Inheritance Tax Act

The Inheritance Tax Act (Act No. 87 of 1947) is amended in its entirety.

This Act is to prescribe, with regard to inheritance tax and gift tax, the persons liable for tax, the scope of taxable property, the method of calculating the amount of tax, the procedures for filing returns, payment and refunds, and the matters necessary to ensure the proper performance of their tax payment obligations.

In this Act, the meanings of the terms set forth in the following items are as prescribed respectively in those items:

Person under a duty of support: a spouse and a relative prescribed in Article 877 (Persons under a Duty to Support One Another) of the Civil Code (Act No. 89 of 1896);

Return filed by the due date: except in the case of Article 50, paragraph (2), a return pursuant to the provisions of Article 27, paragraphs (1) and (2), Article 28, paragraphs (1) and (2), and Article 29;

Return filed after the deadline: a return filed after the deadline prescribed in Article 18, paragraph (2) (Return Filed after the Deadline) of the Act on General Rules for National Taxes (Act No. 66 of 1962);

Amended return: an amended return prescribed in Article 19, paragraph (3) (Amended Return) of the Act on General Rules for National Taxes;

Reassessment: a reassessment pursuant to the provisions of Article 24 (Reassessment) or Article 26 (Reassessment of Previous Reassessment) of the Act on General Rules for National Taxes;

Determination: except in the case of Article 33-2, a determination pursuant to the provisions of Article 25 (Determination) of the Act on General Rules for National Taxes.

A person set forth in any of the following items is under an obligation to pay inheritance tax pursuant to this Act:

A person set forth below who has acquired property by inheritance or bequest (including a gift that takes effect upon the death of the person who made the gift; the same applies hereinafter) and who has a domicile in the area where this Act is enforced at the time of acquiring that property:

An individual who is not a temporary resident;

An individual who is a temporary resident (excluding the case where the decedent relating to that inheritance or bequest (including the person who made the bequest; the same applies hereinafter) is a foreign decedent or a nonresident decedent);

A person set forth below who has acquired property by inheritance or bequest and who does not have a domicile in the area where this Act is enforced at the time of acquiring that property:

An individual who has Japanese nationality and who falls under any of the following:

An individual who has had a domicile in the area where this Act is enforced at any time within 10 years before the commencement of the succession relating to that inheritance or bequest;

An individual who has not had a domicile in the area where this Act is enforced at any time within 10 years before the commencement of the succession relating to that inheritance or bequest (excluding the case where the decedent relating to that inheritance or bequest is a foreign decedent or a nonresident decedent);

An individual who does not have Japanese nationality (excluding the case where the decedent relating to that inheritance or bequest is a foreign decedent or a nonresident decedent);

An individual who has acquired property located in the area where this Act is enforced by inheritance or bequest and who has a domicile in the area where this Act is enforced at the time of acquiring that property (excluding a person set forth in item (i));

An individual who has acquired property located in the area where this Act is enforced by inheritance or bequest and who does not have a domicile in the area where this Act is enforced at the time of acquiring that property (excluding a person set forth in item (ii));

An individual who has acquired, by gift (excluding a gift that takes effect upon the death of the person who made the gift; the same applies hereinafter), property to which the provisions of Article 21-9, paragraph (3) apply (excluding a person set forth in the preceding items).

The application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph in the case where the provisions of Article 137-2 (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income upon Departure from Japan Apply) or Article 137-3 (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income Apply upon Transfer of Assets to a Nonresident by Gift, etc.) of the Income Tax Act (Act No. 33 of 1965) apply is as prescribed in the following:

If an individual to whom the provisions of Article 137-2, paragraph (1) of the Income Tax Act (including where applied pursuant to paragraph (2) of that Article; the same applies in the following Article, paragraph (2), item (i)) apply dies, then, for the application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph to the inheritance tax relating to the death of that individual, that individual is deemed to have had a domicile in the area where this Act is enforced at some time within 10 years before the commencement of the succession relating to the death of that individual.

If a person (referred to as the "donee" in this item) who has acquired property from a person to whom the provisions of Article 137-3, paragraph (1) of the Income Tax Act (including where applied pursuant to paragraph (3) of that Article; the same applies hereinafter in this item and in the following Article, paragraph (2), item (ii)) apply, by a gift relating to the application of the provisions of paragraph (1) of that Article, dies, then, for the application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph to the inheritance tax relating to the death of that donee, that donee is deemed to have had a domicile in the area where this Act is enforced at some time within 10 years before the commencement of the succession relating to the death of that donee; provided, however, that this does not apply where that donee has not had a domicile in the area where this Act is enforced at any time within 10 years before the gift relating to the application of the provisions of paragraph (1) of that Article.

If an heir (including a universal legatee; the same applies hereinafter in this item and in the following Article, paragraph (2), item (iii)) to whom the provisions of Article 137-3, paragraph (2) of the Income Tax Act (including where applied pursuant to paragraph (3) of that Article; the same applies hereinafter in this item and in the following Article, paragraph (2), item (iii)) apply dies (referred to as the "subsequent inheritance" in this item), then, for the application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph to the inheritance tax relating to that subsequent inheritance, that heir is deemed to have had a domicile in the area where this Act is enforced at some time within 10 years before the commencement of that subsequent inheritance; provided, however, that this does not apply where that heir has not had a domicile in the area where this Act is enforced at any time within 10 years before the commencement of the succession relating to the application of the provisions of Article 137-3, paragraph (2) of the Income Tax Act.

In paragraph (1), the meaning of a term as set forth in one of the following items is as prescribed in the item:

"Temporary resident" means a person who holds a status of residence (meaning a status of residence in the upper column of Appended Table I (Status of Residence) of the Immigration Control and Refugee Recognition Act (Cabinet Order No. 319 of 1951); the same applies in the following item and paragraph (3) of the following Article) at the time of the commencement of the succession, and whose total period of having had a domicile in the area where this Act is enforced within 15 years before the commencement of the succession is 10 years or less;

"Foreign decedent" means the decedent relating to the relevant succession who, at the time of the commencement of the succession, held a status of residence and had a domicile in the area where this Act is enforced;

"Nonresident decedent" means a decedent relating to the relevant succession who did not have a domicile in the area where this Act is enforced at the time of the commencement of the succession, and who is either a person who, among those who have had a domicile in the area where this Act is enforced at any time within 10 years before the commencement of the succession, did not hold Japanese nationality at any of those times, or a person who has not had a domicile in the area where this Act is enforced at any time within 10 years before the commencement of the succession.

A person set forth in any of the following items is under an obligation to pay gift tax pursuant to this Act:

any of the following persons who has acquired property by gift and who had a domicile in the area where this Act is enforced at the time of acquiring that property:

an individual who is not a temporary resident;

an individual who is a temporary resident (excluding the case where the person who made that gift is a foreign donor or a nonresident donor);

any of the following persons who has acquired property by gift and who did not have a domicile in the area where this Act is enforced at the time of acquiring that property:

an individual who holds Japanese nationality and who falls under any of the following:

a person who has had a domicile in the area where this Act is enforced at any time within 10 years before that gift;

a person who has not had a domicile in the area where this Act is enforced at any time within 10 years before that gift (excluding the case where the person who made that gift is a foreign donor or a nonresident donor);

an individual who does not hold Japanese nationality (excluding the case where the person who made that gift is a foreign donor or a nonresident donor);

an individual who has acquired property located in the area where this Act is enforced by gift and who had a domicile in the area where this Act is enforced at the time of acquiring that property (excluding the persons set forth in item (i));

an individual who has acquired property located in the area where this Act is enforced by gift and who did not have a domicile in the area where this Act is enforced at the time of acquiring that property (excluding the persons set forth in item (ii)).

The application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph in the case where the provisions of Article 137-2 (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income upon Departure from Japan Apply) or Article 137-3 (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income Apply upon Transfer of Assets to a Nonresident by Gift, etc.) of the Income Tax Act apply is as prescribed in the following:

If an individual to whom Article 137-2, paragraph (1) of the Income Tax Act applies makes a gift of property, then, for the application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph to the gift tax for that gift, that individual is deemed to have had a domicile in the area where this Act is enforced at some time within 10 years before that gift;

If a person who has acquired property, from a person to whom Article 137-3, paragraph (1) of the Income Tax Act applies, by a gift to which that paragraph applies (referred to as the "donee" in this item) makes a gift of property (referred to as a "subsequent gift" in this item), then, for the application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph to the gift tax for that subsequent gift, that donee is deemed to have had a domicile in the area where this Act is enforced at some time within 10 years before that subsequent gift; provided, however, that this does not apply if that donee has not had a domicile in the area where this Act is enforced at any time within 10 years before the gift to which paragraph (1) of that Article applies;

If an heir to whom Article 137-3, paragraph (2) of the Income Tax Act applies makes a gift of property, then, for the application of the provisions of item (i), (b) or item (ii), (a)(2) or (b) of the preceding paragraph to the gift tax for that gift, that heir is deemed to have had a domicile in the area where this Act is enforced at some time within 10 years before that gift; provided, however, that this does not apply if that heir has not had a domicile in the area where this Act is enforced at any time within 10 years before the commencement of the succession to which paragraph (2) of that Article applies.

In paragraph (1), the meaning of a term as set forth in one of the following items is as prescribed in the item:

"Temporary resident" means a person who holds a status of residence at the time of the gift, and whose total period of having had a domicile in the area where this Act is enforced within 15 years before that gift is 10 years or less;

"Foreign donor" means the person who made the relevant gift who, at the time of the gift, held a status of residence and had a domicile in the area where this Act is enforced;

"Nonresident donor" means a person who made the relevant gift who did not have a domicile in the area where this Act is enforced at the time of the gift, and who is either a person who, among those who have had a domicile in the area where this Act is enforced at any time within 10 years before that gift, did not hold Japanese nationality at any of those times, or a person who has not had a domicile in the area where this Act is enforced at any time within 10 years before that gift.

With regard to a person who falls under Article 1-3, paragraph (1), item (i) or (ii), inheritance tax is imposed on all of the property that the person has acquired by inheritance or bequest.

With regard to a person who falls under Article 1-3, paragraph (1), item (iii) or (iv), inheritance tax is imposed on the property located in the area where this Act is enforced that the person has acquired by inheritance or bequest.

With regard to a person who falls under Article 1-4, paragraph (1), item (i) or (ii), gift tax is imposed on all of the property that the person has acquired by gift.

With regard to a person who falls under Article 1-4, paragraph (1), item (iii) or (iv), gift tax is imposed on the property located in the area where this Act is enforced that the person has acquired by gift.

In the case where any of the following items applies, the person listed in the relevant item is deemed to have acquired the property listed in that item by inheritance or bequest; in this case, if that person is an heir (excluding a person who has renounced the inheritance and a person who has lost the right of inheritance; the same applies hereinafter, except in the cases of Articles 15, 16, 19-2, paragraph (1), 19-3, paragraph (1), 19-4, paragraph (1) and 63, and except where referred to as "the number of heirs prescribed in Article 15, paragraph (2)"), that property is deemed to have been acquired by inheritance, and if that person is a person other than an heir, that property is deemed to have been acquired by bequest.

in the case where, due to the death of the decedent, an heir or another person acquires insurance benefits (including mutual aid benefits; the same applies hereinafter) under a life insurance contract (meaning a contract of insurance concluded with a life insurance company prescribed in Article 2, paragraph (3) (Definitions) of the Insurance Business Act (Act No. 105 of 1995) (including a contract relating to mutual aid of a similar nature; the same applies hereinafter) or another contract specified by Cabinet Order; the same applies hereinafter) or insurance benefits under a non-life insurance contract (meaning a contract of insurance concluded with a non-life insurance company prescribed in paragraph (4) of that Article or another contract specified by Cabinet Order; the same applies hereinafter) (limited to benefits paid on death arising from an accidental event), with respect to that insurance benefit recipient (including a mutual aid benefit recipient; the same applies hereinafter), the portion of those insurance benefits (excluding those that fall under the payments set out in the following item and the rights set out in item (v) or (vi)) that corresponds to the ratio of the amount of the premiums (including mutual aid contributions; the same applies hereinafter) borne by the decedent to the total amount of the premiums for that contract that were paid by the time of the death of the decedent;

in the case where, due to the death of the decedent, an heir or another person receives payment of a retirement allowance, a bonus for meritorious service or other payment equivalent thereto (including benefits specified by Cabinet Order) that should have been paid to the decedent and whose payment was finalized within three years after the death of the decedent, with respect to the person who received that payment, that payment;

in the case where, at the time of the commencement of the succession, there is a life insurance contract for which an insured event (including a mutual aid event; the same applies hereinafter) has not yet occurred (excluding a life insurance contract under which no repayment or similar payment is made if no insured event occurs within a certain period), for which the decedent bears all or part of the premiums, and of which a person other than the decedent is the policyholder, with respect to the policyholder of that life insurance contract, the portion of the rights relating to that contract that corresponds to the ratio of the amount of the premiums borne by the decedent to the total amount of the premiums for that contract that were paid by the time of that commencement of the succession;

in the case where, at the time of the commencement of the succession, there is a contract for periodic payments (excluding a life insurance contract) for which a periodic payment event has not yet occurred, for which the decedent bears all or part of the contributions or premiums, and of which a person other than the decedent is the contracting party, with respect to the contracting party of that contract for periodic payments, the portion of the rights relating to that contract that corresponds to the ratio of the amount of the contributions or premiums borne by the decedent to the total amount of the contributions or premiums for that contract that were paid by the time of that commencement of the succession;

in the case where, under a contract for periodic payments that provides for periodic payments to a periodic payment recipient during that person's lifetime or over a certain period and, when that person dies, for periodic payments or a lump sum to be paid after the death to surviving family members or other persons, an heir or another person has become a periodic payment recipient or lump-sum recipient after the death of the decedent who was the periodic payment recipient, with respect to the person who has become that periodic payment recipient or lump-sum recipient, the portion of the rights relating to that contract for periodic payments that corresponds to the ratio of the amount of the contributions or premiums borne by the decedent to the total amount of the contributions or premiums for that contract that were paid by the time of that commencement of the succession;

in the case where, due to the death of the decedent, an heir or another person acquires a right relating to periodic payments (including a lump sum relating thereto) that is not based on a contract (excluding a right relating to a survivor's allowance under the provisions of the Public Officers Pension Act (Act No. 48 of 1923)), with respect to the person who acquired that right relating to periodic payments, that right relating to periodic payments (excluding what falls under the payments set out in item (ii)).

In the application of item (i) or items (iii) through (v) of the preceding paragraph, premiums or contributions borne by the decedent of the decedent are deemed to be premiums or contributions borne by the decedent; provided, however, that in the case where, pursuant to item (iii) or (iv) of that paragraph, the person listed in the relevant item is deemed to have acquired the property listed in that item by inheritance or bequest from the decedent of that decedent, this does not apply to the premiums or contributions borne by the decedent of that decedent.

In the application of paragraph (1), item (iii) or (iv), premiums or contributions paid pursuant to the will of the decedent are deemed to be premiums or contributions borne by the decedent.

In the case where all or part of the estate prescribed in Article 958-2, paragraph (1) (Distribution of the Estate to a Person with a Special Connection to the Decedent) of the Civil Code has been granted pursuant to the provisions of that paragraph, the person to whom it was granted is deemed to have acquired, by bequest from the decedent relating to that property, an amount equivalent to the market value of that property at the time it was granted (where there is a special provision in Chapter III on the valuation of that property, the value assessed pursuant to that provision).

In the case where the amount of the special contribution payment that a special contributor is to be paid has been finalized, that special contributor is deemed to have acquired an amount equivalent to the amount of that special contribution payment by bequest from the decedent who received the special contribution made by that special contributor.

In the case where an insured event under a life insurance contract (excluding an insured event arising from injury, sickness or the like that does not involve death) or an insured event under a non-life insurance contract (limited to an insured event arising from an accidental event that involves death) occurs, if all or part of the premiums for those contracts were borne by a person other than the insurance benefit recipient, then at the time those insured events occur, the insurance benefit recipient is deemed to have acquired, by gift from the person who bore those premiums, the portion of the insurance benefits that the recipient acquired (for the insurance benefits under that non-life insurance contract, limited to those specified by Cabinet Order) that corresponds to the ratio of the amount of the premiums borne by a person other than the insurance benefit recipient to the total amount of the premiums for those contracts that were paid by the time those insured events occurred.

The provisions of the preceding paragraph apply mutatis mutandis to the case where a repayment or the like is acquired under a life insurance contract or a non-life insurance contract (limited to a non-life insurance contract, specified by Cabinet Order, that has injury as its insured event).

In the application of the preceding two paragraphs, premiums borne by the decedent of the person who bore the premiums prescribed in paragraph (1) (including the case where it applies mutatis mutandis pursuant to the preceding paragraph) are deemed to be premiums borne by that person; provided, however, that in the case where, pursuant to Article 3, paragraph (1), item (iii), the insurance benefit recipient or the person who acquired the repayment or the like prescribed in the preceding two paragraphs is deemed to have acquired the property set out in that item from that decedent by inheritance or bequest, this does not apply to the premiums borne by that decedent.

The provisions of paragraph (1) do not apply to the portion corresponding to the insurance benefits or payments, in the case where, pursuant to Article 3, paragraph (1), item (i) or (ii), the insurance benefit recipient prescribed in paragraph (1) is deemed to have acquired by inheritance or bequest the insurance benefits set out in item (i) of that paragraph or the payments set out in item (ii) of that paragraph.

In the case where a periodic payment event occurs under a contract for periodic payments (excluding a life insurance contract; the same applies in the following paragraph), if all or part of the contributions or premiums for that contract were borne by a person other than the periodic payment recipient, then at the time that periodic payment event occurs, the periodic payment recipient is deemed to have acquired, by gift from the person who bore those contributions or premiums, the portion of the rights relating to the contract for periodic payments that the recipient acquired that corresponds to the ratio of the amount of the contributions or premiums borne by a person other than the periodic payment recipient to the total amount of the contributions or premiums for that contract that were paid by the time that periodic payment event occurred.

The provisions of the preceding paragraph apply mutatis mutandis to the case where a repayment or the like is acquired under a contract for periodic payments.

In the case where Article 3, paragraph (1), item (v) applies, if all or part of the contributions or premiums for the contract for periodic payments prescribed in that item were borne by a third party other than the periodic payment recipient or lump-sum recipient prescribed in that item and the decedent, then at the time of the commencement of the succession, that periodic payment recipient or lump-sum recipient is deemed to have acquired, by gift from that third party, the portion of the rights relating to the contract for periodic payments that the recipient acquired that corresponds to the ratio of the amount of the contributions or premiums borne by that third party to the total amount of the contributions or premiums for that contract that were paid by the time of that commencement of the succession.

In the application of the preceding three paragraphs, contributions or premiums borne by the decedent of the person who bore the contributions or premiums prescribed in paragraph (1) (including the case where it applies mutatis mutandis pursuant to paragraph (2)) or in the preceding paragraph are deemed to be contributions or premiums borne by that person; provided, however, that in the case where, pursuant to Article 3, paragraph (1), item (iv), the periodic payment recipient or lump-sum recipient, or the person who acquired the repayment or the like, prescribed in the preceding three paragraphs is deemed to have acquired the property set out in that item from that decedent by inheritance or bequest, this does not apply to the contributions or premiums borne by that decedent.

In the case where a transfer of property is received for consideration at a significantly low price, at the time of that transfer of the property, the person who received the transfer of that property is deemed to have acquired, by gift (or, where that transfer of the property was made by will, by bequest) from the person who transferred that property, an amount equivalent to the difference between that consideration and the market value of that property at the time of that transfer (where there is a special provision in Chapter III on the valuation of that property, the value assessed pursuant to that provision); provided, however, that where that transfer of the property was made by a person under a duty of support of the person receiving the transfer for the purpose of applying it to the payment of a debt, in the case where that person has lost financial resources and has difficulty paying the debt, this does not apply to the portion of the amount deemed to have been acquired by that gift or bequest for which paying the debt is difficult.

In the case where a person receives a benefit from the exemption from, assumption of, or payment for the benefit of a third party of a debt, without paying consideration or for consideration at a significantly low price, at the time of that exemption, assumption or payment, the person who received the benefit from that exemption, assumption or payment is deemed to have acquired, by gift (or, where that exemption, assumption or payment was made by will, by bequest) from the person who made that exemption, assumption or payment, an amount equivalent to the amount of the debt relating to that exemption, assumption or payment (where consideration was paid, the amount after deducting its value); provided, however, that where that exemption, assumption or payment falls under any of the following items, this does not apply to the portion of the amount deemed to have been acquired by that gift or bequest for which paying the debt is difficult:

the case where a debtor has lost financial resources and has difficulty paying a debt, and receives exemption from all or part of that debt;

the case where a debtor has lost financial resources and has difficulty paying a debt, and all or part of that debt is assumed or paid by a person under a duty of support of that debtor.

Except in the cases prescribed in Articles 5 through the preceding Article and in the following Section, in the case where a person receives a benefit without paying consideration or for consideration at a significantly low price, at the time the benefit is received, the person who received that benefit is deemed to have acquired, by gift (or, where that act was done by will, by bequest) from the person who caused that benefit to be received, an amount equivalent to the value of that benefit at the time it was received (where consideration was paid, the amount after deducting its value); provided, however, that where that act was done by a person under a duty of support of the person receiving the benefit for the purpose of applying it to the payment of a debt, in the case where that person has lost financial resources and has difficulty paying the debt, this does not apply to the portion of the amount deemed to have been acquired by that gift or bequest for which paying the debt is difficult.

