Act on Special Measures for Securing the Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake

Special income tax for reconstruction is imposed pursuant to this Act on the base income tax amount pertaining to income tax for each year from 2013 to 20372047 imposed on a resident or nonresident.

Special income tax for reconstruction is imposed pursuant to this Act on the base income tax amount pertaining to income tax on income arising during the period from January 1, 2013 to December 31, 20372047 imposed on a domestic corporation or foreign corporation.

The amount of special income tax for reconstruction imposed on an individual is the amount calculated by multiplying the individual's base income tax amount for the relevant year by a tax rate of 21.1 percent.

If a resident filing a return of special income tax for reconstruction is subject to the provisions of Article 93, paragraph (1) of the Income Tax Act as applied with the replacement of terms pursuant to Article 33, paragraph (1) in any year from 2020 to 20372047, and the amount equivalent to the foreign tax adjusted at distribution as prescribed in that paragraph for that year exceeds the amount specified by Cabinet Order as the amount of income tax for that year, the amount of the excess is deducted from the amount of special income tax for reconstruction for that year, pursuant to the provisions of Cabinet Order.

If a nonresident filing a return of special income tax for reconstruction is subject to the provisions of Article 165-5-3, paragraph (1) of the Income Tax Act as applied with the replacement of terms pursuant to Article 33, paragraph (1) in any year from 2020 to 20372047, and the amount equivalent to the foreign tax adjusted at distribution as prescribed in that paragraph for that year exceeds the lesser of the following amounts, the amount of the excess is deducted from the amount of special income tax for reconstruction for that year, up to the amount specified by Cabinet Order as the amount equivalent to the amount of special income tax for reconstruction that would be calculated if the provisions of the preceding Article were applied by treating as the base income tax amount only the amount of income tax calculated, pursuant to that Act and other provisions of laws and regulations concerning the calculation of the amount of income tax (excluding the provisions of Article 165-5-3 and Article 165-6 of that Act), on the amount of income pertaining to income attributable to a permanent establishment as prescribed in Article 165-5-3, paragraph (1) of the Income Tax Act for that year:

If a resident filing a return of special income tax for reconstruction is subject to the provisions of Article 95, paragraph (1) of the Income Tax Act in any year from 2013 to 20372047, and the amount of credit-eligible foreign income tax as prescribed in that paragraph for that year exceeds the maximum credit as prescribed in that paragraph, the amount of the excess is deducted from the amount of special income tax for reconstruction for that year, up to the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the amount of foreign income as prescribed in that paragraph arising in that year, out of the amount of special income tax for reconstruction for that year calculated by applying the provisions of the preceding two Articles.

If a nonresident filing a return of special income tax for reconstruction is subject to the provisions of Article 165-6, paragraph (1) of the Income Tax Act in any year from 2017 to 20372047, and the amount of credit-eligible foreign income tax as prescribed in that paragraph for that year exceeds the maximum credit as prescribed in that paragraph, the amount of the excess is deducted from the amount of special income tax for reconstruction for that year, up to the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the amount of foreign income as prescribed in that paragraph arising in that year, out of the amount equivalent to the amount of special income tax for reconstruction that would be calculated if the provisions of the preceding two Articles were applied by treating as the base income tax amount only the amount of income tax calculated, pursuant to that Act and other provisions of laws and regulations concerning the calculation of the amount of income tax (excluding the provisions of Articles 165-5-3 and 165-6 of that Act), on the amount of income pertaining to income attributable to a permanent establishment as prescribed in that paragraph.

An individual for whom the sum total of the deducted amount as prescribed in Article 104, paragraph (1) of the Income Tax Act for any year from 2013 to 20372047 and the amount calculated by multiplying that deducted amount by 2.1 percent is 150,000 yen or more must pay to the national government the special income tax for reconstruction pertaining to the income tax to be paid under that paragraph or Article 107, paragraph (1) of that Act (including where these provisions are applied mutatis mutandis pursuant to Article 166 of that Act), together with that income tax.

