Local Tax Act

A corporation that conducts business must, where Article 72-26 applies, within two months from the last day of the business year, file and pay to the prefecture in which its office or place of business is located, on the basis of the finalized settlement of accounts, the income levy, etc. or revenue levy, etc. for that business year. In this case, the enterprise tax amount to be paid by that corporation is the enterprise tax amount equivalent to the amount obtained by deducting, from the enterprise tax amount that corporation stated on that return, the enterprise tax amount stated on the return under that Article, or the enterprise tax amount to be paid where a return is deemed to have been submitted pursuant to paragraph (5) of that Article. However, where a corporation has submitted the return prescribed in that Article and, by the due date for filing and payment under this paragraph, an amended return under Article 72-31, paragraph (2) or (3) has been submitted, or a reassessment under Article 72-39, paragraph (1) or (3), Article 72-41, paragraph (1) or (3) or Article 72-41-2, paragraph (1) or (3) has been made, the enterprise tax amount to be deducted from the enterprise tax amount stated by that corporation on the return under this paragraph is the total of the enterprise tax amount stated on that return prescribed in Article 72-26, the enterprise tax amount increased by that amended return, and the tax shortfall under Article 72-44, paragraph (1) relating to that reassessment.

The provisions of Article 72-25, paragraphs (2) through (13) and paragraphs (16) through (18) apply mutatis mutandis to the filing and payment to be made by a corporation pursuant to the preceding paragraph and to the return to be submitted by that corporation to the prefectural governor of the location of its office or place of business in the case of that paragraph.

A corporation that conducts business must submit a return in accordance with the preceding two paragraphs even where there is no enterprise tax amount to be paid for the business year referred to in paragraph (1).

In the case of paragraph (1) or the preceding paragraph, where the enterprise tax amount stated on the return of a corporation that conducts business is less than the enterprise tax amount stated, or that should have been stated, on the return under Article 72-26 relating to that enterprise tax amount (hereinafter in this Article, Article 72-41-4, Article 72-44, Article 72-46 and Article 72-48 referred to as the "interim payment"), or where no enterprise tax amount is stated on that return, the prefecture is, as provided by Cabinet Order, to refund the interim payment equivalent to the shortfall or the entire interim payment, or to appropriate it to local government levies in arrears. In this case, the corporation that conducts that business must submit, together with the return under paragraph (1) or the preceding paragraph, a written request stating that it requests that refund.

A corporation in liquidation, where a business year (excluding the business year including the day of determination of residual assets) ends during its liquidation, must, treating the value added, income or revenue for that business year as the value added, income or revenue of a corporation that has not been dissolved, calculate for that business year, under Article 72-12, Article 72-14 through Article 72-20, Article 72-23 through Article 72-24-3, Article 72-24-5, Article 72-24-6 or Article 72-24-7, paragraphs (1) through (5), the value added, income or revenue for that business year and the enterprise tax amount on them, and, where there is such a tax amount, file and pay the value-added levy, income levy or revenue levy for that business year to the prefecture in which its office or place of business is located within two months from the last day of that business year.

The provisions of Article 72-25, paragraphs (2) through (13) and paragraphs (16) through (18) apply mutatis mutandis to the filing and payment to be made by a corporation pursuant to the preceding paragraph and to the return to be submitted by that corporation to the prefectural governor of the location of its office or place of business in the case of that paragraph. In this case, the phrase "value added, amount of stated capital, etc." in Article 72-25, paragraph (8) is deemed to be replaced with "value added", the phrase "value-added levy amount, capital levy amount" with "value-added levy amount"; in paragraph (11) of that Article, the phrase "value added, amount of stated capital, etc." with "value added", the phrase ", value-added levy amount and capital levy amount" with "and value-added levy amount", and the phrase ", value added and amount of stated capital, etc." with "and value added".

A corporation in liquidation, where the business year including the day of determination of residual assets during its liquidation (where that corporation is a group tax sharing corporation, excluding one that ends on the last day of the business year of the group tax sharing parent corporation of that corporation) ends, must, treating the income for that business year as the income of a corporation that has not been dissolved, calculate for that business year, under Article 72-12, Article 72-23, Article 72-24, Article 72-24-6 or Article 72-24-7, paragraphs (1) through (5), the income for that business year and the enterprise tax amount on it, and, where there is such a tax amount, file and pay the income levy for that business year to the prefecture in which its office or place of business is located within one month from the last day of that business year (where the final distribution or delivery of residual assets is made within that period, by the day before the day on which it is made).

The provisions of Article 72-25, paragraphs (8) through (13) and paragraph (17) apply mutatis mutandis to the return to be submitted by the corporation referred to in the preceding paragraph to the prefectural governor of the location of its office or place of business in the case of that paragraph. In this case, the phrase "value added, amount of stated capital, etc., income, value-added levy amount, capital levy amount and income levy amount" in Article 72-25, paragraph (8) is deemed to be replaced with "income and income levy amount", the phrase "value added, amount of stated capital, etc. and income" with "income"; and in paragraph (12) of that Article, the phrase "revenue, income, revenue levy amount and income levy amount" with "income and income levy amount", and the phrase "revenue and income" with "income".

A corporation in liquidation (limited to a group tax sharing corporation), where the business year including the day of determination of residual assets during its liquidation (limited to one that ends on the last day of the business year of the group tax sharing parent corporation of that corporation) ends, must, treating the income for that business year as the income of a corporation that has not been dissolved, calculate for that business year, under Article 72-12, Article 72-23, Article 72-24, Article 72-24-6 or Article 72-24-7, paragraphs (1) through (5), the income for that business year and the enterprise tax amount on it, and, where there is such a tax amount, file and pay the income levy for that business year to the prefecture in which its office or place of business is located within two months from the last day of that business year.

