Local Tax Act

In calculating the tax base of real property acquisition tax imposed on the acquisition of a dwelling in the case where the dwelling has been constructed (including the purchase of a newly constructed dwelling that has not yet been used for residence by any person; limited to those specified by Cabinet Order), 12,000,000 yen per dwelling unit (for an apartment house, dormitory, or other dwelling used for residence by many persons that is similar thereto (hereinafter in the provisions on real property acquisition tax referred to as an "apartment house, etc."), per one independently partitioned part used for residence, as specified by Cabinet Order) is to be deducted from the price.

Where a person who has constructed a dwelling other than an apartment house, etc. (including the purchase of a newly constructed dwelling that has not yet been used for residence by any person; the same applies hereinafter in this paragraph and paragraph (4)) newly constructs a dwelling that is to form a single structure with that dwelling, or makes an addition to that dwelling, within one year after the construction of that dwelling, the provisions of the preceding paragraph apply by deeming the construction of the earlier and later dwellings to be the construction of one dwelling unit.

In calculating the tax base of real property acquisition tax imposed on the acquisition of an existing house meeting earthquake resistance standards (meaning, among existing houses (meaning dwellings specified by Cabinet Order, other than newly constructed dwellings that have not yet been used for residence by any person; the same applies in Article 73-24, paragraph (3)), those specified by Cabinet Order as conforming to the standards specified by Cabinet Order as standards for safety against earthquakes (referred to as "earthquake resistance standards" in Article 73-27-2, paragraph (1)); the same applies in Article 73-24, paragraphs (2) and (3)) that an individual uses for his or her own residence, the amount that was to be deducted pursuant to the provisions of Article 73-14, paragraph (1) of the Local Tax Act in force at the time when that dwelling was newly constructed is to be deducted from the price, per dwelling unit.

The provisions of paragraph (1) and the preceding paragraph apply only where a declaration to the effect that those provisions are to apply to the acquisition of the dwelling has been made by the acquirer of that dwelling, as provided by the Prefectural Ordinance of the prefecture concerned. In this case, where the dwelling is a dwelling newly constructed, within one year after the construction of a dwelling, as a dwelling that is to form a single structure with that dwelling, or a dwelling added on to that dwelling, they apply only where a declaration to the effect that the provisions of paragraph (1) are to apply has been made with respect to the acquisition of the dwelling relating to the construction of the first dwelling.

Even where there was no declaration under the first sentence of the preceding paragraph or the second sentence of that paragraph, if the acquisition of the dwelling is found to fall under the requirements prescribed in paragraph (1) or (3), a prefecture may, notwithstanding the provisions of the preceding paragraph, apply the provisions of paragraph (1) or (3).

In calculating the tax base of real property acquisition tax imposed on the acquisition of public housing and housing equivalent thereto (hereinafter in this paragraph referred to as "public housing, etc.") in the case where a resident of that public housing, etc., or an organization formed by residents, has received a transfer thereof from a local government, the provisions of paragraph (1) apply by deeming the dwelling relating to that transfer to be a dwelling that has been constructed.

Where a person who has had real property expropriated for use in a business for which land or houses may be expropriated (hereinafter in this paragraph and Article 73-27-3, paragraph (1) referred to as a "public works project") and has received compensation, a person who has transferred real property to a person carrying out a public works project for use in that public works project, or a person who has received relocation compensation for a house that stood on land expropriated or transferred for use in a public works project; or a person who has transferred to a local government, a public land development corporation, or the Urban Renaissance Agency real property specified by Cabinet Order as being recognized as certain to be used for a public works project, or a person who has received relocation compensation for a house that stood on the land relating to that transfer, acquires, within two years from the day on which the real property was expropriated or transferred or the contract relating to the relocation compensation was concluded, real property that the prefectural governor recognizes as replacing the real property that was expropriated or transferred or for which relocation compensation was received (hereinafter in this paragraph referred to as "expropriated real property, etc."), then, in calculating the tax base of real property acquisition tax imposed on the acquisition of that real property, an amount equivalent to the price of the expropriated real property, etc. registered in the fixed assets tax ledger (where the price of the expropriated real property, etc. is not registered in the fixed assets tax ledger, the price determined by the prefectural governor in accordance with the fixed asset valuation standards under Article 388, paragraph (1), as specified by Cabinet Order) is to be deducted from the price.