In the case where a trust (excluding a trust for the purpose of paying a retirement annuity and any other trust specified by Cabinet Order; the same applies hereinafter) takes effect, if there is a person who becomes a beneficiary, etc. of the trust (meaning a person who currently has the rights of a beneficiary and a specified settlor; the same applies hereinafter in this Section) without bearing an appropriate consideration, the person who becomes a beneficiary, etc. of the trust is deemed, at the time the trust takes effect, to have acquired the rights relating to the trust from the settlor of the trust by gift (by bequest, in the case where the trust takes effect by reason of the death of the settlor).

With respect to a trust for which there is a beneficiary, etc., in the case where a new beneficiary, etc. of the trust comes to exist without bearing an appropriate consideration (excluding the case where the provisions of paragraph (4) apply), the person who becomes a beneficiary, etc. of the trust is deemed, at the time that beneficiary, etc. comes to exist, to have acquired the rights relating to the trust from the person who was a beneficiary, etc. of the trust by gift (by bequest, in the case where the beneficiary, etc. comes to exist by reason of the death of the person who was that beneficiary, etc.).

With respect to a trust for which there is a beneficiary, etc., in the case where some of the beneficiaries, etc. of the trust cease to exist and a person who is already a beneficiary, etc. of the trust comes to newly receive a benefit in the rights relating to the trust without bearing an appropriate consideration, the person who receives that benefit is deemed, at the time some of the beneficiaries, etc. of the trust cease to exist, to have acquired that benefit from the persons who were some of the beneficiaries, etc. of the trust by gift (by bequest, in the case where the benefit is received by reason of the death of the person who was that beneficiary, etc.).

In the case where a trust for which there is a beneficiary, etc. is terminated, if there is a person who becomes a person who is to receive delivery of, or to whom is to vest, the residual assets of the trust without bearing an appropriate consideration, the person who has become a person who is to receive delivery of, or to whom is to vest, the residual assets of the trust is deemed, at the time of becoming a person who is to receive delivery or to whom the assets are to vest, to have acquired the residual assets of the trust (excluding, in the case where that person was a beneficiary, etc. of the trust immediately before the termination of the trust, the portion equivalent to the rights relating to the trust that the person held as that beneficiary, etc.) from the beneficiary, etc. of the trust by gift (by bequest, in the case where the trust is terminated by reason of the death of that beneficiary, etc.).

"Specified settlor" in paragraph (1) means a person who currently has the authority to change a trust (excluding authority specified by Cabinet Order as authority to make minor changes) and who is to receive delivery of the trust property of the trust (excluding a beneficiary).

A person who has acquired the rights or benefits relating to a trust that are deemed, pursuant to the provisions of paragraphs (1) through (3), to have been acquired by gift or bequest is deemed to have acquired or succeeded to the assets and liabilities belonging to the trust property of the trust, and the provisions of this Act (excluding Article 41, paragraph (2)) apply accordingly; provided, however, that this does not apply to assets and liabilities belonging to the trust property of a collective investment trust prescribed in Article 2, item (xxix) (Definitions) of the Corporation Tax Act (Act No. 34 of 1965), a taxable-corporation trust prescribed in item (xxix)-2 of that Article, or a retirement annuity trust prescribed in Article 12, paragraph (4), item (i) (Vesting of Assets and Liabilities in Trust Property and Profit and Expenses to Be Attributed to Trust Property) of that Act.

In the case where a beneficiary (in the case where there is no beneficiary, the specified settlor prescribed in paragraph (5) of the preceding Article) acquires, without bearing an appropriate consideration, rights relating to a successive beneficiary trust (meaning a trust prescribed in Article 91 (Special Provisions on a Trust with a Provision to the Effect that Another Person Newly Acquires Beneficial Interest upon the Death of a Beneficiary) of the Trust Act (Act No. 108 of 2006), a trust with a provision for a person who has the right to designate beneficiaries, etc. prescribed in Article 89, paragraph (1) (Right to Designate Beneficiaries, etc.) of that Act, and any other trust specified by Cabinet Order as similar to those trusts; the same applies hereinafter in this paragraph), with respect to the rights relating to the successive beneficiary trust (in the case where different beneficiaries each have rights pertaining to successive beneficiary trusts of different natures (limited to those in which any of those rights includes a right relating to profits), limited to those that include a right relating to profits) to which a restriction is attached as a factor affecting the value of the rights relating to the successive beneficiary trust, such as a limit on the period during which the benefits of the successive beneficiary trust are received, that restriction is deemed not to be attached; provided, however, that this does not apply where the person who holds the rights relating to the successive beneficiary trust is a juridical person (including an association or foundation without juridical personality for which a representative or administrator is designated; the same applies hereinafter through Article 64).

"Beneficiary" in the preceding paragraph means a person who currently has the rights of a beneficiary.

In the case where a trust for which there is no beneficiary, etc. takes effect, when the person who becomes a beneficiary, etc. of the trust is a person specified by Cabinet Order as a relative of the settlor of the trust (hereinafter referred to in this Article and the following Article as a "relative") (in the case where the person who becomes a beneficiary, etc. of the trust is not clear, when a relative of the settlor is to receive delivery of the residual assets of the trust upon the termination of the trust), the trustee of the trust is deemed, at the time the trust takes effect, to have acquired the rights relating to the trust from the settlor by gift (by bequest, in the case where the trust takes effect by reason of the death of the settlor).

With respect to a trust for which there is a beneficiary, etc., in the case where there ceases to be a beneficiary, etc. of the trust (hereinafter in this paragraph referred to as the "case where there ceases to be a beneficiary, etc."), when the person who is to become the beneficiary, etc. next after that beneficiary, etc. is the settlor at the time the trust took effect or a relative of the beneficiary, etc. preceding that next beneficiary, etc. (in the case where the person who is to become the next beneficiary, etc. is not clear, when the settlor or a relative of the beneficiary, etc. preceding the person who is to become the next beneficiary, etc. is to receive delivery of the residual assets of the trust upon the termination of the trust), the trustee of the trust is deemed, at the time of coming to fall under the case where there ceases to be a beneficiary, etc., to have acquired the rights relating to the trust from the beneficiary, etc. preceding the person who is to become the next beneficiary, etc. by gift (by bequest, in the case where the beneficiary, etc. preceding the person who is to become the next beneficiary, etc. ceases to exist by reason of the death of that preceding beneficiary, etc.).

In the case where the provisions of the preceding two paragraphs apply, if the trustee of those trusts is other than an individual, the trustee is deemed to be an individual, and the provisions of this Act and other laws and regulations concerning inheritance tax or gift tax apply accordingly.

In the case where the provisions of the preceding three paragraphs apply, from the amount of gift tax or inheritance tax imposed on the trustee referred to in paragraph (1) or (2) pursuant to those provisions, an amount equivalent to the amount of corporation tax and other taxes to be imposed on that trustee is to be deducted, as provided by Cabinet Order.

With respect to a trust for which there is no beneficiary, etc., in the case where a person who does not exist at the time the contract of the trust was concluded or at any other time specified by Cabinet Order (hereinafter referred to in this Article as the "time of conclusion of the contract, etc.") becomes a beneficiary, etc. of the trust, when the person who becomes a beneficiary, etc. of the trust is a relative of the settlor at the time of conclusion of the contract, etc. of the trust, the person who becomes a beneficiary, etc. of the trust is deemed, at the time when the person who did not exist becomes a beneficiary, etc. of the trust, to have acquired the rights relating to the trust from an individual by gift.

The application of the provisions of Article 9-2, paragraph (1) in the case where the rights relating to a trust held by a beneficiary, etc. are not the whole of the rights relating to the trust, the determination of whether a person falls under a person who is to receive delivery of the trust property as prescribed in paragraph (5) of that Article, and any other matters necessary for the application of the provisions of this Section are specified by Cabinet Order.

The location of the property listed in the following items is determined by the place prescribed in the respective items.

with respect to movables, real property, or rights existing on real property: the location of the movables or real property; provided, however, that with respect to a vessel or aircraft: the location of the agency with which the vessel is registered or the aircraft has been registered;

with respect to mining rights, lease rights over mining claims, or quarrying rights: the location of the mining area or quarry;

with respect to fishery rights or rights to enter fisheries: the municipality to which the coast closest to the fishing ground belongs, or the administrative division equivalent thereto;

with respect to deposits, savings, installment savings or entrusted money held with a financial institution that are specified by Cabinet Order: the location of the business office or place of business that received the deposits, savings, installment savings or entrusted money;

with respect to insurance benefits: the location of the head office or principal office of the insurance company, etc. (meaning a person who engages in insurance business or mutual aid business; the same applies in Article 59, paragraphs (1) and (2)) relating to the contract of that insurance (including mutual aid) (in the case where there is no head office or principal office in the area where this Act is enforced, and there is, in the area where this Act is enforced, a business office, office or anything equivalent thereto that handles affairs relating to the contract of that insurance, that business office, office or anything equivalent thereto; the same applies in the following item);

with respect to retirement allowances, meritorious service payments and other remuneration equivalent thereto (including benefits specified by Cabinet Order): the location of the domicile, or the head office or principal office, of the person who paid that remuneration;

with respect to claims for loans: the location of the domicile, or the head office or principal office, of the debtor (where there are two or more debtors, the principal debtor, and where there is no principal debtor, the one debtor specified by Cabinet Order);

with respect to corporate bonds (including bonds issued by a juridical person pursuant to a special Act and bonds issued by a foreign juridical person) or shares, capital contributions to a juridical person, or securities specified by Cabinet Order: the location of the head office or principal office of the juridical person that issued the corporate bonds or shares, the juridical person to which the capital contribution has been made, or the juridical person specified by Cabinet Order in relation to the securities;

with respect to rights relating to a collective investment trust prescribed in Article 2, item (xxix) (Definitions) of the Corporation Tax Act or a taxable-corporation trust prescribed in item (xxix)-2 of that Article: the location of the business office, office or anything equivalent thereto that undertook those trusts;

with respect to patent rights, utility model rights, design rights, or exploitation rights thereof that are registered, and trademark rights, or layout-design exploitation rights, breeder's rights, or rights to use them that are registered: the location of the agency that made the registration;

with respect to copyrights, publication rights, or neighboring rights for which the object of those rights has been published, the location of the business office or place of business that publishes it;

with respect to money deemed to have been acquired by gift or bequest pursuant to the provisions of Article 7, the place prescribed in this Article according to the type of property that is the basis for its being so deemed;

in addition to the property listed in the preceding items, with respect to business rights of a person having a business office or place of business that relate to that business office or place of business, the location of that business office or place of business.

Government bonds or local bonds are to be located in the area where this Act is enforced, and public bonds issued by a foreign country, a local government of a foreign country, or any other equivalent entity are to be located in that foreign country.

The location of property other than the property listed in the items of paragraph (1) and the property prescribed in the preceding paragraph is determined by the location of the domicile of the decedent who was the holder of the right to that property, or of the person who made the gift.

The determination of the location of property under the provisions of the preceding three paragraphs is made according to the situation at the time when that property was acquired by inheritance, bequest or gift.

Inheritance tax is imposed, pursuant to this Section and Section 3, by calculating the total inheritance tax amount (hereinafter referred to in this Section and Section 3 as the "total inheritance tax amount") for all persons who have acquired property by those causes from the decedent of a person who has acquired property by inheritance or bequest, and, on the basis of that total inheritance tax amount, in the amount calculated as the amount of inheritance tax for each person who has acquired property by those causes.

In the case where a person who has acquired property by inheritance or bequest is a person who falls under the provisions of Article 1-3, paragraph (1), item (i) or (ii), the total value of the property acquired by that inheritance or bequest is the taxable value for inheritance tax for that person.

In the case where a person who has acquired property by inheritance or bequest is a person who falls under the provisions of Article 1-3, paragraph (1), item (iii) or (iv), the total value of the property acquired by that inheritance or bequest that is located in the area where this Act is enforced is the taxable value for inheritance tax for that person.

The value of the following property is not included in the taxable value for inheritance tax:

items received by the Imperial heir together with the Imperial Throne pursuant to the provisions of Article 7 (Historic Items Accompanying the Imperial Throne) of the Imperial Household Finance Act (Act No. 4 of 1947);

gravesites, mausoleums and ritual implements, and anything equivalent to them;

property acquired by inheritance or bequest by a person who conducts a business for religious, charitable, academic or other public interest purposes and is specified by Cabinet Order, where it is certain that the property will be used for that business for a public interest purpose (excluding property listed in the following item);

property acquired by bequest by the trustee of a public interest trust prescribed in Article 2, paragraph (1), item (i) (Definitions) of the Act on Public Interest Trusts (Act No. 30 of 2024) (referred to as a "public interest trust" in Article 21-3, paragraph (1), items (i) and (iv)) (limited to property acquired as its trust property);

the right to receive benefits paid under a mutual aid system, specified by Cabinet Order, that a local government implements pursuant to the provisions of a Prefectural or Municipal Ordinance for persons with mental or physical disabilities;

with respect to insurance benefits listed in Article 3, paragraph (1), item (i) that are acquired by an heir (excluding those listed in the preceding item; the same applies hereinafter in this item), the portion equivalent to the amount specified in (a) or (b) according to the category of cases set out in (a) or (b), respectively;

in the case where the total amount of insurance benefits listed in that item that are acquired by all of the heirs of the decedent referred to in Article 3, paragraph (1), item (i) is the amount calculated by multiplying 5,000,000 yen by the number of heirs of that decedent prescribed in Article 15, paragraph (2) (referred to in (b) as the "non-taxable limit for insurance benefits") or less: the amount of insurance benefits acquired by that heir;

in the case where the total amount prescribed in (a) exceeds the non-taxable limit for insurance benefits: the amount calculated by multiplying the non-taxable limit for insurance benefits by the proportion that the total amount of insurance benefits acquired by that heir represents of that total amount;

with respect to the remuneration listed in Article 3, paragraph (1), item (ii) that is acquired by an heir (hereinafter in this item referred to as "retirement allowance, etc."), the portion equivalent to the amount specified in (a) or (b) according to the category of cases set out in (a) or (b), respectively;

in the case where the total amount of retirement allowances, etc. acquired by all of the heirs of the decedent referred to in Article 3, paragraph (1), item (ii) is the amount calculated by multiplying 5,000,000 yen by the number of heirs of that decedent prescribed in Article 15, paragraph (2) (referred to in (b) as the "non-taxable limit for retirement allowances, etc.") or less: the amount of retirement allowance, etc. acquired by that heir;

in the case where the total amount prescribed in (a) exceeds the non-taxable limit for retirement allowances, etc.: the amount calculated by multiplying the non-taxable limit for retirement allowances, etc. by the proportion that the total amount of retirement allowances, etc. acquired by that heir represents of that total amount.

In the case where a person who has acquired the property listed in item (iii) of the preceding paragraph does not use that property for that business for a public interest purpose by the day on which two years have passed from the day of acquiring that property, or ceases to so use it, the value of that property is included in the taxable value for inheritance tax, notwithstanding the provisions of that paragraph.

In the case where a person who has acquired property by inheritance or bequest (limited to a universal legacy and a bequest from the decedent to an heir; the same applies hereinafter in this Article) is a person who falls under the provisions of Article 1-3, paragraph (1), item (i) or (ii), for the property acquired by that inheritance or bequest, the value to be included in the taxable value is the amount obtained by deducting from the value of that property the portion that is borne by that person of the amounts of the following items:

debts of the decedent that actually exist at the time of the commencement of the succession (including taxes and public charges);

funeral expenses relating to the decedent.

In the case where a person who has acquired property by inheritance or bequest falls under Article 1-3, paragraph (1), item (iii) or (iv), for property acquired by that inheritance or bequest that is located in the area where this Act is enforced, the value to be included in the taxable value is the amount obtained by deducting from the value of that property the portion that is borne by that person of the amounts of the decedent's debts listed below.

taxes and public charges relating to that property;

debts secured by a right of retention, special statutory lien, pledge or mortgage on that property;

debts incurred for the acquisition, maintenance or management of that property, other than the debts listed in the preceding two items;

obligations to make a gift relating to that property;

in addition to the debts listed in the preceding items, if the decedent had a business office or place of business in the area where this Act is enforced at the time of death, commercial or business debts relating to that business office or place of business.

The amount of debts incurred for the acquisition, maintenance or management of the property listed in paragraph (1), item (ii) or (iii) of the preceding Article is not to be included in the amount to be deducted under the preceding two paragraphs; provided, however, that this does not apply in the case where the value of the property listed in that item has been included in the taxable value pursuant to paragraph (2) of that Article.

In the case where the amount of a special contribution payment that a special contributor is entitled to receive is included in the taxable value for that special contributor, for property acquired by inheritance or bequest by an heir who is to pay that special contribution payment, the value to be included in the taxable value for that heir is the amount obtained by deducting from the value of that property the portion that is borne by that person of the amount of that special contribution payment.

The debts the amounts of which are to be deducted pursuant to the provisions of the preceding Article are limited to those recognized as certain.

The amount of taxes and public charges to be deducted pursuant to the provisions of the preceding Article is to include, in addition to the amount of those for which the debt was finalized at the time of the decedent's death, the amounts, specified by Cabinet Order, of income tax, inheritance tax, gift tax, land value tax, revaluation tax, registration and license tax, motor vehicle tonnage tax, consumption tax, liquor tax, tobacco tax, gasoline tax, local gasoline tax, petroleum gas tax, aviation fuel tax, petroleum and coal tax and stamp tax and other taxes and public charges relating to the decedent.

The amount of taxes and public charges for which the debt is finalized as referred to in the preceding paragraph does not include the amount of income tax subject to the tax payment grace period prescribed in Article 137-2, paragraph (1) of the Income Tax Act in the case where the decedent had been subject to the application of Article 137-2, paragraph (1) (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income upon Departure from Japan Apply) of that Act (including the case where it applies pursuant to paragraph (2) of that Article; the same applies in Article 32, paragraph (1), item (ix), (a)), or the amount of income tax subject to the tax payment grace period prescribed in Article 137-3, paragraph (4) of that Act in the case where the decedent had been subject to the application of paragraphs (1) and (2) of that Article (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income upon Transfer of Assets to Non-Residents by Gift, etc. Apply) (including the case where these provisions apply pursuant to paragraph (3) of that Article); provided, however, that this does not apply to the amount of income tax subject to the tax payment grace period prescribed in Article 137-2, paragraph (1) of that Act that an heir of the decedent (including a universal legatee; the same applies hereinafter in this paragraph and in that item) who has succeeded to the decedent's obligation to pay pursuant to the provisions of paragraph (13) of that Article has come to pay, and the amount of interest tax on that amount of income tax subject to the tax payment grace period (limited to that relating to the period from the day following the due date for payment under the provisions of Article 128 (Payment upon Filing) or Article 129 (Payment upon Filing in the Event of the Taxpayer's Death) of that Act for the income tax relating to that amount of income tax subject to the tax payment grace period until the day of the decedent's death), or to the amount of income tax subject to the tax payment grace period prescribed in Article 137-3, paragraph (4) of that Act that an heir of the decedent who has succeeded to the decedent's obligation to pay pursuant to the provisions of paragraph (15) of that Article has come to pay, and the amount of interest tax on that amount of income tax subject to the tax payment grace period (limited to that relating to the period from the day following the due date for payment under the provisions of Part II, Chapter V, Section 2, Subsection 3 (Payment) of that Act for the income tax relating to that amount of income tax subject to the tax payment grace period until the day of the decedent's death).

When calculating the total inheritance tax amount, the sum of 30,000,000 yen and the amount calculated by multiplying 6,000,000 yen by the number of heirs of the decedent (hereinafter referred to as the "basic deduction for the estate") is deducted from the total of the taxable values for inheritance tax (in the case where Article 19 applies, the amount deemed to be the taxable value for inheritance tax pursuant to that Article; the same applies from the following Article through Article 18 and in Article 19-2) of all persons who have acquired property by inheritance or bequest from the same decedent.

The number of heirs in the preceding paragraph is the number of heirs of the decedent prescribed in that paragraph under the provisions of Part V, Chapter II (Heirs) of the Civil Code (where the decedent has adopted children, the number of the decedent's adopted children to be included in the number of those heirs is limited to the number of adopted children specified in each of the following items according to the category of cases listed in that item, and where there has been a renunciation of inheritance, it is the number of heirs on the assumption that there had been no such renunciation).

in the case where the decedent has a biological child, or the decedent has no biological child and the number of adopted children is one: one person;

in the case where the decedent has no biological child and the number of adopted children is two or more: two persons.

For the purpose of applying the provisions of the preceding paragraph, the following persons are deemed to be biological children:

a person who has become an adopted child through the special adoption prescribed in Article 817-2, paragraph (1) (Entering into a Special Adoption) of the Civil Code, a biological child of the decedent's spouse who has become an adopted child of the decedent, and any other person specified by Cabinet Order as equivalent to these;

where a biological child or adopted child, or a lineal descendant thereof, died on or before the commencement of the succession or lost the right of inheritance, a lineal descendant of that person who has for that reason become an heir under the provisions of Part V, Chapter II of the Civil Code (or, where there has been a renunciation of inheritance, who would be an heir on the assumption that there had been no such renunciation).

