Local Tax Act

For the time being, a prefecture is to deem a public interest corporation, etc. prescribed in Article 40, paragraph (3) of the Act on Special Measures Concerning Taxation that has been subject to the application of the latter part of that paragraph (including where it applies as deemed pursuant to the provisions of paragraphs (6) through (10)(12) and paragraph (11)(13) of that Article (including as applied mutatis mutandis pursuant to paragraph (12)(14) of that Article; the same applies hereinafter in this paragraph); the same applies in the following paragraph) (including a corporationperson deemed to be a public interest corporation, etc. relating to a specified gift, etc. under the provisions of paragraphs (6) through (11)(13) of that Article; the same applies in the following paragraph and paragraph (3)) to be an individual who made the gift or bequest prescribed in paragraph (3) of that Article, and to impose on it, as provided by Cabinet Order, the income levy of prefectural inhabitant tax relating to the amount of timber income, amount of capital gains or amount of miscellaneous income on the property prescribed in that paragraph (including assets deemed to be property relating to a specified gift, etc. under the provisions of paragraphs (6) through (11)(13) of that Article; the same applies in the following paragraph).

With regard to the application of the provisions of the Corporation Tax Act to a public interest corporation, etc. prescribed in the preceding two paragraphs that has been subject to the application of those provisions, the phrase "tax pertaining to corporation tax on a retirement pension fund" in Article 38, paragraph (2), item (ii) of that Act is deemed to be replaced with "tax pertaining to corporation tax on a retirement pension fund and tax under Article 3-2-4, paragraph (1) or (2) of the Supplementary Provisions of the Local Tax Act (limited to the prefectural inhabitant tax or municipal inhabitant tax in the case where the value of the property prescribed in those provisions that relates to that prefectural inhabitant tax or municipal inhabitant tax has been included in gross profits in calculating the amount of income for each business year of that public interest corporation, etc. prescribed in those provisions)"Where the provisions of the preceding two paragraphs apply, the following provisions apply.

With regard to the application of the provisions of the Corporation Tax Act to a public interest corporation, etc. to which the provisions of the preceding two paragraphs have applied (limited to a person listed in Article 40, paragraph (1), item (i) of the Act on Special Measures Concerning Taxation), the phrase "pertaining to corporation tax on a retirement pension fund" in Article 38, paragraph (2), item (ii) of that Act is deemed to be replaced with "pertaining to corporation tax on a retirement pension fund, or under Article 3-2-3, paragraph (1) or (2) of the Supplementary Provisions of that Act (limited to that prefectural inhabitant tax or municipal inhabitant tax where the value of the property prescribed in those provisions has been included in the amount of gross profits in calculating the amount of income of each business year of that public interest corporation, etc. prescribed in those provisions)";

With regard to the application of Article 9-4 to a public interest corporation, etc. to which the provisions of the preceding two paragraphs have applied (limited to a person listed in Article 40, paragraph (1), item (ii) of the Act on Special Measures Concerning Taxation), the term "grounds" in paragraphs (1) and (2) of that Article is deemed to be replaced with "grounds or the specified termination grounds prescribed in Article 56, paragraph (1) of the Trust Act as applied with terms replaced pursuant to Article 33, paragraph (3) of the Act on Public Interest Trusts (Act No. 30 of 2024)";

Where a public interest corporation, etc. to which the provisions of the preceding two paragraphs apply is a trustee of a public interest trust prescribed in Article 40, paragraph (1), item (ii) of the Act on Special Measures Concerning Taxation and there are two or more trustees of that public interest trust, the provisions of those paragraphs apply by deeming the trustee who presides over the trust affairs of that public interest trust (hereinafter in this item referred to as the "presiding trustee") to be the individual prescribed in the preceding two paragraphs. In this case, with respect to the income levy of prefectural inhabitant tax or municipal inhabitant tax pertaining to the property under those provisions that is imposed on the presiding trustee, the trustees other than the presiding trustee are jointly liable for payment of the income levy of that prefectural inhabitant tax or municipal inhabitant tax.