Supplementary Provisions, Article 9-2-2Specified Donation Tax Credit for Corporate Enterprise Tax

①Where a corporation that has received approval under Article 121, paragraph (1) of the Corporation Tax Act (including as applied mutatis mutandis pursuant to Article 146, paragraph (1) of that Act) makes, during the period from the effective date of the Act Partially Amending the Local Revitalization Act (Act No. 30 of 2016) through March 31, 2028, a donation (excluding any donation in respect of which special benefits, such as the donor's exclusive use of facilities established by the donation, are found to accrue to the donor; hereinafter in this paragraph and the following paragraph referred to as a "specified donation") to a certified local government prescribed in Article 8, paragraph (1) of the Local Revitalization Act (hereinafter in this paragraph referred to as a "certified local government") in connection with a Town, People and Jobs Creation Donation Utilization Project carried out by that certified local government (meaning the Town, People and Jobs Creation Donation Utilization Project prescribed in Article 5, paragraph (4), item (ii) of that Act that is stated in the certified regional revitalization plan prescribed in Article 8, paragraph (1) of that Act that was created by that certified local government), an amount equivalent to 20 percent of the total amount of specified donations made in the business year including the day on which that specified donation was made (excluding the business year including the date of dissolution (excluding dissolution by merger) and each business year in liquidation; hereinafter in this paragraph referred to as the "donation business year") (limited to those included in the amount of deductible expenses in calculating the amount of income for corporation tax for that donation business year) (for a corporation that has offices or places of business in two or more prefectures, the amount calculated by apportioning that total amount on the apportionment basis prescribed in Article 72-48, paragraph (3)) (hereinafter in this paragraph referred to as the "amount of deduction") is to be deducted from the amount of enterprise tax to be filed and paid under Article 72-25, the proviso to Article 72-26, paragraph (1), Article 72-28, or Article 72-31, paragraph (2) or (3), for the donation business year. In this case, where the amount of deduction of the corporation for the donation business year exceeds an amount equivalent to 20 percent of the amount of enterprise tax of the corporation for that donation business year calculated under Article 72-24-7, paragraphs (1) through (5), the amount to be deducted is that amount equivalent to 20 percent.

②The preceding paragraph applies only where a document specified by Order of the Ministry of Internal Affairs and Communications stating the amount of specified donations subject to deduction under the preceding paragraph, the amount to be deducted and the details concerning the calculation of that amount, and a document specified by Order of the Ministry of Internal Affairs and Communications proving that the donations stated in that document fall under specified donations, are attached to the return under Article 72-25, the proviso to Article 72-26, paragraph (1), or Article 72-28 (including, where an amended return under Article 72-31, paragraph (2) or (3) that increases the amount deducted under the preceding paragraph, or a written request for reassessment under Article 20-9-3, paragraph (3), is submitted, that amended return or written request for reassessment). In this case, the amount of specified donations that serves as the basis for calculating the amount to be deducted under the preceding paragraph is limited to the amount of specified donations stated in those documents attached to the return under Article 72-25, the proviso to Article 72-26, paragraph (1), or Article 72-28.

③In the application of Article 72-24-11, paragraph (5) in the case where paragraph (1) applies, "and paragraph (1)" in that paragraph is deemed to be replaced with ", paragraph (1) and Article 9-2-2, paragraph (1) of the Supplementary Provisions", "paragraph (1) of that Article" with "that paragraph", and "and then the deduction under paragraph (1)" with "and then, in the order of the deduction under paragraph (1) of the preceding Article and the deduction under paragraph (1)".

④Beyond what is provided for in the preceding three paragraphs, matters necessary for the application of those provisions are specified by Cabinet Order.