Act on General Rules for National Taxes

No reassessment or determination, etc. listed in the following items may be made on or after the day on which five years (or three years, for an assessment and determination (excluding one that reduces the payable tax amount) pertaining to a national tax for which the filing of the tax basis return prescribed in item (ii) is required and for which that return has been filed) have elapsed from the due date or day specified in the relevant item:

reassessment or determination: the statutory tax return due date for the national tax to which the reassessment or determination pertains (for a reassessment pertaining to a return of refund claim, the day on which that return was filed, and for a determination under the provisions of Article 25 (Determination) to be carried out when no return of refund claim is filed, or a reassessment following such determination, the day specified by Cabinet Order);

an assessment and determination regarding the national tax for which a tax basis return is required to be filed:the due date of the filing of such return; or

an assessment and determination regarding the national tax subject to the official assessment system for which no tax basis return is required the day on which tax liability was established.

Notwithstanding the provisions of the preceding paragraph, a reassessment to increase or decrease the amount of net loss, etc. pertaining to corporation tax arising during the taxable period concerned, or a reassessment made on the assumption of the existence of that amount, may be carried out until the day on which 10 years have elapsed from the due date specified in item (i) of that paragraph.

Notwithstanding the provisions of the preceding two paragraphs, a reassessment pertaining to a request for reassessment made within six months before the day on which a reassessment can no longer be carried out pursuant to the provisions of the preceding two paragraphs, or an assessment and determination with regard to penalty tax to be imposed upon that reassessment, may be carried out until the day on which six months have elapsed from the day on which the request for reassessment was made.

Notwithstanding the provisions of paragraph (1), an assessment and determination with regard to penalty tax for failure to file (limited to that to which the provisions of Article 66, paragraph (8) (Penalty Tax for Failure to File) apply) or penalty tax for non-payment (limited to that to which the provisions of Article 67, paragraph (2) (Penalty Tax for Non-payment) apply) to be imposed upon the filing of a tax return (including the payment of national withholding tax; the same applies hereinafter in this paragraph) made within three months before the day on which an assessment and determination can no longer be made pursuant to the provisions of paragraph (1) may be made until the day on which three months have elapsed from the day on which the tax return was filed.

Notwithstanding the provisions of paragraph (1) or the preceding two paragraphs, a reassessment or determination, etc. listed in the following items may be carried out until the day on which seven years have elapsed from the due date or day specified in the items of paragraph (1) for the types of reassessment or determination, etc. listed in those items:

a reassessment or determination, etc. of a national tax (including any penalty tax and negligence tax on the national tax) which a taxpayer evaded in whole or in part or of which the taxpayer received a partial or complete refund through deception or other wrongful acts;

a reassessment of the amount of net loss, etc. stated in a tax return which deceptively or otherwise wrongfully overstates the amount of net loss, etc. arising during the taxable period concerned (or if a reassessment of the amount has been carried out, the reassessed amount) (excluding a reassessment pertaining to the amount of net loss, etc. pertaining to corporation tax to which the provisions of paragraph (2) or paragraph (3) apply); and

a reassessment or determination, etc. of income tax (including any penalty tax on the income tax; referred to as "income tax subject to the special provisions for departure from Japan, etc." in Article 73, paragraph (3) (Suspension of Completion and Renewal of Prescription)) in the case where the provisions of Article 60-2, paragraphs (1) through (3) (Special Provisions on Capital Gains, etc. upon Departure from Japan) or Article 60-3, paragraphs (1) through (3) (Special Provisions on Capital Gains, etc. When Assets Are Transferred to a Nonresident through Gift, etc.) of the Income Tax Act apply (excluding the case where a notification of a tax agent has been made pursuant to the provisions of Article 117, paragraph (2) (Tax Agent) and a document has been submitted pursuant to the provisions of Article 30 (Clarification of Authority for Tax Representation) of the Certified Public Tax Accountant Act (Act No. 237 of 1951) (including as applied mutatis mutandis pursuant to Article 48-16 (Application Mutatis Mutandis of Provisions on the Rights, Obligations, etc. of Certified Public Tax Accountants) of that Act), and other cases specified by Cabinet Order).

Notwithstanding the provisions of the preceding Article, a reassessment or determination, etc. under the following items may be carried out within the period specified in the items if the day on which such period expires comes after the lapse of the period during which a reassessment or determination, etc. may be carried out pursuant to the provisions of the preceding Article:

a reassessment or determination, etc. of national tax of a person who has received a National Tax Tribunal decision, a taxation agency determination or a judicial decision (hereinafter referred to as a "decision, etc." in this item) in an appeal against or action for a reassessment or determination, etc. of a national tax for which the tax basis, etc. or tax amount will change upon the change to the original disposition by such decision, etc. or upon the reassessment based on a request for reassessment (limited to national tax falling under the tax item which applies to the national tax to which the decision, etc. or reassessment pertains):six months from the day on which the decision, etc. or reassessment was made; or

