Local Tax Act

With respect to the application of paragraphs (1) and (2) of the preceding Article to individual prefectural inhabitant tax for each fiscal year from fiscal year 2016 through fiscal year 20382048, in the table in paragraph (2) of the preceding Article, "5/85" is deemed to be replaced with "5.105/84.895", "10/80" with "10.21/79.79", "20/70" with "20.42/69.58", "23/67" with "23.483/66.517", and "33/57" with "33.693/56.307".

With respect to the application of paragraphs (1) and (2) of the preceding Article to individual prefectural inhabitant tax for fiscal year 2049 and each subsequent fiscal year, for the time being, in the table in paragraph (2) of the preceding Article, "5/85" is deemed to be replaced with "5.05/84.95", "10/80" with "10.1/79.9", "20/70" with "20.2/69.8", "23/67" with "23.23/66.77", and "33/57" with "33.33/56.67".

With respect to the application of paragraphs (4) and (5) of the preceding Article to individual municipal inhabitant tax for each fiscal year from fiscal year 2016 through fiscal year 20382048, in the table in paragraph (5) of the preceding Article, "5/85" is deemed to be replaced with "5.105/84.895", "10/80" with "10.21/79.79", "20/70" with "20.42/69.58", "23/67" with "23.483/66.517", and "33/57" with "33.693/56.307".

With respect to the application of paragraphs (4) and (5) of the preceding Article to individual municipal inhabitant tax for fiscal year 2049 and each subsequent fiscal year, for the time being, in the table in paragraph (5) of the preceding Article, "5/85" is deemed to be replaced with "5.05/84.95", "10/80" with "10.1/79.9", "20/70" with "20.2/69.8", "23/67" with "23.23/66.77", and "33/57" with "33.33/56.67".

For the time being, where a person liable for the income levy of municipal inhabitant tax has capital gains prescribed in Article 31, paragraph (1) of the Act on Special Measures Concerning Taxation in the previous year, a municipality is to impose on those capital gains, notwithstanding Article 313, paragraphs (1) and (2) and Article 314-3, separately from other income, on the amount of long-term capital gains for the previous year, the income levy of municipal inhabitant tax in an amount equivalent to the amount equivalent to 3/100 of the taxable long-term capital gains (meaning the amount of long-term capital gains (where it falls under Article 33-4, paragraph (1) or (2), Article 34, paragraph (1), Article 34-2, paragraph (1), Article 34-3, paragraph (1), Article 35, paragraph (1), Article 35-2, paragraph (1), Article 35-3, paragraph (1) or Article 36 of that Act, the amount remaining after deducting the amount to be deducted by the application of those provisions from the amount of long-term capital gains prescribed in Article 31, paragraph (1) of that Act, and, where Article 314-2 as applied with terms replaced pursuant to paragraph (6), item (iii) applies to those amounts, the amount after that application); referred to as "taxable long-term capital gains" in paragraphs (4)(5) and (5)(6) of the following Article and Article 34-3, paragraph (3) of the Supplementary Provisions) (4/100 where the person liable for tax has an address within the area of a designated city). In this case, where there is an amount of loss arising in the calculation of the amount of long-term capital gains, that amount of loss is deemed not to have arisen for the purpose of applying the provisions concerning municipal inhabitant tax.

