to deferral in any of the following cases. In such a case, the provisions of Article 49, paragraph (2) and paragraph (3) (Revocation of Tax Payment Grace Period) of the Act on General Rules for National Taxes apply mutatis mutandis.

⑩The prescription of the national government's right to collect the income tax equivalent to the income tax subject to deferral, and the tax levied as interest and tax on delinquency on that income tax, is not completed during the period from the time the notification of continued application is submitted until the submission deadline for that notification, and begins to run anew from the day after that submission deadline, except where Article 73, paragraph (4) (Suspension of Completion and Renewal of Prescription) of the Act on General Rules for National Taxes, as applied with the replacement of terms pursuant to item (iv) of the following paragraph, applies.

⑪The provisions of this Act, the Act on General Rules for National Taxes, and the National Tax Collection Act (Act No. 147 of 1959) apply as follows if the individual referred to in paragraph (1) seeks to have that paragraph applied, or if a tax payment grace period has been granted under that paragraph:

⑫If an individual to whom paragraph (1) applies falls under any of the cases set forth in the following items, the individual must pay a tax levied as interest in an amount equivalent to that arrived at when the amount equivalent to the income tax prescribed in the relevant item is multiplied by an annual rate of 7.3%, based on the number of days in the period from the day after the payment due date under Article 128 or Article 129 for that income tax up to the time limit of the tax payment grace period specified in the relevant item, along with the income tax prescribed in the relevant item:

⑬If a person who has made a departure from Japan to which paragraph (1) applies dies by the time limit of the tax payment grace period to which that paragraph applies, the obligation to pay the income tax subject to deferral for the person who has made the departure from Japan is succeeded to by that person's heir. In such a case, necessary matters are specified by Cabinet Order.

⑭Beyond what is provided for in paragraph (3) through the preceding paragraph, necessary matters concerning the application of paragraph (1) are specified by Cabinet Order.

①With regard to the part of the income tax for the year that includes the date of a gift (excluding a gift that takes effect upon the death of the donor; the same applies hereinafter in this paragraph) that is payable pursuant to the provisions of Subsection 3 (Payment) by a person to whom the provisions of Article 60-3, paragraph (1) (Special Provisions on Capital Gains and Similar Income If Assets Are Transferred to a Nonresident by Gift or Similar Means) have been applied with regard to Securities and similar interests as prescribed in that paragraph, or contracts for unsettled margin transactions or similar transactions as prescribed in paragraph (2) of that Article or unsettled derivatives transactions as prescribed in paragraph (3) of that Article (hereinafter referred to as "covered assets" in this Article), that were transferred to a Nonresident by the gift (including that person's heir), the income tax equivalent to the income tax deferred on a gift (meaning the amount obtained by deducting the amount set forth in item (ii) from the amount set forth in item (i); the same applies hereinafter in this paragraph and paragraph (4)) for those covered assets (limited to those that continue to be held, or have not been settled, until the Filing Deadline for the income tax for that year; hereinafter referred to as "applicable gifted assets" in this paragraph, paragraph (6), and paragraph (7)) is granted a tax payment grace period, notwithstanding the provisions of that Subsection, from the date of the gift until the day on which four months have elapsed from the day after the gift reference expiry date (meaning the day on which five years have elapsed from the date of the gift or the date on which a case of the donee's return to Japan or similar case (meaning a case set forth in Article 60-3, paragraph (6), item (i) or item (iii) or any other case specified by Cabinet Order; the same applies in paragraph (3), item (i)) arises, whichever comes first; the same applies in paragraph (6)), but only if the person to whom those provisions have been applied has provided collateral equivalent to the income tax deferred on a gift by the Filing Deadline for the income tax for that year, pursuant to Cabinet Order.

②With regard to the part of the income tax for the year that includes the date of commencement of an inheritance that is payable pursuant to the provisions of Article 129 (Payment upon Filing in the Event of the Taxpayer's Death) by all of the heirs of a person to whom the provisions of Article 60-3, paragraphs (1) through (3) have been applied with regard to covered assets transferred to a Nonresident by inheritance or bequest (including a gift that takes effect upon the death of the donor; the same applies hereinafter in this paragraph) (such a person is referred to as a "decedent whose estate is taxed as a sale" in paragraph (4)), the income tax equivalent to the income tax deferred on inheritance (meaning the amount obtained by deducting the amount set forth in item (ii) from the amount set forth in item (i); the same applies hereinafter in this paragraph and paragraph (4)) for those covered assets (limited to those that continue to be held, or have not been settled, until the Filing Deadline for the income tax for that year (or, if a return filed after the deadline is filed under Article 151-5, paragraph (1) (Special Provisions on Returns Filed after the Deadline and Similar Matters upon Division of the Estate or Similar Event), the deadline for filing prescribed in that paragraph; the same applies hereinafter in this paragraph and paragraph (7)); hereinafter referred to as "applicable inherited assets" in this paragraph, paragraph (6), and paragraph (7)) is granted a tax payment grace period, notwithstanding the provisions of Article 129, from the date of commencement of the inheritance until the day on which four months have elapsed from the day after the inheritance reference expiry date (meaning the day on which five years have elapsed from the date of commencement of the inheritance or the date on which a case of the heir's return to Japan or similar case (meaning a case set forth in Article 60-3, paragraph (6), item (i) or item (iii) or any other case specified by Cabinet Order; the same applies in item (i) of the following paragraph) arises, whichever comes first; the same applies in paragraph (6)), but only if the heirs have provided collateral equivalent to the income tax deferred on inheritance pursuant to Cabinet Order, and all of the Nonresidents who acquired the covered assets by the inheritance or bequest have given notification of a tax agent under Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes pursuant to Cabinet Order by the Filing Deadline for the income tax for that year.

