Act on General Rules for National Taxes

When the obligation to pay national tax (or, for national withholding tax, the obligation to collect it and pay it to the national government; hereinafter referred to as "tax liability") is established, the payable tax amount of that national tax is to be determined through the procedures prescribed in national tax laws, except for national tax for which the payable tax amount is determined without any special procedure upon the establishment of that liability.

Tax liability is established, for the national taxes set forth in the following items (excluding accessory tax in items (i) through (xiii)), at the time specified in each of those items (or, for those national taxes specified by Cabinet Order, at the time specified by Cabinet Order):

income tax (excluding that set forth in the following item): the time of the end of the calendar year;

income tax subject to withholding: the time of the payment of interest, dividends, salaries, compensation, fees or any other income subject to withholding;

corporation tax and local corporation tax (excluding those set forth in the following item): the time of the end of the business year;

corporation tax on the global minimum tax amount for each target fiscal year, corporation tax on the residual global minimum tax amount for each target fiscal year and corporation tax on the domestic minimum tax amount for each target fiscal year, and local corporation tax on the specified base corporation tax amount pertaining to the global minimum tax amount, etc. and local corporation tax on the specified base corporation tax amount pertaining to the domestic minimum tax amount: the time of the end of the target fiscal year (meaning the target fiscal year prescribed in Article 15-2 (Meaning of Target Fiscal Year) of the Corporation Tax Act);

inheritance tax: the time of the acquisition of property through inheritance or bequest (including a gift that takes effect upon the death of the donor);

gift tax: the time of the acquisition of property through a gift (excluding a gift that takes effect upon the death of the donor);

land value tax: the taxable time (meaning the taxable time prescribed in Article 2, item (iv) (Definitions) of the Land-holding Tax Act (Act No. 69 of 1991));

consumption tax, etc.: the time of the taxable transfer, etc. of assets or of specified taxable purchases, or the time of shipment from the place of manufacture of the taxable goods (for petroleum gas tax, the petroleum gas filling place; for petroleum and coal tax, the place of extraction of crude oil, gaseous hydrocarbons or coal) or of withdrawal from a bonded area;

aviation fuel tax: the time of loading aviation fuel onto an aircraft;

tax for promotion of power-resources development: the time when the right to receive payment of charges for electricity sold becomes fixed;

motor vehicle tonnage tax: the time of the issuance or return of a motor vehicle inspection certificate or the time of the designation of the vehicle number for a notified light motor vehicle;

international tourist tax: the time of departure from Japan;

stamp tax: the time of the preparation of a taxable document;

registration and license tax: the time of registration, recording, patent, license, permission, approval, accreditation, designation or skill certification;

penalty tax for understatement, penalty tax for failure to file, or heavy penalty tax under Article 68, paragraph (1), (2) or (4) (limited to the part concerning heavy penalty tax under paragraph (1) or (2) of that Article) (Heavy Penalty Tax): the time at which the statutory tax return due date passes;

penalty tax for non-payment or heavy penalty tax under Article 68, paragraph (3) or (4) (limited to the part concerning heavy penalty tax under paragraph (3) of that Article): the time at which the statutory payment due date passes.

National taxes for which the payable tax amount is determined without any special procedure upon the establishment of the tax liability are the following national taxes:

income tax payable pursuant to the provisions of Part II, Chapter V, Section 1 (Tax Prepayments) of the Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 (Filing of Returns, Payment of Taxes, and Issuance of Refunds) of that Act) (hereinafter referred to as "income tax subject to estimated tax prepayment");

national withholding tax;

motor vehicle tonnage tax;

international tourist tax payable pursuant to Article 18, paragraph (1) (Payment by International Tourists, etc.) of the International Tourist Tax Act;

stamp tax (excluding stamp tax subject to the provisions of Article 11 (Special Provisions on Filing Returns and Payment by Indication of Format) and Article 12 (Special Provisions on Filing Returns, Payment, etc. for Deposit and Savings Passbooks, etc.) of the Stamp Tax Act (Act No. 23 of 1967), and negligence tax);

registration and license tax;

delinquent tax and interest tax.

The procedure for determining the payable tax amount of national tax is to follow one of the methods set forth in the following items, and the content of those methods is as set forth in those items:

self-assessment system: a method under which the payable tax amount is, in principle, determined by the return filed by the taxpayer, and is determined by a disposition of the district director or the director-general of a customs house only if no return has been filed, if the calculation of the tax amount in the return has not complied with the provisions of national tax laws, or if the tax amount otherwise differs from what the district director or the director-general of a customs house has found through examination;

official assessment system: a method under which the payable tax amount is determined exclusively by a disposition of the district director or the director-general of a customs house.

Which of the methods set forth in the items of the preceding paragraph is used to determine the payable tax amount of national tax (excluding the national taxes set forth in the items of paragraph (3) of the preceding Article) is as follows:

national tax for which the taxpayer is required, under the provisions of national tax laws, to file a return of the payable tax amount when the tax liability is established: the self-assessment system;

national tax other than that set forth in the preceding item: the official assessment system.

A taxpayer of national tax using the self-assessment system must submit a tax return to the district director by the statutory tax return due date, as prescribed in national tax laws.

