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 that 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, the deduction limit under Article 165-6, paragraph (1) of that Act, and the deduction limit under Article 37-3 that is specified by Cabinet Order, a municipality 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 314-3 and the preceding two Articles are applied.

①Where a person liable for the income levy has been assessed a dividend levy amount under the provisions of Section 1, Subsection 5 of the preceding Chapter on the amount of specified dividends, etc. that formed the basis for calculating the amount of income pertaining to specified dividends, etc. stated in the final return prescribed in Article 313, paragraph (13), or has been assessed a share transfer income levy amount under the provisions of Subsection 6 of that Section on the amount of specified shares, etc. transfer income that formed the basis for calculating the amount of income pertaining to the amount of specified shares, etc. transfer income stated in the final return prescribed in paragraph (15) of that Article, the municipality is to deduct the amount obtained by multiplying that dividend levy amount or that share transfer income levy amount by three-fifths from the amount of the income levy of that person calculated by applying Article 314-3 and the preceding three Articles.

②Where there is an amount that should be deducted under the provisions of the preceding paragraph but could not be deducted from the income levy amount referred to in that paragraph, the municipality must, as provided by Cabinet Order, refund that amount that could not be deducted to the person liable for tax referred to in that paragraph. In this case, where there are individual prefectural inhabitant tax, individual municipal inhabitant tax or forest environment tax for the fiscal year following the fiscal year that includes the last day of the year pertaining to the final return of that person liable for tax referred to in that paragraph, or unpaid local government levies of that person liable for tax or unpaid collections of that person pertaining to the forest environment tax prescribed in Article 2, item (v) of the Act on the Forest Environment Tax and the Forest Environment Transfer Tax (referred to as "municipal collections" in this paragraph), then, notwithstanding Article 17-2-2, that person liable for tax is deemed to have entrusted the mayor of the municipality that is to make the refund with the payment or remittance of the municipal collections out of the amount to be refunded (up to the amount equivalent to the amount pertaining to the municipal collections).

③Where there is an amount that should be deducted under the provisions of Article 37-4 but could not be deducted from the income levy amount referred to in that Article, the municipality is to apply the provisions of the preceding paragraph by deeming that amount that could not be deducted to be an amount that should be deducted under paragraph (1) but could not be deducted from the income levy amount referred to in that paragraph.

When a municipality imposes the income levy on a person listed in Article 294, paragraph (1), item (i), it is to calculate that person's gross income, amount of retirement income or amount of timber income under Article 313, paragraph (1) as provided in the following items:

Where a municipality finds that the calculation of income on which the income tax of a person liable for municipal inhabitant tax of that municipality was based is grossly inappropriate throughout that municipality, it may, notwithstanding the preceding Article, consult with the Minister for Internal Affairs and Communications and, with the Minister's consent, calculate the income of each person liable for tax on its own in accordance with the method of calculating income prescribed in the Income Tax Act and other laws and regulations relating to income tax, except where this Act or a Cabinet Order under this Act provides otherwise, and impose municipal inhabitant tax on the basis of that calculation.

Where a municipality has calculated income on its own and imposed municipal inhabitant tax pursuant to the proviso to Article 315, item (i) or the preceding Article, the mayor of the municipality is to notify the district director having jurisdiction over the area of that municipality of the gross income, amount of retirement income or amount of timber income pertaining to that calculation.