The amount of inheritance tax for a person who has acquired property by inheritance or bequest is the amount calculated by multiplying the total inheritance tax amount for all persons who have acquired property by inheritance or bequest from the decedent by the proportion that the taxable value for inheritance tax of each person who has acquired property by such cause represents of the total of the taxable values for all persons who have acquired that property.

In the case where a person who has acquired property by inheritance or bequest is a person other than a blood relative in the first degree of the decedent relating to that inheritance or bequest (including a lineal descendant of the decedent who has become an heir by representation because a lineal descendant of the decedent died on or before the commencement of the succession or lost the right of inheritance) or the decedent's spouse, the amount of inheritance tax for that person is, notwithstanding the provisions of the preceding Article, the amount calculated pursuant to that Article plus an amount equivalent to 20 percent thereof.

The blood relative in the first degree in the preceding paragraph is not to include the case where a lineal descendant of the decedent referred to in that paragraph has become an adopted child of the decedent; provided, however, that this does not apply where that lineal descendant has become an heir by representation because a lineal descendant of the decedent died on or before the commencement of the succession or lost the right of inheritance.

In the case where a person who has acquired property by inheritance or bequest has acquired property by gift from the decedent relating to that succession within seven years before the commencement of the succession, for that person, the amount obtained by adding the value of the property acquired by that gift (limited to that which is included, pursuant to Article 21-2, paragraphs (1) through (3), Article 21-3 and Article 21-4, in the basis for calculating the taxable value for gift tax for the year in which the date of that acquisition falls (excluding specified gifted property); the same applies hereinafter in this Article and Article 51, paragraph (2)) (hereinafter referred to in this paragraph as "gifted property to be added") (for gifted property to be added other than property acquired within three years before the commencement of the succession, the balance obtained by deducting 1,000,000 yen from the total value of that property) to the taxable value for inheritance tax is deemed to be the taxable value for inheritance tax, and the amount calculated by applying the provisions of Article 15 through the preceding Article (where gift tax has been imposed on the acquisition of the gifted property to be added, the amount obtained by deducting from that amount the amount calculated as provided by Cabinet Order as the amount of gift tax relating to that property (being the amount before deduction under the provisions of Article 21-8, and excluding the amounts of tax equivalent to delinquent tax, interest tax, penalty tax for understatement, penalty tax for failure to file and heavy penalty tax)) is the amount of inheritance tax that person is to pay.

Specified gifted property as referred to in the preceding paragraph means, of the residential real property or money prescribed in Article 21-6, paragraph (1) that the spouse of a decedent who is a spouse whose marriage period prescribed in that paragraph is 20 years or more has acquired by gift from that decedent and that falls under the cases listed in the following items, the portion specified in each of those items according to the category of cases listed therein.

in the case where that gift was made in or before the year preceding the year of the commencement of the succession and the spouse of the decedent has been subject to the application of Article 21-6, paragraph (1) with regard to gift tax for the year in which the date of acquisition by that gift falls: the portion equivalent to the amount deducted pursuant to that paragraph;

in the case where that gift was made in the year of the commencement of the succession and the spouse of the decedent is not a person who has already been subject to the application of Article 21-6, paragraph (1) with regard to gifts from the decedent (limited to cases specified by Cabinet Order): the portion equivalent to the amount that would be deducted pursuant to that paragraph on the assumption that that paragraph applied.

Where the spouse of a decedent has acquired property by inheritance or bequest from that decedent, with regard to that spouse, if there is a balance after deducting the amount listed in item (ii) from the amount listed in item (i), that balance is the amount of inheritance tax to be paid, and if the amount listed in item (i) is the amount listed in item (ii) or less, there is to be no amount of inheritance tax to be paid.

the amount calculated for that spouse pursuant to Articles 15 through 17 and the preceding Article;

the amount calculated by multiplying the total inheritance tax amount for all persons who have acquired property by that inheritance or bequest by the proportion that the lesser of the amounts listed below represents of the total of the taxable values for inheritance tax of all persons who have acquired property by that inheritance or bequest.

the amount equivalent to the amount calculated by multiplying the total of the taxable values for inheritance tax of all persons who have acquired property by that inheritance or bequest by the share of inheritance of that spouse under Article 900 (Intestate Shares) of the Civil Code (where there has been a renunciation of inheritance, the share of inheritance on the assumption that there had been no such renunciation) (where the only heir of the decedent (where there has been a renunciation of inheritance, the heir on the assumption that there had been no such renunciation) is that spouse, that total) (where that amount is less than 160,000,000 yen, 160,000,000 yen);

the amount equivalent to the taxable value for inheritance tax relating to the spouse who has acquired property by that inheritance or bequest.

In the case where, by the deadline for filing the return under Article 27 relating to the inheritance or bequest referred to in the preceding paragraph (referred to as the "return due date" in this paragraph), all or part of the property acquired by that inheritance or bequest has not yet been divided by the co-heirs or universal legatees, for the application of the preceding paragraph, that undivided property is not to be included in the property that forms the basis for calculating the taxable value referred to in item (ii), (b) of that paragraph; provided, however, that this does not apply, as to the property so divided, where that undivided property is divided within three years from the return due date (or, where there are unavoidable circumstances specified by Cabinet Order, such as the filing of an action relating to that inheritance or bequest, for that property not having been divided before the end of that period, and the approval of the competent district director with jurisdiction over the place for tax payment has been obtained as provided by Cabinet Order, within four months after the day following the day specified by Cabinet Order as the day on which the division of that property became possible).

The provisions of paragraph (1) apply only where a document specified by Ministry of Finance Order, such as a document containing a statement to the effect that the person is to receive the application of paragraph (1) and details concerning the calculation of the amounts listed in the items of that paragraph, is attached to the return under Article 27 (including the return filed after the deadline relating to that return and the amended returns relating to these returns; the same applies in paragraph (5)) or to the written request for reassessment prescribed in Article 23, paragraph (3) (Request for Reassessment) of the Act on General Rules for National Taxes.

In the case where a return or written request for reassessment referred to in the preceding paragraph has been submitted without the attachment of the document specified by Ministry of Finance Order referred to in that paragraph, if the district director finds that there are unavoidable circumstances for the failure to attach it, the district director may apply paragraph (1) only where that document is submitted.

In the case where a person who has acquired property by the inheritance or bequest referred to in paragraph (1) has filed a return under Article 27, or has not filed it, based on acts of concealing or falsifying, and files a return filed after the deadline or an amended return having foreseen that reassessment or determination would be made with regard to the inheritance tax as a result of an investigation of the inheritance tax relating to that inheritance or bequest, with regard to the application of paragraph (1) to the amount of inheritance tax relating to that return filed after the deadline or amended return, the phrase "total inheritance tax amount" in paragraph (1), item (ii) is deemed to be replaced with "total inheritance tax amount that is calculated on the assumption that the amount equivalent to the amount based on the facts arising from the acts of concealing or falsifying prescribed in paragraph (6) that were committed by the spouse of the decedent relating to that inheritance is not included in the taxable values for inheritance tax of all persons who have acquired that property"; the phrase "of the total of the taxable values" in item (ii) of that paragraph is deemed to be replaced with "of the balance obtained by deducting the equivalent amount from the total of the taxable values"; the phrase "the total of the taxable values" in item (ii), (a) of that paragraph is deemed to be replaced with "the balance obtained by deducting, from the total of the taxable values, the amount equivalent to the amount based on the facts arising from the acts of concealing or falsifying prescribed in paragraph (6) (limited to that which is to be included in the taxable value for inheritance tax relating to that spouse)"; and the phrase "the taxable value for inheritance tax" in item (ii), (b) of that paragraph is deemed to be replaced with "the balance obtained by deducting, from the taxable value for inheritance tax, the amount equivalent to the amount based on the facts arising from the acts of concealing or falsifying prescribed in paragraph (6) (limited to that which is to be included in the taxable value for inheritance tax relating to that spouse)".

"Acts of concealing or falsifying" in the preceding paragraph means acts committed by a person who has acquired property by inheritance or bequest that conceal or falsify all or part of the facts that are to form the basis for calculating the taxable value for inheritance tax relating to the person who has acquired that property.

In the case where a person who has acquired property by inheritance or bequest (excluding a person who falls under Article 1-3, paragraph (1), item (iii) or (iv)) falls under the heirs of the decedent relating to that inheritance or bequest under the provisions of Part V, Chapter II (Heirs) of the Civil Code (or, where there has been a renunciation of inheritance, the heirs on the assumption that there had been no such renunciation) and is less than 18 years of age, for that person the amount obtained by deducting the amount calculated by multiplying 100,000 yen by the number of years until that person reaches 18 years of age (where that number of years is less than one year, or has a fraction of less than one year, it is counted as one year) from the amount calculated pursuant to Article 15 through the preceding Article is the amount of inheritance tax to be paid.

Where the amount that can be deducted pursuant to the preceding paragraph exceeds the amount calculated for the person receiving that deduction pursuant to Article 15 through the preceding Article, the amount of the excess is, as provided by Cabinet Order, to be deducted from the amount calculated pursuant to Article 15 through the preceding Article on the value of the property acquired by inheritance or bequest from the decedent referred to in paragraph (1) by a person under a duty of support of the person receiving that deduction, and the amount after that deduction is the amount of inheritance tax to be paid by that person under a duty of support.

Where a person who falls under paragraph (1) is a person who has already received a deduction under the provisions of the preceding two paragraphs with regard to that person or a person under a duty of support of that person, the amount that that person or the person under a duty of support of that person can have deducted under those provisions is limited to the amount of the shortfall in the case where the total of the amounts already deducted was less than the amount that can be deducted under the provisions of paragraph (1) (where a deduction under those provisions has been received two or more times, the amount that could be deducted under the provisions of that paragraph upon first acquiring property by inheritance or bequest).

In the case where a person who has acquired property by inheritance or bequest (excluding a person who falls under Article 1-3, paragraph (1), items (ii) through (iv)) falls under the heirs prescribed in paragraph (1) of the preceding Article of the decedent relating to that inheritance or bequest and is a person with a disability, for that person the amount obtained by deducting the amount calculated by multiplying 100,000 yen (200,000 yen where that person is a person with a particular disability) by the number of years until that person reaches 85 years of age (where that number of years is less than one year, or has a fraction of less than one year, it is counted as one year) from the amount calculated pursuant to Article 15 through the preceding Article is the amount of inheritance tax to be paid.

A person with a disability prescribed in the preceding paragraph means a person who, due to a mental disability, is in a constant state of lacking the capacity to discern right from wrong, a person who is blind, or any other person with a mental or physical disability as specified by Cabinet Order, and a person with a particular disability prescribed in that paragraph means a person with a severe mental or physical disability among the persons with a disability in that paragraph, as specified by Cabinet Order.

The provisions of paragraphs (2) and (3) of the preceding Article apply mutatis mutandis where paragraph (1) is applied. In this case, the phrase "the preceding Article" in paragraph (2) of that Article is deemed to be replaced with "Article 19-3".

In the case where a person has acquired property by inheritance (including a bequest by a decedent to an heir; the same applies hereinafter in this Article), if the decedent relating to that inheritance (referred to as the "second inheritance" in this Article) has acquired, by an inheritance that commenced within 10 years before the commencement of the second inheritance (referred to as the "first inheritance" in this Article), property (including property subject to the application of Article 21-9, paragraph (3) that was acquired by gift from the decedent relating to the first inheritance), for a person who has acquired property by inheritance from that decedent, the amount obtained by deducting, from the amount calculated pursuant to Article 15 through the preceding Article, the amount calculated by successively multiplying the amount equivalent to the amount of inheritance tax imposed on the property acquired by that decedent by the first inheritance (including property subject to the application of Article 21-9, paragraph (3) that was acquired by gift from the decedent relating to that first inheritance) (excluding the amounts of inheritance tax equivalent to delinquent tax, interest tax, penalty tax for understatement, penalty tax for failure to file and heavy penalty tax; the same applies in item (i)) by the proportions listed in the following items is the amount of inheritance tax to be paid.

the proportion that the total value of the property (limited to the portion included in the taxable value for inheritance tax) acquired by those causes by all persons who have acquired property by inheritance or bequest (excluding a bequest by a decedent to an heir; the same applies in the following item) from the decedent relating to the second inheritance represents of the amount obtained by deducting the amount of inheritance tax relating to that property from the value of the property (limited to the portion included in the basis for calculating the taxable value for inheritance tax) acquired by that decedent by the first inheritance (including property subject to the application of Article 21-9, paragraph (3) that was acquired by gift from the decedent relating to that first inheritance) (where that proportion exceeds 100 percent, a proportion of 100 percent);

the proportion that the value of the property (limited to the portion included in the taxable value for inheritance tax) acquired by inheritance from the decedent relating to the second inheritance represents of the total value of the property (limited to the portion included in the taxable value for inheritance tax) acquired by those causes by all persons who have acquired property by inheritance or bequest from the decedent relating to the second inheritance;

the proportion to 10 years of the number of years obtained by deducting from 10 years the number of years corresponding to the period from the time of the commencement of the first inheritance to the time of the commencement of the second inheritance (where that number of years is less than one year, or has a fraction of less than one year, it is counted as one year).

In the case where a person has acquired property located outside the area where this Act is enforced by inheritance or bequest (including a gift prescribed in Article 21-2, paragraph (4); the same applies hereinafter in this Article), if tax equivalent to inheritance tax has been imposed on that property under the laws and regulations of that place, for the person who has acquired that property, the amount obtained by deducting the amount equivalent to the amount of tax so imposed from the amount calculated pursuant to Article 15 through the preceding Article is the amount of inheritance tax to be paid; provided, however, that where the amount to be deducted exceeds the amount calculated by multiplying the amount calculated for that person pursuant to those provisions by the proportion that the value of that property represents of the portion of the value of the property acquired by that inheritance or bequest that was included in the basis for calculating the taxable value, that deduction is not made as to the excess amount.

Gift tax is imposed, as provided for in this Section and the following Section, in the amount calculated as the amount of gift tax relating to a person who has acquired property by gift.

In the case where a person who has acquired property by gift falls under Article 1-4, paragraph (1), item (i) or (ii) with respect to the acquisition of property by gift during that year, for that person, the total value of the property acquired by gift during that year is the taxable value for gift tax.

In the case where a person who has acquired property by gift falls under Article 1-4, paragraph (1), item (iii) or (iv) with respect to the acquisition of property by gift during that year, for that person, the total value of the property acquired by gift during that year that is located in the area where this Act is enforced is the taxable value for gift tax.

In the case where a person who has acquired property by gift is, with respect to the acquisition of property by gift during that year, a person who falls under Article 1-4, paragraph (1), item (i) and also falls under item (iii) or (iv) of that paragraph, or a person who falls under item (ii) of that paragraph and also falls under item (iii) or (iv) of that paragraph, for that person, the total of the value of the property specified by Cabinet Order that was acquired by gift during the period in which that person had a domicile in the area where this Act is enforced and the value of the property specified by Cabinet Order that was acquired by gift during the period in which that person did not have a domicile in the area where this Act is enforced is the taxable value for gift tax.

The value of property acquired by gift from the decedent relating to a succession, by a person who has acquired property by inheritance or bequest, in the year of the commencement of the succession, that is added to the taxable value for inheritance tax pursuant to the provisions of Article 19, is not included in the taxable value for gift tax, notwithstanding the provisions of the preceding three paragraphs.

The value of the following property is not included in the taxable value for gift tax:

property acquired by gift from a corporation and property received as benefits from a public interest trust;

property acquired by gift made between persons under a duty of support for the purpose of covering living expenses or educational expenses, to the extent recognized as normally necessary;

property acquired by gift by a person who conducts a business for religious, charitable, academic or other public interest purposes and is specified by Cabinet Order, where it is certain that the property will be used for that business for a public interest purpose (excluding property listed in the following item);

property acquired by gift by the trustee of a public interest trust (limited to property acquired as its trust property);

the right to receive benefits paid under a mutual aid system, specified by Cabinet Order, that a local government implements pursuant to the provisions of a Prefectural or Municipal Ordinance for persons with mental or physical disabilities;

money, goods and other economic benefits acquired by gift in connection with an election campaign by a candidate for public office in an election subject to the Public Offices Election Act (Act No. 100 of 1950), for which a report has been made pursuant to Article 189 (Submission of Reports on Revenue and Expenditure Relating to Election Campaigns) of that Act.

The provisions of Article 12, paragraph (2) apply mutatis mutandis to the property listed in item (iii) of the preceding paragraph. In this case, the phrase "that paragraph" in Article 12, paragraph (2) is deemed to be replaced with "Article 21-3, paragraph (1)", and the phrase "inheritance tax" with "gift tax".

In the case where a specified person with a disability (meaning a person with a particular disability prescribed in Article 19-4, paragraph (2) (excluding a person who falls under Article 1-4, paragraph (1), items (ii) through (iv); hereinafter referred to in this paragraph as a "person with a particular disability") and, among persons with a disability prescribed in Article 19-4, paragraph (2) (excluding a person with a particular disability), a person who is in a state of habitually lacking the capacity to discern right from wrong due to a mental disability, or another person with a mental disability, specified by Cabinet Order (excluding a person who falls under Article 1-4, paragraph (1), items (ii) through (iv)); the same applies hereinafter in this paragraph and the following paragraph) comes to hold a right to receive the benefit of a trust (hereinafter referred to in this Article as a "beneficial interest in a trust") as a result of property relating to a trust contract for the support of a specified person with a disability being placed in trust under that contract, with that specified person with a disability as the beneficiary, at a business office, office or other equivalent facility, located in the area where this Act is enforced, of a trust company or other person specified by Cabinet Order (hereinafter referred to in this Article as a "trustee") (referred to as "trustee's business office, etc." in paragraph (3)), and, in accordance with Cabinet Order, at the time of that trust, files with the competent district director with jurisdiction over the place for tax payment a return stating that the person wishes to receive the application of this paragraph with respect to that beneficial interest in a trust and other necessary matters (hereinafter referred to in this Article as a "return for tax exemption on a trust for a person with a disability"), the value of the portion of that beneficial interest in a trust that corresponds to an amount up to 60,000,000 yen of its value (30,000,000 yen for a specified person with a disability other than a person with a particular disability) (if the person has already filed a return for tax exemption on a trust for a person with a disability with respect to another beneficial interest in a trust, the remainder obtained by deducting from the value of that other beneficial interest in a trust the value of the portion to which this paragraph has been applied) is not included in the taxable value for gift tax.

The trust contract for the support of a specified person with a disability prescribed in the preceding paragraph means, among contracts concluded by an individual with a trustee concerning the trust of money, securities or other property specified by Cabinet Order, under which one specified person with a disability other than that individual is made the beneficiary of the whole of the benefit of the trust, a contract that satisfies the requirements specified by Cabinet Order, such as that the trust under that contract is to terminate on the date of death of that specified person with a disability.

In a return for tax exemption on a trust for a person with a disability, only any one of the trustee's business offices, etc. may be stated, and where one return for tax exemption on a trust for a person with a disability has been filed, no other return for tax exemption on a trust for a person with a disability may be filed, except in the case where the person wishes to receive the application of paragraph (1) with respect to a beneficial interest in a trust relating to property newly placed in trust under a trust contract for the support of a specified person with a disability at the trustee's business office, etc. stated in that return for tax exemption on a trust for a person with a disability and in other cases specified by Cabinet Order.

In addition to what is provided for in the preceding two paragraphs, matters concerning the filing of a return for tax exemption on a trust for a person with a disability, matters concerning the return in the case where the matters stated in that return for tax exemption on a trust for a person with a disability have been changed, and other matters necessary for the application of the provisions of paragraph (1) are specified by Cabinet Order.

With respect to gift tax, 600,000 yen is deducted from the taxable value.

In the case where a person who, in a given year, has acquired by gift from a spouse with whom that person's marriage period is 20 years or more land, a right existing on land, or a building, used exclusively for residential purposes and located in the area where this Act is enforced (hereinafter in this Article referred to as "residential real property"), or money (excluding a person who has received the application of this Article with respect to gift tax on property acquired by gift from that spouse in any year on or before the year preceding that year) uses that residential real property as that person's residence by March 15 of the year following the year in which the date of that acquisition falls and is expected to continue to use it as a residence thereafter, or acquires residential real property with that money by that date, uses it as that person's residence, and is expected to continue to use it as a residence thereafter, 20,000,000 yen (or, if the total of the amount equivalent to the value of the residential real property acquired by that gift and the amount of the portion of the money acquired by that gift that was applied to the acquisition of residential real property is less than 20,000,000 yen, that total amount) is deducted from the taxable value with respect to the gift tax for that year.

The provisions of the preceding paragraph apply only where there is attached, to the return prescribed in Article 28, paragraph (1) (including a return filed after the deadline relating to that return and amended returns relating to these returns) or to the written request for reassessment prescribed in Article 23, paragraph (3) (Request for Reassessment) of the Act on General Rules for National Taxes, a document stating the amount to be deducted pursuant to the provisions of the preceding paragraph and other matters concerning that deduction and stating that the provisions of that paragraph have not been applied to gift tax for each year on or before the year preceding the year in which the person wishes to receive the deduction, and other documents specified by Ministry of Finance Order.

Even in the case where a return or written request for reassessment under the preceding paragraph has been filed without attachment of the documents specified by Ministry of Finance Order referred to in that paragraph, if the district director finds that there were unavoidable circumstances for their not having been attached, the district director may apply the provisions of paragraph (1) only in the case where those documents have been submitted.

