Local Tax Act

The income for each business year referred to in Article 72-12, item (iii) is to be calculated, according to the category of corporation listed in each of the following items, as provided in the respective item.

domestic corporation: the amount is the amount obtained by deducting the amount of deductible expenses from the amount of gross profits for each business year, and, except where a special provision is made by this Act or Cabinet Order, it is calculated according to the method of calculating the income that is the tax base for corporation tax for that business year;

foreign corporation: the amount is the total of the amount of income relating to the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act and the amount of income relating to the domestic source income listed in (b) of that item for each business year, and, except where a special provision is made by this Act or Cabinet Order, it is calculated according to the method of calculating the income relating to the domestic source income listed in (a) of that item and the income relating to the domestic source income listed in (b) of that item, which are the tax base for corporation tax for that business year.

When the income for each business year referred to in Article 72-12, item (iii) is calculated pursuant to the preceding paragraph, the provisions of Article 27, Article 57, paragraphs (6) through (8), Article 59, paragraph (5), Article 62-5, paragraph (5), Article 64-5, Article 64-7 and Article 64-8 of the Corporation Tax Act, and Article 55 of the Act on Special Measures Concerning Taxation (excluding the part relating to the specified shares, etc. specified by Cabinet Order as prescribed in paragraphs (1) and (8) of that Article) are not to be followed, and the amount that a medical care corporation, or a federation of agricultural cooperatives (excluding a specified federation of agricultural cooperatives) that conducts business relating to a medical facility (excluding those specified by Cabinet Order), has received for social insurance medical care is not included in the amount of gross profits, and the expenses relating to that social insurance medical care are not included in the amount of deductible expenses.

The social insurance medical care prescribed in the preceding paragraph means the following benefits, or medical care, nursing care, midwifery or services.

benefits for medical treatment under the provisions of the Health Insurance Act (Act No. 70 of 1922), the National Health Insurance Act (Act No. 192 of 1958), the Act on Assurance of Medical Care for Elderly People (Act No. 80 of 1982), the Mariners Insurance Act (Act No. 73 of 1939), the National Public Officers Mutual Aid Association Act (Act No. 128 of 1958; including where it is applied as the model pursuant to Article 22, paragraph (1) of the Act on Remuneration, etc. of Ministry of Defense Personnel (Act No. 266 of 1952); the same applies hereinafter in this item), the Local Public Officers, etc. Mutual Aid Association Act (Act No. 152 of 1962), the Private School Personnel Mutual Aid Association Act (Act No. 245 of 1953), the Act on Special Aid to the Wounded and Sick Retired Soldiers (Act No. 168 of 1963), the Maternal and Child Health Act (Act No. 141 of 1965), the Child Welfare Act, or the Atomic Bomb Survivors' Assistance Act (Act No. 117 of 1994) (including the portion of medical treatment for insured persons, members, participants or dependents for whom expenses for dietary treatment for inpatients, expenses for living support for inpatients, medical expenses combined with treatment outside insurance coverage, dependent's medical expenses or special medical care expenses (meaning the special medical care expenses prescribed in Article 54-3, paragraph (1) of the National Health Insurance Act or Article 82, paragraph (1) of the Act on Assurance of Medical Care for Elderly People; the same applies hereinafter in this item) are to be paid under the provisions of the Health Insurance Act, the National Health Insurance Act, the Act on Assurance of Medical Care for Elderly People, the Mariners Insurance Act, the National Public Officers Mutual Aid Association Act, the Local Public Officers, etc. Mutual Aid Association Act or the Private School Personnel Mutual Aid Association Act that corresponds to the amount determined under the provisions of those Acts as the cost required for that medical treatment, for the purpose of calculating the amount of those expenses for dietary treatment for inpatients, expenses for living support for inpatients, medical expenses combined with treatment outside insurance coverage, dependent's medical expenses or special medical care expenses (for the portion relating to special medical care expenses, limited to a portion certified as being that portion as provided by Order of the Ministry of Internal Affairs and Communications), or designated home-nursing for insured persons, members, participants or dependents for whom medical expenses for home-nursing or dependent's medical expenses for home-nursing are to be paid under the provisions of those Acts), provision of rehabilitation medical care, provision of medical care for premature infants, provision of medical treatment and education, or provision of medical care;