The If there is special income tax for reconstruction to be paid under the preceding paragraph, with regard to the application of the provisions of Part II, Chapter V, Section 1 of the Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 of that Act) apply mutatis mutandis to the special income tax for reconstruction to be paid under the preceding paragraph. In such a case, the term "deducted amount" in Article 104, paragraph (1) of that Act is deemed to be replaced with "the sum total of the deducted amount and the amount calculated by multiplying that amount by 2.1 percent"; the term "income tax" in that paragraph is deemed to be replaced with "income tax and special income tax for reconstruction"; the term "income tax" in Article 107, paragraph (1) of that Act is deemed to be replaced with "income tax and special income tax for reconstruction"; the term "amount calculated" in Article 111, paragraph (4) of that Act is deemed to be replaced with "the sum total of the amount calculated and the amount calculated by multiplying that amount by 2.1 percent"; and the term "income tax" in the provisions of Article 114, paragraphs (1) through (3) and Article 115 of that Act is deemed to be replaced with "income tax and special income tax for reconstruction".

The provisions of paragraph (3) apply mutatis mutandis to a return under paragraph (5) (including a return filed after the deadline pertaining to that return) or a return under the preceding paragraph pertaining to special income tax for reconstruction for a year, or to an amended return or written request for reassessment pertaining to those returns. In such a case, the phrase "final return, amended return, or" in paragraph (3) is deemed to be replaced with "return under Article 172, paragraph (1) of the Income Tax Act (including a return filed after the deadline pertaining to that return) or return under Article 173, paragraph (1) of that Act, or amended return pertaining to those returns or".

If a person who has filed a return of special income tax for reconstruction under paragraph (1) of the preceding Article pays to the national government, by the payment deadline under paragraph (1), special income tax for reconstruction in an amount of one half or more of the amount of special income tax for reconstruction to be paid under paragraph (1) (or, if the person submits the written application referred to in Article 133, paragraph (1) of the Income Tax Act as applied mutatis mutandis with the replacement of terms pursuant to paragraph (6), the amount obtained by deducting from that amount of special income tax for reconstruction the amount of special income tax for reconstruction for which the person seeks a deferment of payment under the following paragraph as stated in that written application), the person may postpone payment of the remaining amount for the period until May 31 of the year in which the person made that payment. In such a case, the provisions of Article 131, paragraphs (2) and (3) of that Act (including where these provisions are applied mutatis mutandis pursuant to Article 166 of that Act) apply mutatis mutandis.

When permitting a deferment of payment of income tax to be paid under Article 132, paragraph (1) of the Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 of that Act), the district director is to also permit a deferment of payment of special income tax for reconstruction equivalent to the amount calculated by multiplying the amount of income tax subject to that deferment of payment by 21.1 percent.

The provisions In the case of Article 131, paragraphs (2) and (3), granting permission for deferment of payment of special income tax for reconstruction under the preceding paragraph, with regard to the application of the provisions of Article 132, paragraph (2), and Articles 133 through 137 of the Income Tax Act (including where these provisions are applied mutatis mutandis pursuant to Article 166 of that Act) apply mutatis mutandis , the term "amount of income tax" in that paragraph is deemed to the postponement be replaced with "sum total of payment the amount of income tax and special income tax for reconstruction or "; the term "income tax" in the permission proviso to that paragraph is deemed to be replaced with "income tax and special income tax for deferment reconstruction"; the phrase "amount of payment income tax and" in Article 133, paragraph (1) of that Act is deemed to be replaced with "sum total of the amount of income tax and special income tax for reconstruction under, and"; the preceding two paragraphs. In such a case, term "amount of income tax" in paragraph (2) of that Article is deemed to be replaced with "sum total of the amount of income tax and special income tax for reconstruction"; the phrase "amount of income tax and" in paragraph (4) of that Article is deemed to be replaced with "sum total of the amount of income tax and special income tax for reconstruction, and"; the term "amount of income tax" in paragraph (5) of that Article 132and Article 135, paragraph (2) 1), item (i) of that Act is deemed to be replaced with "sum total of the amount of income tax and special income tax for reconstruction", ; the term "amount of income tax" in item (ii) of that paragraph is deemed to be replaced with "sum total of the amount of income tax and the amount of special income tax for reconstruction set forth in Article 17, paragraph (1), item (ii) (Filing of Return on Tax Base and Amount of Tax) of the Act on Special Measures for Securing the Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake (Act No. 117 of 2011)"; the term "income tax" in Article 136, paragraph (1) of that Act is deemed to be replaced with "income tax and special income tax for reconstruction"; the term "amount of income tax" in items (i) and (ii) of that paragraph is deemed to be replaced with "sum total of the amount of income tax and special income tax for reconstruction"; the term "income tax" in Article 137 of that Act is deemed to be replaced with "income tax and special income tax for reconstruction"; and the term "amount of income tax" is deemed to be replaced with "sum total of the amount of income tax and special income tax for reconstruction".