In addition to what is provided for in the preceding two paragraphs, matters necessary for the application of the provisions of paragraph (1), such as the determination of whether a person who made a gift falls under a spouse with whom the marriage period prescribed in that paragraph is 20 years or more, are specified by Cabinet Order.

When a person has acquired by gift property located outside the area where this Act is enforced, if tax equivalent to gift tax has been imposed on that property under the laws and regulations of that place, the amount of gift tax to be paid by the person who acquired that property is the balance obtained by deducting an amount equivalent to the amount of tax so imposed from the amount calculated pursuant to the provisions of the preceding Article or Article 21-13; provided, however, that if the amount to be deducted exceeds the amount obtained by multiplying the amount calculated for that person pursuant to those provisions by the proportion that the value of that property represents of the value of the property included in the taxable value for gift tax for the year in which the date on which that property was acquired falls, that deduction is not made for the portion exceeding that amount.

Where a person who has acquired property by gift is a presumptive heir of the person who made that gift (limited to a lineal descendant of the person who made that gift who is 18 years of age or older on January 1 of that year), and the person who made that gift is 60 years of age or older on that day, the person who acquired the property by that gift may receive the application of the provisions of this Section for the property relating to that gift.

A person who intends to receive the application of the provisions of the preceding paragraph must, as provided by Cabinet Order, submit to the competent district director with jurisdiction over the place for tax payment, within the period referred to in Article 28, paragraph (1), a written notification stating that the person intends to receive the application of the provisions of that paragraph for property acquired by gifts during that year from the person who made the gift prescribed in the preceding paragraph, and other matters specified by Ministry of Finance Order.

For property acquired by gift from the person who made the gift relating to the written notification referred to in the preceding paragraph, the amount of gift tax is calculated, on or after the year relating to that written notification, pursuant to the provisions of the preceding Section and this Section.

Where a person who is 18 years of age or older on January 1 of the year has acquired property by gift from a person who is 60 years of age or older on that day, if the former has become a presumptive heir of the latter in the middle of that year by becoming the latter's adopted child or for any other reason (excluding the case of becoming the latter's spouse), the provisions of paragraph (1) do not apply to property acquired by gift from the latter before the time of becoming a presumptive heir.

Even in the case where a person who has submitted the written notification referred to in paragraph (2) (hereinafter referred to as a "person electing settlement taxation at inheritance") has ceased to be a presumptive heir of the person who made the gift referred to in paragraph (1) relating to that written notification (hereinafter referred to as a "specified donor"), the provisions of paragraph (3) are to apply to property acquired by gift from that specified donor.

A person electing settlement taxation at inheritance may not withdraw the written notification referred to in paragraph (2).

For property acquired by a person electing settlement taxation at inheritance by gift from a specified donor, the value of the property acquired by gift during that year is totaled for each specified donor, and each total amount is the taxable value for gift tax.

The provisions of Article 21-5 through Article 21-7 do not apply to property acquired by a person electing settlement taxation at inheritance by gift from a specified donor.

For gift tax for the year relating to property acquired by a person electing settlement taxation at inheritance during that year by gift from a specified donor, 600,000 yen is deducted from the taxable value for gift tax.

Where there are two or more specified donors for a person electing settlement taxation at inheritance referred to in the preceding paragraph, the calculation of the amount to be deducted from the taxable value relating to property acquired by gift from each specified donor is prescribed by Cabinet Order.

For gift tax for the year relating to property acquired by a person electing settlement taxation at inheritance during that year by gift from a specified donor, the lower of the following amounts is deducted, for each specified donor, from the taxable value for gift tax after the deduction under the provisions of paragraph (1) of the preceding Article:

25,000,000 yen (if there is an amount already deducted by application of the provisions of this Article, the balance after deducting the total of that amount);

the taxable value for gift tax, for each specified donor, after the deduction under the provisions of paragraph (1) of the preceding Article.

The provisions of the preceding paragraph apply only where the return filed by the due date states the amount to be deducted under the provisions of that paragraph, the amount deducted if there is an amount already deducted by application of the provisions of that paragraph, and other matters specified by Ministry of Finance Order.

If a return filed by the due date that lacks the statement referred to in the preceding paragraph for the property referred to in paragraph (1) has been submitted, and the district director finds that there are unavoidable circumstances for the absence of that statement, the district director may apply the provisions of paragraph (1) only where a document containing that statement has been submitted.

The amount of gift tax for the year relating to property acquired by a person electing settlement taxation at inheritance during that year by gift from a specified donor is, for each specified donor, the amount calculated by multiplying the taxable value for gift tax after the deduction under the provisions of Article 21-11-2, paragraph (1) (where the provisions of paragraph (1) of the preceding Article apply, the amount after the deduction under the provisions of that paragraph) by a tax rate of 20 percent.

With regard to the application of the provisions of Article 15 to the calculation of inheritance tax for a person who has acquired property by inheritance or bequest from a specified donor and for a person electing settlement taxation at inheritance relating to that specified donor, the phrase "(in the case where Article 19" in paragraph (1) of that Article is deemed to be replaced with "(in the case where Article 19, Article 21-15 or Article 21-16", and the phrase "that Article" with "those Articles".

For a person electing settlement taxation at inheritance who has acquired property by inheritance or bequest from a specified donor, the taxable value for inheritance tax is the value obtained by adding, to the taxable value for inheritance tax, the balance remaining after making the deduction under the provisions of Article 21-11-2, paragraph (1) from the value of property acquired by gift from that specified donor that is subject to the application of the provisions of Article 21-9, paragraph (3) (limited to that which is included, pursuant to the provisions of Article 21-2, paragraphs (1) through (3), Article 21-3, Article 21-4 and Article 21-10, in the basis for calculating the taxable value for gift tax for the year in which the date of that acquisition falls).

With regard to the application of the provisions of Articles 13, 18, 19, 19-3 and 20 to the calculation of inheritance tax for a person electing settlement taxation at inheritance who has acquired property by inheritance or bequest from a specified donor and for other persons, the phrase "property acquired by that inheritance or bequest" in Article 13, paragraph (1) is deemed to be replaced with "property acquired by that inheritance or bequest and property subject to the application of the provisions of Article 21-9, paragraph (3) that is acquired by gift from the decedent in the case where the decedent is a specified donor prescribed in paragraph (5) of that Article", the phrase "that property" with "those items of property after the deduction under the provisions of Article 21-11-2, paragraph (1)", the phrase "that is located in the area where this Act is enforced" in paragraph (2) of that Article with "that is located in the area where this Act is enforced and property subject to the application of the provisions of Article 21-9, paragraph (3) that is acquired by gift from the decedent in the case where the decedent is a specified donor prescribed in paragraph (5) of that Article", the phrase "that property" with "those items of property after the deduction under the provisions of Article 21-11-2, paragraph (1)", the phrase "property acquired by inheritance or bequest" in paragraph (4) of that Article with "property acquired by inheritance or bequest and property subject to the application of the provisions of Article 21-9, paragraph (3) that is acquired by gift from the decedent in the case where the decedent is a specified donor prescribed in paragraph (5) of that Article", the phrase "that property" with "those items of property after the deduction under the provisions of Article 21-11-2, paragraph (1)", the phrase "plus an amount equivalent to 20 percent thereof" in Article 18, paragraph (1) with "plus an amount equivalent to 20 percent thereof; provided, however, that this does not apply, where the person was such a blood relative in the first degree of the decedent at the time of acquiring the property by gift, to the amount of inheritance tax specified by Cabinet Order as corresponding to the property acquired from that decedent", the phrase "specified gifted property" in Article 19, paragraph (1) with "specified gifted property and property subject to the application of the provisions of Article 21-9, paragraph (3)", the phrase "property by inheritance or bequest" in Article 19-3, paragraph (3) with "property (including property acquired by gift from the decedent relating to that inheritance that is subject to the application of the provisions of Article 21-9, paragraph (3)) by inheritance or bequest", the phrase "property acquired for those reasons" in Article 20, item (i) with "property acquired for those reasons (including property acquired by gift from that decedent that is subject to the application of the provisions of Article 21-9, paragraph (3))", and the phrase "the value of property" in item (ii) of that Article with "the value of property (including property acquired by gift from that decedent that is subject to the application of the provisions of Article 21-9, paragraph (3))".

In the case referred to in paragraph (1), if there is gift tax imposed on property subject to the application of the provisions of Article 21-9, paragraph (3), the amount of inheritance tax to be paid is the amount obtained by deducting from the amount of inheritance tax an amount equivalent to that amount of gift tax (being the amount before the deduction under the provisions of Article 21-8, and excluding the amounts of tax equivalent to delinquent tax, interest tax, penalty tax for understatement, penalty tax for failure to file and heavy penalty tax).

For a person electing settlement taxation at inheritance who has not acquired property by inheritance or bequest from a specified donor, the provisions of Section 1 apply by deeming property acquired by gift from that specified donor that is subject to the application of the provisions of Article 21-9, paragraph (3) to have been acquired from that specified donor by inheritance (by bequest if that person electing settlement taxation at inheritance is a person other than an heir of that specified donor).

In the case referred to in the preceding paragraph, with regard to the application of the provisions of Articles 13, 18, 19, 19-3 and 19-4 to the calculation of inheritance tax for a person electing settlement taxation at inheritance who has not acquired property by inheritance or bequest from the specified donor and for a person who has acquired property by inheritance or bequest from that specified donor, the phrase "property acquired by that inheritance or bequest" in Article 13, paragraph (1) is deemed to be replaced with "property acquired by that inheritance or bequest (including property acquired by gift from the decedent relating to that inheritance that is subject to the application of the provisions of Article 21-9, paragraph (3); the same applies in paragraph (4))", the phrase "that property" with "that property after the deduction under the provisions of Article 21-11-2, paragraph (1)", the phrase "that is located in the area where this Act is enforced" in paragraph (2) of that Article with "that is located in the area where this Act is enforced and property subject to the application of the provisions of Article 21-9, paragraph (3) that is acquired by gift from the decedent in the case where the decedent is a specified donor prescribed in paragraph (5) of that Article", the phrase "that property" with "those items of property after the deduction under the provisions of Article 21-11-2, paragraph (1)", the phrase "that property" in paragraph (4) of that Article with "that property after the deduction under the provisions of Article 21-11-2, paragraph (1)", the phrase "plus an amount equivalent to 20 percent thereof" in Article 18, paragraph (1) with "plus an amount equivalent to 20 percent thereof; provided, however, that this does not apply, where the person was such a blood relative in the first degree of the decedent at the time of acquiring the property by gift, to the amount of inheritance tax specified by Cabinet Order as corresponding to the property acquired from that decedent", the phrase "specified gifted property" in Article 19, paragraph (1) with "specified gifted property and property subject to the application of the provisions of Article 21-9, paragraph (3)", the phrase "property by inheritance or bequest" in Article 19-3, paragraph (3) with "property (including property acquired by gift from the decedent relating to that inheritance that is subject to the application of the provisions of Article 21-9, paragraph (3)) by inheritance or bequest", and the phrase "persons who fall under the provisions of Article 1-3, paragraph (1), items (ii) through (iv)" in Article 19-4, paragraph (1) with "persons who fall under the provisions of Article 1-3, paragraph (1), items (ii) through (iv) and persons who fall under the provisions of item (v) of that paragraph (limited to persons who did not have a domicile in the area where this Act is enforced at the time of the commencement of the succession of the decedent relating to that inheritance)".

With regard to the application of the provisions of Section 1 to property deemed, pursuant to the provisions of paragraph (1), to have been acquired from the specified donor by inheritance or bequest, the following apply:

the value of that property is the value at the time of the gift referred to in paragraph (1);

the remainder obtained by deducting from the value of that property the amount deducted pursuant to the provisions of Article 21-11-2, paragraph (1) is included in the taxable value for inheritance tax referred to in Article 11-2.

In the case referred to in paragraph (1), if there is gift tax imposed on property subject to the application of the provisions of Article 21-9, paragraph (3), the amount of inheritance tax to be paid is the amount obtained by deducting from the amount of inheritance tax an amount equivalent to that amount of gift tax (being the amount before the deduction under the provisions of Article 21-8, and excluding the amounts of tax equivalent to delinquent tax, interest tax, penalty tax for understatement, penalty tax for failure to file and heavy penalty tax).

If a person electing settlement taxation at inheritance for a specified donor dies on or before the death of that specified donor, the heirs of that person electing settlement taxation at inheritance (including universal legatees; the same applies hereinafter in this Article and the following Article) succeed to the rights or obligations relating to tax payment accompanying the application of the provisions of this Section that that person electing settlement taxation at inheritance had. However, if that specified donor is among those heirs, that specified donor does not succeed to those rights or obligations relating to tax payment.

In the case referred to in the main clause of the preceding paragraph, if an heir of a person electing settlement taxation at inheritance has made a qualified acceptance, that heir succeeds to the rights or obligations relating to tax payment referred to in that paragraph only to the extent of the property acquired by inheritance (including property acquired by bequest or gift from that person electing settlement taxation at inheritance).

The provisions of Article 5, paragraphs (2) and (3) (Succession to the Obligation to Pay National Tax through Inheritance) of the Act on General Rules for National Taxes apply mutatis mutandis to the rights or obligations relating to tax payment referred to in paragraph (1) that the heirs of a person electing settlement taxation at inheritance come to have pursuant to the provisions of this Article.

The provisions of the preceding three paragraphs apply mutatis mutandis where a person who has succeeded to the rights or obligations referred to in paragraph (1) dies.

In the case where a person who has acquired property by gift (hereinafter in this Article referred to as the "decedent") is able to receive the application of Article 21-9, paragraph (1), if that decedent dies without filing the written notification referred to in paragraph (2) of that Article before the deadline for filing it under that paragraph, the heirs of that decedent (excluding the person who made that gift; the same applies hereinafter in this Article) may, within 10 months from the day following the day on which they learned of the commencement of the succession (or, if an heir comes to have neither domicile nor residence in the area where this Act is enforced within that period without having filed a notification of a tax agent under Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes, until the day on which the heir comes to have neither domicile nor residence), jointly file that written notification with the competent district director with jurisdiction over the place for tax payment of that decedent, as specified by Cabinet Order.

An heir who has filed the written notification referred to in Article 21-9, paragraph (2) pursuant to the provisions of the preceding paragraph succeeds to the rights or obligations relating to tax payment accompanying the application of paragraph (1) of that Article that the decedent would have had. In this case, the provisions of paragraphs (2) and (3) of the preceding Article apply mutatis mutandis.

If an heir of a decedent who is able to file the written notification referred to in Article 21-9, paragraph (2) pursuant to the provisions of paragraph (1) dies without filing that written notification, the provisions of the preceding two paragraphs apply mutatis mutandis.

Except as otherwise specially provided in this Chapter, the value of property acquired by inheritance, bequest or gift is the market value at the time of acquisition of that property, and the amount of debts to be deducted from the value of that property is determined according to the situation at that time.

The value of a spouse's right of residence is the remainder obtained by deducting from the value listed in item (i) the amount obtained by multiplying the value listed in that item by the number listed in item (ii) and the ratio listed in item (iii).

the market value, at the time of the commencement of the succession, of the building that is the object of that spouse's right of residence on the assumption that that spouse's right of residence has not been established (in the case where part of that building is used for lease, or where the decedent co-owned that building with the decedent's spouse immediately before that commencement of the succession, the amount calculated as specified by Cabinet Order as the value of the portion of that building that is not used for lease or the portion corresponding to the proportion of the decedent's share);

the number obtained by dividing the number of years listed in (a) at the time when that spouse's right of residence was established by the number of years listed in (b) (zero, if the number of years listed in (a) or (b) is zero or less);

the number of years obtained by deducting, from the useful life of the building that is the object of that spouse's right of residence (meaning the number of years specified by Cabinet Order as equivalent to the useful life established under the provisions of the Income Tax Act; the same applies in (b)), both the number of years elapsed since construction (a fraction of six months or more is counted as one year, and a fraction of less than six months is discarded; the same applies in (b)) and the duration in years of that spouse's right of residence (meaning the number of years specified by Cabinet Order as the number of years for which that spouse's right of residence continues; the same applies in the following item);

the number of years obtained by deducting the number of years elapsed since construction from the useful life of the building referred to in (a);

the ratio specified by Ministry of Finance Order for calculating the present value by compound interest at the statutory interest rate, according to the duration in years of that spouse's right of residence at the time when that spouse's right of residence was established.

The value of the building that is the object of a spouse's right of residence is the remainder obtained by deducting the value of that spouse's right of residence calculated pursuant to the provisions of the preceding paragraph from the market value of that building at the time of the commencement of the succession on the assumption that that spouse's right of residence has not been established.

The value of the right to use, based on a spouse's right of residence, the land provided as the site for the building that is the object of that spouse's right of residence (including rights existing on the land; the same applies hereinafter in this Article) is the remainder obtained by deducting the amount listed in item (ii) from the value listed in item (i).

the market value of that land at the time of the commencement of the succession on the assumption that that spouse's right of residence has not been established (in the case where part of that building is used for lease, or where the decedent co-owned that land with another person or co-owned that building with the decedent's spouse immediately before that commencement of the succession, the amount calculated as specified by Cabinet Order as the value of the portion of that land corresponding to the portion of that building not used for lease or the portion corresponding to the proportion of the decedent's share);

the amount obtained by multiplying the value listed in the preceding item by the ratio listed in paragraph (1), item (iii).

The value of land provided as the site for the building that is the object of a spouse's right of residence is the remainder obtained by deducting the value of the right calculated pursuant to the provisions of the preceding paragraph from the market value of that land at the time of the commencement of the succession on the assumption that that spouse's right of residence has not been established.

The value of a right relating to a contract for periodic payments for which an event giving rise to periodic payments has occurred at the time of acquiring the right relating to that contract is the amount specified in each of the following items according to the category of periodic payment or lump-sum payment set forth in that item:

Fixed-term periodic payment: the larger of the following amounts:

The amount of the cancellation refund that would be payable if that contract were cancelled at the time of acquiring the right relating to that contract;

Where a lump-sum payment can be received in lieu of periodic payments, the amount of that lump-sum payment that would be paid if that lump-sum payment were received at the time of acquiring the right relating to that contract;

The amount obtained by multiplying the average annual amount to be received under that contract, according to the remaining period during which periodic payments are to be received under that contract at the time of acquiring the right relating to that contract, by the present value factor of an annuity at compound interest based on the assumed interest rate for that contract (meaning the ratio specified by Ministry of Finance Order for calculating the present value of an annuity by compound interest calculation; the same applies in item (iii), (c));

Perpetual periodic payment: the larger of the following amounts:

The amount of the cancellation refund that would be payable if that contract were cancelled at the time of acquiring the right relating to that contract;

Where a lump-sum payment can be received in lieu of periodic payments, the amount of that lump-sum payment that would be paid if that lump-sum payment were received at the time of acquiring the right relating to that contract;

The amount obtained by dividing the average annual amount to be received under that contract, as of the time of acquiring the right relating to that contract, by the assumed interest rate for that contract;

Lifetime periodic payment: the larger of the following amounts:

The amount of the cancellation refund that would be payable if that contract were cancelled at the time of acquiring the right relating to that contract;

Where a lump-sum payment can be received in lieu of periodic payments, the amount of that lump-sum payment that would be paid if that lump-sum payment were received at the time of acquiring the right relating to that contract;

The amount obtained by multiplying the average annual amount to be received under that contract, according to the remaining life expectancy in years, specified by Cabinet Order, of the person who is the object of that contract at the time of acquiring the right relating to that contract, by the present value factor of an annuity at compound interest based on the assumed interest rate for that contract;

Lump-sum payment prescribed in Article 3, paragraph (1), item (v): the amount of that payment.

In the case of a right relating to a contract for periodic payments prescribed in the preceding paragraph to which the provisions of item (iii) of that paragraph apply, where the person who is the object of that contract dies after the time of acquiring the right relating to that contract and by the deadline for filing the return prescribed in Article 27, paragraph (1) or Article 28, paragraph (1), and the payments end by reason of that death, the value of the right relating to that contract for periodic payments is, notwithstanding the provisions of that item, the amount received or to be received after the time at which the holder of the right acquired the right relating to that contract (including, where a bereaved family member of that holder or another third party receives payments by reason of the death of that holder, the amount received or to be received by that person).

The value of a right relating to a contract for periodic payments prescribed in paragraph (1) that is based on a contract under which periodic payments are paid to the holder of the right for a certain period and, in addition, during the life of the person who is the object of the contract, is the smaller of the amount calculated as a fixed-term periodic payment prescribed in item (i) of that paragraph and the amount calculated as a lifetime periodic payment prescribed in item (iii) of that paragraph.

The value of a right relating to a contract for periodic payments prescribed in paragraph (1) that is based on a contract under which periodic payments are paid during the life of the person who is the object of the contract and, when that person dies, periodic payments continue to be paid to the holder of the right or to a bereaved family member of that holder or another third party, is the larger of the amount calculated as a fixed-term periodic payment prescribed in item (i) of that paragraph and the amount calculated as a lifetime periodic payment prescribed in item (iii) of that paragraph.

The provisions of the preceding paragraphs apply mutatis mutandis to the valuation of a right relating to periodic payments prescribed in Article 3, paragraph (1), item (vi), other than one based on a contract.