Where a person prescribed in Article 73, paragraph (1), item (ii) or (vii) of the Urban Renewal Act (Act No. 38 of 1969), or a person prescribed in Article 118-7, paragraph (1), item (ii) of the Urban Renewal Act (including where it applies with terms replaced pursuant to Article 118-25-3, paragraph (3) of the Urban Renewal Act), acquires, accompanying the implementation of an urban redevelopment project under the Urban Renewal Act, real property given in correspondence with the building land, land leasehold right, or building prescribed in Article 73, paragraph (1), item (iii) or (viii) of the Urban Renewal Act, or designated building land or the right to use and take profits therefrom, or with the building land, land leasehold right, or building prescribed in Article 118-7, paragraph (1), item (iii) of the Urban Renewal Act (including where it applies with terms replaced pursuant to Article 118-25-3, paragraph (3) of the Urban Renewal Act) (referred to as "former building land, etc." in item (ii)), then, in calculating the tax base of real property acquisition tax imposed on the acquisition of that real property, the amount obtained by multiplying the price of that real property by the ratio of the amount listed in item (ii) to the amount listed in item (i) is to be deducted from the price of that real property.

The total of the following values (meaning values finalized pursuant to the provisions of Article 103, paragraph (1) or Article 118-23, paragraph (1) of the Urban Renewal Act (including where it applies with terms replaced pursuant to Article 118-25-3, paragraph (3) of the Urban Renewal Act; the same applies in the following item); the same applies hereinafter in this item):

the value of the facility building site prescribed in Article 73, paragraph (1), item (iv) of the Urban Renewal Act or a share of co-ownership therein, or of a part of a facility building, etc.;

the value of building land within an individual use zone prescribed in Article 73, paragraph (1), item (ix) of the Urban Renewal Act, or of the right to use and take profits therefrom;

the value of the part of the building facility prescribed in Article 118-7, paragraph (1), item (iii) of the Urban Renewal Act;

the value of the right to the facility building site or facility building prescribed in Article 118-7, paragraph (1), item (iii) of the Urban Renewal Act as applied with terms replaced pursuant to Article 118-25-3, paragraph (3) of the Urban Renewal Act;

The total of the values of the former building land, etc. (meaning values determined in the rights conversion plan under Article 72 of the Urban Renewal Act or finalized pursuant to the provisions of Article 118-23, paragraph (1) of the Urban Renewal Act).

Where a person who has received settlement money under Article 94 of the Land Readjustment Act, compensation under Article 91, paragraph (1) of the Urban Renewal Act, or compensation under Article 226, paragraph (1) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts, as listed in each of the following items, acquires, within two years from the day specified in the relevant item, real property that the prefectural governor recognizes as replacing the real property for which that settlement money or compensation was received (hereinafter in this paragraph referred to as "former real property"), then, in calculating the tax base of real property acquisition tax imposed on the acquisition of that real property, an amount equivalent to the price of the former real property registered in the fixed assets tax ledger (where the price of the former real property is not registered in the fixed assets tax ledger, the price determined by the prefectural governor in accordance with the fixed asset valuation standards under Article 388, paragraph (1), as specified by Cabinet Order) is to be deducted from the price.

Settlement money under Article 94 of the Land Readjustment Act that is paid because it has been decided, pursuant to the provisions of Article 91, paragraph (4) of the Land Readjustment Act, that replotted land is not to be determined: the day of the public notice under the provisions of Article 103, paragraph (4) of the Land Readjustment Act;

Compensation under Article 91, paragraph (1) of the Urban Renewal Act that is paid because it has been provided, pursuant to the provisions of Article 79, paragraph (3) of the Urban Renewal Act or Article 79, paragraph (3) of the Urban Renewal Act as applied with terms replaced pursuant to Article 111 of the Urban Renewal Act, that a part of a facility building, etc. or a part of a building facility is not to be given, or that is paid on the basis of an application under Article 71, paragraph (1) of the Urban Renewal Act in cases specified by Cabinet Order as those where the application is found to have been made owing to unavoidable circumstances: the rights conversion date under Article 73, paragraph (1), item (xxiv) of the Urban Renewal Act;

Compensation under Article 226, paragraph (1) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts that is paid because it has been provided, pursuant to the provisions of Article 212, paragraph (3) of that Act, that a part of a disaster prevention facility building, etc. prescribed in paragraph (3) of that Article is not to be given, or that is paid on the basis of an application under Article 203, paragraph (1) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts in cases specified by Cabinet Order as those where the application was made owing to unavoidable circumstances: the rights conversion date under Article 205, paragraph (1), item (xxiv) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts.

