Local Tax Act

A corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (including the case where Article 72, paragraph (1) of that Act applies; the same applies hereinafter in this Section), Article 74, paragraph (1) of that Act, Article 88 of that Act (including as applied mutatis mutandis pursuant to Article 145-13 of that Act; the same applies hereinafter in this paragraph), Article 89 of that Act (including as applied mutatis mutandis pursuant to Article 145-13 of that Act), Article 144-3, paragraph (1) of that Act (including the case where Article 144-4, paragraph (1) of that Act applies; the same applies hereinafter in this Section) or Article 144-6, paragraph (1) of that Act must, by the deadline for filing that return, file a return stating the corporation tax amount pertaining to that return, the corporation tax levy amount calculated with that amount as the tax base (for a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of that Act (excluding the case where Article 72, paragraph (1) of that Act applies), Article 88 of that Act or Article 144-3, paragraph (1) of that Act (excluding the case where Article 144-4, paragraph (1) of that Act applies) (hereinafter in this Article and Article 321-13, paragraph (1) referred to as a "corporation filing an interim return without provisional accounts"), the corporation tax levy amount calculated, in accordance with the provisions of Cabinet Order, on the basis of the corporation tax levy amount for the previous business year (referred to in Article 321-11, paragraph (1) as the "corporation tax levy amount on an interim return")), and, for a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1), Article 74, paragraph (1), Article 144-3, paragraph (1) or Article 144-6, paragraph (1) of that Act, the per capita levy amount and other necessary matters (hereinafter in this paragraph referred to as a "corporate municipal inhabitant tax return"), in the form specified by Order of the Ministry of Internal Affairs and Communications, with the mayor of the municipality where its offices, places of business or dormitories, etc. are located during the computation period of the tax base of that corporation tax amount (for the corporation tax amount pertaining to a return under Article 71, paragraph (1), Article 88 or Article 144-3, paragraph (1) of that Act, the period from the start date of that business year to the day before the day on which six months have elapsed (meaning the day on which six months have elapsed from the start date of that business year (where that corporation is a group tax sharing subsidiary corporation prescribed in Article 2, item (xii)-7 of that Act, of the business year of the group tax sharing parent corporation pertaining to that corporation that contains the start date of that business year (meaning the group tax sharing parent corporation prescribed in Article 2, item (xii)-6-7 of that Act; the same applies in the following paragraph and paragraph (39)))); the same applies hereinafter to corporate municipal inhabitant tax), and pay the municipal inhabitant tax amount so declared (where there is any amount of that municipal inhabitant tax amount for which the obligation to pay has already become finalized, the amount remaining after deducting it). In this case, if a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) or Article 144-3, paragraph (1) of that Act has not filed a corporate municipal inhabitant tax return by the deadline for filing it, then, except where paragraph (60) applies, a return stating the corporation tax levy amount and the per capita levy amount calculated in accordance with the provisions of Cabinet Order is deemed to have been filed with that mayor of the municipality on the deadline for filing that return, and that corporation must pay to the municipality where its offices, places of business or dormitories, etc. are located the municipal inhabitant tax in an amount of tax equivalent to the municipal inhabitant tax pertaining to the return deemed to have been filed within that time limit for filing and payment.

A corporation that, pursuant to the proviso to Article 71, paragraph (1) of the Corporation Tax Act, is not required to file a corporation tax return under that paragraph (excluding a corporation falling under the case where the amount set out in item (i) of that paragraph (where Article 71, paragraph (2) or (3) of that Act applies, the amount after that application) is 100,000 yen or less or where there is no such amount) must, if the business year of the group tax sharing parent corporation pertaining to that corporation that contains the start date of its business year (excluding, among newly established corporations, the business year containing the date of establishment of those other than those established through a qualified merger (meaning a qualified merger prescribed in Article 2, item (xii)-8 of that Act; the same applies hereinafter in this Article), and, where the day on which approval under Article 64-9, paragraph (1) of that Act took effect is on or after the day on which six months have elapsed from the start of the business year of the group tax sharing parent corporation pertaining to that corporation that contains that day (hereinafter in this paragraph referred to as the "business year of the group tax sharing parent corporation"), the business year containing the day on which it took effect; the same applies hereinafter in this paragraph) exceeds six months and, on the day on which six months have elapsed from the start of that business year of the group tax sharing parent corporation (hereinafter in this paragraph and paragraph (60) referred to as the "day on which six months have elapsed"), there is a group tax sharing full controlling interest prescribed in Article 2, item (xii)-7-7 of that Act between that corporation and the group tax sharing parent corporation, within two months from the day on which six months have elapsed, in the form specified by Order of the Ministry of Internal Affairs and Communications, file a return stating the corporation tax levy amount calculated, in accordance with the provisions of Cabinet Order, on the basis of the corporation tax levy amount for the previous business year (referred to in Article 321-11, paragraph (1) as the "corporation tax levy amount on an interim return of a corporation with no interim corporation tax filing duty"), the per capita levy amount and other necessary matters (hereinafter in this paragraph referred to as a "corporate municipal inhabitant tax return") with the mayor of the municipality where its offices, places of business or dormitories, etc. are located during the period from the start of that business year to the day before the day on which six months have elapsed, and pay the municipal inhabitant tax amount so declared. In this case, if that corporation has not filed a corporate municipal inhabitant tax return by the deadline for filing it, then, except where paragraph (60) applies, a return stating the corporation tax levy amount and the per capita levy amount calculated in accordance with the provisions of Cabinet Order is deemed to have been filed with that mayor of the municipality on the deadline for filing that return, and that corporation must pay to the municipality where its offices, places of business or dormitories, etc. are located the municipal inhabitant tax in an amount of tax equivalent to the municipal inhabitant tax pertaining to the return deemed to have been filed within that time limit for filing and payment.

With regard to a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act, where there is a deficit before application of group tax sharing arising in a business year that began within 10 years before the start of the business year concerned (meaning an amount of loss under Article 57, paragraph (1) of that Act (excluding one deemed not to exist pursuant to Article 58, paragraph (1) of that Act) that is deemed not to exist pursuant to Article 57, paragraph (6) or (8) of that Act; the same applies in paragraphs (4) through (6)), the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by that corporation is to be made, notwithstanding paragraph (1), (34) or (35), by deducting the deductible pre-group-taxation loss adjustment amount from the corporation tax amount serving as the tax base of the corporation tax levy for the computation period of the tax base of that corporation tax amount to be filed and paid pursuant to those provisions, up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 42-14, paragraph (1) or (4), Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the deductible pre-group-taxation loss adjustment amount is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years.

The deductible pre-group-taxation loss adjustment amount prescribed in the preceding paragraph means the amount obtained by multiplying the deficit before application of group tax sharing by the rate specified in each of the following items in accordance with the category of the corporation set out in that item as of the end of the first group tax sharing business year of the corporation referred to in that paragraph (meaning the first business year that ends on or after the day on which approval under Article 64-9, paragraph (1) of the Corporation Tax Act took effect; the same applies hereinafter in this paragraph through paragraph (6)) (where there are two or more end dates of first group tax sharing business years, as of the end of the first group tax sharing business year after the business year in which that deficit before application of group tax sharing arose).

ordinary corporation (meaning an ordinary corporation prescribed in Article 2, item (ix) of the Corporation Tax Act; the same applies in paragraph (14), item (i) and paragraph (55), item (iv)): the rate equivalent to the tax rate prescribed in Article 66, paragraph (1) of that Act;

cooperative, etc. (meaning a cooperative, etc. prescribed in Article 2, item (vii) of the Corporation Tax Act; the same applies in paragraph (14), item (ii) and paragraph (55), item (iv)): the rate equivalent to the tax rate prescribed in Article 66, paragraph (3) of that Act.

