Local Tax Act

For municipal inhabitant tax, the meanings of the terms listed in the following items are as provided respectively in those items.

Per capita levy: means municipal inhabitant tax imposed in equal amounts;

Income levy: means municipal inhabitant tax imposed on the basis of income;

Corporation tax levy: means the municipal inhabitant tax prescribed below respectively according to the following classification of corporations:

A corporation that has its head office or its principal office or place of business in the area in which this Act is enforced (referred to as a "domestic corporation" in this paragraph and Article 321-8): municipal inhabitant tax imposed with the corporation tax amount as the tax base;

A corporation that does not have its head office or its principal office or place of business in the area in which this Act is enforced (referred to as a "foreign corporation" in this Section): municipal inhabitant tax imposed, for each of the following classifications of corporation tax amount, with that corporation tax amount as the tax base:

The corporation tax amount on the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act;

The corporation tax amount on the domestic source income listed in Article 141, item (i), (b) of the Corporation Tax Act.

Corporation tax amount: means the amount prescribed below respectively according to the following classification of corporations:

Domestic corporation: the corporation tax amount calculated in accordance with the provisions of the Corporation Tax Act and other laws and regulations relating to corporation tax (excluding the amount of corporation tax on the international minimum tax amount (meaning the international minimum tax amount prescribed in Article 82-3, paragraph (1) of that Act) of each covered fiscal year (meaning the covered fiscal year prescribed in Article 15-2 of the Corporation Tax Act; the same applies hereinafter in this item), the amount of corporation tax on the international minimum tax residual amount (meaning the international minimum tax residual amount prescribed in Article 82-11, paragraph (1) of that Act) of each covered fiscal year, and the amount of corporation tax on the domestic minimum tax amount (meaning the domestic minimum tax amount prescribed in Article 82-19, paragraph (1) of that Act) of each covered fiscal year), before the application of Article 68 of the Corporation Tax Act (including where applied with the replacement of terms pursuant to Article 3-3, paragraph (5), Article 6, paragraph (3), Article 8-3, paragraph (5), Article 9-2, paragraph (4), Article 9-3-2, paragraph (7), Article 41-9, paragraph (4), Article 41-12, paragraph (4) and Article 41-12-2, paragraph (7) of the Act on Special Measures Concerning Taxation), Article 69 of the Corporation Tax Act (including where applied with the replacement of terms pursuant to Article 66-7, paragraph (1) and Article 66-9-3, paragraph (1) of the Act on Special Measures Concerning Taxation), Article 69-2 of the Corporation Tax Act (including where applied with the replacement of terms pursuant to Article 9-3-2, paragraph (7), Article 9-6, paragraph (4), Article 9-6-2, paragraph (4), Article 9-6-3, paragraph (4) and Article 9-6-4, paragraph (4) of the Act on Special Measures Concerning Taxation) and Article 70 of the Corporation Tax Act, and Article 42-4, Article 42-4-2, Article 42-10 (excluding paragraphs (1), (3), (4) and (7)), Article 42-11 (excluding paragraphs (1), (3) through (5) and (8)), Article 42-11-2 (excluding paragraphs (1), (3), (4) and (7)), Article 42-12 (excluding paragraphs (1), (3) through (5) and (8)), Article 42-12-2, Article 42-12-5, Article 42-12-6 (excluding paragraphs (1), (9) through (11) and (19)), Article 42-12-7 (excluding paragraphs (1), (5), (6), (8), (9) and (12)), Article 66-7 (excluding paragraphs (2), (6) and (10) through (13)) and Article 66-9-3 (excluding paragraphs (2), (5) and (9) through (12)) of the Act on Special Measures Concerning Taxation, and not including the amounts of delinquent tax, interest tax, penalty tax for understatement, penalty tax for failure to file and heavy penalty tax relating to corporation tax;

Foreign corporation: for each of the following classifications of domestic source income, the corporation tax amount calculated in accordance with the provisions of the Corporation Tax Act and other laws and regulations relating to corporation tax (excluding the amount of corporation tax on the international minimum tax residual amount (meaning the international minimum tax residual amount prescribed in Article 145-2, paragraph (1) of the Corporation Tax Act) of each covered fiscal year and the amount of corporation tax on the domestic minimum tax amount (meaning the domestic minimum tax amount prescribed in Article 145-6, paragraph (1) of that Act) of each covered fiscal year), before the application of Article 68 of the Corporation Tax Act (including where applied with the replacement of terms pursuant to Article 9-3-2, paragraph (7), Article 41-9, paragraph (4), Article 41-12, paragraph (4) and Article 41-12-2, paragraph (7) of the Act on Special Measures Concerning Taxation) as applied mutatis mutandis pursuant to Article 144 of the Corporation Tax Act (including where applied with the replacement of terms pursuant to Article 9-3-2, paragraph (7), Article 41-9, paragraph (4), Article 41-12, paragraph (4), Article 41-12-2, paragraph (7) and Article 41-22, paragraph (2) of the Act on Special Measures Concerning Taxation), Article 144-2 and Article 144-2-2 of the Corporation Tax Act (including where applied with the replacement of terms pursuant to Article 9-3-2, paragraph (7), Article 9-6, paragraph (4), Article 9-6-2, paragraph (4), Article 9-6-3, paragraph (4) and Article 9-6-4, paragraph (4) of the Act on Special Measures Concerning Taxation), and Article 42-4, Article 42-4-2, Article 42-10 (excluding paragraphs (1), (3), (4) and (7)), Article 42-11 (excluding paragraphs (1), (3) through (5) and (8)), Article 42-11-2 (excluding paragraphs (1), (3), (4) and (7)), Article 42-12 (excluding paragraphs (1), (3) through (5) and (8)), Article 42-12-2, Article 42-12-5, Article 42-12-6 (excluding paragraphs (1), (9) through (11) and (19)) and Article 42-12-7 (excluding paragraphs (1), (5), (6), (8), (9) and (12)) of the Act on Special Measures Concerning Taxation, and not including the amounts of delinquent tax, interest tax, penalty tax for understatement, penalty tax for failure to file and heavy penalty tax relating to corporation tax:

The domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act;

The domestic source income listed in Article 141, item (i), (b) of the Corporation Tax Act.

Amount of stated capital, etc.: means the amount prescribed below respectively according to the following classification of corporations:

A corporation that files a return and pays under Article 321-8, paragraph (1) (excluding the corporations listed in (b) and (c)): the total of the amount of stated capital, etc. prescribed in Article 2, item (xvi) of the Corporation Tax Act as of the last day of the computation period for the tax base of the corporation tax amount prescribed in that paragraph, and the amount obtained by deducting the total of the amounts listed in (2) and (3) for past business years from the total of the amounts listed in (1) for each business year ending before the first day of that computation period (referred to as "past business years" in (a) and (b)), adding the amount listed in (1) for that computation period, and subtracting from the result the amount listed in (3) for that computation period;

The amount that, on or after April 1, 2010, was made stated capital out of the surplus prescribed in Article 446 of the Companies Act (excluding that recorded as surplus by reducing the amount of stated capital or the amount of capital reserves pursuant to Article 447 or Article 448 of that Act, and limited to that specified by Order of the Ministry of Internal Affairs and Communications) pursuant to Article 450 of that Act, or out of all or part of the amount of the earned reserve pursuant to Article 448, paragraph (1), item (ii) of that Act;

The amounts applied, during the period from April 1, 2001 to April 30, 2006, to cover a capital deficit through a reduction of capital or contributions (excluding where money or other assets were delivered), and to cover, out of the capital reserves prescribed in Article 289, paragraphs (1) and (2) of the Commercial Code prior to its amendment by Article 64 of the Act on Arrangement of Relevant Acts Incidental to Enforcement of the Companies Act (referred to as the "Companies Act Arrangement Act" in (2)) (referred to as the "former Commercial Code" in (2)) (including where these provisions are applied mutatis mutandis pursuant to Article 46 of the Limited Liability Companies Act prior to its repeal by Article 1 of the Companies Act Arrangement Act (referred to as the "former Limited Liability Companies Act" in (2))), the capital deficit prescribed in Article 289, paragraph (1) and paragraph (2), item (ii) of the former Commercial Code (including where these provisions are applied mutatis mutandis pursuant to Article 46 of the former Limited Liability Companies Act);

The amount of the surplus prescribed in Article 446 of the Companies Act (limited to that, among the surplus recorded by reducing the amount of stated capital or the amount of capital reserves pursuant to Article 447 or Article 448 of that Act, which is specified by Order of the Ministry of Internal Affairs and Communications) that, on or after May 1, 2006, was applied to cover a loss specified by Order of the Ministry of Internal Affairs and Communications pursuant to Article 452 of that Act.

Among the corporations that file a return and pay under Article 321-8, paragraph (1), those obligated to submit the return prescribed in Article 71, paragraph (1) of the Corporation Tax Act (excluding where Article 72, paragraph (1) of that Act applies) or Article 144-3, paragraph (1) of that Act (excluding where Article 144-4, paragraph (1) of that Act applies) (excluding the corporations listed in (c)), or a corporation that files a return and pays under Article 321-8, paragraph (2) (excluding the corporations listed in (c)): the total of the amount of stated capital, etc. prescribed in Article 2, item (xvi) of the Corporation Tax Act as of the date specified by Cabinet Order, and the amount obtained by deducting the total of the amounts listed in (a)(2) and (a)(3) for past business years from the total of the amounts listed in (a)(1) for past business years;

A mutual company prescribed in the Insurance Business Act: the amount calculated as the net assets amount, as provided by Cabinet Order.