③If a person set forth in one of the following items submits to the competent district director for the locality in which the person pays taxes, by the day or deadline specified in the relevant item, a paper-based notification giving a statement that the person seeks an extension of the time limit of the tax payment grace period under the preceding two paragraphs and other information prescribed by Ministry of Finance Order, the term "five years" in those provisions is deemed to be replaced with "10 years":

④Paragraph (1) or paragraph (2) (including when applied pursuant to the preceding paragraph; the same applies hereinafter in this Article) applies only if the Tax Return filed by the person seeking to have paragraph (1) applied, or the Tax Return of the decedent whose estate is taxed as a sale filed by the heir seeking to have paragraph (2) applied, states that the person or heir seeks to have those provisions applied, and is accompanied by a document giving details of the transfer or settlement of covered assets deemed to have been carried out pursuant to the provisions of Article 60-3, paragraphs (1) through (3), details concerning the calculation of the income tax deferred on a gift or the income tax deferred on inheritance (hereinafter referred to as the "income tax subject to deferral" in this Article), and other information prescribed by Ministry of Finance Order.

⑤Even if the Tax Return referred to in the preceding paragraph is not filed, or a Tax Return is filed without the statement or document referred to in that paragraph, the district director may apply paragraph (1) or paragraph (2) if the district director finds that there were unavoidable circumstances for the failure to file the return or to include the statement or document, but only if a document giving that statement and the document prescribed by Ministry of Finance Order referred to in that paragraph are submitted.

⑥If, by the gift reference expiry date or the inheritance reference expiry date for the tax payment grace period under paragraph (1) or paragraph (2), the Nonresident who received the gift referred to in paragraph (1), or the Nonresident who is an heir to whom paragraph (2) has been applied, transfers or settles applicable gifted assets or applicable inherited assets received by gift, inheritance, or bequest, or transfers them by gift, or any other event specified by Cabinet Order occurs, then, notwithstanding those provisions, with regard to the income tax equivalent to the amount calculated pursuant to Cabinet Order as the part of the income tax subject to deferral for the applicable gifted assets or applicable inherited assets for which the event occurred that corresponds to those assets, the time limit of the tax payment grace period under those provisions is the day on which four months have elapsed from the date on which the event occurred.

⑦A person to whom paragraph (1) applies or an heir to whom paragraph (2) applies (hereinafter referred to as a "person using the deferral" in this Article) must submit to the competent district director for the locality in which the person pays taxes, pursuant to Cabinet Order, a paper-based notification (hereinafter referred to as a "notification of continued application" in the following paragraph through paragraph (12)) giving a statement that the person seeks to continue to have paragraph (1) or paragraph (2) applied to the applicable gifted assets or applicable inherited assets that the person holds or for which the person has concluded contracts as of December 31 of each year in the period from the Filing Deadline for the income tax for the year that includes the date of the gift or the date of commencement of the inheritance to which those provisions are applied until the day on which the time limit of the tax payment grace period under paragraph (1), paragraph (2), the preceding paragraph, paragraph (9) (including as applied mutatis mutandis pursuant to paragraph (10); the same applies hereinafter in this Article), or paragraph (11) is fixed for the whole of the income tax equivalent to the income tax subject to deferral, and other information prescribed by Ministry of Finance Order, by March 15 of the year following the year that includes that December 31 (hereinafter referred to as the "submission deadline" in the following paragraph, paragraph (9), and paragraph (12)).

⑧Even if a notification of continued application is not submitted by the submission deadline, if the district director referred to in the preceding paragraph finds that there were unavoidable circumstances for its not having been submitted by the submission deadline, the notification of continued application is deemed to have been submitted by the submission deadline, but only if it is submitted.

