Local Tax Act

A prefecture is to distribute, to the municipalities (including special wards; the same applies hereinafter in this Article) within that prefecture, as specified by Cabinet Order, the amount equivalent to three-fifths of the total amount obtained by adding the amount equivalent to the amount received from other prefectures under paragraph (1) of the preceding Article, and deducting the amount equivalent to the amount paid to other prefectures under that paragraph, to the amount obtained by multiplying the amount equivalent to the interest levy amount remitted to that prefecture by the rate specified by Cabinet Order prescribed in that paragraph, apportioning it in proportion to the amount calculated, as specified by Cabinet Order, on the basis of the amount of individual prefectural inhabitant tax relating to each municipality.

The amount of individual prefectural inhabitant tax relating to the municipality referred to in the preceding paragraph is to be calculated as provided by Order of the Ministry of Internal Affairs and Communications.

The tax base of the dividend levy is the amount of specified dividends, etc. for which payment is to be received.

The amount of specified dividends, etc. referred to in the preceding paragraph is calculated in accordance with the rules of the Income Tax Act and other laws and regulations concerning income tax.

The tax rate of the dividend levy is five percent.

Of the specified dividends, etc., for those relating to interest, etc. on foreign public and corporate bonds, etc. other than the interest, etc. on foreign general public and corporate bonds, etc. prescribed in Article 3-3, paragraph (4), item (ii) of the Act on Special Measures Concerning Taxation, dividends, etc. of foreign investment trusts, etc. prescribed in Article 8-3, paragraph (4), item (ii) of that Act, dividends, etc. of foreign shares prescribed in Article 9-2, paragraph (1) of that Act, or gain on redemption of foreign discount bonds prescribed in Article 41-12-2, paragraph (1), item (ii) of that Act (hereinafter in this Article and Article 71-31 referred to as "foreign specified dividends, etc."), when there is an amount of foreign income tax prescribed in Article 95, paragraph (1) of the Income Tax Act (including that specified by Cabinet Order) collected upon payment, the amount of specified dividends, etc. to be received prescribed in Article 71-27, paragraph (1) is the amount after deducting the amount equivalent to that foreign income tax from the amount of those foreign specified dividends, etc.

The dividend levy must be collected by the method of special collection.

When the dividend levy is to be collected by the method of special collection, the person who pays specified dividends, etc. to an individual having an address in the prefecture as of the date on which the individual is to receive payment of the specified dividends, etc. (or, where those specified dividends, etc. are foreign specified dividends, etc., dividends and similar income on listed shares, etc. prescribed in Article 9-3-2, paragraph (1) of the Act on Special Measures Concerning Taxation (referred to as "dividends and similar income on listed shares, etc." in the following paragraph), or gain on redemption of specified discount bonds prescribed in Article 41-12-2, paragraph (3) of that Act (referred to as "gain on redemption" in the following paragraph), and there is a person who handles their payment, that person) must be designated as a special collection agent by a Prefectural Ordinance of that prefecture and made to collect the levy.

The special collection agent referred to in the preceding paragraph is obliged, upon payment of the specified dividends, etc. (where the special collection agent is a person who handles the payment of foreign specified dividends, etc., dividends and similar income on listed shares, etc. or gain on redemption, upon the delivery of the foreign specified dividends, etc., dividends and similar income on listed shares, etc. or gain on redemption relating to that handling), to collect the dividend levy on those specified dividends, etc., and, by the 10th day of the month following the month containing the day of collection, to submit a remittance return stating the amount of the tax base and the tax amount of the dividend levy to be collected and other necessary matters, in the form specified by Order of the Ministry of Internal Affairs and Communications (hereinafter in this Subsection referred to as a "remittance return"), to the governor of the prefecture in which the individual who receives payment of those specified dividends, etc. has an address as of the date on which the individual is to receive payment of those specified dividends, etc., and to remit the remittance to that prefecture. In this case, a statement specified by Order of the Ministry of Internal Affairs and Communications must be attached to the remittance return to be submitted to that prefectural governor.

Necessary matters concerning the application of the provisions of the preceding two paragraphs are specified by Cabinet Order.

When a remittance return under paragraph (2) of the preceding Article has been submitted, if the amount of the tax base or the tax amount relating to the remittance return differs from what the prefectural governor has found through investigation, the governor makes a reassessment of it.

If a special collection agent has not submitted a remittance return, the prefectural governor determines, through investigation, the amount of the tax base and the tax amount for which a remittance return should be filed.

If the prefectural governor discovers through investigation that the amount of the tax base or the tax amount reassessed or determined pursuant to the provisions of the preceding two paragraphs or this paragraph is excessive or insufficient, the governor makes a reassessment of it.

When the prefectural governor has made a reassessment or determination pursuant to the provisions of the preceding three paragraphs, the governor must notify the special collection agent of it without delay.

When a reassessment or determination has been made pursuant to the provisions of paragraphs (1) through (3) of the preceding Article and there is a shortfall amount (meaning the shortfall in the amount of remittance resulting from a reassessment, or the amount of remittance resulting from a determination; the same applies hereinafter in this Subsection), a prefectural tax collection official must collect it, with the day on which one month has passed from the day on which the notice under paragraph (4) of that Article was given as the due date for payment.

In the case referred to in the preceding paragraph, an amount of delinquency charge equivalent to the amount calculated by multiplying the shortfall amount by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the due date for payment referred to in the preceding paragraph or the period up to the day on which one month elapses from the day following that due date for payment), in accordance with the number of days in the period from the day following the due date for payment under Article 71-31, paragraph (2) (where the due date for payment has been extended, the extended due date for payment; except in Article 71-40, paragraph (1), the same applies hereinafter in this Subsection) to the day of remittance, must be added to the shortfall amount and collected.

When the prefectural governor finds that there are unavoidable reasons for a special collection agent having been subject to the reassessment or determination under the preceding Article, the governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.

A special collection agent for the dividend levy who remits the remittance after the due date for payment under Article 71-31, paragraph (2) must remit, in addition to the amount of remittance, an amount of delinquency charge equivalent to the amount calculated by multiplying that amount of remittance by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the day on which one month elapses from the day following that due date for payment), in accordance with the number of days in the period from the day following that due date for payment to the day of remittance.

A prefectural governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph if the governor finds that there is an unavoidable reason why the special collection agent did not remit the remittance by the due date for payment under Article 71-31, paragraph (2).