If a qualified merger has been carried out in which the corporation referred to in paragraph (3) is the merging corporation (meaning a corporation that has received the transfer of assets and liabilities from a merged corporation (meaning a corporation that has transferred the assets and liabilities it holds through a merger; the same applies hereinafter in this Article) through a merger; the same applies hereinafter in this Article), or if the residual assets of another corporation that has a full controlling interest prescribed in Article 2, item (xii)-7-6 of the Corporation Tax Act (hereinafter in this Article referred to as a "full controlling interest") with that corporation (limited to a full controlling interest held by that corporation or a mutual relationship prescribed in that item (hereinafter in this Article referred to as a "mutual relationship")) and of which that corporation holds all or part of the issued shares or capital contributions have been determined, and there is a deductible pre-group-taxation loss adjustment amount prescribed in the preceding paragraph pertaining to a deficit before application of group tax sharing that arose in a business year of the merged corporation pertaining to that qualified merger or of that other corporation (hereinafter in this paragraph and the following paragraph referred to as the "merged corporation, etc.") that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets (hereinafter in this paragraph referred to as a "business year within preceding ten years") (limited to that deductible pre-group-taxation loss adjustment amount in the case where the merged corporation, etc. has filed a final municipal inhabitant tax return for corporations (meaning the return to be filed pursuant to paragraph (1) (limited to one pertaining to a corporation tax return to be filed pursuant to Article 74, paragraph (1) of that Act); the same applies hereinafter in this Article) to which is attached a document certifying that Article 57, paragraph (6) or (8) of that Act applies for the first group tax sharing business year after the business year in which arose the deficit before application of group tax sharing pertaining to that deductible pre-group-taxation loss adjustment amount (including an amount deemed pursuant to this paragraph to be the deductible pre-group-taxation loss adjustment amount prescribed in the preceding paragraph of the merged corporation, etc.), and satisfies other requirements specified by Cabinet Order, and excluding the amount deducted pursuant to paragraph (3) from the corporation tax amount to serve as the tax base of the corporation tax levy for the business year within preceding ten years of the merged corporation, etc.; hereinafter in this paragraph referred to as the "undeducted pre-group-taxation loss adjustment amount"), then, for the purpose of the application of paragraph (3) in business years on or after the business year containing the date of that qualified merger or the business year containing the day following the day of determination of those residual assets of that corporation (hereinafter in this paragraph and the following paragraph referred to as the "business year of the merger, etc."), the undeducted pre-group-taxation loss adjustment amount pertaining to that business year within preceding ten years (where that other corporation has two or more shareholders, etc. prescribed in Article 2, item (xiv) of that Act (hereinafter in this Article referred to as "shareholders, etc."), the amount calculated by dividing that undeducted pre-group-taxation loss adjustment amount by the total number or total amount of issued shares or capital contributions of that other corporation (excluding its own shares or capital contributions held by that other corporation) and multiplying the result by the number or amount of shares or capital contributions of that other corporation held by that corporation) is deemed to be the deductible pre-group-taxation loss adjustment amount prescribed in the preceding paragraph for the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted pre-group-taxation loss adjustment amount (for the undeducted pre-group-taxation loss adjustment amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.).

Paragraph (3) applies only where the corporation referred to in that paragraph has filed a final municipal inhabitant tax return for corporations to which is attached a document certifying that Article 57, paragraph (6) or (8) of the Corporation Tax Act applies for the first group tax sharing business year after the business year in which arose the deficit before application of group tax sharing (excluding the deficit before application of group tax sharing pertaining to the deductible pre-group-taxation loss adjustment amount of the merged corporation, etc. deemed pursuant to the preceding paragraph to be the deductible pre-group-taxation loss adjustment amount of that corporation prescribed in paragraph (4) (hereinafter in this paragraph referred to as the "deductible pre-group-taxation loss adjustment amount")), and has thereafter filed final municipal inhabitant tax returns for corporations consecutively (where paragraph (3) is applied to an amount deemed pursuant to the preceding paragraph to be the deductible pre-group-taxation loss adjustment amount of that corporation, where it has filed final municipal inhabitant tax returns for corporations consecutively on and after the business year of the merger, etc.).

If a qualified merger has been carried out in which a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act is the merging corporation, or if the residual assets of another corporation that has a full controlling interest with that corporation (limited to a full controlling interest held by that corporation or a mutual relationship) and of which that corporation holds all or part of the issued shares or capital contributions have been determined, and there is a pre-merger loss amount (meaning an amount of loss under Article 57, paragraph (1) of that Act (excluding one deemed not to exist pursuant to paragraph (6) of that Article or Article 58, paragraph (1) of that Act) to which Article 57, paragraph (2) of that Act has not been applied pursuant to Article 57, paragraph (7) of that Act (limited to the part pertaining to item (i); the same applies hereinafter in this paragraph); the same applies hereinafter in this paragraph through paragraph (9)) that arose in a business year of the merged corporation pertaining to that qualified merger or of that other corporation (hereinafter in this paragraph referred to as the "merged corporation, etc.") that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets (hereinafter in this paragraph referred to as a "business year within preceding ten years") (limited to that pre-merger loss amount in the case where that corporation has, for the business year containing the date of that qualified merger or the business year containing the day following the day of determination of those residual assets of that corporation (hereinafter in this paragraph and paragraphs (9) and (10) referred to as the "business year of the merger, etc."), filed a final municipal inhabitant tax return for corporations to which is attached a document certifying that Article 57, paragraph (2) of that Act does not apply pursuant to Article 57, paragraph (7) of that Act in respect of that pre-merger loss amount (including an amount deemed pursuant to this paragraph to be a pre-merger loss amount of the merged corporation, etc.), and satisfies other requirements specified by Cabinet Order, and excluding the pre-merger loss amount pertaining to the deductible pre-merger, etc. loss adjustment amount deducted pursuant to the following paragraph from the corporation tax amount to serve as the tax base of the corporation tax levy for the business year within preceding ten years of the merged corporation, etc.; hereinafter in this paragraph referred to as the "undeducted pre-merger loss amount"), then the undeducted pre-merger loss amount pertaining to that business year within preceding ten years (where that other corporation has two or more shareholders, etc., the amount calculated by dividing that undeducted pre-merger loss amount by the total number or total amount of issued shares or capital contributions of that other corporation (excluding its own shares or capital contributions held by that other corporation) and multiplying the result by the number or amount of shares or capital contributions of that other corporation held by that corporation) is deemed to be a pre-merger loss amount that arose in the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted pre-merger loss amount (for the undeducted pre-merger loss amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.).

With regard to the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by the corporation referred to in the preceding paragraph, notwithstanding paragraph (1), (34) or (35), the deductible pre-merger, etc. loss adjustment amount pertaining to the pre-merger loss amount deemed pursuant to the preceding paragraph to have arisen in a business year that began within 10 years before the start of the business year concerned is to be deducted from the corporation tax amount serving as the tax base of the corporation tax levy for the computation period of the tax base of that corporation tax amount to be filed and paid pursuant to those provisions, up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 42-14, paragraph (1) or (4), Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the deductible pre-merger, etc. loss adjustment amount is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years.

The deductible pre-merger, etc. loss adjustment amount prescribed in the preceding two paragraphs means the amount obtained by multiplying the pre-merger loss amount by the rate specified in each of the items of paragraph (4) in accordance with the category of the corporation set out in that item as of the end of the business year of the merger, etc. of the corporation referred to in paragraph (7).

Paragraph (8) applies only where the corporation referred to in paragraph (7) has filed final municipal inhabitant tax returns for corporations consecutively on and after the first business year after the business year of the merger, etc.

With regard to a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act, where there is an amount of deficit subject to group tax sharing arising in the business year concerned (meaning an amount of deficit subject to group tax sharing prescribed in Article 64-5, paragraph (1) of that Act that has been included in deductible expenses pursuant to that paragraph; the same applies in the following paragraph), the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by that corporation is to be made, notwithstanding paragraph (1), (34) or (35), by adding the addable adjustment amount for deficit subject to group tax sharing to the corporation tax amount serving as the tax base of the corporation tax levy for the computation period of the tax base of that corporation tax amount to be filed and paid pursuant to those provisions.

The addable adjustment amount for deficit subject to group tax sharing prescribed in the preceding paragraph means the amount obtained by multiplying the amount of deficit subject to group tax sharing by the rate specified in each of the items of paragraph (4) in accordance with the category of the corporation set out in that item as of the end of the business year concerned of the corporation referred to in the preceding paragraph.

With regard to a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act, where there is an amount of income subject to group tax sharing arising in a business year that began within 10 years before the start of the business year concerned (meaning an amount of income subject to group tax sharing prescribed in Article 64-5, paragraph (3) of that Act that has been included in gross profits pursuant to that paragraph; the same applies in paragraphs (14) through (16)), the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by that corporation is to be made, notwithstanding paragraph (1), (34) or (35), by deducting the deductible group-adjusted income adjustment amount from the corporation tax amount serving as the tax base of the corporation tax levy for the computation period of the tax base of that corporation tax amount to be filed and paid pursuant to those provisions, up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 42-14, paragraph (1) or (4), Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the deductible group-adjusted income adjustment amount is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years.

The deductible group-adjusted income adjustment amount prescribed in the preceding paragraph means the amount obtained by multiplying the amount of income subject to group tax sharing by the rate specified in each of the following items in accordance with the category of the corporation set out in that item as of the end of the first business year of the corporation referred to in that paragraph after the business year in which that amount of income subject to group tax sharing arose.

ordinary corporation or general incorporated association, etc. prescribed in Article 66, paragraph (1) of the Corporation Tax Act: the rate equivalent to the tax rate prescribed in that paragraph;

public interest corporation, etc. or cooperative, etc. prescribed in Article 66, paragraph (3) of the Corporation Tax Act: the rate equivalent to the tax rate prescribed in that paragraph.