⑨If a notification of continued application is not submitted to the competent district director for the locality in which the taxpayer pays taxes by the submission deadline, then, notwithstanding paragraph (1) or paragraph (2), with regard to the income tax equivalent to the income tax subject to deferral as of the submission deadline (excluding, if paragraph (6) has already been applied, the amount to which that paragraph was applied), the time limit of the tax payment grace period under those provisions is the day on which four months have elapsed from the submission deadline (or, if the person using the deferral who is liable for that income tax dies during the period from the submission deadline to the day on which those four months elapse, the day on which six months have elapsed from the day on which the heir of the person using the deferral learns of the commencement of the succession due to the death of the person using the deferral).

⑩If a person to whom paragraph (1) is being applied intends to make a departure from Japan as prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains and Similar Income upon Departure from Japan), the person must give notification of a tax agent under Article 117, paragraph (2) of the Act on General Rules for National Taxes by the time of the departure from Japan. In such a case, the preceding two paragraphs apply mutatis mutandis if notification of the tax agent has not been given by the time of the departure from Japan.

⑪The district director may advance the time limit of the tax payment grace period under paragraph (1) or paragraph (2) for the income tax equivalent to the income tax subject to deferral (excluding, if paragraph (6) has already been applied, the amount to which that paragraph was applied) in any of the following cases. In such a case, the provisions of Article 49, paragraph (2) and paragraph (3) (Revocation of Tax Payment Grace Period) of the Act on General Rules for National Taxes apply mutatis mutandis.

⑫The prescription of the national government's right to collect the income tax equivalent to the income tax subject to deferral, and the tax levied as interest and tax on delinquency on that income tax, is not completed during the period from the time the notification of continued application is submitted until the submission deadline for that notification, and begins to run anew from the day after that submission deadline, except where Article 73, paragraph (4) (Suspension of Completion and Renewal of Prescription) of the Act on General Rules for National Taxes, as applied with the replacement of terms pursuant to item (iv) of the following paragraph, applies.

⑬The provisions of this Act, the Act on General Rules for National Taxes, and the National Tax Collection Act apply as follows if the person referred to in paragraph (1) or the heir referred to in paragraph (2) seeks to have those provisions applied, or if a tax payment grace period has been granted under those provisions:

⑭A person using the deferral who falls under any of the cases set forth in the following items must pay a tax levied as interest in an amount equivalent to that arrived at when the amount equivalent to the income tax prescribed in the relevant item is multiplied by an annual rate of 7.3%, based on the number of days in the period from the day after the payment due date under Subsection 3 or Article 151-5, paragraph (1) for that income tax (or, for the income tax corresponding to the part up to the amount of income tax payable as a result of filing an Amended Return under Article 151-6, paragraph (1) (excluding the amount of income tax to which this paragraph has already been applied), the payment due date under paragraph (1) of that Article; hereinafter referred to as the "payment deadline" in this paragraph) up to the time limit of the tax payment grace period specified in the relevant item, along with the income tax prescribed in the relevant item. In such a case, if there are two or more payment deadlines for that income tax, the amount of the tax levied as interest is to be calculated on the basis that the time limit of the tax payment grace period has arrived successively, starting with the income tax for the most recent of those payment deadlines.

⑮If the person using the deferral dies by the time limit of the tax payment grace period to which paragraph (1) or paragraph (2) applies, the obligation to pay the income tax subject to deferral for that person using the deferral is succeeded to by the heir of that person using the deferral. In such a case, necessary matters are specified by Cabinet Order.

⑯Beyond what is provided for in paragraph (4) through the preceding paragraph, necessary matters concerning the application of paragraphs (1) and (2) are specified by Cabinet Order.

①If a Tax Return is filed which indicates any of the amounts set forth in Article 122, paragraph (1), item (i) or item (ii) (Filing a Return to Receive a Refund) or Article 123, paragraph (2), item (vi) or item (vii) (Filing Tax Returns Showing Losses), the district director refunds an amount of income taxes equivalent thereto to the person filing the return.

②In a case as referred to in the preceding paragraph, if any part of the tax withheld as prescribed in Article 122, paragraph (1), item (ii) or Article 123, paragraph (2), item (vii) which is indicated in a Tax Return as referred to in the preceding paragraph 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 tax withheld that has not yet been paid over is not refunded until that part of the tax withheld is paid over.

③When the amount of Interest on a refund under paragraph (1) is calculated, the period referred to in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes which serves as the basis for the calculation is the period beginning on the day after the day that is set forth in each of the following items for the category of case set forth in the item (or beginning on the day after that on which any tax withheld that is subject to a refund as prescribed in the preceding paragraph is paid over to the national government, if this is after the date set forth in the relevant item), 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):

④If a refund under paragraph (1) is Appropriated to cover unpaid income taxes in the year of the Tax Return referred to in that paragraph, interest on refund 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.

⑤Beyond what is prescribed in the preceding three paragraphs, Cabinet Order provides for the procedures for issuing a refund as referred to in paragraph (1), the way of Appropriating a refund under that paragraph (and Interest thereon), and other necessary particulars concerning the application of the provisions of that paragraph.