Local Tax Act

A corporation that conducts business must, where a business year (excluding the first business year after the establishment of a newly established domestic corporation other than one established through a qualified merger (excluding a merger in which all of the merged corporations are corporations listed in the items of Article 72-5, paragraph (1) that do not conduct profit-making business; the same applies in the following paragraph and paragraph (3)); the business year including the day on which a corporation listed in the items of Article 72-4, paragraph (1) or a corporation listed in the items of Article 72-5, paragraph (1) (limited to one that does not conduct profit-making business) has come to fall under a corporation other than those listed in the items of Article 72-4, paragraph (1) and the items of Article 72-5, paragraph (1); where that corporation is a group tax sharing subsidiary corporation and the day on which the approval under Article 64-9, paragraph (1) of the Corporation Tax Act takes effect is on or after the day on which six months have elapsed from the first day of the business year of the group tax sharing parent corporation of that corporation that includes that day (hereinafter in this paragraph and Article 72-48, paragraph (2) referred to as the "business year of the group tax sharing parent corporation"), the business year including the day on which that approval takes effect; and, where a foreign corporation having no permanent establishment has come to have a permanent establishment, the business year including the day on which it came to have one) exceeds six months (where that corporation is a group tax sharing subsidiary corporation, where the business year of the group tax sharing parent corporation that includes the first day of that business year exceeds six months and, on the day on which six months have elapsed from the first day of that business year of the group tax sharing parent corporation, there is a group tax sharing full controlling interest between that corporation and that group tax sharing parent corporation), file and pay to the prefecture in which its office or place of business is located, within two months from the day on which six months have elapsed from the first day of that business year (where that corporation is a group tax sharing subsidiary corporation, of the business year of the group tax sharing parent corporation that includes the first day of that business year) (hereinafter in this Section referred to as the "day on which six months have elapsed"), enterprise tax in an amount equivalent to the amount calculated by multiplying the amount obtained by dividing the total of the tax amount paid, and the tax amount fixed as payable, as enterprise tax for the previous business year of that business year no later than the day before the day on which six months have elapsed, by the number of months in the previous business year of that business year, by the number of months in the period from the first day of that business year to that day before (hereinafter in this paragraph through paragraph (4) and in Article 72-48 referred to as the "interim period") (hereinafter in this Article referred to as the "enterprise tax amount on an interim return"); provided, however, that where that corporation (excluding, among those that have a group tax sharing full controlling interest with a cooperative, etc. (meaning cooperatives, etc. prescribed in Article 2, item (vii) of that Act) that is a group tax sharing parent corporation, one that is to file and pay the income levy) has calculated the value added, amount of stated capital, etc., income or revenue for the interim period under Article 72-12, Article 72-14 through Article 72-24-3, Article 72-24-5 or Article 72-24-6, treating the interim period as one business year, it may file and pay the enterprise tax amount calculated with that value added, amount of stated capital, etc., income or revenue as the tax base only where the enterprise tax amount calculated with that value added, amount of stated capital, etc., income or revenue as the tax base does not exceed the enterprise tax amount on an interim return.

In the case of the preceding paragraph, where the corporation referred to in that paragraph is the merging corporation in a qualified merger (excluding one that establishes a corporation; the same applies hereinafter in this paragraph) carried out within the period listed in each of the following items, the enterprise tax amount on an interim return, notwithstanding the preceding paragraph, is the amount obtained by adding the amount specified in each of those items to the amount equivalent to the amount calculated pursuant to that paragraph.

previous business year of that merging corporation: the amount calculated by multiplying the fixed enterprise tax amount of the merged corporation (meaning the enterprise tax amount for each business year of the merged corporation relating to that qualified merger that ended on or after the day one year before the first day of that business year of that merging corporation, which was fixed by the day before the day on which six months have elapsed for that merging corporation, and which relates to the most recent business year among those business years (excluding those of less than six months) forming the basis of its calculation; the same applies in the following item and the following paragraph) by the number obtained by multiplying the ratio of the number of months from the first day of the previous business year to the day before the date of that qualified merger, to the number of months in the previous business year, by the number of months in the interim period, and dividing the result by the number of months in the business year that formed the basis for calculating that fixed enterprise tax amount;

interim period of that merging corporation: the amount calculated by multiplying the fixed enterprise tax amount of the merged corporation by the number of months in the portion of the interim period of that merging corporation on or after the date of that qualified merger, and dividing the result by the number of months in the business year that formed the basis for calculating that fixed enterprise tax amount.

