Article 349-5Special Provisions on the Tax Base of Fixed Assets Tax on Newly Built Large-Scale Depreciable Assets

①If there are depreciable assets owned by a single person liable for tax that are used for a newly constructed single factory, power station or substation (hereinafter in this paragraph referred to as "single factory") (including equipment added to a single factory that is found to be similar to a single factory), and the aggregate value of which comes to exceed, in any one fiscal year of the five fiscal years starting from the fiscal year in which fixed assets tax is newly imposed on those depreciable assets, the amount set out in the right-hand column of the table in paragraph (1) of the preceding Article for the municipality set out in the left-hand column of that table (hereinafter in this Article and Article 740 referred to as "newly built large-scale depreciable assets"), a municipality is to, limited to fixed assets tax for six fiscal years starting from the first fiscal year in which that amount is exceeded (hereinafter in this paragraph and the following paragraph referred to as the "first application year"), and even if in the meantime the aggregate value of the newly built large-scale depreciable assets comes to fall below the amount set out in that column, divide those newly built large-scale depreciable assets from other newly built large-scale depreciable assets owned by that person liable for tax with a different first application year and from depreciable assets other than those newly built large-scale depreciable assets, treat each of them as owned separately by a single person liable for tax, calculate, in accordance with Article 349-2, Article 349-3, Article 349-3-4, the preceding Article and paragraph (2) through paragraph (5), the amount that is to be the tax base of fixed assets tax imposed on those newly built large-scale depreciable assets or on the other newly built large-scale depreciable assets owned by that person liable for tax with a different first application year or on depreciable assets other than those newly built large-scale depreciable assets, and impose fixed assets tax with that amount as the tax base. In this case, if a single person liable for tax owns, within the area of a single municipality, two or more newly built large-scale depreciable assets with the same first application year, those newly built large-scale depreciable assets are regarded together as a single newly built large-scale depreciable asset.

②In the case of a municipality for which, limited to fixed assets tax for six fiscal years starting from the first application year imposed on newly built large-scale depreciable assets, the estimated standard fiscal revenue amount calculated in accordance with the rules of Article 349-4, paragraphs (2) through (4) would be less than the amount obtained by multiplying the previous fiscal year's standard fiscal need amount by the ratio set out in each of the following items, Article 349-4, paragraph (1) is to apply, notwithstanding paragraph (2) of that Article, after increasing the fixed tax base for large-scale depreciable assets of the municipality so that the estimated standard fiscal revenue amount reaches the ratio of the previous fiscal year's standard fiscal need amount set out in the relevant item.

③In the case referred to in the preceding paragraph, if there are two or more first-stage newly built large-scale depreciable assets, second-stage newly built large-scale depreciable assets or third-stage newly built large-scale depreciable assets, respectively, within the area of a single municipality, the fixed tax base for large-scale depreciable assets of the municipality is to be increased, for each category of newly built large-scale depreciable assets, sequentially starting from the newly built large-scale depreciable asset with the lowest value and up to that value, so that the estimated standard fiscal revenue amount of the municipality calculated in accordance with the rules of Article 349-4, paragraphs (2) through (4) reaches 220 percent of the previous fiscal year's standard fiscal need amount for first-stage newly built large-scale depreciable assets, 200 percent for second-stage newly built large-scale depreciable assets, and 180 percent for third-stage newly built large-scale depreciable assets.

④The method of calculation for increasing the fixed tax base for large-scale depreciable assets of a municipality with respect to newly built large-scale depreciable assets or large-scale depreciable assets, in the case where there are two or more of the first-stage newly built large-scale depreciable assets, second-stage newly built large-scale depreciable assets or third-stage newly built large-scale depreciable assets within the area of a single municipality, and in the case where there are newly built large-scale depreciable assets and large-scale depreciable assets other than newly built large-scale depreciable assets, is specified by Order of the Ministry of Internal Affairs and Communications.

⑤Beyond what is provided for in the preceding paragraphs, matters necessary for the calculation of the tax base of fixed assets tax imposed on newly built large-scale depreciable assets are specified by Cabinet Order.