Article 46Requirements for Tax Payment Grace Period

①Where a taxpayer has suffered a considerable loss of property due to an earthquake, flood, wind, lightning, fire or any other similar disaster, if the taxpayer has any national tax that falls under any of the following which is payable within one year from the day on which they suffered such loss, the district director of the tax office (in cases where the director-general of a customs house or the regional commissioner of a Regional Taxation Bureau collects national taxes pursuant to the provisions of the proviso to Article 43, paragraph (1), (3) or (4) (Competent Agency for Collection of National Taxes), or Article 44, paragraph (1) (Special Provisions on the Competent Agency for Collection When Reorganization Proceedings, etc. Have Commenced), the director-general or the regional commissioner; hereinafter referred to as the "district director of the tax office, etc." in this Chapter) may, based on an application filed by the taxpayer within two months from the day on which such disaster ended, grant a payment grace period for all or part of the national tax for up to one year from the due date for payment (in the case of a national withholding tax for which no notice of tax payment has been given, its statutory payment due date) (in the case of the national tax set forth in item (iii), the grace period is specified by Cabinet Order), as provided for by Cabinet Order:

②If there is a fact falling under any of the following items (excluding cases where the preceding paragraph applies), and the taxpayer is found to be unable to pay the national tax in a lump sum because of that fact, the district director of the tax office, etc. may, based on an application by the taxpayer, grant a grace period for the tax payment for a period not exceeding one year, up to the amount that the taxpayer is found to be unable to pay. The same applies where, having granted a tax payment grace period under that paragraph, the district director of the tax office, etc. finds that the taxpayer is unable to pay the amount under the grace period within the grace period because of having suffered the disaster referred to in that paragraph.

③If the district director of the tax office, etc. finds that there are reasons why a taxpayer of a national tax listed in any of the following items (excluding a national tax subject to postponement of tax payment) is unable to pay at one time the national tax equivalent to the tax amount specified in the relevant item, the district director of the tax office, etc. may, based on an application filed by that person by the due date for payment of that national tax (including, if the district director of the tax office, etc. finds that there are unavoidable reasons, an application filed after the due date for payment of that national tax), grant a grace period for the payment of that tax for a period not exceeding one year from that due date for payment, up to the amount that the taxpayer is found to be unable to pay:

④When granting a tax payment grace period under the preceding two paragraphs, the district director of the tax office, etc. may, with regard to the payment of the national tax under the grace period, have the amount under the grace period paid in installments within the grace period, divided into amounts that are reasonable and appropriate in light of the state of the person's property and other circumstances. In this case, the district director of the tax office, etc. is to specify each due date for the installment payments and the amount to be paid by each due date.

⑤When granting a tax payment grace period under paragraph (2) or (3), the district director of the tax office, etc. must request security equivalent to the amount under the grace period; provided, however, that this does not apply if the tax amount under the grace period is 1,000,000 yen or less, if the grace period is three months or less, or if there are special circumstances in which security cannot be requested.

⑥Where the district director of the tax office, etc. requires security pursuant to the provisions of the preceding paragraph, if there is any property seized through a delinquent tax collection procedure with regard to the national tax under the grace period (including, in the case where a request has been made, based on the provisions of a tax treaty, etc. (meaning a tax treaty, etc. as prescribed in Article 2, item (ii) (Definitions) of the Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties, etc. (Act No. 46 of 1969); hereinafter the same applies in this paragraph, Article 63, paragraph (5) (Exemption from Delinquent Tax in Cases of Tax Payment Grace Periods, etc.) and Article 71, paragraph (1), item (iv) (Special Provisions on Time Limits for Determination and Reassessment of National Tax)), to the treaty partner (meaning a treaty partner as prescribed in Article 2, item (iii) of that Act; the same applies hereinafter) under that tax treaty, etc. for assistance in the collection of a national tax subject to collection assistance (meaning a national tax subject to collection assistance as prescribed in Article 11-2, paragraph (1) (Assistance in the Collection of National Tax) of that Act; hereinafter the same applies in this paragraph and Article 63, paragraph (5)) or for assistance in the conservation of property for collection, property on which that treaty partner has made a disposition equivalent to a seizure with regard to that national tax subject to collection assistance under the laws and regulations of that treaty partner and property which has been provided to it as security), the amount of that security does not exceed the amount calculated by deducting the value of that property from the amount under the grace period.

⑦When the district director of the tax office, etc. has granted a tax payment grace period under paragraph (2) or (3), if they find that there are unavoidable reasons why the amount under the grace period cannot be paid within the grace period, they may extend that period based on an application by the taxpayer; provided, however, that the period may not exceed two years in total when combined with the period for which a tax payment grace period has already been granted to that person under those provisions.

⑧The provisions of paragraph (4) apply mutatis mutandis where the district director of the tax office, etc. extends, pursuant to the provisions of the preceding paragraph, the period of a tax payment grace period granted under paragraph (2) or (3).

⑨Where the district director of the tax office, etc. has the amount under the grace period paid in installments pursuant to the provisions of paragraph (4) (including as applied mutatis mutandis pursuant to the preceding paragraph), if they find that there are unavoidable reasons for the taxpayer being unable to pay, by the relevant due date, the amount to be paid by each due date for the installment payments notified pursuant to the provisions of Article 47, paragraph (1) (Notice of Tax Payment Grace Period), or if they have shortened the grace period pursuant to the provisions of Article 49, paragraph (1) (Revocation of Tax Payment Grace Period), they may change each due date for the installment payments and the amount to be paid by each due date.