If a qualified merger has been carried out in which the corporation referred to in paragraph (13) is the merging corporation, or if the residual assets of another corporation that has a full controlling interest with that corporation (limited to a full controlling interest held by that corporation or a mutual relationship) and of which that corporation holds all or part of the issued shares or capital contributions have been determined, and there is a deductible group-adjusted income adjustment amount prescribed in the preceding paragraph pertaining to an amount of income subject to group tax sharing that arose in a business year of the merged corporation pertaining to that qualified merger or of that other corporation (hereinafter in this paragraph and the following paragraph referred to as the "merged corporation, etc.") that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets (hereinafter in this paragraph referred to as a "business year within preceding ten years") (limited to that deductible group-adjusted income adjustment amount in the case where the merged corporation, etc. has filed a final municipal inhabitant tax return for corporations to which is attached a document certifying that Article 64-5, paragraph (3) of the Corporation Tax Act applies for the business year in which arose the amount of income subject to group tax sharing pertaining to that deductible group-adjusted income adjustment amount (including an amount deemed pursuant to this paragraph to be the deductible group-adjusted income adjustment amount prescribed in the preceding paragraph of the merged corporation, etc.), and satisfies other requirements specified by Cabinet Order, and excluding the amount deducted pursuant to paragraph (13) from the corporation tax amount to serve as the tax base of the corporation tax levy for the business year within preceding ten years of the merged corporation, etc.; hereinafter in this paragraph referred to as the "undeducted group-adjusted income adjustment amount"), then, for the purpose of the application of paragraph (13) in business years on or after the business year containing the date of that qualified merger or the business year containing the day following the day of determination of those residual assets of that corporation (hereinafter in this paragraph and the following paragraph referred to as the "business year of the merger, etc."), the undeducted group-adjusted income adjustment amount pertaining to that business year within preceding ten years (where that other corporation has two or more shareholders, etc., the amount calculated by dividing that undeducted group-adjusted income adjustment amount by the total number or total amount of issued shares or capital contributions of that other corporation (excluding its own shares or capital contributions held by that other corporation) and multiplying the result by the number or amount of shares or capital contributions of that other corporation held by that corporation) is deemed to be the deductible group-adjusted income adjustment amount prescribed in the preceding paragraph for the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted group-adjusted income adjustment amount (for the undeducted group-adjusted income adjustment amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.).

Paragraph (13) applies only where the corporation referred to in that paragraph has filed a final municipal inhabitant tax return for corporations to which is attached a document certifying that Article 64-5, paragraph (3) of the Corporation Tax Act applies for the business year in which arose the amount of income subject to group tax sharing (excluding the amount of income subject to group tax sharing pertaining to the deductible group-adjusted income adjustment amount of the merged corporation, etc. deemed pursuant to the preceding paragraph to be the deductible group-adjusted income adjustment amount of that corporation prescribed in paragraph (14) (hereinafter in this paragraph referred to as the "deductible group-adjusted income adjustment amount")), and has thereafter filed final municipal inhabitant tax returns for corporations consecutively (where paragraph (13) is applied to an amount deemed pursuant to the preceding paragraph to be the deductible group-adjusted income adjustment amount of that corporation, where it has filed final municipal inhabitant tax returns for corporations consecutively on and after the business year of the merger, etc.).

With regard to a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act, where there is a deducted amount of allocated losses arising in the business year concerned (meaning the amount calculated by multiplying the amount set out in Article 64-7, paragraph (1), item (ii), (c) of that Act by the non-specified deductible ratio prescribed in item (iii), (b) of that paragraph (referred to in paragraph (19) as the "non-specified deductible ratio") (where Article 64-7, paragraph (5) of that Act applies, that amount in the case prescribed in item (i) of that paragraph) that has been included in the amount of deductible expenses pursuant to Article 57, paragraph (1) of that Act; the same applies in the following paragraph), the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by that corporation is to be made, notwithstanding paragraph (1), (34) or (35), by adding the addable adjustment amount for allocated losses to the corporation tax amount serving as the tax base of the corporation tax levy for the computation period of the tax base of that corporation tax amount to be filed and paid pursuant to those provisions.

The addable adjustment amount for allocated losses prescribed in the preceding paragraph means the amount obtained by multiplying the deducted amount of allocated losses by the rate specified in each of the items of paragraph (4) in accordance with the category of the corporation set out in that item as of the end of the business year concerned of the corporation referred to in that paragraph.

With regard to a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act, where there is an allocated deficit deduction amount arising in a business year that began within 10 years before the start of the business year concerned (meaning the amount calculated by multiplying the amount set out in Article 64-7, paragraph (1), item (ii), (d) of that Act by the non-specified deductible ratio (where Article 64-7, paragraph (5) of that Act applies, that amount in the case prescribed in item (ii), (a) of that paragraph) that has been included in the amount of deductible expenses pursuant to Article 57, paragraph (1) of that Act; the same applies in paragraphs (20) through (22)), the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by that corporation is to be made, notwithstanding paragraph (1), (34) or (35), by deducting the deductible allocated loss adjustment amount from the corporation tax amount serving as the tax base of the corporation tax levy for the computation period of the tax base of that corporation tax amount to be filed and paid pursuant to those provisions, up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 42-14, paragraph (1) or (4), Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the deductible allocated loss adjustment amount is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years.

The deductible allocated loss adjustment amount prescribed in the preceding paragraph means the amount obtained by multiplying the allocated deficit deduction amount by the rate specified in each of the items of paragraph (14) in accordance with the category of the corporation set out in that item as of the end of the first business year after the business year in which that allocated deficit deduction amount arose of the corporation referred to in that paragraph.

If a qualified merger has been carried out in which the corporation referred to in paragraph (19) is the merging corporation, or if the residual assets of another corporation that has a full controlling interest with that corporation (limited to a full controlling interest held by that corporation or a mutual relationship) and of which that corporation holds all or part of the issued shares or capital contributions have been determined, and there is a deductible allocated loss adjustment amount prescribed in the preceding paragraph pertaining to an allocated deficit deduction amount that arose in a business year of the merged corporation pertaining to that qualified merger or of that other corporation (hereinafter in this paragraph and the following paragraph referred to as the "merged corporation, etc.") that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets (hereinafter in this paragraph referred to as a "business year within preceding ten years") (limited to that deductible allocated loss adjustment amount in the case where the merged corporation, etc. has filed a final municipal inhabitant tax return for corporations to which is attached a document certifying that Article 57, paragraph (1) of the Corporation Tax Act applies for the business year in which arose the allocated deficit deduction amount pertaining to that deductible allocated loss adjustment amount (including an amount deemed pursuant to this paragraph to be the deductible allocated loss adjustment amount prescribed in the preceding paragraph of the merged corporation, etc.), and satisfies other requirements specified by Cabinet Order, and excluding the amount deducted pursuant to paragraph (19) from the corporation tax amount to serve as the tax base of the corporation tax levy for the business year within preceding ten years of the merged corporation, etc.; hereinafter in this paragraph referred to as the "undeducted allocated loss adjustment amount"), then, for the purpose of the application of paragraph (19) in business years on or after the business year containing the date of that qualified merger or the business year containing the day following the day of determination of those residual assets of that corporation (hereinafter in this paragraph and the following paragraph referred to as the "business year of the merger, etc."), the undeducted allocated loss adjustment amount pertaining to that business year within preceding ten years (where that other corporation has two or more shareholders, etc., the amount calculated by dividing that undeducted allocated loss adjustment amount by the total number or total amount of issued shares or capital contributions of that other corporation (excluding its own shares or capital contributions held by that other corporation) and multiplying the result by the number or amount of shares or capital contributions of that other corporation held by that corporation) is deemed to be the deductible allocated loss adjustment amount prescribed in the preceding paragraph for the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted allocated loss adjustment amount (for the undeducted allocated loss adjustment amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.).

Paragraph (19) applies only where the corporation referred to in that paragraph has filed a final municipal inhabitant tax return for corporations to which is attached a document certifying that Article 57, paragraph (1) of the Corporation Tax Act applies for the business year in which arose the allocated deficit deduction amount (excluding the allocated deficit deduction amount pertaining to the deductible allocated loss adjustment amount of the merged corporation, etc. deemed pursuant to the preceding paragraph to be the deductible allocated loss adjustment amount of that corporation prescribed in paragraph (20) (hereinafter in this paragraph referred to as the "deductible allocated loss adjustment amount")), and has thereafter filed final municipal inhabitant tax returns for corporations consecutively (where paragraph (19) is applied to an amount deemed pursuant to the preceding paragraph to be the deductible allocated loss adjustment amount of that corporation, where it has filed final municipal inhabitant tax returns for corporations consecutively on and after the business year of the merger, etc.).

