①A Resident conducting business that is meant to generate real property income, business income, or timber income during the year, or a Nonresident conducting such business in connection with the domestic source income specified in the items of Article 164, paragraph (1) (Method of Taxation for Nonresidents) (other than a person who has obtained the approval of the district director to file a Blue Return), must, pursuant to Ministry of Finance Order, keep books and record in them, by a simplified method specified by Ministry of Finance Order, the particulars concerning gross revenue and necessary expenses among the transactions for that year relating to the business that is meant to generate such income (for a Nonresident with a permanent establishment, including transactions that fall under internal transactions prescribed in Article 161, paragraph (1), item (i) (Domestic Source Income); the same applies in the following paragraph), and must preserve those books (including other books prepared in connection with that business during that year and documents specified by Ministry of Finance Order that were prepared or received in connection with that business; the same applies in paragraph (3)).

②A Resident conducting business that is meant to generate miscellaneous income during the year, or a Nonresident conducting business that is meant to generate miscellaneous income in connection with the domestic source income specified in the items of Article 164, paragraph (1), whose revenue from the business that is meant to generate such miscellaneous income for the year two years before that year exceeds three million yen, must preserve, pursuant to Ministry of Finance Order, the documents specified by Ministry of Finance Order as documents stating the particulars concerning gross revenue and necessary expenses among the transactions for that year relating to the business that is meant to generate such miscellaneous income.

③When an official with the National Tax Agency, the Regional Taxation Bureau, or the Tax Office examines the details of the gross revenue and necessary expenses prescribed in the preceding two paragraphs as they pertain to the income taxes of a person subject to the provisions of those paragraphs, the official is to inspect the books referred to in paragraph (1) or the documents referred to in the preceding paragraph; provided, however, that this does not apply if there are circumstances that make it difficult to inspect the books or documents.

A Resident conducting business that is meant to generate real property income, business income, or timber income during the year, or a Nonresident conducting such business in connection with the domestic source income specified in the items of Article 164, paragraph (1) (Method of Taxation for Nonresidents), whose gross revenues constituting such income in that year (or, for a Nonresident, whose gross revenues constituting domestic source income as prescribed in Article 161, paragraph (1) (Domestic Source Income)) total in excess of 30 million yen, must submit, pursuant to Ministry of Finance Order, a report on gross revenue indicating the total income and giving any other information to which reference should be made to the district director by March 15 of the following year, unless the person files a Tax Return for that year's income taxes.

Local governments may not impose a surtax on income taxes.