Local Tax Act

A person receiving payment of severance pay or other such compensation must, by the time of receiving that payment, submit a return stating the following matters, together with the return under Article 328-7, paragraph (1), via the payer of that severance pay or other such compensation, to the mayor of the municipality of the place of domicile as of January 1 of the year in which the day on which the severance pay or other such compensation is to be received falls. In this case, when submitting a return stating that there is other severance pay already paid as prescribed in item (ii), the person must attach to that return the special collection record issued pursuant to Article 50-9 with respect to that other severance pay already paid.

the name or appellation of the payer of that severance pay or other such compensation;

whether there is other severance pay already paid as prescribed in paragraph (1), item (i) of the preceding Article, and, if there is such other severance pay already paid, whether that other severance pay already paid falls under general severance pay or other such compensation prescribed in Article 30, paragraph (7) of the Income Tax Act, short-term severance pay or other such compensation prescribed in paragraph (4) of that Article, or specified officer severance pay or other such compensation prescribed in paragraph (5) of that Article, and its amount;

the years of service forming the basis for calculating the retirement income deduction prescribed in paragraph (3) of the preceding Article;

whether that person falls under the case listed in Article 30, paragraph (6), item (iii) of the Income Tax Act and, if so, the relevant fact;

other matters specified by Order of the Ministry of Internal Affairs and Communications.

In the case referred to in the preceding paragraph, when the retirement income return is accepted by the payer of severance pay or other such compensation through whom it is to be submitted, that return is deemed to have been submitted, at the time it was accepted, to the mayor of the municipality prescribed in that paragraph.

If the payer of severance pay or other such compensation through whom the retirement income return is to be submitted has taken measures enabling it to properly receive, by electronic or magnetic means, the provision of the matters to be stated in that retirement income return, and otherwise satisfies the requirements specified by Cabinet Order, a person who receives payment of the severance pay or other such compensation referred to in paragraph (1) may, as provided by Order of the Ministry of Internal Affairs and Communications, in lieu of submitting that retirement income return, provide the matters to be stated in that retirement income return to that payer of severance pay or other such compensation by electronic or magnetic means.

With regard to the application of the provisions of paragraph (2) where the provisions of the preceding paragraph apply, the phrase "the retirement income return is" in that paragraph is deemed to be replaced with "the matters to be stated in the retirement income return are", "accepted by the payer" with "provided to the payer", and "the time it was accepted" with "the time they were provided".

In the case where a person who received payment of severance pay or other such compensation in that year has been, or is to be, charged the amount of the separately taxed income levy prescribed in Article 50-6, paragraph (2), if the amount of tax calculated by applying the provisions of Articles 50-3 and 50-4 to the amount of that person's severance pay or other such compensation in that year exceeds the amount of the separately taxed income levy that has been collected, or is to be collected, for that severance pay or other such compensation pursuant to the provisions of Article 328-5, paragraph (2), the rules of which are to be followed pursuant to the provisions of Article 41, paragraph (1), the amount of tax that the mayor of the municipality is to collect by the method of ordinary collection pursuant to the provisions of Article 41, paragraph (1) is the amount of tax equivalent to that excess amount.

A special collection agent for the separately taxed income levy must, as provided by Order of the Ministry of Internal Affairs and Communications, prepare two copies of a special collection record for each person who receives payment of severance pay or other such compensation, with respect to severance pay or other such compensation for which payment has been finalized in that year, and within one month after the day of retirement, submit one copy to the mayor of the municipality, together with the special collection record under Article 328-14, and deliver the other copy to the person who receives payment of the severance pay or other such compensation; provided, however, that this does not apply in cases specified by Order of the Ministry of Internal Affairs and Communications.

Beyond what is provided for in Article 50-2 through the preceding Article, matters necessary for the calculation of the amount of retirement income and the collection of the separately taxed income levy are specified by Cabinet Order.

