Local Tax Act

Where a person liable for the income levy has been imposed income tax, or a tax equivalent to the income levy, interest levy, dividend levy and share transfer income levy of the prefectural inhabitant tax or the income levy of the municipal inhabitant tax, under the laws and regulations of a foreign country (in the case of one imposed on income arising within a period during which the person was a non-resident prescribed in Article 2, paragraph (1), item (v) of the Income Tax Act, limited to one imposed under the laws and regulations of a foreign country on the domestic source income listed in Article 161, paragraph (1), item (i) of the Income Tax Act; referred to as "foreign income tax, etc." in this Article), and there is an amount of that foreign income tax, etc. exceeding the total of the deduction limit under Article 95, paragraph (1) of the Income Tax Act and the deduction limit under Article 165-6, paragraph (1) of the Income Tax Act, a prefecture is to deduct that excess amount (limited to the amount specified by Cabinet Order), as provided by Cabinet Order and up to the amount calculated as provided by Cabinet Order, from the amount of the income levy of that person when Article 35 and the preceding two Articles are applied.

Where a person liable for the income levy has been imposed a dividend levy amount under the provisions of Subsection 5 on the amount of specified dividends, etc. that formed the basis for calculating the amount of income relating to specified dividends, etc. stated in the final return prescribed in Article 32, paragraph (13), or a share transfer income levy amount under the provisions of Subsection 6 on the amount of capital gains from specified shares, etc. that formed the basis for calculating the amount of income relating to the amount of capital gains from specified shares, etc. stated in the final return prescribed in paragraph (15) of that Article, a prefecture is to deduct the amount obtained by multiplying that dividend levy amount or that share transfer income levy amount by two-fifths from the amount of the income levy of that person when Article 35 and the preceding three Articles are applied.

The standard tax rate of the per capita levy on individuals is 1,000 yen.

The assessment date of individual prefectural inhabitant tax is January 1 of the year that includes the first day of the fiscal year in question.

Except as otherwise specially provided in this Subsection and Chapter V, Section 2, the assessment and collection of individual prefectural inhabitant tax is to be carried out by the municipalities within the area of the prefecture, in accordance with the rules for the assessment and collection of the individual municipal inhabitant tax of the municipality (excluding the reduction of the rate of the per capita levy), together with the assessment and collection of the individual municipal inhabitant tax of the municipality.

In the case of the preceding paragraph, with regard to the calculation of the monetary incentive for payment before the payment period under Article 321, paragraph (2) relating to individual prefectural inhabitant tax and individual municipal inhabitant tax, that paragraph is to be applied on the basis of the total amount of individual prefectural inhabitant tax and individual municipal inhabitant tax.

In the case of paragraph (1), with regard to the calculation of interest on refund under Article 17-4, delinquency charges under Article 321-2, Article 326, Article 328-10 or Article 328-13, additional charges for understatement or additional charges for failure to file under Article 328-11, or substantial additional charges under Article 328-12, relating to individual prefectural inhabitant tax (limited to the per capita levy imposed on the persons listed in Article 24, paragraph (1), item (ii) and the separately taxed income levy; the same applies hereinafter in this paragraph, paragraph (2) of the following Article and Article 43) and individual municipal inhabitant tax (limited to the per capita levy imposed on the persons listed in Article 294, paragraph (1), item (ii) and the income levy imposed under Article 328; the same applies hereinafter in this paragraph, paragraph (2) of the following Article and Article 43), those provisions are to be applied on the basis of the total amount of individual prefectural inhabitant tax and individual municipal inhabitant tax.

The provisions of Article 317-4 (limited to the part concerning a person who submitted a return required to be submitted under Article 317-2, paragraphs (1) through (5) with a false statement), Article 324, Article 328-16, paragraphs (1) and (3) through (6), and Articles 332 through 334 apply mutatis mutandis to individual prefectural inhabitant tax that municipalities assess and collect in accordance with the rules for the assessment and collection of individual municipal inhabitant tax under paragraph (1).

A prefecture is to provide necessary assistance to municipalities in the execution of the affairs relating to the assessment and collection of individual prefectural inhabitant tax that the municipalities carry out under paragraph (1).

A person liable for individual prefectural inhabitant tax or a special collection agent must pay or remit the local government levies relating to that individual prefectural inhabitant tax, together with the payment or remittance of the local government levies relating to individual municipal inhabitant tax, in accordance with the rules for that payment or remittance.

Where local government levies relating to individual prefectural inhabitant tax and individual municipal inhabitant tax have been paid or remitted, the payment or remittance of the local government levies relating to individual prefectural inhabitant tax or individual municipal inhabitant tax is deemed to have been made in the amount obtained by apportioning the amount obtained by deducting the demand fee and the expenses for the delinquent tax collection procedure from the amount paid or remitted, according to the amounts of individual prefectural inhabitant tax and individual municipal inhabitant tax.

The tax notice, notice of change of the due date for payment, written notice to the effect that collection will be by the method of special collection delivered to the special collection agent and to the person liable for tax in respect of special collection, demand letter and other documents that a municipality assessing and collecting individual prefectural inhabitant tax under Article 41, paragraph (1) uses for the assessment and collection of that individual prefectural inhabitant tax are to be prepared, together with those documents used for the assessment and collection of the individual municipal inhabitant tax of that municipality, in conformity with the forms specified by Order of the Ministry of Internal Affairs and Communications.

Where the mayor of a municipality has extended the due date for payment of individual municipal inhabitant tax, the due date for payment of individual prefectural inhabitant tax relating to the taxpayer or special collection agent concerned is also deemed to have been extended for the same period.

Where the mayor of a municipality has deferred the collection of individual municipal inhabitant tax under Article 321-7-13, the collection of individual prefectural inhabitant tax relating to the person liable for that municipal inhabitant tax is also deemed to have been deferred at the same ratio as the ratio of the municipal inhabitant tax subject to that deferral to that municipal inhabitant tax.

Where the mayor of a municipality has reduced or exempted individual municipal inhabitant tax or the amount of delinquency charge thereon, the individual prefectural inhabitant tax or the amount of delinquency charge thereon relating to the taxpayer or special collection agent concerned is also deemed to have been reduced or exempted at the same ratio as the ratio of the amount reduced or exempted to that municipal inhabitant tax or amount of delinquency charge.