With regard to the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies), Article 74, paragraph (1) of that Act, Article 144-3, paragraph (1) of that Act (limited to the case where Article 144-4, paragraph (1) of that Act applies) or Article 144-6, paragraph (1) of that Act and that has received a refund of corporation tax amount pursuant to Article 80 or Article 144-13 of that Act because the amount of deductible expenses exceeded the amount of gross profits in the interim period of the business year concerned (meaning the interim period prescribed in Article 80, paragraph (5) or Article 144-13, paragraph (11) of that Act; the same applies hereinafter in this paragraph through paragraph (25)) or in a business year or interim period that began within 10 years before the start of the business year concerned (excluding a business year showing a loss prescribed in Article 80, paragraph (7) or (8) of that Act (referred to in the following paragraph as a "business year showing a loss")), notwithstanding paragraph (1), (34) or (35), the calculation is to be made as specified in each of the following items in accordance with the category of the corporation set out in that item.

domestic corporation that has received a refund of corporation tax amount pursuant to Article 80 of the Corporation Tax Act: the refunded corporation tax amount (hereinafter in this paragraph through paragraph (25) referred to as the "domestic corporation's refunded corporation tax eligible for deduction") is to be deducted from the corporation tax amount serving as the tax base of the corporation tax levy to be filed and paid pursuant to paragraph (1), (34) or (35), up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 42-14, paragraph (1) or (4), Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the domestic corporation's refunded corporation tax eligible for deduction is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years;

foreign corporation that has received a refund, pursuant to Article 144-13 of the Corporation Tax Act, of the corporation tax amount on domestic source income set out in Article 141, item (i), (a) of that Act: the refunded corporation tax amount (hereinafter in this paragraph through paragraph (25) referred to as the "deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment") is to be deducted from the corporation tax amount on the domestic source income set out in (a) of that item, which serves as the tax base of the corporation tax levy to be filed and paid pursuant to paragraph (1), (34) or (35), up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years;

foreign corporation that has received a refund, pursuant to Article 144-13 of the Corporation Tax Act, of the corporation tax amount on domestic source income set out in Article 141, item (i), (b) of that Act: the refunded corporation tax amount (hereinafter in this paragraph through paragraph (25) referred to as the "deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment") is to be deducted from the corporation tax amount on the domestic source income set out in (b) of that item, which serves as the tax base of the corporation tax levy to be filed and paid pursuant to paragraph (1), (34) or (35), up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years.

If a qualified merger has been carried out in which the corporation referred to in the preceding paragraph is the merging corporation, or if the residual assets of another corporation that has a full controlling interest with that corporation (limited to a full controlling interest held by that corporation or a mutual relationship) and of which that corporation holds all or part of the issued shares or capital contributions have been determined, and there is a corporation tax amount refunded to the merged corporation of that qualified merger or that other corporation (hereinafter in this paragraph referred to as the "merged corporation, etc.") pursuant to Article 80 or Article 144-13 of the Corporation Tax Act because the amount of deductible expenses exceeded the amount of gross profits in a business year or interim period (excluding a business year showing a loss; hereinafter in this paragraph referred to as a "business year within preceding ten years") that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets (including the corporation tax amount refunded to the merging corporation pertaining to that qualified merger pursuant to Article 80 or Article 144-13 of that Act that pertains to the business year containing the day before the date of that qualified merger of that merged corporation, and limited to that corporation tax amount in the case where the merged corporation, etc. has filed a final municipal inhabitant tax return for corporations for the business year within preceding ten years pertaining to the amount of loss (meaning the amount of loss prescribed in Article 2, item (xix) of that Act; the same applies in the following paragraph) that formed the basis for calculating that corporation tax amount (including an amount deemed pursuant to this paragraph to be the domestic corporation's refunded corporation tax eligible for deduction, the deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment or the deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment of the merged corporation, etc.), and satisfies other requirements specified by Cabinet Order, and excluding the amount deducted pursuant to the preceding paragraph from the corporation tax amount to serve as the tax base of the corporation tax levy for a business year of the merged corporation, etc. that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets; hereinafter in this paragraph referred to as the "undeducted refunded corporation tax amount"), then, for the purpose of the application of the preceding paragraph in business years on or after the business year containing the date of that qualified merger or the business year containing the day following the day of determination of those residual assets of that corporation (hereinafter in this paragraph and the following paragraph referred to as the "business year of the merger, etc."), the matters specified in each of the following items in accordance with the category of the corporation set out in that item apply.

domestic corporation: the undeducted refunded corporation tax amount pertaining to that business year within preceding ten years (where that other corporation has two or more shareholders, etc., the amount calculated by dividing that undeducted refunded corporation tax amount by the total number or total amount of issued shares or capital contributions of that other corporation (excluding its own shares or capital contributions held by that other corporation) and multiplying the result by the number or amount of shares or capital contributions of that other corporation held by that corporation) is deemed to be the domestic corporation's refunded corporation tax eligible for deduction for the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted refunded corporation tax amount (for the undeducted refunded corporation tax amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.);

foreign corporation: of the undeducted refunded corporation tax amount pertaining to that business year within preceding ten years (where that other corporation has two or more shareholders, etc., the amount calculated by dividing that undeducted refunded corporation tax amount by the total number or total amount of issued shares or capital contributions of that other corporation (excluding its own shares or capital contributions held by that other corporation) and multiplying the result by the number or amount of shares or capital contributions of that other corporation held by that corporation), that which was refunded pursuant to Article 144-13 of the Corporation Tax Act (limited to the part pertaining to paragraph (1), item (i)) is deemed to be the deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment for the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted refunded corporation tax amount (for the undeducted refunded corporation tax amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.), and that which was refunded pursuant to Article 144-13 of that Act (limited to the part pertaining to paragraph (1), item (ii)) is deemed to be the deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment for the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted refunded corporation tax amount (for the undeducted refunded corporation tax amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.).

Paragraph (23) applies only where the corporation referred to in that paragraph has filed a final municipal inhabitant tax return for corporations for the business year containing the start date of the business year or interim period pertaining to the amount of loss that formed the basis for calculating the domestic corporation's refunded corporation tax eligible for deduction, the deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment or the deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment (excluding an amount deemed pursuant to the preceding paragraph to be the domestic corporation's refunded corporation tax eligible for deduction, the deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment or the deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment pertaining to that corporation), and has thereafter filed final municipal inhabitant tax returns for corporations consecutively (where paragraph (23) is applied to an amount deemed pursuant to the preceding paragraph to be the domestic corporation's refunded corporation tax eligible for deduction, the deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment or the deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment pertaining to that corporation, where it has filed final municipal inhabitant tax returns for corporations consecutively on and after the business year of the merger, etc.).

With regard to a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act, where there is a deficit eligible for a refund arising in the interim period of the business year concerned (meaning the interim period prescribed in Article 80, paragraph (5) of that Act; the same applies hereinafter in this paragraph through paragraph (29)) or in a business year or interim period that began within 10 years before the start of the business year concerned (meaning the total of the amount that formed the basis for calculating the amount to be refunded as calculated pursuant to Article 80, paragraph (12) of that Act and the amount that formed the basis for calculating the amount to be refunded as calculated pursuant to paragraph (13) of that Article; the same applies in paragraphs (27) through (29)), the calculation of the corporation tax amount that serves as the tax base of the corporation tax levy for the business year concerned to be paid by that corporation is to be made, notwithstanding paragraph (1), (34) or (35), by deducting the deductible refund-eligible loss adjustment amount from the corporation tax amount serving as the tax base of the corporation tax levy for the computation period of the tax base of that corporation tax amount to be filed and paid pursuant to those provisions, up to the amount of that corporation tax amount (where there is an amount added to that corporation tax amount pursuant to Article 42-14, paragraph (1) or (4), Article 62, paragraph (1), Article 62-3, paragraph (1) or (9), or Article 63, paragraph (1) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting the amount specified by Cabinet Order). In this case, the deductible refund-eligible loss adjustment amount is limited to the amount that was not deducted from the corporation tax amount to serve as the tax base of the corporation tax levy for the previous business year and earlier business years.

The deductible refund-eligible loss adjustment amount prescribed in the preceding paragraph means the amount obtained by multiplying the deficit eligible for a refund by the rate specified in each of the items of paragraph (14) in accordance with the category of the corporation set out in that item as of the end of the first business year to end after the business year or interim period in which that deficit eligible for a refund arose of the corporation referred to in that paragraph.