under the provisions of the Public Assistance Act, medical care for medical assistance, nursing care for long-term care assistance (limited to, among the home-based care listed in Article 15-2, paragraph (1), item (i) of that Act, the home-visit nursing, home-visit rehabilitation, management and guidance for medical care at home, outpatient rehabilitation or short-term admission for medical care prescribed in paragraph (2) of that Article; among the preventive care listed in paragraph (1), item (v) of that Article, the preventive home-visit nursing, preventive home-visit rehabilitation, preventive management and guidance for medical care at home, preventive outpatient rehabilitation or preventive short-term admission for medical care prescribed in paragraph (5) of that Article; or, among the facility care listed in paragraph (1), item (iv) of that Article, the long-term care health facility services or long-term care medical institution services prescribed in paragraph (4) of that Article), or midwifery for childbirth assistance; or benefits, or medical care, nursing care, midwifery or services, specified by Cabinet Order relating to medical care for medical support benefits and other support benefits under the provisions of the Act on Promotion of Smooth Return of Japanese Nationals Remaining in China, etc. and on Support for the Self-Reliance of Japanese Nationals Remaining in China, etc. Who Have Returned to Japan for Permanent Residence and Their Specified Spouses (Act No. 30 of 1994) (including where applied mutatis mutandis pursuant to Article 4, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Promotion of Smooth Return of Japanese Nationals Remaining in China, etc. and on Support for Self-Reliance after Permanent Return (Act No. 127 of 2007)); or benefits, or medical care, nursing care, midwifery or services, specified by Cabinet Order relating to medical care for medical support benefits and other support benefits under the provisions of the Act on Promotion of Smooth Return of Japanese Nationals Remaining in China, etc. and on Support for Self-Reliance after Permanent Return prior to its amendment by the Act Partially Amending the Act on Promotion of Smooth Return of Japanese Nationals Remaining in China, etc. and on Support for Self-Reliance after Permanent Return (Act No. 106 of 2013), as continuing to be governed by the provisions then in force pursuant to Article 2, paragraph (1) or (2) of the Supplementary Provisions of that Act.

medical care under the provisions of the Act on Mental Health and Welfare for Persons with Mental Disorders or Disabilities (Act No. 123 of 1950), the Narcotics and Psychotropics Control Act (Act No. 14 of 1953), the Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases (Act No. 114 of 1998), or the Act on Medical Care and Treatment for Persons Who Have Caused Serious Cases Under the Condition of Insanity (Act No. 110 of 2003);

out of the designated in-home services (limited to home-visit nursing, home-visit rehabilitation, guidance on management of in-home medical care, outpatient rehabilitation, or short-term admission for recuperation) for insured persons to whom in-home long-term care service expenses are to be paid under the provisions of the Long-Term Care Insurance Act (Act No. 123 of 1997), the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for those designated in-home services in calculating the amount of those in-home long-term care service expenses, out of the designated preventive long-term care services (limited to preventive home-visit nursing, preventive home-visit rehabilitation, preventive guidance on management of in-home medical care, preventive outpatient rehabilitation, or preventive short-term admission for recuperation) for insured persons to whom preventive long-term care service expenses are to be paid under the provisions of that Act, the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for those designated preventive long-term care services in calculating the amount of those preventive long-term care service expenses, or, out of the long-term care health facility services or integrated facility for medical and long-term care services for insured persons to whom facility long-term care service expenses are to be paid under the provisions of that Act, the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for those long-term care health facility services or integrated facility for medical and long-term care services in calculating the amount of those facility long-term care service expenses;

out of the designated medical care for independence support for persons with disabilities, etc. under a payment certification for which medical expenses for independence support are to be paid under the provisions of the Act on Providing Comprehensive Support for the Daily Life and Life in Society of Persons with Disabilities (Act No. 123 of 2005), the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for that designated medical care for independence support in calculating the amount of those medical expenses for independence support, or, out of the designated medical care in recuperative care (meaning medical care in recuperative care provided by a designated disability welfare service provider, etc. for recuperative care) for persons with disabilities under a payment decision for which medical expenses for recuperative care are to be paid under the provisions of that Act, the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for that designated medical care in recuperative care in calculating the amount of those medical expenses for recuperative care; or, out of the outpatient medical care for children with physical disabilities for children with disabilities under an outpatient benefit decision for which outpatient medical expenses for children with physical disabilities are to be paid under the provisions of the Child Welfare Act, the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for that outpatient medical care for children with physical disabilities in calculating the amount of those outpatient medical expenses for children with physical disabilities, or, out of the medical care for children with disabilities in residential facilities for children with disabilities under an admission benefit decision for which medical expenses for children with disabilities in residential facilities are to be paid under the provisions of that Act, the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for that medical care for children with disabilities in residential facilities in calculating the amount of those medical expenses for children with disabilities in residential facilities;

out of the designated specified medical care for patients with designated intractable diseases who have received a payment certification for which specified medical expenses are to be paid under the provisions of the Act on Medical Care for Patients with Intractable Diseases (Act No. 50 of 2014), the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for that designated specified medical care in calculating the amount of those specified medical expenses, or, out of the designated medical support for specified pediatric chronic diseases for children, etc. with specified pediatric chronic diseases under a medical expense payment certification for which medical expenses for specified pediatric chronic diseases are to be paid under the provisions of the Child Welfare Act, the part equivalent to the amount specified pursuant to the provisions of that Act as the amount of the expenses required for that designated medical support for specified pediatric chronic diseases in calculating the amount of those medical expenses for specified pediatric chronic diseases.

The tax base of the income levy for a specified domestic corporation is the amount obtained by deducting the income attributable to business outside the area of application of this Act from the total amount of income from the business of that specified domestic corporation. In this case, if it is difficult to calculate the income attributable to business outside the area of application of this Act, the amount calculated as specified by Cabinet Order is deemed to be the income attributable to the business of that specified domestic corporation outside the area of application of this Act.