Salary income: means the salary income prescribed in Article 28, paragraph (1) of the Income Tax Act;

Severance pay or other such compensation, etc.: means the severance pay or other such compensation, etc. prescribed in Article 30, paragraph (1) of the Income Tax Act (including lump-sum payments deemed to be severance pay or other such compensation, etc. under Article 31 of that Act and amounts deemed to be severance pay or other such compensation, etc. under Article 29-5 of the Act on Special Measures Concerning Taxation);

Spouse in the same household: means, among spouses of a person liable for municipal inhabitant tax whose living expenses are paid from the same resources as that person (excluding a spouse who falls under a relative employed only by a blue-return filer prescribed in Article 313, paragraph (3) and receives the salary prescribed in that paragraph, and a spouse who falls under a relative employed only in the business prescribed in Article 313, paragraph (4)), a person whose total income for the year preceding the year that includes the first day of the relevant fiscal year (hereinafter referred to as the "previous year" in this Article, Article 295, Articles 313 through 317-3 and Articles 317-6 through 321-7-9) is 620,000 yen or less.

Claimable spouse: means, among spouses in the same household, a spouse of a person liable for municipal inhabitant tax whose total income for the previous year is 10,000,000 yen or less.

Dependent: means, among relatives of a person liable for municipal inhabitant tax (excluding the spouse of that person liable for tax), children entrusted to a foster parent prescribed in Article 6-4 of the Child Welfare Act pursuant to Article 27, paragraph (1), item (iii) of that Act and elderly persons entrusted, pursuant to Article 11, paragraph (1), item (iii) of the Act on Social Welfare for the Elderly, to a nursing care provider prescribed in that item, whose living expenses are paid from the same resources as that person liable for tax (excluding those who fall under a relative employed only by a blue-return filer prescribed in Article 313, paragraph (3) and receive the salary prescribed in that paragraph, and those who fall under a relative employed only in the business prescribed in Article 313, paragraph (4)), those whose total income for the previous year is 620,000 yen or less.

Person with a Disability:a person that, at all times, lacks the ability to function on a rational basis due to a mental disability; a person who is blind; or any other person with a mental or physical disability for whom Cabinet Order provides;

Widow: a person as follows who does not fall under the category of a single parent:

a person who has not remarried following a divorce from the husband, and who satisfies the following requirements:

the person has a dependent;

the total income for the previous year is 5,000,000 yen or less;

there is no person specified by Order of the Ministry of Internal Affairs and Communications as a person recognized as being in circumstances equivalent to a de facto marital relationship with that person.

a person who has not remarried following the death of the husband, or a person whose husband's whereabouts are unknown and who is provided for by Cabinet Order, who satisfies the requirements set forth in (a)(2) and (3).

Single parent: a person who is not currently married, or a person whose spouse's whereabouts are unknown and who is provided for by Cabinet Order, who satisfies the following requirements:

the person has a child provided for by Cabinet Order whose living expenses are paid from the same resources as the person;

the total income for the previous year is 5,000,000 yen or less;

there is no person specified by Order of the Ministry of Internal Affairs and Communications as a person recognized as being in circumstances equivalent to a de facto marital relationship with that person.

Total income: means the total of the gross income, the amount of retirement income and the amount of timber income under Article 313, paragraph (1), before the deductions under Article 313, paragraphs (8) and (9).

Permanent establishment: means any of the following; provided, however, that where a treaty concluded by Japan for the avoidance of double taxation or the prevention of tax evasion in respect of taxes provides for something different from what is listed below, for a foreign corporation subject to that treaty, it means what is defined as a permanent establishment in that treaty (limited to those located in Japan (meaning the area where this Act is in force; the same applies hereinafter in this item)).

A branch, factory or other fixed place where business is conducted, of a foreign corporation located in Japan, which is specified by Cabinet Order;

A place in Japan where a foreign corporation carries out construction or installation work or provides services of directing and supervising such work, or any other place specified by Cabinet Order as being equivalent thereto;

A person who has the authority to conclude contracts on behalf of a foreign corporation and whom the foreign corporation places in Japan, or any other equivalent person, who is specified by Cabinet Order.

Where a spouse of a person liable for municipal inhabitant tax falls under a spouse in the same household of that person liable for tax and also falls under a dependent of another person liable for municipal inhabitant tax, that spouse is deemed, as provided by Cabinet Order, to fall under only one of these.

Where a spouse of a person liable for municipal inhabitant tax falls under a spouse who shares a livelihood with that person liable for tax, as prescribed in Article 314-2, paragraph (1), item (x)-2, and also falls under a specified relative (meaning a specified relative prescribed in item (xii) of that paragraph; the same applies in the following paragraph) of another person liable for municipal inhabitant tax, that spouse is deemed, as provided by Cabinet Order, to fall under only one of these.

Where there is a person who falls under a dependent or specified relative of two or more persons liable for municipal inhabitant tax, that person is deemed, as provided by Cabinet Order, to fall under a dependent or specified relative of only one of those persons liable for tax.

Where the Income Tax Act or other laws and regulations concerning income tax are cited in relation to municipal inhabitant tax (excluding the case of citation in paragraph (1), item (vi), Article 317-6, Article 321-4 and Subsection 5), those laws and regulations are to mean those as applied to income for the previous year.