If a qualified merger has been carried out in which the corporation referred to in paragraph (26) is the merging corporation, or if the residual assets of another corporation that has a full controlling interest with that corporation (limited to a full controlling interest held by that corporation or a mutual relationship) and of which that corporation holds all or part of the issued shares or capital contributions have been determined, and there is a deductible refund-eligible loss adjustment amount prescribed in the preceding paragraph pertaining to a deficit eligible for a refund that arose in a business year or interim period of the merged corporation pertaining to that qualified merger or of that other corporation (hereinafter in this paragraph and the following paragraph referred to as the "merged corporation, etc.") that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets (hereinafter in this paragraph referred to as a "business year within preceding ten years") (limited to that deductible refund-eligible loss adjustment amount in the case where the merged corporation, etc. has filed a final municipal inhabitant tax return for corporations for the business year or interim period in which arose the deficit eligible for a refund pertaining to that deductible refund-eligible loss adjustment amount (including an amount deemed pursuant to this paragraph to be the deductible refund-eligible loss adjustment amount prescribed in the preceding paragraph of the merged corporation, etc.), and satisfies other requirements specified by Cabinet Order, and excluding the amount deducted pursuant to paragraph (26) from the corporation tax amount to serve as the tax base of the corporation tax levy for a business year of the merged corporation, etc. that began within 10 years before the date of that qualified merger or began within 10 years before the day following the day of determination of those residual assets; hereinafter in this paragraph referred to as the "undeducted refund-eligible loss adjustment amount"), then, for the purpose of the application of paragraph (26) in business years on or after the business year containing the date of that qualified merger or the business year containing the day following the day of determination of those residual assets of that corporation (hereinafter in this paragraph and the following paragraph referred to as the "business year of the merger, etc."), the undeducted refund-eligible loss adjustment amount pertaining to that business year within preceding ten years (where that other corporation has two or more shareholders, etc., the amount calculated by dividing that undeducted refund-eligible loss adjustment amount by the total number or total amount of issued shares or capital contributions of that other corporation (excluding its own shares or capital contributions held by that other corporation) and multiplying the result by the number or amount of shares or capital contributions of that other corporation held by that corporation) is deemed to be the deductible refund-eligible loss adjustment amount prescribed in the preceding paragraph for the business year of that corporation containing the start date of the business year within preceding ten years pertaining to that undeducted refund-eligible loss adjustment amount (for the undeducted refund-eligible loss adjustment amount pertaining to a business year within preceding ten years of that merged corporation, etc. that began on or after the start of the business year of the merger, etc. of that corporation, the business year preceding that business year of the merger, etc.).

Paragraph (26) applies only where the corporation referred to in that paragraph has filed a final municipal inhabitant tax return for corporations for the business year containing the start date of the business year or interim period in which arose the deficit eligible for a refund (excluding the deficit eligible for a refund pertaining to the deductible refund-eligible loss adjustment amount of the merged corporation, etc. deemed pursuant to the preceding paragraph to be the deductible refund-eligible loss adjustment amount of that corporation prescribed in paragraph (27) (hereinafter in this paragraph referred to as the "deductible refund-eligible loss adjustment amount")), and has thereafter filed final municipal inhabitant tax returns for corporations consecutively (where paragraph (26) is applied to an amount deemed pursuant to the preceding paragraph to be the deductible refund-eligible loss adjustment amount of that corporation, where it has filed final municipal inhabitant tax returns for corporations consecutively on and after the business year of the merger, etc.).

With regard to the additions to the corporation tax amount under paragraphs (11) and (17) and the deductions from the corporation tax amount under paragraphs (3), (8), (13), (19), (23) and (26), the additions under paragraphs (11) and (17) are made first, then, after the deductions under paragraphs (3), (8), (13) and (19) are made, the deductions under paragraphs (23) and (26) are to be made.

A public corporation, etc. must, by April 30 of each year, in the form specified by Order of the Ministry of Internal Affairs and Communications, file a return stating the per capita levy amount calculated on the basis of the facts during the period referred to in Article 312, paragraph (3), item (iii) with the mayor of the municipality where its offices, places of business or dormitories, etc. are located during that period, and pay the per capita levy amount so declared.

If the municipal inhabitant tax amount calculated on the basis of the corporation tax amount pertaining to a return under Article 74, paragraph (1) or Article 144-6, paragraph (1) of the Corporation Tax Act is less than, or there is none of, the municipal inhabitant tax amount for which filing and payment has been made or is to be made, calculated on the basis of the corporation tax amount pertaining to a return under Article 71, paragraph (1) or Article 144-3, paragraph (1) of that Act (for a corporation filing an interim return without provisional accounts, the municipal inhabitant tax amount for which filing and payment has been made or is to be made, calculated on the basis of paragraph (1)) or the municipal inhabitant tax amount for which filing and payment has been made or is to be made, calculated on the basis of paragraph (2) (hereinafter in this paragraph and Article 321-11, paragraph (5) referred to as the "interim payment of municipal inhabitant tax"), the municipality is, in accordance with the provisions of Cabinet Order, to refund the interim payment of municipal inhabitant tax in the amount equivalent to the shortfall, or the whole of the interim payment of municipal inhabitant tax, or to appropriate it to local government levies in arrears.

A corporation that is to file a return pursuant to the provisions of paragraphs (1), (31) and (35) may, even after the deadline for filing that return (excluding a return deemed to have been filed pursuant to the second sentence of paragraph (1)), until notice of reassessment or determination under Article 321-11, paragraph (4) is given, file a return pursuant to the provisions of paragraphs (1), (31) and (35) and pay the municipal inhabitant tax amount so declared.

A corporation that has filed a return pursuant to the provisions of paragraph (1), (2) or (31), the preceding paragraph or this paragraph, or that has been subject to reassessment or determination under Article 321-11, must, if it falls under any of the following items, without delay, except where the following paragraph applies, in the form specified by Order of the Ministry of Internal Affairs and Communications, file with the mayor of the municipality to whom that return was filed or who made that reassessment or determination a return amending the tax base, etc. or tax amount, etc. prescribed in Article 20-9-3, paragraph (6) that is stated in that return or in the written notice pertaining to that reassessment or determination, and pay the municipal inhabitant tax amount increased by that declaration:

if there is a shortfall in the municipal inhabitant tax amount stated in the earlier return as the amount to be paid by the filing of that return, or stated in the written notice pertaining to the reassessment or determination as the amount to be paid by that reassessment or determination;

if, where the municipal inhabitant tax amount to be paid was not stated in the earlier return, or where the corporation has received a reassessment to the effect that there is no municipal inhabitant tax amount to be paid, there is a municipal inhabitant tax amount to be paid.

If, as a result of a corporation referred to in paragraph (1) or (2) filing an amended return pertaining to corporation tax, or receiving notice of reassessment or determination pertaining to corporation tax, that corporation comes to fall under any of the items of the preceding paragraph, that corporation must file and pay pursuant to that paragraph by the day on which the corporation tax amount increased by that amended return, or the corporation tax amount to be paid pursuant to that reassessment or determination, is to be paid.

If a domestic corporation is subject, in each business year, to the application of Article 66-7, paragraphs (4) and (10) of the Act on Special Measures Concerning Taxation, and, of the credit-eligible amount equivalent to income tax, etc. prescribed in paragraph (4) of that Article for the business year concerned, there is an amount exceeding the total of the amount of corporation tax prescribed in that paragraph, the amount of income-based local corporation tax prescribed in paragraph (10) of that Article, and the corporation tax levy amount prescribed in Article 53, paragraph (36), the municipality is, in accordance with the provisions of Cabinet Order, to deduct that excess amount (limited to the amount specified by Cabinet Order) from the corporation tax levy amount to be filed and paid pursuant to paragraph (1) (excluding that pertaining to a corporation filing an interim return without provisional accounts) or the preceding two paragraphs for the business year concerned.

If a domestic corporation is subject, in each business year, to the application of Article 66-9-3, paragraphs (3) and (9) of the Act on Special Measures Concerning Taxation, and, of the credit-eligible amount equivalent to income tax, etc. prescribed in paragraph (3) of that Article for the business year concerned, there is an amount exceeding the total of the amount of corporation tax prescribed in that paragraph, the amount of income-based local corporation tax prescribed in paragraph (9) of that Article, and the corporation tax levy amount prescribed in Article 53, paragraph (37), the municipality is, in accordance with the provisions of Cabinet Order, to deduct that excess amount (limited to the amount specified by Cabinet Order) from the corporation tax levy amount to be filed and paid pursuant to paragraph (1) (excluding that pertaining to a corporation filing an interim return without provisional accounts), (34) or (35) for the business year concerned.

If a domestic corporation or foreign corporation is subject to corporation tax or local corporation tax imposed under the laws and regulations of a foreign country, or to a tax equivalent to the corporation tax levy of prefectural inhabitant tax or municipal inhabitant tax (for a foreign corporation, limited to that imposed under the laws and regulations of a foreign country on domestic source income set out in Article 138, paragraph (1), item (i) of the Corporation Tax Act; hereinafter in this paragraph referred to as "foreign corporation tax, etc."), and, of the amount of that foreign corporation tax, etc., there is an amount exceeding the total of the deduction limit under Article 69, paragraph (1) of the Corporation Tax Act or the deduction limit under Article 144-2, paragraph (1) of that Act, the local corporation tax deduction limit under Article 12, paragraph (1) of the Local Corporation Tax Act or the amount calculated as specified by Cabinet Order under paragraph (2) of that Article, and the limit of deduction under Article 53, paragraph (38) that is specified by Cabinet Order, the municipality is, in accordance with the provisions of Cabinet Order, to deduct that excess amount (limited to the amount specified by Cabinet Order), up to the amount calculated in accordance with the provisions of Cabinet Order, from the corporation tax levy amount to be filed and paid pursuant to paragraph (1) (excluding that pertaining to a corporation filing an interim return without provisional accounts), (34) or (35) (for a foreign corporation, limited to that imposed with the corporation tax amount on domestic source income set out in Article 141, item (i), (a) of the Corporation Tax Act as the tax base).