The provisions of Article 72-25, paragraph (5), paragraphs (8) through (13) and paragraphs (16) through (18) apply mutatis mutandis to the filing and payment to be made by a corporation pursuant to the preceding paragraph and to the return to be submitted by that corporation to the prefectural governor of the location of its office or place of business in the case of that paragraph. In this case, the phrase "value added, amount of stated capital, etc., income, value-added levy amount, capital levy amount and income levy amount" in paragraph (8) of that Article is deemed to be replaced with "income and income levy amount", the phrase "value added, amount of stated capital, etc. and income" with "income"; in paragraph (12) of that Article, the phrase "revenue, income, revenue levy amount and income levy amount" with "income and income levy amount", and the phrase "revenue and income" with "income"; and in paragraph (16) of that Article, the phrase "paragraph (2) or (4) and Article 20-5-2, paragraph (1) or (2)" with "Article 20-5-2, paragraph (1) or (2)".

A corporation in liquidation must submit a return in accordance with the preceding paragraphs even where there is no amount of enterprise tax to be paid for each business year in liquidation.

With regard to the application of the provisions of paragraphs (1) through (6) of the preceding Article to the business year in the case where a group tax sharing subsidiary corporation is dissolved in the middle of a business year (excluding the case where it has received an order commencing bankruptcy proceedings), in paragraph (1) of that Article, the phrase "for that business year as the value added" is deemed to be replaced with "for the portion of that business year corresponding to the period on or after the day of dissolution as the value added", the phrase "Article 72-14 through Article 72-20" with "Article 72-14 through Article 72-22", the phrase "the value added, income or revenue for that business year and" with "the value added, amount of stated capital, etc., income or revenue for that business year and", the phrase "the value-added levy, income levy" with "the value-added levy, capital levy, income levy"; in paragraph (2) of that Article, the phrase "in the case of that paragraph. In this case, the phrase 'value added, amount of stated capital, etc.' in paragraph (8) of Article 72-25 is deemed to be replaced with 'value added', the phrase 'value-added levy amount, capital levy amount' with 'value-added levy amount'; in paragraph (11) of that Article, the phrase 'value added, amount of stated capital, etc.' with 'value added', the phrase ', value-added levy amount and capital levy amount' with 'and value-added levy amount', and the phrase ', value added and amount of stated capital, etc.' with 'and value added'" with "in the case of that paragraph"; in paragraph (3) of that Article, the phrase "for that business year as the income of" with "for the portion of that business year corresponding to the period on or after the day of dissolution as the income of", the phrase "Article 72-12, Article 72-23" with "Article 72-12, Article 72-14 through Article 72-22, Article 72-23", the phrase "Article 72-24, Article 72-24-6" with "Article 72-24 through Article 72-24-3, Article 72-24-5, Article 72-24-6", the phrase "the income for that business year and the enterprise tax amount on it" with "the value added, amount of stated capital, etc., income or revenue for that business year and the enterprise tax amount on them", the phrase "the income levy" with "the value-added levy, capital levy, income levy or revenue levy"; in paragraph (4) of that Article, the phrase "in the case of that paragraph. In this case, the phrase 'value added, amount of stated capital, etc., income, value-added levy amount, capital levy amount and income levy amount' in paragraph (8) of Article 72-25 is deemed to be replaced with 'income and income levy amount', the phrase 'value added, amount of stated capital, etc. and income' with 'income'; and in paragraph (12) of that Article, the phrase 'revenue, income, revenue levy amount and income levy amount' with 'income and income levy amount', and the phrase 'revenue and income' with 'income'" with "in the case of that paragraph"; in paragraph (5) of that Article, the phrase "for that business year as the income of" with "for the portion of that business year corresponding to the period on or after the day of dissolution as the income of", the phrase "Article 72-12, Article 72-23" with "Article 72-12, Article 72-14 through Article 72-22, Article 72-23", the phrase "Article 72-24, Article 72-24-6" with "Article 72-24 through Article 72-24-3, Article 72-24-5, Article 72-24-6", the phrase "the income for that business year and the enterprise tax amount on it" with "the value added, amount of stated capital, etc., income or revenue for that business year and the enterprise tax amount on them", the phrase "the income levy" with "the value-added levy, capital levy, income levy or revenue levy"; and in paragraph (6) of that Article, the phrase "In this case, the phrase 'value added, amount of stated capital, etc., income, value-added levy amount, capital levy amount and income levy amount' in paragraph (8) of that Article is deemed to be replaced with 'income and income levy amount', the phrase 'value added, amount of stated capital, etc. and income' with 'income'; in paragraph (12) of that Article, the phrase 'revenue, income, revenue levy amount and income levy amount' with 'income and income levy amount', and the phrase 'revenue and income' with 'income'; and in paragraph (16) of that Article, the phrase 'paragraph (2) or (4) and Article 20-5-2, paragraph (1) or (2)' with 'Article 20-5-2, paragraph (1) or (2)'" with "In this case, the phrase 'paragraph (2) or (4) and Article 20-5-2, paragraph (1) or (2)' in paragraph (16) of that Article is deemed to be replaced with 'Article 20-5-2, paragraph (1) or (2)'".

For the business year in the case where a group tax sharing subsidiary corporation in liquidation continues in the middle of a business year, Article 72-25, paragraph (1), Article 72-26, paragraph (1) or Article 72-28, paragraph (1) applies, treating the portion of the value added, income or revenue corresponding to the period from the start date of that business year to the day preceding the day of continuation as the value added, income or revenue of a corporation that has not been dissolved.