Article 47Deferment of Payment Concerning Withdrawal of Payment in Kind

①If 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.

②A person who intends to apply for permission to defer payment under the preceding paragraph must submit to the competent district director with jurisdiction over the place for tax payment, at the same time as the submission of the written application for withdrawal of payment in kind under paragraph (2) of the preceding Article, a written application stating the amount of inheritance tax subject to that withdrawal and other particulars specified by Ministry of Finance Order, with documents for provision of security attached.

④When granting permission to defer payment under the preceding paragraph, the district director must grant it by deferment in annual installments within the deferment period not yet elapsed, up to the amount that is difficult to pay in a lump sum in money out of the amount subject to deferment not yet due.

⑤The amount subject to deferment not yet due in the preceding paragraph means the total of those annual installment amounts, among the respective annual installment amounts on the assumption that permission to defer payment under Article 38, paragraph (1) had been granted on the due date for payment or the date of payment of the inheritance tax subject to the withdrawal of payment in kind, for which the payment deadline will arrive after the day on which the withdrawal of payment in kind is approved (referred to as "annual deferred payment amount not yet due" in the following paragraph); and the deferment period not yet elapsed in the preceding paragraph means, of the deferment period on the assumption that that permission to defer payment had been granted for that inheritance tax on its due date for payment or date of payment, the period after the day on which the withdrawal of payment in kind is approved; provided, however, that the proportion that the value of real property, etc. accounts for in the value of taxable inherited property pertaining to that inheritance tax is to be calculated on the basis of the value of the property that was the basis for calculating the amount of inheritance tax for which the tax amount to be paid has been finalized by the time the withdrawal of payment in kind is approved.

⑥The annual installment amounts and their due dates for payment in the case of granting permission to defer payment pursuant to paragraph (3) are to be the annual deferred payment amounts not yet due and their due dates for payment pertaining to that deferment. In this case, if the amount subject to deferment or the deferment period for which permission is granted falls short of the amount subject to deferment not yet due or the deferment period not yet elapsed prescribed in the preceding paragraph, the annual installment amounts are to be the amounts calculated in accordance with Article 38, paragraph (2) according to that amount subject to deferment and that deferment period.

⑦In the case referred to in paragraph (3), if the district director has requested, pursuant to paragraph (4) of the preceding Article, the addition of the unsuitable property prescribed in that paragraph to the property subject to the application for withdrawal of payment in kind, the district director may grant permission to defer payment under paragraph (3), or reject the application to defer payment, 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 deadline for filing the written application" in that paragraph is deemed to be replaced with "two months from the day following the day on which the notice under paragraph (6) of the preceding Article was issued (or, if there is a day designated by the district director under paragraph (7) of that Article, one month from the day following that day)".

⑧In 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) of the preceding Article to be paid, the district director may grant permission to defer payment under paragraph (3), or reject the application to defer payment, 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) of that Article was issued. In this case, with regard to the application of paragraph (3), the phrase "three months from the day following the deadline for filing the written application" in that paragraph is deemed to be replaced with "two months from the day following the day on which the notice under paragraph (10) of that Article was issued".

⑨If the district director has granted permission to defer payment pursuant to paragraph (3), the district director is to notify the applicant of that fact and the amount subject to deferment and the conditions of deferment pertaining to that permission, stating them together in the document under paragraph (6) of the preceding Article by which the withdrawal of payment in kind is approved; and if the district director has rejected the application to defer payment pursuant to paragraph (3), the district director is to notify the applicant of it by a document stating that fact and the reason.

⑩If an application to defer payment under paragraph (2) has been made, and the application for withdrawal of payment in kind that is its basis has been rejected or withdrawn, or is deemed to have been withdrawn pursuant to paragraph (7) or (10) of the preceding Article, the application to defer payment is also deemed to have been rejected or withdrawn.

⑪The provisions of Article 38, paragraph (4), Article 39, paragraphs (4) through (28) and paragraphs (30) through (33), and Article 40, paragraphs (2) and (3) apply mutatis mutandis to deferment of payment concerning the withdrawal of payment in kind. In this case, the necessary technical replacement of terms is specified by Cabinet Order.