The value of a right relating to a contract for periodic payments (excluding a life insurance contract) for which an event giving rise to periodic payments has not occurred at the time of acquiring the right relating to that contract is the amount specified in each of the following items according to the category of cases set forth in that item:

Where there is no provision in that contract to pay a cancellation refund: the amount obtained by multiplying the amount specified in each of the following according to the category of cases set forth in it by 90 percent:

Where the contributions or premiums for that contract are paid in a lump sum: the total of principal and interest obtained by calculating compound interest at the assumed interest rate for that contract on the paid-in amount of those contributions or premiums for the period from the time when payment of those contributions or premiums began until the time of acquiring the right relating to that contract (referred to as the "elapsed period" in (b));

Cases other than those set forth in (a): the amount obtained by multiplying the average annual amount of the contributions or premiums paid during the elapsed period, according to the elapsed period, by the future value factor of an annuity at compound interest based on the assumed interest rate for that contract (meaning the ratio specified by Ministry of Finance Order for calculating the future value of an annuity by compound interest calculation);

Cases other than those set forth in the preceding item: the amount of the cancellation refund that would be payable if that contract were cancelled at the time of acquiring the right relating to that contract.

The value of standing trees acquired by inheritance or bequest (limited to a universal legacy and a bequest from the decedent to an heir) is the amount calculated by multiplying the market value of the standing trees at the time of acquiring them by the ratio of 85 percent.

A Land Valuation Council is to be established in each regional taxation bureau.

The Land Valuation Council is to investigate and deliberate on matters relating to the valuation of land on which the regional commissioner seeks its opinion.

The Land Valuation Council is to be composed of not more than 20 members.

The members are appointed by the regional commissioner from among officials of the relevant administrative agencies, officials of local governments, and persons with knowledge and experience regarding the valuation of land.

In addition to what is prescribed in the preceding two paragraphs, matters necessary for the organization and operation of the Land Valuation Council are prescribed by Cabinet Order.

A person who has acquired property by inheritance or bequest (including a gift of property acquired by gift from the decedent for the relevant succession to which Article 21-9, paragraph (3) applies; the same applies hereinafter in this Article) and a person electing settlement taxation at inheritance with respect to that decedent must, in the case where the total of the taxable values for inheritance tax (where Article 19 or Articles 21-14 through 21-18 apply, the amounts deemed to be taxable values for inheritance tax under those provisions) of all persons who have acquired property from that decedent by these causes exceeds the basic deduction for the estate, and there is an amount of inheritance tax under Articles 15 through 19, Articles 19-3 through 20-2 and Articles 21-14 through 21-18 on the taxable value for inheritance tax of that person (where Article 19 or Articles 21-14 through 21-18 apply, the amount deemed to be the taxable value for inheritance tax under those provisions), file with the competent district director with jurisdiction over the place for tax payment a return stating the taxable value, the amount of inheritance tax and other matters specified by Ministry of Finance Order, within 10 months from the day following the day on which that person came to know of the commencement of the succession (or, if that person comes not to have a domicile and residence in the area where this Act is enforced within that period without filing a notification of a tax agent under Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes, by the day on which that person comes not to have that domicile and residence).

If a person who is required to file a return under the preceding paragraph dies without filing that return before the deadline for filing it, the heirs of that person (including universal legatees; the same applies in paragraph (5)) must, as prescribed by Cabinet Order, file the return under the preceding paragraph relating to the person who died with the competent district director with jurisdiction over the place for tax payment of the person who died, within 10 months from the day following the day on which they came to know of the commencement of the succession (or, if that person comes not to have a domicile and residence in the area where this Act is enforced within that period without filing a notification of a tax agent under Article 117, paragraph (2) of the Act on General Rules for National Taxes, by the day on which that person comes not to have that domicile and residence).

In addition to the case where a person electing settlement taxation at inheritance is required to file a return under paragraph (1), that person may, in order to receive a refund under Article 33-2, paragraph (1), file with the competent district director with jurisdiction over the place for tax payment a return stating the taxable value for inheritance tax on the property to which Article 21-9, paragraph (3) applies, the amount of tax to be refunded and other matters specified by Ministry of Finance Order.

When a return is filed under the preceding three paragraphs, a detailed statement stating the property and debts at the time of the death of the decedent, a breakdown, for each person, of the property acquired or debts assumed by all persons who have acquired property from that decedent by inheritance or bequest through these causes, and other matters specified by Ministry of Finance Order, and other documents specified by Ministry of Finance Order, must be attached to that return.

Where there are two or more persons who have acquired property from the same decedent by inheritance or bequest, or heirs of such persons, who are required to file, or may file, a return under paragraph (1), paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (2) of the following Article) or paragraph (3), and the district director to whom that return is to be filed is the same, those persons may file that return jointly, as prescribed by Cabinet Order.

The provisions of paragraphs (1) through (3) do not apply if a determination has been made regarding inheritance tax before the deadline for filing the return prescribed in those paragraphs.

A person who has acquired property by gift must, in the case where there is an amount of gift tax under Articles 21-5, 21-7 and 21-8 on the taxable value for gift tax for that year, or in the case where that property is subject to Article 21-9, paragraph (3) (limited to the case where there is a taxable value for gift tax after the deduction under Article 21-11-2, paragraph (1)), file with the competent district director with jurisdiction over the place for tax payment a return stating the taxable value, the amount of gift tax and other matters specified by Ministry of Finance Order, from February 1 to March 15 of the following year (or, if the person comes not to have a domicile and residence in the area where this Act is enforced, without filing a notification of a tax agent under Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes, between January 1 and March 15 of that same year, by the day on which the person comes not to have that domicile and residence).

The provisions of paragraph (2) of the preceding Article apply mutatis mutandis to the following cases:

the case where, in applying Articles 21-5, 21-7 and 21-8 to the total amount of the portion, included in the taxable value for gift tax, of the value of property acquired by gift between January 1 of the year and the day of death by a person who died in the middle of a year, there is to be an amount of gift tax;

the case where a person electing settlement taxation at inheritance dies in the middle of a year and has acquired by gift, between January 1 of that year and the day of death, property to which Article 21-9, paragraph (3) applies (limited to the case where there is a taxable value for gift tax after the deduction under Article 21-11-2, paragraph (1));

the case where a person who is required to file a return under the preceding paragraph dies without filing that return before the deadline for filing it.

The provisions of paragraph (6) of the preceding Article apply mutatis mutandis to a return to be filed under the provisions of paragraph (1) or the provisions of paragraph (2) of that Article as applied mutatis mutandis pursuant to the preceding paragraph.

Where a person electing settlement taxation at inheritance has acquired, by a gift from a specified donor, property to which Article 21-9, paragraph (3) applies, if that specified donor dies in the middle of the year in which the gift was made, the provisions of paragraph (1) do not apply to the property acquired by that gift.

A person who has newly come to fall under the requirements for filing a return prescribed in Article 27, paragraph (1) because a cause prescribed in Article 4, paragraph (1) or (2) has occurred must, notwithstanding that paragraph, file with the competent district director with jurisdiction over the place for tax payment a return stating the taxable value, the amount of inheritance tax and other matters specified by Ministry of Finance Order, within 10 months from the day following the day on which the person came to know that that cause had occurred (or, if the person comes not to have a domicile and residence in the area where this Act is enforced within that period without filing a notification of a tax agent under Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes, by the day on which the person comes not to have that domicile and residence).

The provisions of Article 27, paragraph (2) and paragraphs (4) through (6) apply mutatis mutandis to the case referred to in the preceding paragraph.

A person who has newly come to fall under the requirements for filing a return prescribed in Article 27, paragraph (1) because a cause prescribed in Article 32, paragraph (1), items (i) through (vi) has occurred after the deadline for filing a return under Article 27, paragraph (1) may file a return filed after the deadline.

A person who has newly come to fall under the requirements for filing a return prescribed in Article 28, paragraph (1) because the person has come not to acquire property by inheritance or bequest owing to the occurrence of a cause prescribed in Article 32, paragraph (1), items (i) through (vi) after the deadline for filing a return under Article 28, paragraph (1) may file a return filed after the deadline.

A person who has filed a return under Article 27 or Article 29, or a return filed after the deadline for such a return (including a person who has received a determination regarding inheritance tax), may file an amended return in the case where there is a shortfall in the amount of inheritance tax already finalized because a cause prescribed in paragraph (1), items (i) through (vi) of the following Article has occurred.

A person prescribed in the preceding paragraph must, if there is a shortfall in the amount of inheritance tax already finalized because a cause prescribed in Article 4, paragraph (1) or (2) has occurred, file an amended return with the competent district director with jurisdiction over the place for tax payment within 10 months from the day following the day on which the person came to know that that cause had occurred (or, if the person comes not to have a domicile and residence in the area where this Act is enforced within that period without filing a notification of a tax agent under Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes, by the day on which the person comes not to have that domicile and residence).

The provisions of the preceding paragraph do not apply if a reassessment under Article 35, paragraph (2), item (v) has been made before the deadline for filing the amended return prescribed in that paragraph.

A person who has filed a return under Article 28, or a return filed after the deadline for that return (including a person who has received a determination regarding gift tax), may file an amended return if there is a shortfall in the amount of gift tax already finalized because the person has come not to acquire property by inheritance or bequest owing to the occurrence of a cause prescribed in paragraph (1), items (i) through (vi) of the following Article.

A person who has filed a return for inheritance tax or gift tax, or a person who has received a determination, may, if the taxable value and the amount of inheritance tax or amount of gift tax relating to that return or determination (where, after the filing of that return or the receipt of that determination, an amended return has been filed or a reassessment has been made, the taxable value and the amount of inheritance tax or amount of gift tax relating to that amended return or reassessment) have become excessive due to a cause falling under any of the following items, make a request for reassessment (meaning a request for reassessment under Article 23, paragraph (1) (Request for Reassessment) of the Act on General Rules for National Taxes (Act No. 66 of 1962); the same applies in Article 33-2) of the taxable value and the amount of inheritance tax or amount of gift tax to the competent district director with jurisdiction over the place for tax payment, only within four months from the day following the day on which the person came to know that the cause prescribed in the relevant item had arisen.

the fact that, where the taxable value for property that has not been divided pursuant to the provisions of Article 55 was calculated in accordance with the share of inheritance under the provisions of the Civil Code (excluding Article 904-2 (Amount of Contribution to the Estate)) or the proportion of the universal legacy, and that property has subsequently been divided, the taxable value relating to the property acquired by a co-heir or universal legatee through that division has come to differ from the taxable value calculated in accordance with that share of inheritance or the proportion of the universal legacy;

a change in the heirs due to an affiliation, a judicial decision becoming final and binding concerning the disinheritance of an heir or the rescission of a disinheritance, under Article 787 (Filiation Proceedings) or Articles 892 through 894 (Disinheritance of Presumptive Heirs and Related Matters) of the Civil Code, a recovery of inheritance as prescribed in Article 884 (Right to File for the Recovery of a Succession) of that Code, the rescission of a renunciation of inheritance under Article 919, paragraph (2) (Revocation and Rescission; Acceptance and Renunciation of Succession) of that Code, or any other event;

the finalization of the amount of money to be paid based on a claim for the amount of infringement of the statutory reserved share;

the discovery of a will concerning a bequest, or the renunciation of a bequest;

the occurrence, in the case where permission for payment in kind has been granted subject to conditions pursuant to the provisions of Article 42, paragraph (30) (including the case where it applies mutatis mutandis pursuant to Article 45, paragraph (2)) (limited to the case where that permission is rescinded or is to be rescinded pursuant to the provisions of Article 48, paragraph (2)), of a matter specified by Cabinet Order concerning the nature of the property applied to the payment in kind relating to those conditions or other circumstances;

the occurrence of a cause specified by Cabinet Order as being equivalent to the causes prescribed in the preceding items;

the occurrence of a cause prescribed in Article 4, paragraph (1) or (2);

the fact that, by falling under the proviso to Article 19-2, paragraph (2), the amount of inheritance tax calculated by applying the provisions of paragraph (1) of that Article on or after the time when the division referred to in that paragraph was made has come to differ from the amount of inheritance tax calculated by applying the provisions of that paragraph before that time (excluding the case falling under item (i));

the occurrence of any of the following causes:

the fact that the heir of the person who made a departure from Japan as prescribed in Article 137-2, paragraph (1) of the Income Tax Act and who is subject to the application of that paragraph, having succeeded, pursuant to the provisions of paragraph (13) of that Article (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income upon Departure from Japan Apply), to the obligation to pay the amount of income tax subject to the tax payment grace period prescribed in paragraph (1) of that Article relating to that person, has come to pay income tax equivalent to that amount of income tax subject to the tax payment grace period;

the fact that the heir of the applicable donor, etc. prescribed in Article 137-3, paragraph (7) of the Income Tax Act, having succeeded, pursuant to the provisions of paragraph (15) of that Article (Tax Payment Grace Period Where the Special Provisions on Capital Gains and Similar Income Apply in Cases Where Assets Are Transferred to a Nonresident by Gift, etc.), to the obligation to pay the amount of income tax subject to the tax payment grace period prescribed in paragraph (4) of that Article relating to that applicable donor, etc., has come to pay income tax equivalent to that amount of income tax subject to the tax payment grace period;

a cause specified by Cabinet Order as being similar to the causes in (a) and (b).

the fact that, among the property included in the basis for calculating the taxable value for gift tax, there is property that falls under the provisions of Article 21-2, paragraph (4).

With regard to the application of the provisions of Article 23 of the Act on General Rules for National Taxes to a person who has filed a return for gift tax, the phrase "five years" in paragraph (1) of that Article is deemed to be replaced with "six years".

A person who has filed a return filed by the due date, or an amended return under the provisions of Article 31, paragraph (2), must pay to the national government, by the deadline for filing those returns, inheritance tax or gift tax equivalent to the amount of inheritance tax or amount of gift tax stated in those returns.

Where there is an amount equivalent to the amount of gift tax on property subject to the application of the provisions of Article 21-9, paragraph (3) that is deducted from the amount of inheritance tax pursuant to the provisions of Articles 21-15 through 21-18 (being the amount before the deduction under the provisions of Article 21-8, and excluding the amounts of tax equivalent to delinquent tax, interest tax, penalty tax for understatement, penalty tax for failure to file, and heavy penalty tax), and there is an amount that could not be fully deducted even after deducting that amount from that amount of inheritance tax, the district director is to refund the amount of tax equivalent to the amount that could not be fully deducted as stated in the return referred to in Article 27, paragraph (3) (where the person has received the application of the provisions of Article 21-8 with respect to the gift tax on property subject to the application of the provisions of Article 21-9, paragraph (3), the balance remaining after deducting from that amount the amount deducted pursuant to the provisions of that Article).

Where interest on a refund is calculated for a refund under the provisions of the preceding paragraph, the period under Article 58, paragraph (1) (Interest on Refund) of the Act on General Rules for National Taxes that forms the basis of that calculation is, according to the category of cases set out in the following items, the period from the day following the day specified in the relevant item until the day on which the decision on payment for that refund is made or the day on which the refund is applied to an outstanding amount (where there is a day before that day on which it became suitable to apply it, that day).

in the case where the return referred to in the preceding paragraph is filed by the base date: that base date;

in the case where the return referred to in the preceding paragraph is filed after the base date: the day of its filing.

The "base date" in the preceding paragraph means the day on which 10 months have passed from the day following the day on which the commencement of the succession occurred with respect to the decedent relating to the return referred to in paragraph (1).

The provisions of paragraph (1) apply only where the return referred to in Article 27, paragraph (3) has been filed.

Where a determination under Article 25 (Determination) of the Act on General Rules for National Taxes has been made on inheritance tax relating to property acquired by gift by a person electing settlement taxation at inheritance that is subject to the application of the provisions of Article 21-9, paragraph (3), if there is an amount that could not be fully deducted as prescribed in paragraph (1) relating to that determination, the district director is to refund to that person electing settlement taxation at inheritance the amount of tax equivalent to that amount.

Where a reassessment (including a decision or ruling on an appeal or action concerning a disposition, etc. relating to that inheritance tax (meaning a disposition on a request for reassessment or a determination under Article 25 of the Act on General Rules for National Taxes), or a judgment; referred to as a "reassessment or similar decision" in this paragraph and the following paragraph) has been made on inheritance tax relating to property acquired by gift by a person electing settlement taxation at inheritance that is subject to the application of the provisions of Article 21-9, paragraph (3), if the amount that could not be fully deducted as prescribed in paragraph (1) has increased as a result of that reassessment or similar decision, the district director is to refund to that person electing settlement taxation at inheritance the amount of tax equivalent to the amount of the increased portion.

Where interest on a refund is calculated for a refund under the provisions of the preceding two paragraphs, the period under Article 58, paragraph (1) of the Act on General Rules for National Taxes that forms the basis of that calculation is, according to the category of refunds set out in the following items, the period from the day following the day specified in the relevant item until the day on which the decision on payment for that refund is made or the day on which the refund is applied to an outstanding amount (where there is a day before that day on which it became suitable to apply it, that day).

a refund under the provisions of paragraph (5): the day on which the determination referred to in that paragraph was made;

a refund under the provisions of the preceding paragraph: the day on which one month has passed on or after the day following the day on which the reassessment or similar decision referred to in that paragraph was made (where that reassessment or similar decision is any of the following, the day specified respectively in the following).

a reassessment based on a request for reassessment (including a decision or ruling on an appeal or action concerning a disposition on that request, or a judgment; the same applies in (a)): the earlier of the day on which three months have passed on or after the day following the day on which that request was made and the day on which one month has passed on or after the day following the day on which that reassessment was made

reassessment relating to a determination under Article 25 of the Act on General Rules for National Taxes (including a decision, ruling or judgment on an appeal or action concerning that determination, and excluding a reassessment based on a request for reassessment and a reassessment made on the ground that the economic result arising from a void act included in the facts that formed the basis for calculating the taxable value for inheritance tax has been lost because of the voidness of that act, that a voidable act included in those facts has been rescinded, or any other ground equivalent thereto specified by Cabinet Order): the date of that determination.

In addition to what is provided for in the preceding paragraphs, the method of appropriating a refund under the provisions of paragraph (1), (5) or (6) (including interest on a refund relating thereto) and any other matters necessary for the application of those provisions are specified by Cabinet Order.

All persons who have acquired property by inheritance or bequest (including a gift relating to property to which the provisions of Article 21-9, paragraph (3) apply; the same applies hereinafter in this paragraph and the following paragraph) from the same decedent are jointly and severally liable for payment of the inheritance tax relating to the property acquired by that inheritance or bequest, up to the amount equivalent to the value of the benefit received by that inheritance or bequest; provided, however, that this does not apply to the inheritance tax prescribed in the following items, according to the classification of persons listed in the respective items:

with respect to the inheritance tax relating to the amount of inheritance tax that a person liable for tax is to pay pursuant to the provisions of Article 33 of this Act or Article 35, paragraph (2) or (3) (Payment of National Tax using the Self-Assessment System) of the Act on General Rules for National Taxes, a person jointly liable for payment (meaning a person who is to be jointly and severally liable for payment of that inheritance tax pursuant to the main clause of this paragraph, excluding that person liable for tax; hereinafter referred to in this Article and Article 51-2 as a "person jointly liable for payment") in the case where, by the day on which five years elapse from the deadline for filing a return under the provisions of Article 27, paragraph (1) (where that inheritance tax relates to an amount of inheritance tax to be paid by reason of the filing of a return filed after the deadline or an amended return, an amount of inheritance tax relating to a reassessment or determination, or an amount of inheritance tax relating to an assessment and determination prescribed in Article 32, paragraph (5) (Assessment and Determination) of that Act, the day on which that return filed after the deadline or amended return was filed, the day on which the written notice of reassessment or written notice of determination prescribed in Article 28, paragraph (1) (Procedures for Reassessment or Determination) of that Act relating to that reassessment or determination was issued, or the day on which the written notice of assessment and determination prescribed in Article 32, paragraph (3) of that Act relating to that assessment and determination was issued), the district director (the regional commissioner, where the regional commissioner has taken over the collection pursuant to the provisions of Article 43, paragraph (3) (Competent Agency for Collection of National Taxes) of that Act; the same applies hereinafter in this Article) has not issued the notice under the provisions of paragraph (6) to that person jointly liable for payment: the inheritance tax relating to the amount of inheritance tax to be paid;

with respect to a person jointly liable for payment relating to a person liable for tax, in the case where that person liable for tax has received permission to defer payment under the provisions of Article 38, paragraph (1) (including as applied mutatis mutandis pursuant to Article 44, paragraph (2)) or Article 47, paragraph (1): the inheritance tax relating to the amount of inheritance tax for which that permission to defer payment was received;

with respect to a person jointly liable for payment relating to a person liable for tax, in the case specified by Cabinet Order as a case where payment of the inheritance tax of that person liable for tax has been deferred: the inheritance tax relating to the amount of inheritance tax for which payment was deferred.

All persons who have acquired property by inheritance or bequest from the same decedent are jointly and severally liable for payment of the inheritance tax or gift tax relating to that decedent, up to the amount equivalent to the value of the benefit received by that inheritance or bequest.

In the case where property that formed the basis for calculating the taxable value for inheritance tax or the taxable value for gift tax has been transferred by gift, bequest or deed of endowment, the person who has acquired the property by that gift or bequest, or the juridical person established by that deed of endowment, is jointly and severally liable for payment, up to the amount equivalent to the value of the benefit received, of the inheritance tax equivalent to the amount calculated by multiplying the amount of inheritance tax of the person who made that gift, bequest or deed of endowment, in which that property was included in the basis for calculating the taxable value, by the proportion that the value of that property accounts for in the value of the property included in the taxable value for that inheritance tax, or of the gift tax equivalent to the amount calculated by multiplying the amount of gift tax for the year in which that property was included in the basis for calculating the taxable value by the proportion that the value of that property accounts for in the value of the property included in the taxable value for that gift tax.