When the main clause of paragraph (1) is applied to the first business year after its establishment of a merging corporation in a qualified merger (limited to one that establishes a corporation), the enterprise tax amount on an interim return, notwithstanding that paragraph, is the total of the amounts calculated by dividing the fixed enterprise tax amount of each merged corporation relating to that qualified merger by the number of months in the business year of that merged corporation that formed the basis for its calculation, and multiplying the result by the number of months in the interim period.

In the case of paragraph (1), the return to be submitted to the prefectural governor of the location of the office or place of business must state the type of business, the name and location of the offices or places of business held during the interim period, the enterprise tax amount to be filed and paid, and other necessary matters, and must have attached to it the following: among the corporations that file and pay pursuant to the proviso to that paragraph, for a corporation listed in Article 72-2, paragraph (1), item (i), (a), those specified by Order of the Ministry of Internal Affairs and Communications among a statement concerning the value added, amount of stated capital, etc. and income for the interim period, the balance sheet as of the last day of that period and the profit and loss statement for that period (for a corporation not required to prepare a balance sheet or profit and loss statement, documents equivalent to them; the same applies hereinafter in this paragraph) and other documents; for a corporation listed in item (i), (b) of that paragraph, a statement concerning the income for the interim period; for a corporation conducting the business listed in item (ii) of that paragraph, those specified by Order of the Ministry of Internal Affairs and Communications among a statement concerning the revenue for the interim period, the balance sheet as of the last day of that period and the profit and loss statement for that period, and other documents; for a corporation listed in item (iii), (a) of that paragraph or a corporation conducting the business listed in item (iv) of that paragraph, those specified by Order of the Ministry of Internal Affairs and Communications among a statement concerning the revenue, value added and amount of stated capital, etc. for the interim period, the balance sheet as of the last day of that period and the profit and loss statement for that period, and other documents; and for a corporation listed in item (iii), (b) of that paragraph, those specified by Order of the Ministry of Internal Affairs and Communications among a statement concerning the revenue and income for the interim period, the balance sheet as of the last day of that period and the profit and loss statement for that period, and other documents. The forms of the return and the statements are specified by Order of the Ministry of Internal Affairs and Communications.

Where a corporation prescribed in paragraph (1) (excluding one to which the main clause of paragraph (8) applies) has not filed and paid within the period prescribed in paragraph (1), that corporation is deemed, at the time that period has elapsed, to have submitted to the prefectural governor of the location of its office or place of business the return that is to be submitted pursuant to the main clause of that paragraph. In this case, that corporation must pay to the prefecture in which its office or place of business is located, within the due date for payment of that filing and payment, enterprise tax in an amount equivalent to the enterprise tax relating to the return deemed to have been submitted.

The number of months in paragraphs (1) through (3) is calculated according to the calendar, and where a fraction of less than one month arises, it is one month.

With respect to a corporation prescribed in paragraph (1) (excluding one to which the main clause of the following paragraph applies), where the due date for filing and payment under paragraph (1) of the preceding Article, Article 72-28, paragraph (1) or Article 72-29, paragraph (1) for the previous business year of the business year referred to in paragraph (1) is the day before the day on which six months have elapsed pursuant to paragraph (3) or (5) of the preceding Article (including where these provisions are applied mutatis mutandis pursuant to Article 72-28, paragraph (2) and Article 72-29, paragraph (2)), and Article 20-5, paragraph (2) applies to that due date for filing and payment, and payment of the enterprise tax for that previous business year is made, or the enterprise tax amount to be paid becomes fixed, during the period from the day following that due date for filing and payment on the assumption that that paragraph does not apply until the day deemed to be that due date for filing and payment under that paragraph, the enterprise tax amount on an interim return for that business year is to be calculated as if that amount had been paid, or had become fixed, by the day before the day on which six months have elapsed.