A tax return filed pursuant to the provisions of the preceding paragraph is referred to as a "return filed by the due date."

A person who should have submitted a return filed by the due date (including a person who was able to submit a return under Article 123, paragraph (1) (Filing Tax Returns Showing Losses), Article 125, paragraph (3) (Filing a Tax Return Showing Losses If the Taxpayer Has Died Partway Through the Year) or Article 127, paragraph (3) (Filing a Tax Return Showing Losses If the Taxpayer Will Become Absent From Japan Partway Through the Year) of the Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of that Act) but did not submit that return within the time limit for its submission, and the heirs of those persons or any other person who has succeeded to all of the rights and obligations included in the property of those persons (in the case of a corporate split, limited to the corporation that succeeds to the liability of the split corporation to pay national taxes pursuant to the provisions of Article 7-2, paragraph (4) (Succession to the Obligation to Pay National Tax Pertaining to a Trust))) may submit a tax return to the district director even after the time limit for submission, until a determination is made under the provisions of Article 25 (Determination).

A tax return submitted pursuant to the provisions of the preceding paragraph is referred to as a "return filed after the due date."

A return filed after the due date must state the matters required to be stated in a return filed by the due date for the national tax to which the return pertains, and, if there are documents required to be attached to that return filed by the due date, those documents must be attached to it.

A person who has submitted a tax return (including their heirs or any other person who has succeeded to all of the rights and obligations included in the property of the person who has submitted (in the case of a corporate split, limited to the corporation that succeeds to the liability of the split corporation to pay national taxes pursuant to the provisions of Article 7-2, paragraph (4) (Succession to Liability to Pay National Taxes Pertaining to Trust)); hereinafter the same applies in Article 23, paragraphs (1) and (2) (Request for Reassessment)) may, if the person falls under any of the following items, file another tax return to amend the tax basis, etc. (meaning the matters listed in Article 2, item (vi) (a) through (c) (Definitions); the same applies hereinafter) or the tax amount, etc. (meaning the matters listed in (d) through (f) of the item; the same applies hereinafter) stated in the initial return, until a reassessment is made of the initial return under the provisions of Article 24 (Reassessment):

where there is a shortfall in the tax amount payable stated in the initial tax return;

where the amount of net loss, etc. is overstated in the initial tax return;

where the tax amount equivalent to the amount of a refund is overstated in the initial tax return; or

where the initial return contains no statement as to the tax amount payable, despite the fact that such a payable tax amount exists.

A person who has received a reassessment or determination under the provisions of Articles 24 through 26 (Reassessment and Determination) (including their heirs or any other person who has succeeded to all of the rights and obligations included in the property of the person who has received that reassessment or determination (in the case of a corporate split, limited to the corporation that succeeds to the liability of the split corporation to pay national taxes pursuant to the provisions of Article 7-2, paragraph (4)); the same applies in Article 23, paragraph (2)) may, if the person falls under any of the following items, submit to the district director a tax return to amend the tax basis, etc. or the tax amount, etc. pertaining to that reassessment or determination, until a reassessment of that reassessment or determination is made under the provisions of Article 26:

where there is a shortfall in the tax amount stated as payable by that reassessment or determination in the written notice of reassessment or written notice of determination pertaining to it;

where the amount of net loss, etc. stated in the written notice of reassessment pertaining to that reassessment is overstated; or

where the tax amount equivalent to the amount of a refund stated in the written notice of reassessment or written notice of determination pertaining to that reassessment or determination is overstated.

where a reassessment has been made to the effect that there is no tax amount payable, despite the fact that a payable tax amount exists.

A tax return filed pursuant to the provisions of the preceding two paragraphs is referred to as an "amended return."

An amended return must state the following matters, and, if there are any documents required to be attached to the return filed by the due date for the national tax to which the amended return pertains, a document stating those of the matters to be stated in such documents that relate to the amended return must be attached to it:

the tax basis, etc. and tax amount, etc. after the return;

the following amounts relating to the return:

If the tax amount payable before the return increases as a result of the return, the tax amount of the increase;

If the tax amount equivalent to the amount of a refund before the return decreases as a result of the return, the tax amount of the decrease;

If there is any interest on refund prescribed in Article 58, paragraph (1) (Interest on Refund) with respect to the amount refunded under the provisions of Article 142, paragraph (2) (Procedures, etc. for Refund by Carryback of Net Loss) of the Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 (Filing, Payment and Refund) of that Act), or Article 80, paragraph (10) (Refund by Carryback of Loss) of the Corporation Tax Act (including as applied mutatis mutandis pursuant to Article 144-13, paragraph (13) (Refund by Carryback of Loss) of that Act) or Article 23, paragraph (1) (Refund Where Corporation Tax Has Been Refunded by Carryback of Loss) of the Local Corporation Tax Act (Act No. 11 of 2014) (hereinafter referred to as the "amount refunded by carryback of net loss, etc."), the part of that interest on refund that corresponds to the tax amount listed in (b).

the tax amount payable and the tax amount equivalent to the amount of a refund before the return;

beyond what is listed in the preceding three items, those of the matters required to be stated in the return filed by the due date that relate to the return, and other matters that serve as a reference.