Act on General Rules for National Taxes

The right of the State to collect a national tax (hereinafter referred to as the "national tax collection right" in this Section) is extinguished by prescription if it is not exercised within five years from the statutory payment due date of the national tax (in the case of a national tax to be paid based on a reassessment or an assessment and determination under the provisions of Article 70, paragraph (3) (Time Limit for Reassessment and Determination, etc. of National Tax), an assessment and determination under the provisions of paragraph (4) of that Article, a reassessment or determination, etc. under the provisions of paragraph (1), item (i) of the preceding Article, a reassessment or an assessment and determination under the provisions of item (iii) of that paragraph, or a reassessment or determination, etc. under the provisions of item (iv) of that paragraph, from the day on which the reassessment prescribed in Article 70, paragraph (3) or paragraph (1), item (i) or item (iii) of the preceding Article, the assessment and determination prescribed in Article 70, paragraph (4), the decision, etc. prescribed in paragraph (1), item (i) of the preceding Article, or the reassessment or determination, etc. prescribed in item (iv) of that paragraph was made; in the case of a national tax to be paid by reason of the overstatement of the tax amount equivalent to the amount of a refund based on a return of refund claim, as well as expenses for the delinquent tax collection procedure, from the day on which the right of collection may be exercised for these taxes; and in the case of negligence tax, from the day on which the tax liability was established; the same applies in paragraph (3) of the following Article).

With regard to the prescription of the national tax collection right, invocation of the prescription is not to be required, and the benefit of the prescription may not be waived.

With regard to the prescription of the national tax collection right, the provisions of the Civil Code apply mutatis mutandis, except as otherwise provided in this Section.

With regard to the part of a national tax pertaining to the dispositions listed in the following items, the prescription of the national tax collection right is not completed during the period specified in the respective items, and begins to run anew from the time that period has elapsed:

a reassessment or determination: the period until the due date for payment under the provisions of Article 35, paragraph (2), item (ii) (Payment of National Tax using the Self-Assessment System) of the national tax to be paid based on the reassessment or determination;

an assessment and determination regarding penalty tax for understatement, penalty tax for failure to file or heavy penalty tax (limited to heavy penalty tax under Article 68, paragraph (1), (2) or (4) (limited to the part pertaining to heavy penalty tax under paragraph (1) or (2) of that Article) (Heavy Penalty Tax)): the period until the due date for payment under the provisions of Article 35, paragraph (3) of these national taxes to be paid based on the assessment and determination;

a notice relating to tax payment: the period until the time limit for payment designated in the notice;

a demand: the period until the day on which 10 days have elapsed counting from the day on which the letter of demand or the written payment reminder for the demand was sent (or, if an attachment was made before that day pursuant to the provisions of Article 47, paragraph (2) (Requirements for Attachment) of the National Tax Collection Act, the day on which the attachment was made);

a request for share distribution: the period during which the request for share distribution is pending (excluding any period during which the notice under Article 82, paragraph (2) (Procedures for Request for Share Distribution) of the National Tax Collection Act has not been given).

Even if the compulsory liquidation procedure pertaining to the request for share distribution referred to in item (v) of the preceding paragraph is revoked, the effect of the suspension of completion and renewal of prescription under the provisions of that paragraph is not precluded.

The prescription period of the national tax collection right pertaining to a national tax which a taxpayer has evaded in whole or in part or of which a taxpayer has received a refund in whole or in part through deception or other wrongful acts, or to income tax subject to the special provisions for departure from Japan, etc., does not run for two years from the statutory payment due date of the national tax; provided, however, that where any of the acts or dispositions listed in the following items have been carried out within two years from the day following the statutory payment due date, the prescription period commences to run from the day following the day specified in each item in relation to each part of the national tax to which such act or disposition pertains for the categories of acts or dispositions listed in the items, and where an act or disposition has been carried out by the statutory payment due date, the prescription commences to run from the day following the statutory payment due date in relation to each part of the national tax to which the act or disposition pertains:

filing of a tax return:The day on which the return is filed;

a reassessment or determination, etc. (excluding an assessment and determination regarding penalty tax): the day on which the written notice of the reassessment or determination or the written notice of assessment and determination regarding the reassessment or determination, etc. is given (where notice of the assessment and determination is given orally in lieu of service of the written notice of assessment and determination regarding the reassessment or determination, etc., the day on which notice of the assessment and determination is given);

a notice relating to tax payment (excluding a notice pertaining to national tax for which a written notice of assessment and determination has been given (including a notice pertaining to national tax for which notice of assessment and determination has been given orally in lieu of service of a written notice of assessment and determination)): the day on which the written notice of tax payment is given (where the notice is given orally in lieu of service of written notice, the day on which the notice is given orally); or

payment of a national withholding tax without receiving a notice of tax payment: the day on which the payment is made.

With regard to national tax subject to the postponement of tax payment, tax payment grace period or collection grace period or of a delinquent tax collection procedure execution grace period (including any delinquent tax and interest tax payable together with the national tax), the prescription period of the national tax collection right the not run during the period in which such postponement or grace period is effective.

When the prescription of the national tax collection right for a national tax (excluding accessory tax, negligence tax and expenses for the delinquent tax collection procedure for national tax) is not completed or begins to run anew, the prescription of the national tax collection right for the delinquent tax or interest tax on the part of the national tax for which the prescription is not completed or begins to run anew is not completed or begins to run anew.

When a national tax (excluding accessory tax, negligence tax and expenses for the delinquent tax collection procedure for national tax) has been paid, the prescription of the national tax collection right for the delinquent tax or interest tax on the paid part of the national tax begins to run anew from the time of the payment.

A claim against the State pertaining to a refund, etc. is extinguished by prescription if it is not exercised within five years from the day on which the claim may be made.

The provisions of Article 72, paragraphs (2) and (3) (Absolute Effect, etc. of Extinctive Prescription of the National Tax Collection Right) apply mutatis mutandis to the case referred to in the preceding paragraph.