Local Tax Act

The revenues for each business year in Article 72-12, item (iv), for the electricity supply business and the gas supply business (limited to the gas pipeline supply business and the specified gas supply business; the same applies hereinafter in this Section, except in Article 72-48, paragraph (3), item (iii)), are the amount obtained by deducting subsidies to be received from the national government or local governments in that business year, revenues from the sale of fixed assets and other revenues specified by Cabinet Order from the total amount to be received for that business in that business year.

The revenues for each business year in Article 72-12, item (iv) are, for a life insurance company prescribed in Article 2, paragraph (3) of the Insurance Business Act or a foreign life insurance company, etc. prescribed in paragraph (8) of that Article among corporations that carry on an insurance business, the amounts listed in the following items in accordance with the category of insurance listed in the following items that that life insurance company or foreign life insurance company, etc. has contracted:

for individual insurance (meaning insurance other than the group insurance prescribed in item (iii); the same applies in the following item) other than the savings insurance prescribed in the following item, the amount obtained by multiplying the premium income for each business year (excluding premiums received as reinsurance premiums; the same applies hereinafter in this paragraph) by 24/100;

for savings insurance (meaning, of individual insurance, insurance whose main purpose is savings and that is specified by Cabinet Order), the amount obtained by multiplying the premium income for each business year by 7/100;

for group insurance (meaning insurance under which, according to the general insurance conditions, the representative of a group is the policyholder and persons belonging to that group are the insured persons; the same applies in the following item) other than the group pension insurance prescribed in the following item, the amount obtained by multiplying the premium income for each business year (for premiums received for insurance with a provision for payment of benefits other than insurance benefits when an insured person withdraws from the group, the amount obtained by deducting the portion corresponding to those benefits) by 16/100;

for group pension insurance (meaning, of group insurance, insurance for the purpose of paying retirement pensions or lump-sum retirement allowances, or pensions or lump sums equivalent thereto, to persons who belonged to that group), the amount obtained by multiplying the premium income for each business year by 5/100.

The revenues for each business year in Article 72-12, item (iv) are, for a casualty insurance company prescribed in Article 2, paragraph (4) of the Insurance Business Act or a foreign casualty insurance company, etc. prescribed in paragraph (9) of that Article among corporations that carry on an insurance business, the amounts listed in the following items in accordance with the category of insurance listed in the following items that that casualty insurance company or foreign casualty insurance company, etc. has contracted:

for hull insurance (meaning insurance whose subject of insurance is a ship; the same applies in item (v)), the amount obtained by multiplying the net premium income for each business year (meaning the amount obtained by deducting the total amount of reinsurance premiums and cancellation refunds paid, or confirmed to be payable, in that business year from the total amount of premiums received, or confirmed to be receivable, in each business year (where any part of those premiums has been, or is to be, refunded, the amount after deducting that amount) and reinsurance refunds; the same applies hereinafter in this Article) by 25/100;

for transit insurance (meaning insurance whose subject of insurance is goods in transit by land; the same applies in item (v)) and cargo insurance (meaning insurance relating to a cargo insurance contract prescribed in Article 819 of the Commercial Code; the same applies in item (v)), the amount obtained by multiplying the net premium income for each business year by 45/100;

for compulsory automobile liability insurance (meaning insurance prescribed in Chapter III of the Act on Securing Compensation for Automobile Accidents (Act No. 97 of 1955); the same applies in item (v)), the amount obtained by multiplying the net premium income for each business year by 10/100;

for earthquake insurance (meaning insurance whose insurance policy satisfies the requirements listed in the items of Article 2, paragraph (2) of the Act on Earthquake Insurance (Act No. 73 of 1966); the same applies in the following item), the amount obtained by multiplying the net premium income for each business year by 20/100;

for insurance other than hull insurance, transit insurance, cargo insurance, compulsory automobile liability insurance and earthquake insurance, the amount obtained by multiplying the net premium income for each business year by 40/100.

The revenues for each business year in Article 72-12, item (iv) are, for a small-amount short-term insurer prescribed in Article 2, paragraph (18) of the Insurance Business Act among corporations that carry on an insurance business, the amounts specified in the following items in accordance with the category of insurance listed in the following items that that small-amount short-term insurer has contracted:

insurance listed in Article 3, paragraph (4), items (i) and (ii) of the Insurance Business Act: the amount obtained by multiplying the net premium income for each business year by 16/100;

insurance listed in Article 3, paragraph (5), item (i) of the Insurance Business Act: the amount obtained by multiplying the net premium income for each business year by 26/100.

The revenues for each business year in Article 72-12, item (iv) are, for Nippon Export and Investment Insurance, a stock company that carries on the trade insurance business, the amount obtained by multiplying the net premium income for each business year by 15/100.

The tax base of the revenue levy for a specified domestic corporation is the amount obtained by deducting the revenues attributable to business outside the area of application of this Act from the total amount of revenues from the business of that specified domestic corporation. In this case, if it is difficult to calculate the revenues attributable to business outside the area of application of this Act, the amount calculated as specified by Cabinet Order is deemed to be the revenues attributable to the business of that specified domestic corporation outside the area of application of this Act.

For the tax base of the enterprise tax on a business (excluding the electricity supply business, gas supply business, insurance business and trade insurance business) conducted by a corporation other than a corporation listed in Article 72-2, paragraph (1), item (i), (a), the amount of stated capital, amount of sales, floor area or price of a house, area or price of land, number of employees, etc. may be used, in accordance with the circumstances of the business, together with the income in Article 72-12, item (iii).

The value added and income to be used as the tax base of the enterprise tax to be paid by a corporation that conducts a mineral extraction business and a refining business in an integrated manner are the amounts obtained by multiplying the value added and the income calculated across those businesses, respectively, by the figure obtained by dividing the amount obtained by deducting the price of the minerals that is the tax base of the mineral product tax to be paid by the corporation for minerals extracted during the computation period of the tax base from the amount to be received for the products of those businesses during the computation period of the tax base, by the amount to be received for those products.

Where the corporation in the preceding paragraph is able to separate the value added and income relating to the mineral extraction business from the value added and income relating to the refining business, the value added and income to be used as the tax base of the enterprise tax relating to the refining business of that corporation are, notwithstanding the provisions of that paragraph, the value added and income calculated separately.

In the case referred to in the preceding paragraph, the corporation must obtain the approval of the prefectural governor of the prefecture where its office or place of business is located (for a corporation that conducts business with offices or places of business established in two or more prefectures, the prefectural governor of the prefecture where its principal office or place of business is located) for the method of that separate calculation. The same applies where it intends to change the method of that separate calculation.

In addition to what is provided for in Article 72-14 through the preceding Article, matters necessary for the calculation of the value added, the amount of stated capital, etc. and the income, and the revenues for each business year are specified by Cabinet Order.