Local Tax Act

A person listed below (hereinafter in this Article referred to as a "recipient of public pensions, etc.") must, by the day before the day on which the person first receives payment of public pensions, etc. from the payer of public pensions, etc. (meaning the payer of the public pensions, etc. prescribed in Article 203-6, paragraph (1) of the Income Tax Act (hereinafter in this paragraph referred to as "public pensions, etc.") through whom the return prescribed in that paragraph is to be submitted; the same applies hereinafter in this Article) each year, submit, as provided by Order of the Ministry of Internal Affairs and Communications, a return stating the matters set forth in the items of the following paragraph, together with the return prescribed in Article 317-3-3, paragraph (1), via that payer of public pensions, etc., to the mayor of the municipality of the place of domicile of that recipient of public pensions, etc.

a person who must submit the return prescribed in Article 203-6, paragraph (1) of the Income Tax Act pursuant to that paragraph;

a person listed in Article 24, paragraph (1), item (i) who receives payment of public pension, etc. (excluding that to which Article 203-7 of the Income Tax Act applies) in the area where this Act is enforced, and who has a specified spouse (meaning a spouse who shares a livelihood with the person liable for the income levy (limited to a person whose total income is 9,000,000 yen or less) (limited to a person whose total income is 950,000 yen or less); the same applies in the following item and item (iii) of the following paragraph) (limited to a person who has income pertaining to severance pay or other such compensation, etc. (limited to the severance pay or other such compensation, etc. prescribed in Article 50-2; the same applies hereinafter in this item)), or a dependent (limited to a person under 16 years of age, or a claimable dependent who has income pertaining to severance pay or other such compensation, etc.) or a specified relative (limited to a person who has income pertaining to severance pay or other such compensation, etc. and whose total income is 850,000 yen or less);

a person listed in Article 24, paragraph (1), item (i) who receives payment of public pension, etc. (limited to that to which Article 203-7 of the Income Tax Act applies) in the area where this Act is enforced (excluding a person for whom the amount of that public pension, etc. to be paid during that year is less than the amount specified by Cabinet Order as of the day before the day on which the person is first to receive payment of that public pension, etc. in that year), and who is a person with a disability, a widow or a single parent, or who has a specified spouse, a dependent (limited to a person under 16 years of age or a claimable dependent) or a specified relative (limited to a person whose total income is 850,000 yen or less).

The matters to be stated in the return under the preceding paragraph are the following:

the appellation of the payer of public pensions, etc.;

where the recipient of public pensions, etc. falls under a person with a particular disability or any other person with a disability, that fact and the facts under which the recipient falls under that category, and where the recipient falls under a widow or single parent, that fact;

the name of the specified spouse;

the name of a dependent or specified relative;

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

In the case where the return under paragraph (1) is submitted through the payer of public pensions, etc., if the matters to be stated in that return are unchanged from the matters stated in the return under that paragraph submitted through that payer of public pensions, etc. in the previous year of that year, the recipient of public pensions, etc. may, only if that payer of public pensions, etc. has obtained the approval of the Commissioner of the National Tax Agency prescribed in Article 203-6, paragraph (2) of the Income Tax Act, as provided by Order of the Ministry of Internal Affairs and Communications, submit, in place of the matters to be stated under paragraph (1), a return under that paragraph stating that there is no such change, together with the return prescribed in Article 317-3-3, paragraph (3).

In the case referred to in paragraph (1), when the return under that paragraph is accepted by the payer of public pensions, etc. through whom it is to be submitted, that return is deemed to have been submitted, on the day on which it was accepted, to the mayor of the municipality prescribed in that paragraph.

If the payer of public pensions, etc. through whom the return under paragraph (1) 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 return, and otherwise satisfies the requirements specified by Cabinet Order, a recipient of public pensions, etc. may, as provided by Order of the Ministry of Internal Affairs and Communications, in lieu of submitting that return, provide to that payer of public pensions, etc., by electronic or magnetic means, the matters to be stated in that return together with the matters to be stated in the return prescribed in Article 317-3-3, paragraph (5).

With regard to the application of the provisions of paragraph (4) where the provisions of the preceding paragraph apply, the phrase "the return under that paragraph is" in that paragraph is deemed to be replaced with "the matters to be stated in the return under that paragraph are", "accepted by the payer of public pensions, etc." with "provided to the payer of public pensions, etc.", and "the day on which it was accepted" with "the day on which they were provided".

A mayor of a municipality is to report to the prefectural governor, as provided by the Prefectural Ordinance of that prefecture, the number of persons liable for individual prefectural inhabitant tax, the amount of individual prefectural inhabitant tax, and other necessary matters.

A mayor of a municipality must, by June 30 each year, as provided by Prefectural Ordinance, report to the prefectural governor the status of delinquency in individual prefectural inhabitant tax as of May 31 each year.

When the prefectural governor finds it necessary, in addition to what is prescribed in the preceding two paragraphs, the governor may request the mayor of a municipality to report on matters concerning the assessment and collection of individual prefectural inhabitant tax relating to that municipality.

Where the prefectural governor requests the mayor of a municipality to allow the inspection or recording of documents relating to the assessment and collection of individual prefectural inhabitant tax and municipal inhabitant tax, the mayor of the municipality is to allow the prefectural governor or a staff member designated by the governor to inspect or record the relevant documents.