A person who has made a gift of property is jointly and severally liable for payment, up to the amount equivalent to the value of that property, of the gift tax equivalent to the amount specified by Cabinet Order as the amount calculated by multiplying the amount of gift tax, for the year in which the person who acquired the property by that gift acquired that property, by the proportion that the value of that property accounts for in the value of the property included in the taxable value for gift tax.

In the case where the district director has issued a demand under the provisions of Article 37 (Demand) of the Act on General Rules for National Taxes to a person liable for tax with respect to the inheritance tax of that person liable for tax, and that inheritance tax has not been paid in full by the day on which one month elapses from the day on which the written demand relating to that demand was issued, the district director is to notify the person jointly liable for payment relating to that inheritance tax, notwithstanding the provisions of that Article, that the inheritance tax has not been paid in full and of any other matters specified by Ministry of Finance Order.

In the case where the district director has given the notice under the provisions of the preceding paragraph and intends to collect inheritance tax from a person jointly liable for payment pursuant to the provisions of the main clause of paragraph (1), the district director must give that person jointly liable for payment notice by means of a written payment notice stating the amount to be paid, the place of payment and any other necessary matters.

If the inheritance tax relating to the notice under the provisions of the preceding paragraph has not been paid in full by the day on which two months elapse from the day following the day on which the notice was issued, the district director must issue a demand under the provisions of Article 37 of the Act on General Rules for National Taxes to the person jointly liable for payment who received the notice.

Notwithstanding the provisions of the preceding three paragraphs, if there is a fact that a person jointly liable for payment falls under any of the items of Article 38, paragraph (1) (Advance Demand) of the Act on General Rules for National Taxes and it is found that there is an impediment to the collection of the inheritance tax, the district director must issue a demand under the provisions of Article 37 of that Act to that person jointly liable for payment.

In the case where a person who falls under the provisions of Article 31, paragraph (2) has not filed an amended return under the provisions of that paragraph, the district director is to make a reassessment of that person's taxable value or amount of inheritance tax.

In the case where any of the following items applies, the district director may make a reassessment or determination of the taxable value, the amount of inheritance tax, or the amount of gift tax, even before the deadline for filing a return:

in the case where any of the grounds prescribed in Article 27, paragraph (1) or (2) applies, when 10 months have elapsed from the day following the day on which the decedent of the person prescribed in paragraph (1) of that Article died;

in the case listed in Article 28, paragraph (2), item (i), when 10 months have elapsed from the day following the day on which the person prescribed in that item died;

in the case listed in Article 28, paragraph (2), item (ii), when 10 months have elapsed from the day following the day on which the person prescribed in that item died;

in the case listed in Article 28, paragraph (2), item (iii), when the deadline for filing the return prescribed in that item has passed;

in the case where any of the grounds prescribed in Article 29, paragraph (1), Article 27, paragraph (2) as applied mutatis mutandis pursuant to paragraph (2) of that Article, or Article 31, paragraph (2) applies, when 10 months have elapsed from the day following the day on which any of the grounds prescribed in Article 4, paragraph (1) or (2) arose.

In the case where the district director has made a reassessment based on a request for reassessment under the provisions of Article 32, paragraph (1), items (i) through (vi), if any of the following grounds exists with respect to another person who has acquired property by inheritance or bequest from the decedent of the person who made the request (including a person who has acquired, by gift from that decedent, property to which the provisions of Article 21-9, paragraph (3) apply; the same applies hereinafter in this paragraph), the district director is to reassess or determine the taxable value or amount of inheritance tax of that person based on that ground; provided, however, that this does not apply on or after the later of the day on which one year has elapsed from the day of that request and the day on which reassessment or determination can no longer be made pursuant to the provisions of Article 70 (Time Limit for Reassessment and Determination, etc. of National Tax) of the Act on General Rules for National Taxes:

in the case where that other person is a person who has filed a return under the provisions of Article 27 or Article 29 (including a return filed after the deadline and an amended return relating to those returns) or has received a determination concerning inheritance tax, the taxable value or amount of inheritance tax relating to that return or determination (where an amended return was filed or a reassessment was made after that return or determination, the taxable value or amount of inheritance tax relating to that amended return or reassessment) comes to differ from the taxable value or amount of inheritance tax of that person calculated on the basis of the facts that gave rise to the reassessment based on that request;

in the case where that other person is a person other than the person prescribed in the preceding item, that person comes to be required to pay inheritance tax anew as a result of calculating the taxable value and amount of inheritance tax of that person on the basis of the facts prescribed in that item.

In the case where, owing to the grounds listed below, the taxable value for inheritance tax or the amount of inheritance tax of a person who has filed a return referred to in item (i) or (iii), a person who has received a determination referred to in item (ii) or a reassessment referred to in item (iv) or (v), or another person who has acquired property by inheritance or bequest from the decedent of any of those persons (including a person who has acquired, by gift from that decedent, property to which the provisions of Article 21-9, paragraph (3) apply) has become excessive or deficient (excluding the case where the provisions of the preceding paragraph apply), the district director is to reassess or determine the taxable value for inheritance tax or the amount of inheritance tax of those persons; provided, however, that this does not apply on or after the later of the day on which one year has elapsed from the day on which the grounds listed below arose and the day on which reassessment or determination can no longer be made pursuant to the provisions of Article 70 of the Act on General Rules for National Taxes:

the filing of a return pursuant to the provisions of Article 151-5, paragraphs (1) through (3) (Special Provisions on Returns Filed after the Deadline and Similar Matters upon Division of the Estate or Similar Event) of the Income Tax Act (including where these provisions are applied mutatis mutandis pursuant to Article 166 (Filing of Returns, Payment of Taxes, and Issuance of Refunds) of that Act);

the making of a determination pursuant to the provisions of Article 151-5, paragraph (4) of the Income Tax Act;

the filing of an amended return pursuant to the provisions of Article 151-6, paragraph (1) (Special Provisions on Amended Returns upon Division of the Estate or Similar Event) of the Income Tax Act (including where these provisions are applied mutatis mutandis pursuant to Article 166 of that Act);

a reassessment has been made pursuant to the provisions of Article 151-6, paragraph (2) of the Income Tax Act;

a reassessment has been made based on a request for reassessment under the provisions of Article 153-5 (Special Provisions on Requests for Reassessment upon Division of the Estate or Similar Event) of the Income Tax Act (including the case where it applies mutatis mutandis pursuant to Article 167 (Special Provisions on Requests for Reassessment) of that Act).

The district director makes a reassessment or determination of the taxable value for gift tax or the amount of gift tax of a person who has been subject to the application of Article 21-2, paragraph (4), in the case where, because the person has come not to acquire property by inheritance or bequest owing to the occurrence of a cause prescribed in Article 32, paragraph (1), items (i) through (vi), the person has newly come to fall under the requirements for filing a return prescribed in Article 28, paragraph (1), or in the case where a shortfall has arisen in the amount of gift tax already finalized. However, this does not apply on or after the later of the day on which one year has passed from the day on which those causes arose and the day on which it becomes impossible to make a reassessment or determination under the provisions of Article 37.

In the case where, within six months before the day on which it becomes impossible to make a reassessment pursuant to the provisions of Article 70, paragraph (1) (Time Limit for Reassessment and Determination, etc. of National Tax) of the Act on General Rules for National Taxes, a request for reassessment has been made with respect to inheritance tax under the provisions of Article 23, paragraph (1) (Request for Reassessment) of that Act, and a change arises, in consequence of the reassessment relating to that request, in the taxable value for inheritance tax or the amount of inheritance tax of another person who has acquired property by inheritance or bequest from the decedent of the person who made that request (including a person who has acquired from that decedent by gift property subject to the application of Article 21-9, paragraph (3); the same applies hereinafter in this Article) (limited to the case where that request was made within six months before the day on which it becomes impossible, with respect to that other person and pursuant to the provisions of Article 70, paragraph (1) of that Act, to make the reassessment or determination, etc. prescribed in Article 58, paragraph (1), item (i), (a) (Interest on Refund) of that Act), a reassessment or determination relating to that inheritance tax, or an assessment and determination (meaning the assessment and determination prescribed in Article 32, paragraph (5) (Assessment and Determination) of that Act) made on the penalty tax prescribed in Article 69 (Tax Items for Penalty Tax) of that Act relating to that inheritance tax in conjunction with that reassessment or determination or the filing of a return filed after the deadline or an amended return, may be made until the day on which six months have passed from the day on which that request was made, notwithstanding the provisions of Article 70, paragraph (1) of that Act. In this case, with regard to the application of the provisions of Article 71, paragraph (1) (Special Provisions on Time Limits for Determination and Reassessment of National Tax) and Article 72 (Extinctive Prescription of the Right to Collection of National Tax) of that Act, the phrase "pursuant to the provisions of the preceding Article" in Article 71, paragraph (1) is deemed to be replaced with "pursuant to the provisions of the preceding Article and Article 36 of the Inheritance Tax Act (Special Provisions on Time Limits for Reassessment, Determination, etc. of Inheritance Tax)", the phrase "Notwithstanding the provisions of the preceding Article" with "Notwithstanding the provisions of the preceding Article and Article 36 of that Act", and the phrase "item (iv) of that paragraph was made" in Article 72, paragraph (1) with "item (iv) of that paragraph was made, and, in the case of inheritance tax to be paid by a reassessment or determination, etc. under the provisions of Article 36 of the Inheritance Tax Act (Special Provisions on Time Limits for Reassessment, Determination, etc. of Inheritance Tax) or the filing of a return filed after the deadline or an amended return under that Article, from the day on which that reassessment or determination, etc. or that filing was made".

With respect to gift tax, notwithstanding the provisions of Article 70 (Time Limit for Reassessment and Determination, etc. of National Tax) of the Act on General Rules for National Taxes, the district director may make a reassessment or determination listed in the following items (hereinafter in this paragraph and paragraph (4) referred to as a "reassessment or determination") or an assessment and determination (meaning the assessment and determination prescribed in Article 32, paragraph (5) (Assessment and Determination) of that Act; the same applies hereinafter in this Article) until the day on which six years have passed from the deadline or day specified in each of those items. In this case, with regard to the application of the provisions of Article 71, paragraph (1) (Special Provisions on Time Limits for Determination and Reassessment of National Tax) of that Act, the phrase "pursuant to the provisions of the preceding Article" in that paragraph is deemed to be replaced with "pursuant to the provisions of the preceding Article and Article 37, paragraphs (1) through (4) of the Inheritance Tax Act (Special Provisions on Time Limits for Reassessment, Determination, etc. of Gift Tax)", and the phrase "Notwithstanding the provisions of the preceding Article" with "Notwithstanding the provisions of the preceding Article and Article 37, paragraphs (1) through (4) of that Act".

a reassessment or determination of gift tax: the deadline for filing a return under the provisions of Article 28, paragraph (1) or (2) for the gift tax relating to that reassessment or determination;

a reassessment or determination of gift tax in which a change is to arise in the tax base, etc. or the amount of tax, etc. prescribed in Article 19, paragraph (1) (Amended Return) of the Act on General Rules for National Taxes in consequence of the reassessment or determination listed in the preceding item: the deadline for filing a return under the provisions of Article 28, paragraph (1) or (2) for the gift tax relating to that reassessment or determination;

an assessment and determination made, in conjunction with a reassessment or determination listed in the preceding two items or the filing of a return filed after the deadline or an amended return, or in conjunction with a reassessment or determination, or the filing of a return filed after the deadline or an amended return, relating to gift tax in which a change is to arise in consequence of those reassessments or determinations or that filing, on the penalty tax prescribed in Article 69 (Tax Items for Penalty Tax) of the Act on General Rules for National Taxes (referred to as "penalty tax" in the following paragraph and paragraph (4)) relating to that gift tax: the day on which the tax liability was established.

A reassessment relating to a request for reassessment made under the provisions of Article 23, paragraph (1) (Request for Reassessment) of the Act on General Rules for National Taxes within six months before the day on which it becomes impossible to make a reassessment pursuant to the provisions of the preceding paragraph, or an assessment and determination made on penalty tax relating to gift tax in conjunction with that reassessment, may be made until the day on which six months have passed from the day on which that request for reassessment was made, notwithstanding the provisions of the preceding paragraph. In this case, with regard to the application of the provisions of Article 72, paragraph (1) (Extinctive Prescription of the Right to Collection of National Tax) of that Act, the phrase "Article 70, paragraph (3) (Time Limit for Reassessment and Determination, etc. of National Tax)" in that paragraph is deemed to be replaced with "Article 37, paragraph (2) of the Inheritance Tax Act (Special Provisions on Time Limits for Reassessment, Determination, etc. of Gift Tax)", and the phrase "prescribed in Article 70, paragraph (3)" with "prescribed in Article 37, paragraph (2) of that Act".

An assessment and determination made, in conjunction with the filing of a tax return prescribed in Article 2, item (vi) (Definitions) of the Act on General Rules for National Taxes made within three months before the day on which it becomes impossible to make an assessment and determination pursuant to the provisions of paragraph (1), on penalty tax for failure to file relating to gift tax (limited to that to which Article 66, paragraph (8) (Penalty Tax for Failure to File) of that Act applies) may be made until the day on which three months have passed from the day on which that tax return was filed, notwithstanding the provisions of paragraph (1). In this case, with regard to the application of the provisions of Article 72, paragraph (1) of that Act, the phrases "paragraph (4) of that Article" and "Article 70, paragraph (4)" in that paragraph are deemed to be replaced with "Article 37, paragraph (3) of the Inheritance Tax Act (Special Provisions on Time Limits for Reassessment, Determination, etc. of Gift Tax)".

A reassessment or determination, or an assessment and determination, on gift tax (including penalty tax relating to that gift tax) the whole or part of the amount of which has been evaded, or the whole or part of the amount of which has been refunded, by deception or other wrongful acts, and a reassessment of the amount of net loss, etc. prescribed in Article 2, item (vi), (c) of the Act on General Rules for National Taxes that arose in the taxable period prescribed in item (ix) of that Article and is stated in a tax return prescribed in item (vi) of that Article (where there was a reassessment regarding that amount, the amount after that reassessment), in the case where that tax return was filed on the basis that the amount of net loss, etc. was overstated by deception or other wrongful acts, may be made, notwithstanding the provisions of the preceding three paragraphs, until the day on which seven years have passed from the deadline or day specified in each of the following items according to the category of reassessment or determination or assessment and determination listed in the following items:

a reassessment or determination relating to gift tax: the deadline for filing a return under the provisions of Article 28, paragraph (1) or (2) for the gift tax relating to that reassessment or determination;

an assessment and determination made on penalty tax relating to gift tax: the day on which the tax liability was established.

In the case referred to in paragraph (1), the prescription of the national tax collection right prescribed in Article 72, paragraph (1) of the Act on General Rules for National Taxes relating to gift tax does not run for one year from the deadline for filing a return under the provisions of Article 28, paragraph (1) or (2) for that gift tax, except in the case where Article 73, paragraph (3) (Suspension of Completion and Renewal of Prescription) of that Act applies.

In the case referred to in the preceding paragraph, the provisions of the proviso to Article 73, paragraph (3) of the Act on General Rules for National Taxes apply mutatis mutandis. In this case, the phrase "within two years" in the proviso to that paragraph is deemed to be replaced with "within one year".

In the case where the amount of inheritance tax to be paid pursuant to Article 33 of this Act or Article 35, paragraph (2) (Payment of National Tax using the Self-Assessment System) of the Act on General Rules for National Taxes exceeds 100,000 yen, and there are grounds that make it difficult for the person liable for tax to pay in money by the due date for payment or on the day on which payment is due, the district director may, upon application by the person liable for tax, grant permission to defer payment in annual installments within five years (where the proportion that the total value of real property, standing timber and other property specified by Cabinet Order (hereinafter referred to as the "value of real property, etc.") represents of the total value of the property acquired by inheritance or bequest that formed the basis for calculating that amount of inheritance tax (hereinafter referred to as the "value of taxable inherited property") is 50 percent or more, within 15 years for the portion of the tax specified by Cabinet Order as the amount of inheritance tax corresponding to the value of real property, etc., and within 10 years for the amount of inheritance tax for the other portion), up to the limit of the amount specified by Cabinet Order as the amount that makes payment difficult. In this case, where the amount subject to deferment is less than 500,000 yen (1,500,000 yen where the proportion that the value of real property, etc. represents of the value of taxable inherited property is 50 percent or more), the period for which that permission to defer payment may be granted cannot exceed the number of years equivalent to the number obtained by dividing the amount subject to deferment by 100,000 yen (where that number has a fraction of less than one, it is counted as one).

In the case where permission to defer payment is granted pursuant to the preceding paragraph, the annual installment amount is the amount calculated by dividing the amount subject to deferment by the number of years equivalent to the deferment period (where the proportion that the value of real property, etc. represents of the value of taxable inherited property is 50 percent or more, the amount calculated by dividing the amount subject to deferment into the amount of tax for the portion specified by Cabinet Order as corresponding to the value of real property, etc. (hereinafter referred to as the "deferred inheritance tax amount attributable to real property, etc.") and the amount of tax for the other portion (hereinafter referred to as the "deferred inheritance tax amount attributable to movables, etc."), and dividing each of those amounts of tax by the number of years equivalent to the respective deferment period).

In the case where the amount of gift tax to be paid pursuant to Article 33 of this Act or Article 35, paragraph (2) of the Act on General Rules for National Taxes exceeds 100,000 yen, and there are grounds that make it difficult for the person liable for tax to pay in money by the due date for payment or on the day on which payment is due, the district director may, upon application by the person liable for tax, grant permission to defer payment in annual installments within five years, up to the limit of the amount specified by Cabinet Order as the amount that makes payment difficult.

In granting permission to defer payment under paragraph (1) or the preceding paragraph, the district director must obtain security equivalent to the amount subject to deferment; provided, however, that this does not apply where the amount subject to deferment is 1,000,000 yen or less and the deferment period is three years or less.

A person who intends to apply for permission to defer payment under paragraph (1) of the preceding Article must attach, to a written application stating the amount that it is difficult to pay in money by the due date for payment of the inheritance tax for which deferment is sought or on the day on which payment is due, the reasons for that difficulty, the amount of tax and the period for which deferment is sought, the installment payments and their due dates, and other matters specified by Ministry of Finance Order, documents relating to the provision of security specified by Ministry of Finance Order (referred to as "documents for provision of security" in this Article and Article 47, paragraph (2)), and must submit them to the competent district director with jurisdiction over the place for tax payment by that due date or on that day.

Where a written application under the preceding paragraph is submitted, the district director is to investigate whether the applicant and the matters relating to the application fall under paragraphs (1) and (2) of the preceding Article, and, based on that investigation, within three months counting from the day following the deadline for filing that written application, either grant permission to defer payment for all or part of the amount of tax relating to the application under the conditions relating to the application or conditions modified from them, or dismiss the application; provided, however, that where the district director grants permission to defer payment and finds that the security the applicant intends to provide is not appropriate, the district director may request a change to it.

Where the district director has granted permission or dismissed an application pursuant to the preceding paragraph, the district director is to notify the applicant of this by a document stating the amount subject to deferment and the conditions of deferment relating to the permission, or the fact of the dismissal and the reasons for it.

Where the district director requests a change of security pursuant to the proviso to paragraph (2), the district director is to notify the applicant of this by a document stating that fact and the reasons for it.

Where the district director has requested a change of security pursuant to the proviso to paragraph (2), if the applicant has not, within 20 days counting from the day following the day on which the applicant received the notice under the preceding paragraph, submitted the documents for provision of security relating to the change to the competent district director with jurisdiction over the place for tax payment, the district director may dismiss the application pursuant to paragraph (2).

A person who intends to apply for permission to defer payment under paragraph (1) of the preceding Article may, where the person cannot submit, by the deadline for filing the written application referred to in paragraph (1), all or part of the documents for provision of security attached to that written application, as provided by Cabinet Order, submit to the competent district director with jurisdiction over the place for tax payment a written notification stating that fact, the day on which the person is to submit those documents for provision of security and other matters specified by Ministry of Finance Order (referred to as "written notification of extension of the deadline for submitting documents for provision of security" in the following paragraph and paragraph (27)). In this case, where the day on which the person is to submit them is not stated, the day on which three months have passed counting from the day following that deadline for filing is deemed to be stated.

Where the applicant has submitted a written notification of extension of the deadline for submitting documents for provision of security pursuant to the preceding paragraph, the deadline for filing the documents for provision of security (limited to those relating to that written notification; the same applies in the following paragraph) is the day, stated in that written notification, on which those documents for provision of security are to be submitted (where that day is after the day on which three months have passed counting from the day following the deadline for filing in the preceding paragraph, the day on which those three months have passed).

With regard to the application of paragraph (6) where a person to whom the preceding two paragraphs (including the case where they apply with terms replaced pursuant to this paragraph) have applied cannot submit the documents for provision of security by the day on which they are to be submitted as prescribed in the preceding paragraph, the phrase "where the person cannot submit, by the deadline for filing the written application referred to in paragraph (1), all or part of the documents for provision of security attached to that written application" in paragraph (6) is deemed to be replaced with "where the person cannot submit the documents for provision of security referred to in the following paragraph by the day on which they are to be submitted as prescribed in that paragraph"; provided, however, that the deadline for filing those documents for provision of security cannot be after the day on which six months have passed counting from the day following the deadline for filing the written application referred to in paragraph (1).

