Article 37-3Foreign Tax Credit

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.