Where the prefectural governor requests the Government to allow the inspection or recording of documents necessary for the assessment and collection of the income levy, the Government is to allow the prefectural governor or a staff member designated by the governor to inspect or record the relevant documents.

In order to compensate for the costs required for municipalities to carry out the affairs relating to the assessment and collection of individual prefectural inhabitant tax, a prefecture must grant to the municipalities, as collection handling fees, the total of the amounts set forth below.

the amount obtained by multiplying the number of persons liable for individual prefectural inhabitant tax for whom an assessment determination was made in each fiscal year (excluding an assessment determination that changes a tax amount already assessed) by the amount specified by Cabinet Order;

the amount equivalent to the overpayments or payments by mistake relating to the local government levies, in the case where a municipality has refunded or appropriated, pursuant to Article 17 or Article 17-2, the local government levies relating to individual prefectural inhabitant tax that the municipality collected pursuant to Article 41, paragraph (1);

the amount equivalent to the interest on refund for the overpayments or payments by mistake set forth in the preceding item that a municipality added pursuant to Article 17-4;

the amount equivalent to the monetary incentive for payment before the payment period of individual prefectural inhabitant tax that a municipality granted pursuant to Article 321, paragraph (2), which Article 41, paragraph (1) provides is to be followed;

the amount equivalent to the amount that could not be deducted from the amount of the income levy under Article 37-4 out of the amount to be deducted pursuant to the provisions of that Article, in the case where a municipality has refunded that amount pursuant to the provisions of Article 314-9, paragraph (2) as applied pursuant to paragraph (3) of that Article.

In addition to what is provided for in the preceding paragraph, matters necessary for the calculation and grant of the collection handling fees referred to in that paragraph are specified by the Prefectural Ordinance of the prefecture concerned.

Where a person set forth in Article 24, paragraph (1), item (i) receives payment of severance pay or other such compensation (limited to that for which the income tax is to be collected and paid pursuant to Article 199 of the Income Tax Act; the same applies hereinafter in this Division), notwithstanding the provisions of Articles 32, 35 and 39, the income levy on that severance pay or other such compensation is to be imposed, by separating the income relating to that severance pay or other such compensation from other income, as prescribed in this Division, by the prefecture in which the person's domicile is located as of January 1 of the year in which the day on which that severance pay or other such compensation is to be received falls.

The tax base of the separately taxed income levy is the amount of retirement income for that year.

The amount of retirement income referred to in the preceding paragraph is calculated in the same manner as the calculation of the amount of retirement income prescribed in Article 30, paragraph (2) of the Income Tax Act.

The tax rate of the separately taxed income levy is four percent.

When a special collection agent for the separately taxed income levy collects the separately taxed income levy pursuant to Article 41, paragraph (1), the agent must submit to the mayor of the municipality, in the form specified by Order of the Ministry of Internal Affairs and Communications, a remittance return stating the amount of the tax base and the tax amount of the separately taxed income levy to be collected and other necessary particulars, together with the remittance return under Article 328-5, paragraph (2) or (3).

The amount of the separately taxed income levy to be collected by a special collection agent pursuant to Article 41, paragraph (1) is the tax amount set forth in each of the following items in accordance with the classification of cases set forth in that item.

in the case where the return under paragraph (1) of the following Article submitted by the person receiving payment of severance pay or other such compensation (hereinafter in this Article and paragraphs (2) and (3) of the following Article referred to as the "retirement income return") contains a statement that there is no other severance pay or other such compensation that was finalized as payable in the year in which the payment of that severance pay or other such compensation became finalized and that has already been paid (referred to as "other severance pay already paid" in the following item): the tax amount calculated by applying the provisions of Articles 50-3 and 50-4 to the amount of the severance pay or other such compensation to be paid;

in the case where the retirement income return submitted by the person receiving payment of severance pay or other such compensation contains a statement that there is other severance pay already paid: the tax amount equivalent to the remainder obtained by deducting, from the tax amount calculated by applying the provisions of Articles 50-3 and 50-4 to the total of the amount of that other severance pay already paid and the amount of the severance pay or other such compensation to be paid, the amount of the separately taxed income levy that was collected or is to be collected pursuant to Article 41, paragraph (1) with respect to that other severance pay already paid.

If the person receiving payment of severance pay or other such compensation has not submitted a retirement income return by the time of receiving that payment, the amount of the separately taxed income levy to be collected by the special collection agent pursuant to Article 41, paragraph (1) is the tax amount calculated by applying the provisions of Articles 50-3 and 50-4 to the amount of the severance pay or other such compensation to be paid.

With regard to the calculation of the retirement income deduction under Article 30, paragraph (2) of the Income Tax Act in the case where Article 50-3 is applied pursuant to the items of paragraph (1) or the preceding paragraph, the situation at the time when it became finalized that the severance pay or other such compensation for which the separately taxed income levy is to be collected under the provisions of the preceding two paragraphs is to be paid is used.

The provisions of Article 202 of the Income Tax Act apply mutatis mutandis to the case where the provisions of the preceding three paragraphs are applied.