With regard to the application of paragraph (2) in the case where the preceding three paragraphs apply, the phrase "that written application" in paragraph (2) is deemed to be replaced with "documents for provision of security (limited to those relating to the written notification of extension of the deadline for submitting documents for provision of security referred to in paragraph (6))".

Where a written application under paragraph (1) has been submitted, if there are grounds specified by Cabinet Order, such as a deficiency in the statements in that written application, or a deficiency in the statements in the documents for provision of security or their non-submission, the district director may request the applicant to correct that written application or to correct or submit those documents for provision of security.

Where the district director requests the correction of a written application or the correction or submission of documents for provision of security pursuant to the preceding paragraph, the district director is to notify the applicant of this by a document stating that fact and the reasons for it.

An applicant who has been requested under paragraph (10) to correct the written application or to correct or submit the documents for provision of security must correct that written application or correct or submit those documents for provision of security within 20 days counting from the day following the day on which the applicant received the notice under the preceding paragraph. In this case, if the applicant has not corrected that written application or corrected or submitted those documents for provision of security within that period, the applicant is deemed to have withdrawn the application to defer payment on the day on which that period has passed.

An applicant who has been requested under paragraph (10) to correct or submit documents for provision of security may, where the applicant cannot correct or submit those documents for provision of security by the day before the day on which the period has passed as referred to in the preceding paragraph, as provided by Cabinet Order, submit to the competent district director with jurisdiction over the place for tax payment a written notification stating that fact, the day on which the applicant is to correct or submit those documents for provision of security and other matters specified by Ministry of Finance Order (referred to as "written notification of extension of the deadline for completing documents for provision of security" in the following paragraph). In this case, where the day on which the applicant is to make the correction or submission is not stated, the day on which three months have passed counting from the day on which that period has passed is deemed to be stated.

Where the applicant has submitted a written notification of extension of the deadline for completing documents for provision of security pursuant to the preceding paragraph, the deadline for correcting or submitting the documents for provision of security (limited to those relating to that written notification; the same applies in the following paragraph) is the day, stated in that written notification, on which those documents for provision of security are to be corrected or submitted (where that day is after the day on which three months have passed counting from the day on which the period has passed as referred to in the preceding paragraph, the day on which those three months have passed).

With regard to the application of paragraph (13) where a person to whom the preceding two paragraphs (including the case where they apply with terms replaced pursuant to this paragraph) have applied cannot correct or submit the documents for provision of security by the day on which they are to be corrected or submitted as prescribed in the preceding paragraph, the phrase "the day before the day on which the period has passed as referred to in the preceding paragraph" in paragraph (13) is deemed to be replaced with "the day on which they are to be corrected or submitted as prescribed in the following paragraph"; provided, however, that the deadline for correcting or submitting those documents for provision of security cannot be after the day on which six months have passed counting from the day following the day on which the person received the notice under paragraph (11).

With regard to the application of paragraph (2) in the case where paragraph (10) or the preceding three paragraphs apply, the phrase "within three months" in paragraph (2) is deemed to be replaced with "within the period obtained by adding to three months the period from the day following the day on which the applicant received the notice under paragraph (11) until the deadline for correcting the written application (limited to that relating to paragraph (10)) or the deadline for correcting or submitting the documents for provision of security (limited to those relating to paragraph (10)) or the documents for provision of security (limited to those relating to the written notification of extension of the deadline for completing documents for provision of security referred to in paragraph (13)) (referred to as the "deadline for submitting the application, etc." in this paragraph) (where there are multiple notices under paragraph (11), the period obtained by totaling the periods from the day following the day on which each notice was received until the deadline for submitting the application, etc. relating to each notice (where any of those periods overlap, the period excluding the period obtained by totaling the overlapping periods))".

With regard to the application of the main clause of paragraph (2) in the case where a change of security has been requested pursuant to the proviso to paragraph (2), the phrase "the deadline for filing that written application" in the main clause of paragraph (2) is deemed to be replaced with "the deadline prescribed in paragraph (5)".

A person who has been requested to change security pursuant to the proviso to paragraph (2) may, where the person cannot submit all or part of the documents for provision of security by the deadline prescribed in paragraph (5), as provided by Cabinet Order, submit to the competent district director with jurisdiction over the place for tax payment a written notification stating that fact, the day on which the person is to submit those documents for provision of security and other matters specified by Ministry of Finance Order (referred to as "written notification of extension of the deadline for submitting documents for provision of changed security" in the following paragraph and paragraph (27)). In this case, where the day on which the person is to submit them is not stated, the day on which three months have passed counting from the day following that deadline is deemed to be stated.

Where the applicant has submitted a written notification of extension of the deadline for submitting documents for provision of changed security pursuant to the preceding paragraph, the deadline for filing the documents for provision of security (limited to those relating to that written notification; the same applies in the following paragraph) is the day, stated in that written notification, on which those documents for provision of security are to be submitted (where that day is after the day on which three months have passed counting from the day following the deadline in the preceding paragraph, the day on which those three months have passed).

With regard to the application of paragraph (18) where a person to whom the preceding two paragraphs (including the case where they apply with terms replaced pursuant to this paragraph) have applied cannot submit the documents for provision of security by the day on which they are to be submitted as prescribed in the preceding paragraph, the phrase "the deadline prescribed in paragraph (5)" in paragraph (18) is deemed to be replaced with "the day on which they are to be submitted as prescribed in the following paragraph"; provided, however, that the deadline for filing those documents for provision of security cannot be after the day on which six months have passed counting from the day following the day on which the person received the notice under paragraph (4).

With regard to the application of paragraphs (2) and (5) in the case where the preceding three paragraphs apply, the phrase "that written application" in paragraph (2) is deemed to be replaced with "documents for provision of security (limited to those relating to the written notification of extension of the deadline for submitting documents for provision of changed security referred to in paragraph (18))", and the phrase "within 20 days counting from the day following the day on which the applicant received the notice under the preceding paragraph, submitted the documents for provision of security relating to the change" in paragraph (5) is deemed to be replaced with "by the deadline for filing the documents for provision of security under paragraph (2) as it applies with terms replaced pursuant to paragraph (21), submitted those documents for provision of security relating to the change".

With regard to the application of this Article to a person who is unable to carry out by the deadline the procedures relating to an application for permission to defer payment in the cases listed in the following items, the provisions of each of those items apply according to the category of cases listed in that item.

in the case where Article 11 (Extension of Time Limits due to Disasters and Similar Causes) of the Act on General Rules for National Taxes applies: with regard to the application of the provisions of this Article, the phrase "six months" in the proviso to paragraph (8) is deemed to be replaced with "six months plus the period from the day on which a disaster or other unavoidable reason prescribed in Article 11 (Extension of Time Limits due to Disasters and Similar Causes) of the Act on General Rules for National Taxes occurred until the deadline extended pursuant to that Article (referred to as the "period of extension for a disaster or other unavoidable reason" in this Article)", and the phrase "six months" in the proviso to paragraph (15), the proviso to paragraph (20) and paragraph (27) is deemed to be replaced with "six months plus the period of extension for a disaster or other unavoidable reason (where the notice was received on or after the day on which a disaster or other unavoidable reason prescribed in Article 11 of that Act occurred, excluding the period from that day until the day on which the notice was received)";

in the case where unavoidable grounds specified by Cabinet Order have arisen, other than the case listed in the preceding item: the deadline for filing the documents for provision of security prescribed in paragraph (5) and other deadlines relating to procedures specified by Cabinet Order are extended by the period specified by Cabinet Order as the period during which those procedures cannot be carried out because of those unavoidable grounds.

In the case where, under paragraph (2), the district director conducts the investigation referred to in paragraph (2) and finds that the investigation requires a period exceeding three months, with regard to the application of paragraph (2), the phrase "three months" in paragraph (2) is deemed to be replaced with "six months".

In the case where a district director conducts the investigation referred to in paragraph (2) pursuant to that paragraph, with regard to the application of paragraph (2) when a disaster or other unavoidable reason prescribed in Article 11 of the Act on General Rules for National Taxes has arisen, or when an unavoidable reason specified by Cabinet Order prescribed in paragraph (22), item (ii) has arisen, the phrase "within three months" in that paragraph is deemed to be replaced with "within the period obtained by adding to three months (six months, if paragraph (23) applies) the period of extension for a disaster or other unavoidable reason prescribed in the proviso to paragraph (8) as applied with the replacement of terms pursuant to paragraph (22), item (i), or the period specified by Cabinet Order prescribed in paragraph (22), item (ii)".

In the case where paragraph (22) applies, when applying paragraph (2) as read with the replacement of terms pursuant to paragraph (9), (17) or (21), the provisions of the preceding paragraph do not apply.

In the case where paragraph (23) or (24) applies, the district director notifies the applicant of that fact by a document stating that fact.

In the case where correction or submission of documents for provision of security has been requested pursuant to paragraph (10), if a written notification of extension of the deadline for submitting documents for provision of security or a written notification of extension of the deadline for submitting documents for provision of changed security has been submitted with regard to the deferment of payment relating to those documents for provision of security, with regard to the application of paragraph (14) and the proviso to paragraph (15), the phrase "if that day is after the day on which three months have passed from the day that has passed referred to in the preceding paragraph, the day on which they have passed" in paragraph (14) is deemed to be replaced with "if that day is after the deadline under the written notification of extension of the deadline for submitting documents for provision of security referred to in paragraph (6) or the written notification of extension of the deadline for submitting documents for provision of changed security referred to in paragraph (18) with regard to the deferment of payment relating to the documents for provision of security for which that correction or submission is requested, that deadline", and the phrase "the day on which six months have passed from the day following the day on which notice was received pursuant to paragraph (11)" in the proviso to paragraph (15) with "the deadline under the written notification of extension of the deadline for submitting documents for provision of security referred to in paragraph (6) or the written notification of extension of the deadline for submitting documents for provision of changed security referred to in paragraph (18) with regard to the deferment of payment relating to the documents for provision of security for which that correction or submission is requested".

If the district director does not grant permission to defer payment or reject the application to defer payment within the period prescribed in the main clause of paragraph (2) (where paragraph (9), (16), (17), (21), (23) or (24) applies, within the period prescribed in the main clause of paragraph (2) as applied with the replacement of terms pursuant to those provisions), permission to defer payment is deemed to have been granted under the conditions relating to that application.

The provisions of the preceding paragraphs apply mutatis mutandis where a person liable for tax referred to in paragraph (3) of the preceding Article applies for permission to defer payment pursuant to that paragraph and where the district director grants or rejects permission relating to deferment of payment under that paragraph. In this case, the phrase "inheritance tax" in paragraph (1) is deemed to be replaced with "gift tax", and the phrase "paragraphs (1) and (2) of the preceding Article" in paragraph (2) with "paragraph (3) of the preceding Article".

A person who has received permission to defer payment may, where the person wishes to request a change to the conditions of deferment due to a subsequent change in financial circumstances or otherwise, submit to the district director who granted that permission a written application stating the conditions for which the change is requested and other matters specified by Ministry of Finance Order.

The provisions of paragraphs (2) and (3) apply mutatis mutandis where a person who has received permission to defer payment pursuant to the preceding paragraph submits the written application referred to in that paragraph. In this case, the phrase "deadline for filing" in paragraph (2) is deemed to be replaced with "day of submitting", and the phrase "three months" with "one month".

If the district director finds that it is not appropriate to permit deferment of payment under the conditions relating to the permission, due to a subsequent change in the financial circumstances of a person who has received permission to defer payment or otherwise, the district director may, after hearing that person's explanation, rescind that permission or shorten the deferment period or otherwise change the conditions of deferment.

If the district director has rescinded permission to defer payment or changed the conditions of deferment pursuant to the preceding paragraph, the district director notifies the person liable for tax of that fact and the reasons by a document stating them.

If the district director finds that there are reasonable grounds where a written application has been submitted pursuant to Article 39, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (29) of that Article), the district director may grant a grace period for the collection of all or part of the inheritance tax or gift tax.

The district director may rescind permission to defer payment if a person who has received that permission is in arrears on the amount subject to deferment (including an amount equivalent to interest tax or delinquent tax relating to that amount subject to deferment) or otherwise violates the conditions of deferment, if that person has not complied with an order under Article 51, paragraph (1) (Change to Security) of the Act on General Rules for National Taxes concerning the security for that amount subject to deferment, if compulsory liquidation procedures prescribed in Article 2, item (xii) (Definitions) of the National Tax Collection Act (Act No. 147 of 1959) have been commenced with respect to the property serving as security for that amount subject to deferment, or if a person who has received that permission dies and the heir makes a qualified acceptance. In this case, except where those compulsory liquidation procedures have been commenced and where a qualified acceptance has been made, the district director must hear that person's explanation in advance.

If the district director has rescinded permission to defer payment pursuant to the preceding paragraph, the district director notifies the person liable for tax of that fact and the reasons by a document stating them.

Where there are grounds on which it is difficult for a person liable for tax to pay in money, even by deferment of payment, the amount of inheritance tax to be paid pursuant to Article 33 of this Act or Article 35, paragraph (2) (Payment of National Tax using the Self-Assessment System) of the Act on General Rules for National Taxes, the district director may, upon application by the person liable for tax, grant permission for payment in kind, up to the amount specified by Cabinet Order as the amount for which payment is difficult. In this case, if the district director finds that, owing to the nature, form or other characteristics of the property to be applied to payment in kind (hereinafter referred to as "property for payment in kind"), there are unavoidable circumstances for accepting property for payment in kind of a value exceeding the amount specified by Cabinet Order, the district director may grant permission for payment in kind exceeding the amount specified by Cabinet Order.

The property that may be applied to payment in kind under the preceding paragraph is the following property, among the property that became the basis for calculating the taxable value of the person liable for tax (including property acquired by means of that property and excluding property subject to the application of the provisions of Article 21-9, paragraph (3)) that is located in the area where this Act is enforced (excluding property specified by Cabinet Order as unsuitable for management or disposal (referred to as "property unsuitable for management or disposal" in Article 45, paragraph (1))):

real property and vessels;

the following securities (including securities for which the attribution of rights is determined by entry or record in a transfer account book pursuant to the provisions of the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001), and registered government bonds):

government bond certificates and local bond certificates;

corporate bond certificates (including bond certificates issued by a corporation under a special Act, and excluding securities relating to short-term corporate bonds, etc.);

share certificates (including investment certificates issued by a corporation under a special Act);

beneficiary certificates of a securities investment trust prescribed in Article 2, paragraph (4) (Definitions) of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951);

beneficiary certificates of a loan trust prescribed in Article 2, paragraph (1) (Definitions) of the Loan Trust Act (Act No. 195 of 1952);

securities listed on a financial instruments exchange (meaning a financial instruments exchange prescribed in Article 2, paragraph (16) (Definitions) of the Financial Instruments and Exchange Act (Act No. 25 of 1948); the same applies in paragraph (5)) that are any of the following:

share option certificates;

beneficiary certificates of an investment trust prescribed in Article 2, paragraph (3) of the Act on Investment Trusts and Investment Corporations (excluding a securities investment trust prescribed in (d));

investment securities prescribed in Article 2, paragraph (15) of the Act on Investment Trusts and Investment Corporations (referred to as "investment securities" in (g));

beneficiary certificates of a specified purpose trust prescribed in Article 2, paragraph (13) (Definitions) of the Act on the Securitization of Assets (Act No. 105 of 1998);

beneficiary certificates of a trust issuing beneficiary certificates prescribed in Article 185, paragraph (3) (Provisions of the Trust Instrument Concerning Issuance of Beneficiary Certificates) of the Trust Act;

investment securities specified by Ministry of Finance Order of an investment corporation prescribed in Article 2, paragraph (12) of the Act on Investment Trusts and Investment Corporations (limited to one whose articles of incorporation provide for the refund of investment units (meaning investment units prescribed in paragraph (14) of that Article) at the request of an investor prescribed in paragraph (16) of that Article);

movables.

The short-term corporate bonds, etc. prescribed in item (ii), (b) of the preceding paragraph are the following:

short-term corporate bonds prescribed in Article 66, item (i) (Attribution of Rights) of the Act on Book-Entry Transfer of Corporate Bonds and Shares;

short-term investment corporation bonds prescribed in Article 139-12, paragraph (1) (Special Provisions on Short-Term Investment Corporation Bonds) of the Act on Investment Trusts and Investment Corporations;

short-term bonds prescribed in Article 54-4, paragraph (1) (Issuance of Short-Term Bonds) of the Shinkin Bank Act (Act No. 238 of 1951);

short-term corporate bonds prescribed in Article 61-10, paragraph (1) (Special Provisions on Short-Term Corporate Bonds) of the Insurance Business Act;

specified short-term corporate bonds prescribed in Article 2, paragraph (8) of the Act on the Securitization of Assets;

short-term agriculture and forestry bonds prescribed in Article 62-2, paragraph (1) (Issuance of Short-Term Agriculture and Forestry Bonds) of the Norinchukin Bank Act (Act No. 93 of 2001).

The case where property of lower priority for payment in kind (meaning property that is property for payment in kind but is specified by Cabinet Order as being of a lower order of priority for payment in kind than other property; the same applies hereinafter in this paragraph and Article 45, paragraph (1)), among the property listed in the items of paragraph (2), may be used for payment in kind is limited, except where the district director finds that there are special circumstances, to the case where there is no property of an appropriate value among the property listed in the respective items of paragraph (2) that does not fall under property of lower priority for payment in kind and that the person liable for tax actually holds at the time of the application for permission for payment in kind.

The case where property listed in paragraph (2), item (ii), (b) through (e) (excluding that listed on a financial instruments exchange and other property specified by Ministry of Finance Order as easy to convert into cash; the same applies hereinafter in this paragraph) or property listed in paragraph (2), item (iii) may be used for payment in kind is limited, except where the district director finds that there are special circumstances, to the case where, among what the person liable for tax actually holds at the time of the application for permission for payment in kind, there is no property of an appropriate value, as to the property listed in item (ii), (b) through (e) of that paragraph, among the property listed in item (i) of that paragraph and, of the property listed in item (ii) of that paragraph, that specified by Ministry of Finance Order as easy to convert into cash, and as to the property listed in item (iii) of that paragraph, among the property listed in items (i) and (ii) of that paragraph.

A person who intends to apply for permission for payment in kind under paragraph (1) of the preceding Article must, by the due date for payment of the inheritance tax for which payment in kind is sought or on the date on which it is to be paid, attach to a written application stating the amount for which payment in money is difficult and the reason for that difficulty, the amount of tax for which payment in kind is sought, the type and value of the property to be used for payment in kind, and other matters specified by Ministry of Finance Order, the documents specified by Ministry of Finance Order as necessary for the procedures for payment in kind (referred to as "documents for payment in kind procedures" in this Chapter), and submit them to the competent district director with jurisdiction over the place for tax payment.

When a written application has been submitted pursuant to the preceding paragraph, the district director conducts an investigation of the applicant and the matters relating to the application as to whether the requirements of the preceding Article are met, and, based on that investigation, within three months from the day following the deadline for filing that written application, either grants permission for payment in kind relating to the application or rejects the application, for all or part of the amount of tax relating to the application, for each item of property for payment in kind.

If the district director has granted permission or rejected the application pursuant to the preceding paragraph, the district director notifies the applicant of this by a document stating the amount of tax and the property for payment in kind relating to the permission, or the fact of the rejection and the reason for it.

A person who intends to apply for permission for payment in kind under paragraph (1) of the preceding Article may, if the person is unable, by the deadline for filing the written application referred to in paragraph (1), to submit all or part of the documents for payment in kind procedures attached to that written application, submit to the competent district director with jurisdiction over the place for tax payment, as provided by Cabinet Order, a written notification (referred to as a "written notification of extension of the deadline for submitting documents for payment in kind procedures" in the following paragraph and paragraph (15)) stating that fact, the date on which the documents for payment in kind procedures will be submitted, and other matters specified by Ministry of Finance Order. In this case, if the date of submission is not stated, the day on which three months have elapsed from the day following that deadline for filing is deemed to be stated.

If the applicant has submitted a written notification of extension of the deadline for submitting documents for payment in kind procedures pursuant to the preceding paragraph, the deadline for submitting the documents for payment in kind procedures (limited to those relating to that written notification of extension of the deadline for submitting documents for payment in kind procedures; the same applies in the following paragraph) is the date stated in that written notification of extension of the deadline for submitting documents for payment in kind procedures for submitting those documents for payment in kind procedures (if that date is after the day on which three months have elapsed from the day following the deadline for filing referred to in the preceding paragraph, the day on which the three months elapse).

With regard to the application of paragraph (4) in the case where a person to whom the preceding two paragraphs (including the case where they apply as replaced pursuant to this paragraph) have applied is unable to submit documents for payment in kind procedures by the date of submission prescribed in the preceding paragraph, the phrase "by the deadline for filing the written application referred to in paragraph (1), to submit all or part of the documents for payment in kind procedures attached to that written application" in paragraph (4) is deemed to be replaced with "by the date of submission prescribed in the following paragraph, to submit the documents for payment in kind procedures referred to in that paragraph"; provided, however, that the deadline for submitting those documents for payment in kind procedures cannot be set after the day on which one year has elapsed from the day following the deadline for filing the written application referred to in paragraph (1).