Solely for individual prefectural inhabitant tax for each fiscal year from fiscal 1988 through fiscal 2029, where a person liable for the income levy has made, in the previous year, a transfer (meaning the transfer prescribed in Article 31, paragraph (1) of the Act on Special Measures Concerning Taxation; the same applies hereinafter in this Article, the following Article, Article 35 of the Supplementary Provisions and Article 44-3, paragraphs (2) and (4) of the Supplementary Provisions) of land, etc. (meaning the land, etc. prescribed in Article 31, paragraph (1) of that Act; the same applies hereinafter in this Article, the following Article, Article 35 of the Supplementary Provisions and Article 44-3, paragraphs (2) and (4) of the Supplementary Provisions) that is the cause of the capital gains prescribed in paragraph (1) of the preceding Article, and that transfer falls under a transfer for a superior residential area, etc. (meaning a transfer for which it has been certified, as provided by Order of the Ministry of Internal Affairs and Communications, that it falls under a transfer set forth in the items of Article 31-2, paragraph (2) of the Act on Special Measures Concerning Taxation; the same applies in paragraph (4)(5)), the amount of the income levy of prefectural inhabitant tax imposed on the taxable long-term capital gains pertaining to the capital gains prescribed in paragraph (1) of the preceding Article (excluding capital gains to which Article 34-3, paragraph (1) of the Supplementary Provisions applies; the same applies in the following paragraph) is, notwithstanding the first sentence of paragraph (1) of the preceding Article, the amount equivalent to the amount specified in each of the following items according to the category of cases set forth in that item.

The provisions of the preceding paragraph apply, solely for individual prefectural inhabitant tax for each fiscal year from fiscal 1988 through fiscal 2029, to the income levy of prefectural inhabitant tax imposed on the taxable long-term capital gains pertaining to the capital gains prescribed in paragraph (1) of the preceding Article in the case where a person liable for the income levy has made, in the previous year, a transfer of land, etc. that is the cause of the capital gains prescribed in paragraph (1) of the preceding Article, and that transfer falls under a transfer for a determined site for constructing a superior residential area, etc. (meaning a transfer for which it has been certified, as provided by Order of the Ministry of Internal Affairs and Communications, that it is certain to be found to fall under a transfer of land, etc. set forth in Article 31-2, paragraph (2), items (xiii) through (xvi) of the Act on Special Measures Concerning Taxation within the period from the date of the transfer to December 31 of the year that includes the day on which two years have elapsed from that date (where there are unavoidable circumstances specified by Cabinet Order, such as that the period required for developing building land to be used for housing construction normally exceeds two years, the period from the date of the transfer to the date specified by Cabinet Order; referred to as the "scheduled period" in paragraphs (5)(6) and (7)(9))).

In the case of paragraph (1) (including as applied mutatis mutandis in paragraph (2)), where a person liable for the income levy has made a transfer that falls under a transfer of land, etc. set forth in Article 31-2, paragraph (2), items (xiii) through (xv) of the Act on Special Measures Concerning Taxation, and the land, etc. transferred was, at the time of the transfer, within a landslide prevention area under Article 3, paragraph (1) of the Landslide Prevention Act, a steep slope failure hazard area under Article 3, paragraph (1) of the Act on Prevention of Disasters Caused by Steep Slope Failure, a special sediment disaster alert area under Article 9, paragraph (1) of the Act on Sediment Disaster Countermeasures for Sediment Disaster Prone Areas, or a flood damage prevention area under Article 56, paragraph (1) of the Act on Countermeasures against Flood Damage of Specified Rivers Running Across Cities, the transfer of that land, etc. is deemed not to fall under a transfer for a superior residential area, etc. prescribed in paragraph (1) or a transfer for a determined site for constructing a superior residential area, etc. prescribed in paragraph (2).

In the case of paragraph (4)(5) (including as applied mutatis mutandis in the preceding paragraph), where a person liable for the income levy is subject to the application of Articles 33 through 33-4, Articles 34 through 35-3, Article 36-2, Article 36-5, Article 37, Articles 37-4 through 37-6 or Article 37-8 of the Act on Special Measures Concerning Taxation with respect to land, etc. that the person liable for tax holds, the transfer of that land, etc. is deemed not to fall under a transfer for a superior residential area, etc. prescribed in paragraph (4)(5) or a transfer for a determined site for constructing a superior residential area, etc. prescribed in the preceding paragraph.

