Local Tax Act

Local consumption tax is imposed, with respect to taxable transfers, etc. of assets carried out by a business operator (meaning, among the taxable transfers, etc. of assets prescribed in Article 2, paragraph (1), item (ix) of the Consumption Tax Act, those other than specified transfers, etc. of assets (meaning the specified transfers, etc. of assets prescribed in item (viii)-2 of that paragraph; the same applies in Article 72-84, paragraph (1), item (ii) and paragraph (2)) and those on which consumption tax is not imposed or is exempted under the provisions of that Act or another Act or a treaty; the same applies hereinafter in this Section) and specified taxable purchases (meaning, among the specified taxable purchases prescribed in Article 5, paragraph (1) of that Act, those other than those on which consumption tax is not imposed or is exempted under the provisions of that Act or another Act or a treaty; the same applies hereinafter in this Section), on that business operator (excluding a business operator exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1) of the Consumption Tax Act (for a trustee of a trust subject to corporate taxation, etc. prescribed in Article 15, paragraph (1) of that Act, limited to a business operator exempted from the obligation to pay consumption tax in respect of all of the trustee business operator prescribed in paragraph (3) of that Article and the own-capacity business operator prescribed in paragraph (4) of that Article)) by the prefecture prescribed in the following paragraph by means of the transfer levy, and, with respect to taxable goods prescribed in Article 2, paragraph (1), item (xi) of the Consumption Tax Act (excluding those on which consumption tax is not imposed or is exempted under the provisions of the Act on Collection, etc. of National Consumption Tax Imposed on Imported Goods (Act No. 37 of 1955)that Act or another Act or a treaty), on the person who takes delivery of those taxable goods from the bonded area prescribed in item (ii) of that paragraph, by the prefecture in which that bonded area is located, by means of the cargo levy.

an individual business operator who has a domicile in Japan (meaning the area where this Act is enforced; the same applies hereinafter in this paragraph and Article 72-80-3): the place of that domicile;

Where the director-general of a customs house collects consumption tax pursuant to Article 8, paragraph (1) of the Act on Collection, etc. of National Consumption Tax Imposed on Imported Goods (Act No. 37 of 1955), or where a district director or the director-general of a customs house collects consumption tax pursuant to another provision of an Act concerning consumption tax that is specified by Cabinet Order, the prefecture in which the tax office to which that district director belongs or the customs house to which that director-general of a customs house belongs is located is to impose local consumption tax on the person liable to pay that consumption tax, with the amount of consumption tax to be collected as the tax base, and the provisions of this Section (excluding paragraphs (1) through (3) and this paragraph) apply on the basis that the local consumption tax to be imposed where a district director collects consumption tax is included in the transfer levy, and the local consumption tax to be imposed where the director-general of a customs house collects consumption tax is included in the cargo levy. In this case, the local consumption tax deemed to be included in the transfer levy is to be collected by the method of ordinary collection.

Application of the Provisions of this Section to the Supply of Telecommunications Services Through a SpecifiedType 1 Platform Operator

If the supply of telecommunications services that an overseas business operator prescribed in Article 215-2, paragraph (1), item (iv)-2 of the Consumption Tax Act carries out in Japan, as prescribed in item (viii)-3 of that paragraph (excluding those that fall under the supply of telecommunications services to business operators prescribed in item (viii)-4 of is carried out through a digital platform prescribed in that paragraph; (hereinafter in this the following Article referred to as the "supply of telecommunications services") is carried out through a digital platform prescribed in Article 15-2, paragraph (1) of that Acta "digital platform"), and the consideration for it is received through a specified Type 1 platform operator prescribed in that paragraph (hereinafter in this Article referred to as a "specified platform operator"), the provisions of this Section apply as though that specifiedType 1 platform operator had carried out the supply of telecommunications services.

If the transfer of assets set forth in the items of Article 15-3, paragraph (1) of the Consumption Tax Act is carried out through a digital platform, and the consideration for it is received through a Type 2 platform operator prescribed in that paragraph, the provisions of this Section apply as though that Type 2 platform operator had carried out the transfer of assets.

The Organization may entrust part of the affairs of receiving the specified collections prescribed in the preceding paragraph (hereinafter in this Chapter referred to as "specified collections") that it performs pursuant to the provisions of paragraph (1) to a specified financial institution, etc. (meaning, among the financial institutions, etc. prescribed in Article 20-11-2, those that conform to the standards specified by Order of the Ministry of Internal Affairs and Communications as ones able to perform the affairs of receiving specified collections appropriately and reliably; the same applies in the following paragraph), as provided by Cabinet Order.

Where the Organization has entrusted part of the affairs of receiving specified collections to a specified financial institution, etc. pursuant to the preceding paragraph, and, among the procedures for payment or remittance of specified collections pertaining to a local tax specified by Cabinet Order, such as corporate enterprise tax (limited to a tax whose statutory payment due date (meaning the statutory payment due date prescribed in Article 11-4, paragraph (1); the same applies hereinafter in this paragraph) arrives at the same time as the deadline for filing the return pertaining to that local tax), those specified by Order of the Ministry of Internal Affairs and Communications have been carried out on the statutory payment due date (limited to where the amount of tax is not more than the amount specified by Order of the Ministry of Internal Affairs and Communications), and the payment or remittance has been made to the specified financial institution, etc. by the date specified by Cabinet Order, that payment or remittance is deemed to have been made on the statutory payment due date, even where the date of that payment or remittance is after the statutory payment due date, and the provisions concerning delinquency charges apply.