An ordinary corporation prescribed in Article 71, paragraph (1) of the Corporation Tax Act for which the amount listed in item (i) of that paragraph (where paragraph (2) or (3) of that Article applies, the amount after that application) is 100,000 yen or less or for which there is no such amount, or a corporation not required to submit an interim return for corporation tax pursuant to the proviso to Article 144-3, paragraph (1) of that Act, is not required to carry out the filing and payment under paragraph (1); provided, however, that this does not apply to a corporation listed in Article 72-2, paragraph (1), item (i), (a), a corporation conducting the business listed in item (ii) of that paragraph, a corporation listed in item (iii), (a) or (b) of that paragraph, or a corporation conducting the business listed in item (iv) of that paragraph.

In applying the preceding paragraph, the determination of whether a corporation is one listed in Article 72-2, paragraph (1), item (i), (a) is to be made according to whether it fell under a corporation listed in (a) of that item with respect to the enterprise tax for the previous business year of the business year referred to in paragraph (1).

Where a corporation referred to in paragraph (1) (limited to a corporation listed in Article 72-2, paragraph (1), item (i), (a), a corporation conducting the business listed in item (ii) of that paragraph, a corporation listed in item (iii), (a) and (b) of that paragraph, and a corporation conducting the business listed in item (iv) of that paragraph) has filed the return under Article 75-4, paragraph (1) of the Corporation Tax Act pursuant to Article 75-4, paragraph (1) of the Corporation Tax Act or Article 6, paragraph (1) of the Act on the Advancement of Government Administration Processes That Utilize Information and Communications Technology (Act No. 151 of 2002), and, together with that filing, has provided the matters that are to be stated in the documents specified by Order of the Ministry of Internal Affairs and Communications prescribed in paragraph (4) by the method using the electronic data processing system prescribed in Article 75-4, paragraph (1) of the Corporation Tax Act or Article 6, paragraph (1) of the Act on the Advancement of Government Administration Processes That Utilize Information and Communications Technology, or by another method specified by Order of the Ministry of Internal Affairs and Communications, that corporation is deemed to have submitted to the prefectural governor of the location of its office or place of business the documents specified by Order of the Ministry of Internal Affairs and Communications prescribed in paragraph (4) that state those matters and are to be attached to the return under paragraph (1) pursuant to paragraph (4).

The provisions of the preceding paragraphs do not apply to corporations listed in the items of Article 72-5, paragraph (1), associations or foundations without juridical personality, and corporations listed in the items of Article 72-24-7, paragraph (7), or to foreign corporations that, within the due date for filing and payment prescribed in paragraph (1), have come to have no office or place of business in the area where this Act is enforced without having designated a tax agent prescribed in Article 72-9, paragraph (1) (excluding those that have already submitted a return pursuant to paragraph (1) before the day on which they come to have no such office or place of business and those that have received the certification under paragraph (2) of that Article).

The scope of the profit-making business referred to in paragraph (1) is specified by Cabinet Order.

Where, as a result of the due date for filing and payment being extended as provided by a Prefectural or Municipal Ordinance pursuant to Article 20-5-2, paragraph (1), or pursuant to paragraph (2) of that Article, the due date for filing and payment under paragraph (1) of the preceding Article (hereinafter in this Article referred to as "interim return and payment") and the due date for filing and payment under paragraph (1) of the following Article for the business year relating to that interim return and payment fall on the same day, notwithstanding paragraph (1) of the preceding Article, that interim return and payment is not required.