With regard to the application of paragraph (2) in the case where the preceding three paragraphs apply, the phrase "that written application" in paragraph (2) is deemed to be replaced with "documents for payment in kind procedures (limited to those relating to the written notification of extension of the deadline for submitting documents for payment in kind procedures referred to in paragraph (4))".

If a written application has been submitted pursuant to the provisions of paragraph (1), and there is a defect in the statement in that written application, a defect in the statement in, or a failure to submit, the documents for payment in kind procedures, or any other ground specified by Cabinet Order, the district director may request the applicant to correct that written application or to correct or submit those documents for payment in kind procedures.

If the district director requests correction of a written application or correction or submission of documents for payment in kind procedures pursuant to the preceding paragraph, the district director notifies the applicant of this by a document stating that fact and the reason for it.

An applicant who has been requested pursuant to paragraph (8) to correct the written application or to correct or submit the documents for payment in kind procedures must correct that written application or correct or submit those documents for payment in kind procedures within 20 days from the day following the day on which the applicant received the notice pursuant to the preceding paragraph. In this case, if the applicant has not corrected that written application or corrected or submitted those documents for payment in kind procedures within that period, the applicant is deemed to have withdrawn the application for payment in kind on the day on which that period elapsed.

An applicant who has been requested pursuant to paragraph (8) to correct or submit documents for payment in kind procedures may, if the applicant is unable to correct or submit the documents for payment in kind procedures by the day before the elapsed day referred to in the preceding paragraph, submit to the competent district director with jurisdiction over the place for tax payment, as provided by Cabinet Order, a written notification (referred to as a "written notification of extension of the deadline for completing documents for payment in kind procedures" in the following paragraph) stating that fact, the date on which the documents for payment in kind procedures will be corrected or submitted, and other matters specified by Ministry of Finance Order. In this case, if the date of correction or submission is not stated, the day on which three months have elapsed from that elapsed day is deemed to be stated.

If the applicant has submitted a written notification of extension of the deadline for completing documents for payment in kind procedures pursuant to the preceding paragraph, the deadline for correcting or submitting the documents for payment in kind procedures (limited to those relating to that written notification of extension of the deadline for completing documents for payment in kind procedures; the same applies in the following paragraph) is the date stated in that written notification of extension of the deadline for completing documents for payment in kind procedures for correcting or submitting those documents for payment in kind procedures (if that date is after the day on which three months have elapsed from the elapsed day referred to in the preceding paragraph, the day on which the three months elapse).

With regard to the application of paragraph (11) in the case where a person to whom the preceding two paragraphs (including the case where they apply as replaced pursuant to this paragraph) have applied is unable to correct or submit documents for payment in kind procedures by the date of correction or submission prescribed in the preceding paragraph, the phrase "the day before the elapsed day referred to in the preceding paragraph" in paragraph (11) is deemed to be replaced with "the date of correction or submission prescribed in the following paragraph"; provided, however, that the deadline for correcting or submitting those documents for payment in kind procedures cannot be set after the day on which one year has elapsed from the day following the day on which the notice pursuant to paragraph (9) was received.

With regard to the application of paragraph (2) in the case where paragraph (8) or the preceding three paragraphs apply, the phrase "within three months" in paragraph (2) is deemed to be replaced with "within the period obtained by adding to three months the period from the day following the day on which the applicant received the notice pursuant to the provisions of paragraph (9) until the deadline for correcting the written application (limited to that relating to the provisions of paragraph (8)) or the deadline for correcting or submitting the documents for payment in kind procedures (limited to those relating to the provisions of paragraph (8)) or the documents for payment in kind procedures (limited to those relating to the written notification of extension of the deadline for completing documents for payment in kind procedures referred to in paragraph (11)) (referred to as the "deadline for submitting the application, etc." in this paragraph) (where there are multiple notices pursuant to the provisions of paragraph (9), the period obtained by aggregating the periods from the day following the day on which each notice was received until the deadline for submitting the application, etc. relating to each notice (where some of these periods overlap, the period excluding the period obtained by aggregating those overlapping periods))".

If correction or submission of documents for payment in kind procedures is requested pursuant to the provisions of paragraph (8), and a written notification of extension of the deadline for submitting documents for payment in kind procedures has been submitted for the property for payment in kind relating to those documents for payment in kind procedures, with regard to the application of paragraph (12) and the proviso to paragraph (13), the phrase "if that date is after the day on which three months have elapsed from the elapsed day referred to in the preceding paragraph, the day on which the three months elapse" in paragraph (12) is deemed to be replaced with "if that date is after the deadline under the written notification of extension of the deadline for submitting documents for payment in kind procedures referred to in paragraph (4) for the property for payment in kind relating to the documents for payment in kind procedures for which that correction or submission is requested, that deadline", and the phrase "the day on which one year has elapsed from the day following the day on which the notice pursuant to paragraph (9) was received" in the proviso to paragraph (13) with "the deadline under the written notification of extension of the deadline for submitting documents for payment in kind procedures referred to in paragraph (4) for the property for payment in kind relating to the documents for payment in kind procedures for which that correction or submission is requested".

In the case where, when the district director conducts the investigation referred to in paragraph (2) pursuant to the provisions of that paragraph, the district director finds that the investigation will require a period exceeding three months because the property for payment in kind relating to the written application referred to in that paragraph is numerous or for other reasons, with regard to the application of paragraph (2), the phrase "three months" in paragraph (2) is deemed to be replaced with "six months".

In the case where, when the district director conducts the investigation referred to in paragraph (2) pursuant to the provisions of that paragraph, the district director finds that the investigation will require a period exceeding six months because of heavy snowfall or other circumstances equivalent thereto, with regard to the application of the preceding paragraph, the phrase "six months" in the preceding paragraph is deemed to be replaced with "nine months".

In the case where, when the district director conducts the investigation referred to in paragraph (2) pursuant to the provisions of that paragraph, a disaster or other unavoidable reason prescribed in Article 11 (Extension of Time Limits due to Disasters and Similar Causes) of the Act on General Rules for National Taxes has arisen, or an unavoidable reason specified by Cabinet Order prescribed in paragraph (28), item (ii) has arisen, with regard to the application of paragraph (2), the phrase "within three months" in paragraph (2) is deemed to be replaced with "within the period obtained by adding to three months (six months where the provisions of paragraph (16) apply, and nine months where the provisions of paragraph (17) apply) the period of extension for a disaster or other unavoidable reason prescribed in the proviso to paragraph (6) as applied with replacement of terms pursuant to the provisions of paragraph (28), item (i), or the period specified by Cabinet Order prescribed in paragraph (28), item (ii)".

Where the provisions of the preceding three paragraphs apply, the district director is to notify the applicant of that fact by a document stating that fact.

When the district director intends to grant the permission under paragraph (2), the district director may order the applicant, setting a deadline within a period not exceeding one year, to take measures necessary for accepting the property for payment in kind, such as removal of waste.

Where the district director orders the taking of measures pursuant to the provisions of the preceding paragraph, the district director is to notify the applicant of that fact by a document stating that fact.

Where the district director has ordered the taking of the measures in paragraph (20), if those measures are not taken by the deadline in that paragraph (or, where the written notification of extension of the deadline for measures for acceptance in the following paragraph has been filed, the deadline prescribed in paragraph (24)), the district director may reject the application for payment in kind pursuant to the provisions of paragraph (2).

An applicant who has been ordered to take the measures in paragraph (20) pursuant to the provisions of that paragraph may, if unable to take those measures by the deadline in that paragraph, file with the competent district director with jurisdiction over the place for tax payment, as specified by Cabinet Order, a written notification stating that fact, the date on which those measures will be taken, and other matters specified by Ministry of Finance Order (referred to as the "written notification of extension of the deadline for measures for acceptance" in the following paragraph). In this case, where the date on which those measures will be taken is not stated, the date on which three months have elapsed from the day following that deadline is deemed to be stated.

Where the applicant has filed a written notification of extension of the deadline for measures for acceptance pursuant to the provisions of the preceding paragraph, the deadline in paragraph (20) for the measures in paragraph (20) (limited to those relating to that written notification of extension of the deadline for measures for acceptance; the same applies in the following paragraph) is the date for taking those measures stated in that written notification of extension of the deadline for measures for acceptance (where that date is after the date on which three months have elapsed from the day following the deadline in the preceding paragraph (where that date is after the date on which one year has elapsed from the day following the day on which the notice under the provisions of paragraph (21) was received, the date on which that year elapses), the date on which those three months elapse).

With regard to the application of the provisions of paragraph (23) in the case where a person to whom the provisions of the preceding two paragraphs (including where applied with the replacement of terms pursuant to the provisions of this paragraph) apply is unable to take the measures in paragraph (20) by the date for taking those measures prescribed in the preceding paragraph, the phrase "the deadline in that paragraph" in paragraph (23) is deemed to be replaced with "the date for taking those measures prescribed in the following paragraph"; provided, however, that the deadline in paragraph (20) cannot be later than the date on which one year has elapsed from the day following the day on which the notice under the provisions of paragraph (21) was received.

With regard to the application of the provisions of paragraph (2) in the case where the provisions of paragraph (20) or the preceding three paragraphs apply, the phrase "within three months" in paragraph (2) is deemed to be replaced with "within the period obtained by adding to three months the period from the day following the day on which the notice under the provisions of paragraph (21) was received until the deadline in paragraph (20) (or, where the written notification of extension of the deadline for measures for acceptance in paragraph (23) has been filed, the deadline prescribed in paragraph (24))".

Where the measures in paragraph (20) have been taken, the applicant must, without delay, file with the competent district director with jurisdiction over the place for tax payment a written notification stating that fact and other matters specified by Ministry of Finance Order.

With regard to the application of the provisions of this Article to a person who is unable to carry out by the deadline the procedures relating to an application for permission for payment in kind in the cases set forth in the following items, the matters prescribed in each of those items apply according to the category of cases set forth in that item:

Where the provisions of Article 11 of the Act on General Rules for National Taxes apply: with regard to the application of the provisions of this Article, the phrase "one year" in the proviso to paragraph (6) is deemed to be replaced with "the period obtained by adding to one year the period from the day on which a disaster or other unavoidable reason prescribed in Article 11 (Extension of Time Limits due to Disasters and Similar Causes) of the Act on General Rules for National Taxes arose until the deadline extended pursuant to the provisions of that Article (referred to as the "period of extension for a disaster or other unavoidable reason" in this Article)", and the phrase "one year" in the proviso to paragraph (13), paragraph (15) and the proviso to paragraph (25) is deemed to be replaced with "the period obtained by adding to one year the period of extension for a disaster or other unavoidable reason (excluding, where that notice was received on or after the day on which a disaster or other unavoidable reason prescribed in Article 11 of that Act arose, the period from that day until the day on which that notice was received)";

Where, in addition to the case set forth in the preceding item, an unavoidable circumstance specified by Cabinet Order arises: the deadline for filing the documents for payment in kind procedures prescribed in paragraph (4) and other deadlines relating to procedures specified by Cabinet Order are extended by the period specified by Cabinet Order as the period during which that procedure cannot be carried out by reason of that unavoidable circumstance.

In the case where the provisions of the preceding paragraph apply, when applying the provisions of paragraph (2) as read pursuant to the provisions of paragraph (7), the provisions of paragraph (18) do not apply.

When granting permission for payment in kind pursuant to the provisions of paragraph (2), if the district director finds it necessary in light of the nature of the property for payment in kind and other circumstances, the district director may attach conditions to that permission to the extent necessary. In this case, the district director is to notify the applicant of the conditions by a document stating the conditions attached to that permission.

Where the district director neither grants permission for payment in kind nor rejects the application for payment in kind within the period prescribed in paragraph (2) (or, where the provisions of paragraph (7), (14), (16) (including as applied with the replacement of terms pursuant to the provisions of paragraph (17)), (18) or (26) apply, within the period prescribed in paragraph (2) as applied with the replacement of terms pursuant to those provisions), the permission for that payment in kind is deemed to have been granted.

The provisions of Article 40, paragraph (1) apply mutatis mutandis to the case where a written application has been submitted pursuant to the provisions of paragraph (1).

In addition to what is provided for in the preceding paragraphs, the procedures for payment in kind and other matters necessary for payment in kind are to be specified by Cabinet Order.

The accepted value of property for payment in kind is the value of that property that served as the basis for calculating the taxable value; provided, however, that if a significant change has occurred in the condition of that property by the time of acceptance, the district director may determine the accepted value of that property according to its condition at the time of acceptance.

Inheritance tax corresponding to the amount of tax for which permission for payment in kind has been obtained is deemed to have been paid at the time when the delivery of the property for payment in kind, the registration of the transfer of ownership, or another requirement under laws and regulations for asserting rights against third parties has been satisfied.

Where inheritance tax has been paid after obtaining permission for payment in kind and there is an amount of overpayment or payment by mistake with respect to that inheritance tax, the property applied to that payment in kind may, upon application by the person liable for tax, be applied to the refund of that amount of overpayment or payment by mistake; provided, however, that this does not apply where that property has been converted into money, where it is being put to official or public use or is reliably expected to be so used, or where that amount of overpayment or payment by mistake is less than one-half of the accepted value of that property.

The value of the property in the case where it is applied to the refund of an amount of overpayment or payment by mistake pursuant to the provisions of the preceding paragraph is the accepted value (or, where the State has spent beneficial expenses on that property, the amount obtained by adding the amount corresponding to the amount of those expenses).

A person who wishes to receive a refund of an amount of overpayment or payment by mistake with property applied to payment in kind pursuant to the provisions of paragraph (3) must submit to the district director who granted that permission for payment in kind a written application stating that amount of overpayment or payment by mistake, the type and accepted value of the property for which the refund is sought, and other matters specified by Ministry of Finance Order.

In the case where a person wishes to receive a refund of an amount of overpayment or payment by mistake with property applied to payment in kind pursuant to the provisions of paragraph (3), if that amount of overpayment or payment by mistake is less than the value of that property, the person seeking that refund must pay to the State in advance an amount corresponding to the difference between the value of that property and that amount of overpayment or payment by mistake.

In addition to what is provided for in the preceding paragraphs, the matters necessary for the procedures for accepting property for payment in kind or for refunding amounts of overpayment or payment by mistake are to be specified by Cabinet Order.

Where an application has been made pursuant to the provisions of Article 41, paragraph (1), and the district director has rejected the application for payment in kind pursuant to the provisions of Article 42, paragraph (2) because the district director found that there was no reason that made it difficult to pay in money by deferment of payment, or has rejected the application with respect to a part of the amount of inheritance tax relating to the application pursuant to the provisions of Article 42, paragraph (2) because the district director found that the amount for which payment is difficult prescribed in Article 41, paragraph (1) was less than the amount relating to the application, the district director may, upon an application by the applicant made within 20 days from the day following the date of those rejections, grant permission to defer payment of the amount of inheritance tax subject to those rejections, up to the amount specified by Cabinet Order as the portion of that amount of inheritance tax that is difficult to pay in money in a lump sum.

The provisions of Article 38, paragraphs (1), (2) and (4), Article 39 (excluding paragraph (29)) and Article 40 apply mutatis mutandis to deferment of payment under the provisions of the preceding paragraph. In this case, the necessary technical replacement of terms is to be specified by Cabinet Order.

Where an application has been made pursuant to the provisions of Article 41, paragraph (1), and the district director has rejected that application pursuant to the provisions of Article 42, paragraph (2) because the property for payment in kind relating to the application for permission for payment in kind under Article 41, paragraph (1) falls under property unsuitable for management or disposal or property of lower priority for payment in kind, the district director may, upon an application by the applicant made within 20 days from the day following the date of that rejection (limited to an application relating to property for payment in kind other than that property for payment in kind), permit payment in kind up to the amount specified by Cabinet Order as the amount for which payment is difficult prescribed in Article 41, paragraph (1).

The provisions of Articles 41 through 43 apply mutatis mutandis to payment in kind under the preceding paragraph. In this case, the necessary technical replacement of terms is specified by Cabinet Order.

If, among the real property for which the district director has granted permission for payment in kind pursuant to Article 42, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (2) of the preceding Article), there is real property that is subject to a leasehold or another right to use real property, and the person who received that permission for payment in kind subsequently pays the inheritance tax subject to the payment in kind in a lump sum in money, or pays it after receiving permission to defer payment pursuant to paragraph (3) of the following Article, the district director may, even after the acceptance of that real property, approve the withdrawal of payment in kind of that real property upon an application of that person made within one year from the day following the day on which that permission for payment in kind was received; provided, however, that this does not apply if that real property has been converted into money or is being used for governmental or public purposes or is reliably expected to be so used.

A person who intends to apply for the withdrawal of payment in kind under the preceding paragraph must submit to the competent district director with jurisdiction over the place for tax payment a written application stating the reason for which the person seeks approval of that withdrawal and other particulars specified by Ministry of Finance Order.

If a written application has been submitted pursuant to the preceding paragraph, the district director is to investigate whether the applicant and the matters concerning the application fall under paragraph (1), and, based on that investigation, is to approve the application or reject it within three months from the day following the day on which the written application was submitted.

In the case referred to in the preceding paragraph, if an application for withdrawal of payment in kind is made for part of two or more items of real property for which permission for payment in kind was granted, or if the real property for which permission for payment in kind was granted is one item and an application for withdrawal of payment in kind is made for part of it after dividing it (limited to the case where, among the property for payment in kind other than the property for which those applications were made, there is property specified by Cabinet Order as unsuitable for management or disposal as a result of that withdrawal of payment in kind (referred to as "unsuitable property" in this Article)), the district director may request that the unsuitable property be added to the property subject to the application for withdrawal of payment in kind, and may approve that withdrawal or reject the application under that paragraph after the applicant adds the unsuitable property to that property. In this case, with regard to the application of that paragraph, the phrase "three months from the day following the day on which the written application was submitted" in that paragraph is deemed to be replaced with "two months from the day following the day on which the notice under paragraph (6) was issued".

In the case referred to in paragraph (3), if, among the inheritance tax subject to the withdrawal of payment in kind, there is inheritance tax to be paid in a lump sum in money or beneficial expenses under paragraph (9) to be paid, the district director may approve the withdrawal of payment in kind under paragraph (3) or reject the application for withdrawal of payment in kind after that inheritance tax and those beneficial expenses are paid in full within one month from the day following the day on which the notice under paragraph (10) was issued. In this case, with regard to the application of paragraph (3), the phrase "three months from the day following the day on which the written application was submitted" in that paragraph is deemed to be replaced with "two months from the day following the day on which the notice under paragraph (10) was issued".

When the district director approves the withdrawal of payment in kind under paragraph (3), rejects the application for that withdrawal, or requests under paragraph (4) the addition of unsuitable property to the property subject to that application, the district director is to notify the applicant of it by a document stating the matters prescribed in each of the following items according to the case classification set forth in that item:

in the case of approving the withdrawal of payment in kind: that fact, the matters concerning the real property for which that approval is given, and the amount of inheritance tax subject to that withdrawal;

in the case of rejecting the application for withdrawal of payment in kind: that fact and the reason for the rejection;

in the case of requesting the addition of unsuitable property to the property subject to the application for withdrawal of payment in kind: that fact and the reason for requesting the addition.

If a request has been made for the addition of unsuitable property to the property subject to the application for withdrawal of payment in kind under paragraph (4), and the applicant does not comply with the request within 20 days from the day following the day on which the applicant received the notice under the preceding paragraph (limited to item (iii)) (or, if the district director finds that there are unavoidable circumstances preventing the applicant from complying with the request within that period, by the day designated by the district director), the applicant is deemed to have withdrawn the application.

With regard to the application of paragraph (3) in the case where the district director finds that there are unavoidable circumstances as prescribed in the preceding paragraph, the phrase "three months from the day following the day on which the written application was submitted" in that paragraph is deemed to be replaced with "one month from the day following the day designated by the district director under paragraph (7)".

A person who intends to receive approval of the withdrawal of payment in kind under paragraph (3) must pay money equivalent to the amount of beneficial expenses, if any, that the State has expended for the property subject to that withdrawal; provided, however, that this does not apply if the approval could not be received for that property.

If the district director approves the withdrawal of payment in kind under paragraph (3) and, among the inheritance tax subject to that withdrawal, there is inheritance tax to be paid in a lump sum in money or beneficial expenses under the preceding paragraph to be paid, the district director is to notify the applicant of it in advance by a document stating the amount of that inheritance tax and the amount of those beneficial expenses. In this case, if the applicant does not pay in full the inheritance tax and the beneficial expenses subject to the notice within one month from the day following the day on which the notice was issued, the applicant is deemed to have withdrawn the application for that withdrawal.

If the district director neither approves the withdrawal of payment in kind nor rejects the application within the period prescribed in paragraph (3) (or, if paragraph (4), paragraph (5) or paragraph (8) is applicable, within the period prescribed in paragraph (3) as applied with the terms replaced pursuant to those provisions), the withdrawal is deemed to have been approved.

In addition to what is provided for in the preceding paragraphs, other particulars necessary for procedures concerning the withdrawal of payment in kind are specified by Cabinet Order.

If a person who has received permission for payment in kind under paragraph (1) of the preceding Article intends to receive approval of the withdrawal of payment in kind under that paragraph, the district director may, upon an application of the person who received that permission for payment in kind, grant permission to defer payment of the amount of inheritance tax subject to that withdrawal, up to the amount specified by Cabinet Order as the amount of that inheritance tax that it is difficult to pay in a lump sum in money.