In applying the provisions of the preceding paragraph, if the tax credit amount (meaning the amount to be deducted pursuant to the preceding paragraph in the business year of application; the same applies hereinafter in this paragraph through paragraph (42)) for each business year of a group tax sharing corporation (meaning a group tax sharing corporation prescribed in Article 2, item (xii)-7-2 of the Corporation Tax Act; the same applies hereinafter in this paragraph through paragraph (48)) (limited to one ending on the last day of the business year of the group tax sharing parent corporation pertaining to that group tax sharing corporation, and excluding the business year containing the day before the date of merger of the merged corporation, the business year containing the day of determination of residual assets, and the business year containing the day before the day on which the corporation came to fall under a public interest corporation, etc. (meaning a public interest corporation, etc. prescribed in Article 294, paragraph (7); the same applies in paragraphs (42) and (48)); hereinafter in this paragraph through paragraph (41) referred to as the "business year of application") differs from the initially reported tax credit amount (meaning the amount stated as the tax credit amount for the business year of application in the documents attached to the return under paragraph (1) for the business year of application (limited to one filed by the deadline for filing the return under paragraph (1) by a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act); the same applies hereinafter in this paragraph through paragraph (41)), the initially reported tax credit amount is deemed to be the tax credit amount.

In the case where any of the following cases applies with regard to a business year of application of the group tax sharing corporation referred to in the preceding paragraph, the provisions of that paragraph do not apply to that business year of application:

the case where Article 69, paragraph (16) of the Corporation Tax Act (limited to the part pertaining to item (i)) applies (limited to the case where the tax credit amount in the case set out in that item differs from the initially reported tax credit amount);

the case where Article 69, paragraph (16) of the Corporation Tax Act (limited to the part pertaining to item (ii)) applies; or

the case where Article 12, paragraph (6) of the Local Corporation Tax Act (limited to the part pertaining to item (i)) applies (limited to the case where the tax credit amount in the case set out in that item differs from the initially reported tax credit amount).

With regard to the application of the preceding two paragraphs after a return prescribed in paragraph (34) has been filed, or a reassessment under Article 321-11, paragraph (1) or (3) has been made, by applying the preceding paragraph (limited to the part pertaining to items (i) and (iii)) to a business year of application, notwithstanding the preceding paragraph, the amount stated as the tax credit amount for that business year of application in the documents attached to that return, or the amount treated as the tax credit amount for that business year of application in that reassessment, is deemed to be the initially reported tax credit amount.

The municipality is, with regard to a group tax sharing corporation (including a domestic corporation that was a group tax sharing corporation (excluding a domestic corporation that has come to fall under a public interest corporation, etc.); the same applies in the following paragraph through paragraph (45)), in each business year of that corporation (hereinafter in this paragraph through paragraph (46) referred to as a "covered business year"), for a past applied business year (meaning each business year that began before the start of that covered business year and to which paragraph (39) applied; the same applies hereinafter in this paragraph and paragraph (45), item (i)), in the case where the tax credit amount (where, in each business year that began before the start of that covered business year (hereinafter in this paragraph referred to as the "business years before the covered business year"), this paragraph or the following paragraph was applied to the tax credit amount pertaining to that past applied business year, the amount obtained by adding the amount obtained by subtracting the total of the amounts deducted from the corporation tax levy amount for the business years before the covered business year pursuant to this paragraph from the total of the amounts added to the corporation tax levy amount for the business years before the covered business year pursuant to that paragraph; hereinafter in this paragraph and the following paragraph referred to as the "adjusted past tax credit amount") exceeds the originally reported past tax credit amount (meaning the amount stated, in the documents attached to the return under paragraph (1) for that past applied business year (limited to one filed by the deadline for filing the return under paragraph (1) by a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 74, paragraph (1) of the Corporation Tax Act), as the amount to be deducted pursuant to paragraph (38) for that past applied business year (where paragraph (41) has been applied to that past applied business year, the amount stated in the most recent of the documents attached to the return prescribed in paragraph (34) pertaining to that application as the amount to be deducted pursuant to paragraph (38) for that past applied business year, or the amount treated as the amount to be deducted pursuant to paragraph (38) for that past applied business year in the most recent of the reassessments under Article 321-11, paragraph (1) or (3)); the same applies hereinafter in this paragraph and the following paragraph), to deduct, in accordance with the provisions of Cabinet Order, the amount equivalent to the tax credit shortfall (meaning the amount equivalent to the amount obtained by deducting that originally reported past tax credit amount from that adjusted past tax credit amount; the same applies in paragraphs (44) through (46)) from the corporation tax levy amount for that covered business year to be filed and paid pursuant to paragraph (1) (excluding that pertaining to a corporation filing an interim return without provisional accounts), (34) or (35).

In the case where, in a covered business year of a group tax sharing corporation, the originally reported past tax credit amount exceeds the adjusted past tax credit amount, the corporation tax levy amount for that covered business year to be filed and paid pursuant to paragraph (1) (excluding that pertaining to a corporation filing an interim return without provisional accounts), (34) or (35) is, notwithstanding those provisions and in accordance with the provisions of Cabinet Order, the amount obtained by adding the amount equivalent to the tax credit excess (meaning the amount equivalent to the amount obtained by deducting that adjusted past tax credit amount from that originally reported past tax credit amount; the same applies in the following paragraph through paragraph (46)) to the corporation tax levy amount calculated with the corporation tax amount as the tax base.

In applying the provisions of the preceding two paragraphs, if the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for a covered business year of a group tax sharing corporation differs from the initially reported amount equivalent to the tax credit shortfall or the initially reported amount equivalent to excess tax credit (meaning, respectively, the amount stated as the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for that covered business year in the documents attached to the return under paragraph (1) for that covered business year (limited to one filed by the deadline for filing the return under paragraph (1) by a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) of the Corporation Tax Act (limited to the case where Article 72, paragraph (1) of that Act applies) or Article 74, paragraph (1) of that Act); the same applies hereinafter in this paragraph through paragraph (46)), the initially reported amount equivalent to the tax credit shortfall or the initially reported amount equivalent to excess tax credit is deemed to be the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for that covered business year.

In the case where any of the following cases applies with regard to a covered business year of the group tax sharing corporation referred to in the preceding paragraph, the provisions of that paragraph do not apply to that covered business year:

the case where paragraph (40) applies to a past applied business year pertaining to the amount equivalent to the tax credit shortfall deducted from the corporation tax levy amount pursuant to paragraph (42), or the amount equivalent to the tax credit excess added to the corporation tax levy amount pursuant to paragraph (43), in the covered business year;

the case where Article 69, paragraph (21) of the Corporation Tax Act (limited to the part pertaining to items (i) and (iii)) applies (limited to the case where the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess in the cases set out in items (i) and (iii) of that paragraph differs from the initially reported amount equivalent to the tax credit shortfall or the initially reported amount equivalent to excess tax credit); or

the case where Article 12, paragraph (11) of the Local Corporation Tax Act (limited to the part pertaining to items (i) and (iii)) applies (limited to the case where the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess in the cases set out in items (i) and (iii) of that paragraph differs from the initially reported amount equivalent to the tax credit shortfall or the initially reported amount equivalent to excess tax credit).

With regard to the application of the preceding two paragraphs after a return prescribed in paragraph (34) has been filed, or a reassessment under Article 321-11, paragraph (1) or (3) has been made, by applying the preceding paragraph to a covered business year, notwithstanding the preceding paragraph, the amount stated as the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for that covered business year in the documents attached to that return, or the amount treated as the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for that covered business year in that reassessment, is deemed to be the initially reported amount equivalent to the tax credit shortfall or the initially reported amount equivalent to excess tax credit.

Where the mayor of the municipality has made a reassessment, pursuant to Article 321-11, paragraph (1) or (3), of the corporation tax levy for a business year that began before the start of each business year of a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 74, paragraph (1) of the Corporation Tax Act (including a business year of the merged corporation pertaining to a qualified merger in which that corporation is the merging corporation, carried out on or before the end of that each business year, that began before the date of that qualified merger), on the basis of a corporation tax amount reassessed under the provisions of laws and regulations on corporation tax, and paragraph (54) has applied to that reassessment, the corporation tax levy amount paid on fictitious accounting prescribed in that paragraph pertaining to that reassessment (excluding the amount that has already become refundable pursuant to paragraph (55) or (58) and the amount deducted pursuant to this paragraph) is to be deducted from the corporation tax levy amount for that each business year (limited to a business year ending on or after the date of that reassessment (where that reassessment was made before the date of the qualified merger in respect of the corporation tax levy for a business year of the merged corporation pertaining to a qualified merger in which that corporation is the merging corporation, carried out before the end of that each business year, that began before the date of that merger, the date of that qualified merger)).