In the case of paragraph (5) (including as applied mutatis mutandis in paragraph (6)), where a person liable for the income levy has made a transfer that falls under a transfer of land, etc. set forth in Article 31-2, paragraph (2), items (xiii) through (xv) of the Act on Special Measures Concerning Taxation, and the land, etc. transferred was, at the time of the transfer, within a landslide prevention area under Article 3, paragraph (1) of the Landslide Prevention Act, a steep slope failure hazard area under Article 3, paragraph (1) of the Act on Prevention of Disasters Caused by Steep Slope Failure, a special sediment disaster alert area under Article 9, paragraph (1) of the Act on Sediment Disaster Countermeasures for Sediment Disaster Prone Areas, or a flood damage prevention area under Article 56, paragraph (1) of the Act on Countermeasures against Flood Damage of Specified Rivers Running Across Cities, the transfer of that land, etc. is deemed not to fall under a transfer for a superior residential area, etc. prescribed in paragraph (5) or a transfer for a determined site for constructing a superior residential area, etc. prescribed in paragraph (6).

An individual or corporation that carries out the development under Article 31-2, paragraph (2), items (xiii) and (xiv) of the Act on Special Measures Concerning Taxation or the construction under item (xv) or (xvi) of that paragraph, and that has purchased land, etc. pertaining to a transfer to which paragraph (2) or (5)(6) was applied from a person to whom those provisions were applied, must, where all or part of that transfer has come to fall under a transfer of land, etc. set forth in Article 31-2, paragraph (2), items (xiii) through (xvi) of that Act within the scheduled period, without delay deliver to the person to whom paragraph (2) or (5)(6) was applied, with respect to the transfer that has come to so fall, a document specified by Order of the Ministry of Internal Affairs and Communications certifying that it has come to so fall.

A person to whom paragraph (2) or (5)(6) was applied must, when delivered the document prescribed in the preceding paragraph with regard to a transfer to which those provisions were applied, submit that document to the mayor of the municipality as provided by Order of the Ministry of Internal Affairs and Communications.

Where all or part of the transfer of land, etc. to which paragraph (2) or (5)(6) was applied has become difficult to fall under a transfer of land, etc. set forth in Article 31-2, paragraph (2), items (xiii) through (xvi) of the Act on Special Measures Concerning Taxation within the scheduled period prescribed in paragraph (2) due to unavoidable circumstances arising from an extraordinary disaster designated as a specified extraordinary disaster pursuant to Article 2, paragraph (1) of the Act on Special Measures concerning Preservation of Rights and Interests of Victims of Specified Disaster, in a case specified by Cabinet Order, and it has been certified, as provided by Order of the Ministry of Internal Affairs and Communications, that it is certain to be found that all or part of that transfer will come to fall under a transfer of land, etc. set forth in items (xiii) through (xvi) of Article 31-2, paragraph (2) of the Act on Special Measures Concerning Taxation during the period from the first day of that scheduled period to a date specified by Cabinet Order that is within two years after the last day of that scheduled period, then, for the application of paragraphs (2), (5)(6) and (7)(9) and the following paragraph through paragraph (12)(14), the scheduled period prescribed in paragraph (2) is the period from that first day to that date specified by Cabinet Order.

A person to whom paragraph (2) or (5)(6) was applied must, where all or part of the transfer to which those provisions were applied has ceased to fall under a transfer of land, etc. set forth in Article 31-2, paragraph (2), items (xiii) through (xvi) of the Act on Special Measures Concerning Taxation within the scheduled period prescribed in paragraph (2), report that fact to the mayor of the municipality, as provided by Order of the Ministry of Internal Affairs and Communications, within four months from the day on which that scheduled period expired.

In the case prescribed in the preceding paragraph, the transfer that has ceased to so fall is deemed, notwithstanding paragraph (2) or (5)(6), not to have been a transfer for a determined site for constructing a superior residential area, etc. prescribed in those provisions.