a reassessment to be carried out with regard to a national tax subject to the self-assessment system due to the fact that economic benefits arising from an invalid act included among the facts used as the basis for the calculation of the tax have been lost due to the invalidity of the act, or that an act that was voidable but included among these facts has been rescinded, or for other similar reasons specified by Cabinet Order (limited to a reassessment to decrease the payable tax amount, or a reassessment to increase the amount of net loss, etc. arising during the taxable period concerned or the amount of a refund, or a reassessment made on the assumption of the existence of these amounts), or an assessment and determination to be made with regard to a penalty tax on such national tax upon such reassessment: three years from the day on which the event constituting the reason occurred;

a reassessment pertaining to a request for reassessment in the case where the provisions of Article 10, paragraph (2) (Special Provisions for Computation of Periods and Due Dates) or Article 11 (Extension of Due Dates due to Disasters, etc.) apply to the due date by which the request for reassessment may be made, or an assessment and determination with regard to penalty tax to be imposed upon that reassessment: six months from the day on which the request for reassessment was made; or

a reassessment or determination, etc. carried out based on the event listed in (b) where the event listed in (a) has occurred: three years from the day on which the document pertaining to the request referred to in (b) was sent to the treaty partner under the tax treaty, etc. referred to in (b).

the fact that, where the relevant official of the National Tax Agency, a Regional Taxation Bureau or a tax office has requested a taxpayer to present or submit documents (including, where an electronic or magnetic record has been prepared or retained in lieu of the preparation or retention of the documents, that electronic or magnetic record) or copies thereof relating to overseas transactions (meaning sales of assets, purchases of assets, provision of services or other transactions conducted with a nonresident (meaning a nonresident as prescribed in Article 2, paragraph (1), item (v) (Definitions) of the Income Tax Act; the same applies in (a)) or a foreign corporation (meaning a foreign corporation as prescribed in Article 2, item (iv) (Definitions) of the Corporation Tax Act; the same applies in (a)), or sales of assets, purchases of assets, provision of services or other transactions conducted by using a venue provided by a nonresident or a foreign corporation) or overseas assets (meaning the property prescribed in Article 20-2 (Deduction of the Amount of Inheritance Tax for Overseas Property) of the Inheritance Tax Act) pertaining to the national tax, the documents or copies were not presented or submitted by the day designated by the relevant official within a period not exceeding 60 days from the day on which the presentation or submission was requested, by taking into consideration the number of days normally required for their preparation (excluding the case where there are no grounds attributable to the taxpayer);

the fact that, where the Commissioner of the National Tax Agency (including a person delegated by the Commissioner) has, pursuant to the provisions of a tax treaty, etc., requested the treaty partner under that tax treaty, etc. to provide information on the overseas transactions or overseas assets referred to in (a) (excluding the case where the request was made on or after the day six months before the day on which a reassessment or determination, etc. can no longer be carried out pursuant to the provisions of the preceding Article, and limited to the case where the taxpayer referred to in (a) was notified that the request had been made within three months from the day on which the request was made), an error is found with regard to the tax basis, etc. or tax amount, etc. of the national tax in light of the information provided by the treaty partner.

The person who has received the decision, etc. or reassessment prescribed in item (i) of the preceding paragraph is to include, if that person is a split corporation, etc. (meaning a split corporation prescribed in Article 2, item (xii)-2 of the Corporation Tax Act, a corporation making an in-kind contribution prescribed in item (xii)-4 of that Article, a corporation making a distribution in kind prescribed in item (xii)-5-2 of that Article, or a corporation that has transferred assets subject to adjustment of transfer gains or losses prescribed in Article 61-11, paragraph (1) of that Act; the same applies hereinafter in this paragraph) in a corporate split, etc. (meaning a corporate split, an in-kind contribution, a distribution in kind prescribed in Article 2, item (xii)-5-2 of the Corporation Tax Act, or a transfer of assets subject to adjustment of transfer gains or losses prescribed in Article 61-11, paragraph (1) (Gains or Losses from Transactions between Corporations with Wholly Controlling Relationships) of that Act to which the provisions of that paragraph apply; the same applies hereinafter in this paragraph), the successor corporation in a split, etc. (meaning a successor corporation in a split prescribed in Article 2, item (xii)-3 of that Act, a corporation receiving an in-kind contribution prescribed in item (xii)-5 of that Article, a corporation receiving a distribution in kind prescribed in item (xii)-5-3 of that Article, or a transferee corporation prescribed in Article 61-11, paragraph (2) of that Act; the same applies hereinafter in this paragraph) in that corporate split, etc.; is to include, if that person is a successor corporation in a split, etc. in a corporate split, etc., the split corporation, etc. in that corporate split, etc.; and is to include, if that person is a group tax sharing corporation prescribed in Article 2, item (xii)-7-2 of that Act (referred to as a "group tax sharing corporation" in this paragraph and in Article 74-2, paragraph (4) (Right of Officials to Ask Questions and Conduct Inspections in Examinations Concerning Income Tax, etc.)), any other group tax sharing corporation.