If, with regard to a corporation that has an office or place of business within the municipality, a reassessment under Article 24 or Article 26 of the Act on General Rules for National Taxes has been made based on the agreement prescribed in Article 7, paragraph (1) of the Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties, etc., and, as a result of the mayor of the municipality having made a reassessment under Article 321-11, paragraph (1) or (3) on the basis of the corporation tax amount pertaining to that reassessment, there arises an amount to be refunded pursuant to Article 17 or Article 321-11, paragraph (5) (hereinafter in this paragraph and the following paragraph referred to as the "refund due on implementing a tax treaty"), then, except where that reassessment was made on or after the day on which three months have elapsed counting from the day following the day on which the request for reassessment pertaining to that reassessment was made, notwithstanding Articles 17, 17-2 and 17-4 and Article 321-11, paragraph (5), the refund due on implementing a tax treaty is to be deducted successively from the corporation tax levy amount for each business year that begins within one year from the start of the business year containing the date of that reassessment (including each business year ending on or after the date of that merger of the merging corporation pertaining to the qualified merger, where, after that reassessment, that corporation is dissolved through a qualified merger) (limited to the corporation tax levy amount calculated with, as the tax base, the corporation tax amount pertaining to a business year for which a return is to be filed pursuant to Article 74, paragraph (1) or Article 144-6, paragraph (1) of the Corporation Tax Act (where there is a corporation tax levy amount that has already become finalized as payable during the computation period of the tax base of that corporation tax amount, the amount remaining after deducting it)).

If, following the reassessment under Article 24 or Article 26 of the Act on General Rules for National Taxes prescribed in the preceding paragraph, a reassessment reducing the corporation tax amount for each business year after the business year pertaining to that reassessment has been made, and, as a result of the mayor of the municipality having made a reassessment under Article 321-11, paragraph (1) or (3) on the basis of the corporation tax amount pertaining to that reassessment, there arises an amount to be refunded pursuant to Article 17 or Article 321-11, paragraph (5), that amount is deemed to be the refund due on implementing a tax treaty, and the preceding paragraph applies.

The provisions of the preceding two paragraphs apply mutatis mutandis to the case where, after the corporation referred to in paragraph (50) is dissolved through a qualified merger, there is a reassessment prescribed in paragraph (50) under Article 321-11, paragraph (1) or (3) pertaining to that corporation, or a reassessment prescribed in the preceding paragraph under Article 321-11, paragraph (1) or (3). In this case, the phrase "the date of that reassessment" in paragraph (50) is deemed to be replaced with "the date of that reassessment of the merging corporation pertaining to a qualified merger in which that corporation is the merged corporation", and "that corporation is dissolved through a qualified merger" with "that merging corporation is dissolved through a qualified merger in which that merging corporation is the merged corporation".

With regard to the deductions from the corporation tax levy amount under paragraphs (36) through (38), paragraph (42) (including as applied mutatis mutandis in paragraphs (47) and (48); the same applies hereinafter in this paragraph), paragraph (49) and paragraph (50) (including the case where it is applied as deemed pursuant to paragraph (51) (including as applied mutatis mutandis in the preceding paragraph) and the case where it is applied mutatis mutandis in the preceding paragraph; the same applies hereinafter in this paragraph), the deductions under paragraphs (36) and (37) are made first, and then the deductions are made in the order of the deductions under paragraphs (38) and (42), the deduction under paragraph (49), and the deduction under paragraph (50).

Where the mayor of the municipality has made a reassessment pursuant to Article 321-11, paragraph (1) or (3) on the basis of the corporation tax amount pertaining to a reassessment prescribed in Article 135, paragraph (1) or (5) of the Corporation Tax Act (hereinafter in the following paragraph and paragraph (56) referred to as "where a mayor has reassessed an overstated return based on fictitious accounting"), of the amount paid as the corporation tax levy for the business year pertaining to that reassessment, the amount of the part reduced by that reassessment that is specified by Cabinet Order (hereinafter in the following paragraph through paragraph (58) referred to as the "corporation tax levy amount paid on fictitious accounting") is, notwithstanding Articles 17, 17-2 and 17-4 and Article 321-11, paragraph (5), except for the amount that has become refundable pursuant to those provisions where the following paragraph or paragraph (58) applies, not to be refunded or not to be appropriated to the local government levies in arrears of the corporation that received that reassessment.

Where the deadline for filing the final municipal inhabitant tax return for corporations for the business year containing the day on which five years elapse from the start of the business year containing the date of the reassessment in the case where a mayor has reassessed an overstated return based on fictitious accounting (where that reassessment was made before the date of the qualified merger in respect of the corporation tax levy amount of the merged corporation pertaining to that qualified merger, the start of the business year of that merged corporation containing the date of that reassessment) has arrived (where a fact set out in one of the following items has arisen with regard to the corporation that received that reassessment between the date of that reassessment and the end of the business year containing the day on which those five years elapse, the deadline for filing specified in that item) (where the final municipal inhabitant tax return for corporations pertaining to that deadline for filing was not filed by that deadline for filing, where the final municipal inhabitant tax return for corporations of that corporation has been filed after that deadline for filing, or a determination under Article 321-11, paragraph (2) has been made concerning the corporation tax levy for the business year pertaining to the final municipal inhabitant tax return for corporations of that corporation), the mayor of the municipality is, in accordance with the provisions of Cabinet Order, to refund to the corporation that received that reassessment the corporation tax levy amount paid on fictitious accounting pertaining to that reassessment (excluding the amount that has already become refundable pursuant to this paragraph or paragraph (58) and the amount deducted pursuant to paragraph (49)), or to appropriate it to the local government levies in arrears of the corporation that received that reassessment.

the residual assets have been determined: the deadline for filing the final municipal inhabitant tax return for corporations for the business year containing the day of determination of those residual assets;

the corporation has been dissolved by a merger (excluding dissolution through a qualified merger): the deadline for filing the final municipal inhabitant tax return for corporations for the business year containing the day before the date of that merger;

the corporation has been dissolved by an order commencing bankruptcy proceedings: the deadline for filing the final municipal inhabitant tax return for corporations for the business year containing the day of that order commencing bankruptcy proceedings;

an ordinary corporation or cooperative, etc. has come to fall under a public interest corporation, etc. prescribed in Article 2, item (vi) of the Corporation Tax Act: the deadline for filing the final municipal inhabitant tax return for corporations for the business year containing the day before the day on which it came to so fall.

Where a mayor has reassessed an overstated return based on fictitious accounting, if any of the following facts arises with regard to the corporation that received that reassessment, that corporation may, within one year after the day on which that fact arose, request the mayor of the municipality to refund the corporation tax levy amount paid on fictitious accounting pertaining to that reassessment (excluding the amount that has already become refundable pursuant to the preceding paragraph or paragraph (58) and the amount deducted pursuant to paragraph (49); the same applies in the following paragraph and paragraph (58)):

an order commencing reorganization proceedings has been made;

an order commencing rehabilitation proceedings has been made; or

any fact specified by Cabinet Order as being equivalent to the facts listed in the preceding two items.

A corporation that intends to make a request for a refund under the preceding paragraph must submit to the mayor of the municipality a written request stating the corporation tax levy amount paid on fictitious accounting that it seeks to have refunded, the basis of its calculation, and other matters specified by Order of the Ministry of Internal Affairs and Communications.

If a written request under the preceding paragraph has been submitted, the mayor of the municipality is to investigate the facts pertaining to the request and other necessary matters, and, based on the result of the investigation, in accordance with the provisions of Cabinet Order, to refund the corporation tax levy amount paid on fictitious accounting to the corporation that made the request, or appropriate it to the local government levies in arrears of that corporation, or notify it in writing that there are no grounds for the request.

If there is an amount to be deducted pursuant to paragraph (50) (including the case where it is applied as deemed pursuant to paragraph (51) (including as applied mutatis mutandis in paragraph (52)) and the case where it is applied mutatis mutandis in paragraph (52); the same applies hereinafter in this paragraph) that could not be fully deducted pursuant to paragraph (50), the municipality is, in accordance with the provisions of Cabinet Order, to refund the amount that could not be fully deducted to the corporation to which that paragraph applies, or to appropriate it to the local government levies in arrears of that corporation.

A corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 71, paragraph (1) or Article 144-3, paragraph (1) of the Corporation Tax Act, or a corporation that is to file a return pursuant to the provisions of paragraph (2), is not required, notwithstanding paragraph (1) (limited to the part pertaining to Article 71, paragraph (1) or Article 144-3, paragraph (1) of that Act) or paragraph (2), to carry out filing and payment of the per capita levy amount for the computation period of the tax base of that corporation tax amount, or for the period from the start of that business year to the day before the day on which six months have elapsed, with respect to a municipality in which only a dormitory, etc. of that corporation is located during the computation period of the tax base of that corporation tax amount or during the period from the start of that business year to the day before the day on which six months have elapsed.