Where all or part of the transfer of land, etc. to which paragraph (2) or (5)(6) of the preceding Article was applied has become difficult to fall under a transfer of land, etc. set forth in Article 31-2, paragraph (2), items (xiii) through (xvi) of the Act on Special Measures Concerning Taxation within the period prescribed in those provisions (limited to a period whose last day is December 31, 1995), due to unavoidable circumstances arising from the Great Hanshin-Awaji Earthquake, in a case specified by Cabinet Order, and it has been certified, as provided by Order of the Ministry of Internal Affairs and Communications, that it is certain to be found that all or part of that transfer will come to fall under a transfer of land, etc. set forth in those provisions during the period up to a date specified by Cabinet Order that is within two years counting from January 1, 1996, the preceding Article applies by deeming the period from the date of that transfer to that date specified by Cabinet Order to be the period prescribed in paragraph (2) or (5)(6) of the preceding Article.

Where all or part of a transfer of land, etc. that has been subject to the provisions of Article 34-2, paragraph (5)(6) of the Supplementary Provisions has become difficult, due to unavoidable circumstances attributable to the Great East Japan Earthquake, to fall under a transfer of land, etc. listed in Article 31-2, paragraph (2), items (xiii) through (xvi) of the Act on Special Measures Concerning Taxation within the period prescribed in Article 34-2, paragraph (5)(6) of the Supplementary Provisions (limited to a period whose last day is December 31, 2011), in a case specified by Cabinet Order, and it has been certified, as provided by Order of the Ministry of Internal Affairs and Communications, that it is certain that all or part of that transfer will fall under a transfer of land, etc. listed in those provisions within the period up to a day specified by Cabinet Order that falls within two years counted from January 1, 2012, the provisions of Article 34-2 of the Supplementary Provisions apply, deeming the period from the day of that transfer to that day specified by Cabinet Order to be the period prescribed in Article 34-2, paragraph (5)(6) of the Supplementary Provisions.

The provisions of Article 34, paragraph (1) of the New Act (limited to the part pertaining to item (viii)-2) apply to individual prefectural inhabitant tax for fiscal year 2028 and thereafter, and for individual prefectural inhabitant tax for fiscal year 2027 and earlier, the provisions then in force continue to govern.

The provisions of Article 34-2, paragraph (4) of the Supplementary Provisions of the New Act apply to a transfer of land, etc. under Article 34-2, paragraph (1) of the Supplementary Provisions of the New Act that a person liable for the income levy of prefectural inhabitant tax carries out on or after the date of enforcement of the provisions set forth in Article 1, item (vi).

For the application of Article 34-2, paragraph (4) of the Supplementary Provisions of the New Act during the period from the date of enforcement of the provisions set forth in Article 1, item (vi) to the day before the date of enforcement of the provisions set forth in item (viii) of that Article, the phrase "Landslide Prevention Act" in that paragraph is deemed to be replaced with "Landslide Prevention Act (Act No. 30 of 1958)", the phrase "Act on Prevention of Disasters Caused by Steep Slope Failure" with "Act on Prevention of Disasters Caused by Steep Slope Failure (Act No. 57 of 1969)", and the phrase "Act on Sediment Disaster Countermeasures for Sediment Disaster Prone Areas" with "Act on Sediment Disaster Countermeasures for Sediment Disaster Prone Areas (Act No. 57 of 2000)".

The provisions of Article 314-2, paragraph (1) of the New Act (limited to the part pertaining to item (viii)-2) apply to individual municipal inhabitant tax for fiscal year 2028 and thereafter, and for individual municipal inhabitant tax for fiscal year 2027 and earlier, the provisions then in force continue to govern.

The provisions of Article 34-2, paragraph (8) of the Supplementary Provisions of the New Act apply to a transfer of land, etc. under Article 34-2, paragraph (5) of the Supplementary Provisions of the New Act that a person liable for the income levy of municipal inhabitant tax carries out on or after the date of enforcement of the provisions set forth in Article 1, item (vi).