Where land located within an agricultural promotion region prescribed in Article 6, paragraph (1) of the Act on Establishment of Agricultural Promotion Regions (Act No. 58 of 1969) is acquired through exchange and consolidation under the provisions of Article 13-2, paragraph (1) of that Act, in calculating the tax base of real property acquisition tax imposed on the acquisition of that land (excluding the acquisition of land specified by Cabinet Order), the amount specified in each of the following items for the case listed in that item is to be deducted from the price.

Cases other than those listed in the following item: an amount equivalent to the price, registered in the fixed assets tax ledger, of the land lost through exchange and consolidation (where the price of the land lost through exchange and consolidation is not registered in the fixed assets tax ledger, the price determined by the prefectural governor in accordance with the fixed asset valuation standards prescribed in Article 388, paragraph (1), as specified by Cabinet Order) (referred to as the "amount equivalent to the registered price, etc." in the following item);

Cases where the acquisition of that land is the acquisition of land located within the agricultural land area relating to an agricultural promotion region development plan that a municipality is to establish, or that plan after its change, in the case where the municipality is to establish or change, pursuant to the provisions of Article 8, paragraph (1) or Article 13, paragraph (1) of the Act on Establishment of Agricultural Promotion Regions, an agricultural promotion region development plan (meaning the agricultural promotion region development plan under Article 8, paragraph (1) of that Act; the same applies hereinafter in this item): the greater of the amount equivalent to the registered price, etc. and the amount equivalent to one-third of the price of that land.

Where a person prescribed in Article 205, paragraph (1), item (ii) or (vii) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts acquires, accompanying the implementation of a disaster control district improvement project prescribed in Article 2, item (v) of that Act, real property given in correspondence with the building land, land leasehold right, or building prescribed in Article 205, paragraph (1), item (iii) of that Act, or the designated building land prescribed in item (viii) of that paragraph or the right to use and take profits therefrom (hereinafter in this paragraph referred to as "former building land, etc."), then, in calculating the tax base of real property acquisition tax imposed on the acquisition of that real property, the amount obtained by multiplying the price of that real property by the ratio of the total of the values of the former building land, etc. (being the values determined in the rights conversion plan under Article 204 of that Act) to the total of the values (being the values finalized pursuant to the provisions of Article 247, paragraph (1) of that Act) of the disaster prevention facility building site prescribed in Article 205, paragraph (1), item (iv) of that Act or a share of co-ownership therein, or of a part of a disaster prevention facility building, etc., or of the building land within an individual use zone prescribed in item (ix) of that paragraph or the right to use and take profits therefrom, is to be deducted from the price of that real property.

In calculating the tax base of real property acquisition tax imposed on the acquisition of a house that a person who has obtained approval under Article 34-15, paragraph (2) of the Child Welfare Act for the home-based childcare business prescribed in Article 6-3, paragraph (9) of that Act uses directly for that business (limited to one not used for any purpose other than that business), an amount equivalent to the proportion that is fixed by Prefectural Ordinance within the range of one-third or more and two-thirds or less, with reference to one-half of the price of that house, is to be deducted from the price.

In calculating the tax base of real property acquisition tax imposed on the acquisition of a house that a person who has obtained approval under Article 34-15, paragraph (2) of the Child Welfare Act for the home-visit childcare business prescribed in Article 6-3, paragraph (11) of that Act uses directly for that business (limited to one not used for any purpose other than that business), an amount equivalent to the proportion that is fixed by Prefectural Ordinance within the range of one-third or more and two-thirds or less, with reference to one-half of the price of that house, is to be deducted from the price.

In calculating the tax base of real property acquisition tax imposed on the acquisition of a house that a person who has obtained approval under Article 34-15, paragraph (2) of the Child Welfare Act for the workplace-based childcare business prescribed in Article 6-3, paragraph (12) of that Act uses directly for that business (limited to one with a user capacity of five or less) (limited to one not used for any purpose other than that business), an amount equivalent to the proportion that is fixed by Prefectural Ordinance within the range of one-third or more and two-thirds or less, with reference to one-half of the price of that house, is to be deducted from the price.

In calculating the tax base of real property acquisition tax imposed on the acquisition of real property that a social welfare corporation or another person specified by Cabinet Order uses directly for a certified work training business for persons in need prescribed in Article 16, paragraph (3) of the Act on Self-Reliance Support for Persons in Need (Act No. 105 of 2013) (limited to one carried out as a social welfare service prescribed in Article 2, paragraph (1) of the Social Welfare Act), an amount equivalent to one-half of the price of that real property is to be deducted from the price.