With regard to a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 74, paragraph (1) or Article 144-6, paragraph (1) of the Corporation Tax Act and to which Article 75-2, paragraph (1) of that Act (including as applied mutatis mutandis pursuant to Article 144-8 of that Act; the same applies hereinafter in this paragraph and Article 327, paragraph (1)) applies, where Article 75-2, paragraph (9) of that Act (including as applied mutatis mutandis pursuant to Article 144-8 of that Act; the same applies hereinafter in this paragraph) applies, only for the computation period of the tax base of the corporation tax amount pertaining to that return to which Article 75-2, paragraph (9) of that Act applies, Article 20-5-2, paragraph (1) or (2) may be applied to the corporation tax levy amount calculated with that corporation tax amount as the tax base and the per capita levy amount to be paid together with it, on the assumption that Article 75-2, paragraph (1) of that Act does not apply to that corporation tax amount.

A domestic corporation that is a specified corporation must, notwithstanding paragraphs (1), (2), (31) and (33) through (35), in accordance with the provisions of Order of the Ministry of Internal Affairs and Communications, make a declaration of corporate municipal inhabitant tax that is to be made by means of a return under paragraph (1), (2), (31) or (33) through (35) (hereinafter in this Article referred to as a "tax return"), or that is to be made by attaching to a tax return the documents that are to be attached to a tax return under the provisions of this Act or orders based on it (hereinafter in this paragraph and paragraph (64) referred to as "attached documents"), by providing to the mayor of the municipality, by a method using the electronic data processing system for local tax procedures and via the Organization, the matters that are to be stated in the tax return (referred to in paragraphs (64) and (65) as "matters stated in a return") or the matters that are to be stated, or are stated, in the attached documents (hereinafter in this paragraph and paragraph (64) referred to as "matters stated in attached documents"); provided, however, that for the part of that declaration pertaining to attached documents, it may be made by a method of submitting to the mayor of the municipality an optical disc on which the matters stated in attached documents are recorded or any other recording medium specified by Order of the Ministry of Internal Affairs and Communications.

The specified corporation prescribed in the preceding paragraph means any of the following corporations:

a corporation whose amount of stated capital or capital contributions as of the date of commencement of the business year relating to the tax return (for a public corporation, etc., as of April 1 of the previous year) exceeds 100,000,000 yen;

a mutual company prescribed in the Insurance Business Act;

an investment corporation prescribed in Article 2, paragraph (12) of the Act on Investment Trusts and Investment Corporations (excluding a corporation set out in item (i));

a specific purpose company prescribed in Article 2, paragraph (3) of the Act on the Securitization of Assets (excluding a corporation set out in item (i)).

With regard to a declaration under paragraph (62) made pursuant to that paragraph, the provisions of this Act or orders based on it and the provisions of other laws and regulations specified by Cabinet Order apply as if it had been made by means of a tax return stating the matters stated in a return, or by attaching to such a tax return attached documents stating the matters stated in attached documents.

A declaration under paragraph (62) made pursuant to the main clause of that paragraph is deemed to have reached the mayor of the municipality prescribed in that paragraph at the time when the matters stated in a return were recorded in a file kept on the computer used by the Organization set out in Article 762, item (i).

If a domestic corporation referred to in paragraph (62) is found to have difficulty in using the electronic data processing system for local tax procedures due to a failure of a telecommunications line, a disaster or any other reason, and is found to be able to file a tax return without applying the provisions of that paragraph, and has obtained the approval of the mayor of the municipality to file a tax return without applying the provisions of that paragraph, the provisions of that paragraph through the preceding paragraph do not apply to a declaration under that paragraph made within the period designated by that mayor of the municipality. The same applies to a declaration under paragraph (62) made within the period designated by the district director pursuant to Article 75-5, paragraph (1) of the Corporation Tax Act (including the period deemed to have been so designated pursuant to paragraph (5) of that Article) in the case where a domestic corporation referred to in paragraph (62) that has submitted the written application under Article 75-5, paragraph (2) of that Act to the district director having jurisdiction over the place for tax payment prescribed in that paragraph has submitted to the mayor of the municipality, by the day before the deadline for filing the tax return or by attaching it to the tax return by that deadline for filing, the document specified by Order of the Ministry of Internal Affairs and Communications stating that it has obtained the approval under paragraph (1) of that Article or has not been subject to the disposition of rejection under paragraph (3) of that Article.

A domestic corporation that intends to obtain the approval in the first sentence of the preceding paragraph must submit to the mayor of the municipality a written application stating the circumstances that have made it necessary for it to be subject to the application of the first sentence of that paragraph, the period for which it intends to obtain the designation under the first sentence of that paragraph, and other matters specified by Order of the Ministry of Internal Affairs and Communications, with documents specified by Order of the Ministry of Internal Affairs and Communications attached, by 15 days before the start date of that period (where the date on which the reason prescribed in that paragraph arose is on or after the date 15 days before the deadline for filing a return under paragraph (1) (limited to a return that a corporation that is obliged to file a corporation tax return pursuant to the provisions of Article 74, paragraph (1) of the Corporation Tax Act is to file by the deadline for filing that return) or under paragraph (31) or (35), and that deadline for filing is a date within that period, by that start date).

If a written application under the preceding paragraph has been submitted and the mayor of the municipality finds that the circumstances referred to in that paragraph pertaining to the application are not reasonable, the mayor may reject the application.

If a written application under paragraph (67) has been submitted and the mayor of the municipality grants the approval in the first sentence of paragraph (66) or makes the disposition of rejection under the preceding paragraph on the application, the mayor must notify the domestic corporation that made the application to that effect in writing.

If a written application under paragraph (67) has been submitted and neither the approval in the first sentence of paragraph (66) nor the disposition of rejection under paragraph (68) has been made by the start date of the period, stated in that written application, for which designation under the first sentence of paragraph (66) is sought, the approval is deemed to have been granted on that date, and the designation under the first sentence of paragraph (66) is deemed to have been made with that period as the period under the first sentence of paragraph (66), respectively.

If the mayor of the municipality finds that it has ceased to be difficult for a domestic corporation to which the first sentence of paragraph (66) applies to use the electronic data processing system for local tax procedures, the mayor may rescind the approval in the first sentence of that paragraph.

When the mayor of the municipality makes the disposition under the preceding paragraph, the mayor must notify the domestic corporation subject to the disposition to that effect in writing.

A domestic corporation to which paragraph (66) applies must, when it intends to cease to be subject to the application of paragraph (66) with regard to a declaration under paragraph (62), submit to the mayor of the municipality a written notification stating that fact and other matters specified by Order of the Ministry of Internal Affairs and Communications.

If, with regard to a domestic corporation to which the first sentence of paragraph (66) applies, the disposition under paragraph (71) is made or the written notification under the preceding paragraph is submitted, the first sentence of paragraph (66) does not apply to a declaration under paragraph (62) made within the period under the first sentence of paragraph (66) on or after the day following the day on which those dispositions were made or those written notifications were submitted; provided, however, that this does not apply where that domestic corporation has newly obtained the approval in the first sentence of that paragraph on or after that day.

If, with regard to a domestic corporation to which the second sentence of paragraph (66) applies, the written notification under paragraph (73) is submitted or the disposition under Article 75-5, paragraph (3) or (6) of the Corporation Tax Act is made, the second sentence of paragraph (66) does not apply to a declaration under paragraph (62) made within the period under the second sentence of paragraph (66) on or after the day following the day on which those written notifications were submitted or those dispositions were made; provided, however, that this does not apply where that domestic corporation has newly submitted the document referred to in the second sentence of that paragraph on or after that day.

If a report under Article 790-2 has been made, and the Minister for Internal Affairs and Communications finds that, owing to a failure of the electronic data processing system for local tax procedures or any other reason, a large number of domestic corporations referred to in paragraph (62) are having difficulty in making the declaration under that paragraph pursuant to that paragraph, the Minister may designate a period during which tax returns may be filed without applying the provisions of that paragraph.

When the Minister for Internal Affairs and Communications has made the designation under the preceding paragraph, the Minister must immediately give public notice to that effect and notify the mayors of the municipalities and the Organization.

If public notice under the preceding paragraph has been given, notwithstanding paragraph (66), paragraph (62) through paragraph (65) do not apply to a declaration under paragraph (62) made within the period designated by the Minister for Internal Affairs and Communications pursuant to paragraph (76).

Matters concerning the calculation of the amount to be deducted from the corporation tax amount that becomes the tax base of the corporation tax levy, the procedures for that deduction, and other matters necessary for the application of the provisions of the preceding paragraphs are specified by Cabinet Order.