The standard tax rate of the corporation tax levy is 1/100; provided, however, that even where the levy is imposed at a tax rate exceeding the standard tax rate, the rate must not exceed 2/100.

The tax rate of the corporation tax levy is the tax rate as of the last day of the computation period of the tax base of the corporation tax amount prescribed in Article 53, paragraph (1).

The tax rate of the per capita levy on corporations is the tax rate as of the day specified in each of the following items, according to the classification of corporations listed in those items.

a corporation that makes filing and payment pursuant to the provisions of paragraph (1) of the following Article: the last day of the computation period of the tax base of the corporation tax amount prescribed in that paragraph for that corporation;

a corporation that makes filing and payment pursuant to the provisions of paragraph (2) of the following Article: the last day of the period referred to in that paragraph for that corporation;

a public corporation, etc. (meaning a public corporation prescribed in Article 2, item (v) of the Corporation Tax Act or a public interest corporation, etc. prescribed in Article 24, paragraph (5) that is subject only to the per capita levy; the same applies in paragraph (31) of the following Article and paragraph (66), item (i) of that Article): the last day of the period from April 1 to March 31 of the previous year (or, if that public corporation, etc. is dissolved (excluding dissolution by merger) or ceases to exist by merger during that period, the period from April 1 of the previous year to the day on which it ceased to exist).

The amount of the per capita levy prescribed in paragraph (1) is to be calculated by dividing by 12 the amount obtained by multiplying that amount of the per capita levy by the number of months during which the corporation had an office, place of business, or dormitory, etc. during the computation period of the tax base of the corporation tax amount referred to in item (i) of the preceding paragraph, the period referred to in item (ii) of that paragraph, or the period referred to in item (iii) of that paragraph. In this case, the number of months is calculated according to the calendar, with a period of less than one month counted as one month, and any fraction of less than one month rounded down.

Where the amount of stated capital, etc. of a corporation listed in paragraph (2), item (i) (excluding a mutual company prescribed in the Insurance Business Act) is less than the total of the amount of stated capital and the amount of capital reserves, or the amount of capital contributions, as of the day specified in that item (or, for a corporation under the obligation to submit the return prescribed in Article 71, paragraph (1) of the Corporation Tax Act (excluding cases where Article 72, paragraph (1) of that Act applies) or Article 144-3, paragraph (1) of that Act (excluding cases where Article 144-4, paragraph (1) of that Act applies), the day specified by Cabinet Order), in applying the provisions of paragraph (1), the phrase "whose amount of stated capital, etc." in item (i), (e) of the table of that paragraph is deemed to be replaced with "whose total of the amount of stated capital and the amount of capital reserves, or the amount of capital contributions, as of the day specified in item (i) of the following paragraph (or, for a corporation under the obligation to submit the return prescribed in Article 71, paragraph (1) of that Act (excluding cases where Article 72, paragraph (1) of that Act applies) or Article 144-3, paragraph (1) of that Act (excluding cases where Article 144-4, paragraph (1) of that Act applies), the day specified by Cabinet Order prescribed in paragraph (4); the same applies hereinafter in this table)", and the phrase "whose amount of stated capital, etc." in the provisions of items (ii) through (v) of that table is deemed to be replaced with "whose total of the amount of stated capital and the amount of capital reserves, or the amount of capital contributions, as of the day specified in item (i) of the following paragraph".

Where the amount of stated capital, etc. of a corporation listed in paragraph (2), item (ii) (excluding a mutual company prescribed in the Insurance Business Act) is less than the total of the amount of stated capital and the amount of capital reserves, or the amount of capital contributions, as of the day specified by Cabinet Order, in applying the provisions of paragraph (1), the phrase "whose amount of stated capital, etc." in the table of that paragraph is deemed to be replaced with "whose total of the amount of stated capital and the amount of capital reserves, or the amount of capital contributions, as of the day specified by Cabinet Order prescribed in paragraph (5)".

The scope of the profit-making business referred to in paragraph (1) is specified by Cabinet Order.