The provisions of paragraph (3) apply mutatis mutandis in the case where special income tax for reconstruction and income tax have been paid under the preceding paragraph. In such a case, the term "that paragraph" in paragraph (3) is deemed to be replaced with "paragraph (13)".

The provisions of Article 138, paragraphs (3) and (4) and Article 139, paragraphs (3) through (5) of the Income Tax Act (including where these provisions are applied mutatis mutandis pursuant to Article 166 of that Act) apply mutatis mutandis to special income tax for reconstruction to be refunded under paragraphs (1) through (5, (3), and (4).

The provisions of paragraph (6) apply mutatis mutandis in the case where special income tax for reconstruction and income tax have been refunded under the preceding paragraph. In such a case, the term "that paragraph" in paragraph (6) is deemed to be replaced with "paragraph (10)".

The provisions of Article 173, paragraph (4) of the Income Tax Act apply mutatis mutandis to special income tax for reconstruction to be refunded under paragraphsparagraph (8) through (10).

The provisions of Article 153-5 of the Income Tax Act (including as applied mutatis mutandis pursuant to Article 167 of that Act) apply mutatis mutandis when the special income tax for reconstruction for the year that includes the date of commencement of an inheritance comes to fall under a case set forth in either item of paragraph (3) due to a decrease or increase in the covered assets as prescribed in Article 151-5151-6, paragraph (1) of that Act involved in an inheritance or bequest that have been transferred to a nonresident, as a result of a division of the estate or similar event as prescribed in that paragraph that has occurred with regard to a person who has filed a return of special income tax for reconstruction for that year or has been subject to a determination.

The provisions of Article 159, paragraphs (3) and (4) and Article 160, paragraphs (3) through (5) of the Income Tax Act (including where these provisions are applied mutatis mutandis pursuant to Article 168 of that Act) apply mutatis mutandis to special income tax for reconstruction to be refunded under paragraphs (1) through (5, (3), and (4).

The amount of special income tax for reconstruction imposed on a corporation is the amount calculated by multiplying the base income tax amount of that corporation by a tax rate of 21.1 percent.

A person who is to collect and pay income tax pursuant to the provisions of Part IV, Chapters I through VI of the Income Tax Act, and Article 3-3, paragraph (3), Article 6, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (13) of that Article), Article 8-3, paragraph (3), Article 9-2, paragraph (2), Article 9-3-2, paragraph (1), Article 37-11-4, paragraph (1), Article 37-14-237-14, paragraph (8), Article 41-9, paragraph (3), Article 41-12, paragraph (3), Article 41-12-2, paragraphs (2) through (4), and Article 41-22, paragraph (1) of the Act on Special Measures Concerning Taxation must, at the time of that collection (limited to collection to be made during the period from January 1, 2013 to December 31, 20372047), collect special income tax for reconstruction together with that income tax, and pay that special income tax for reconstruction to the national government together with that income tax by the statutory payment due date for that income tax (meaning the statutory payment due date as prescribed in Article 2, item (viii) of the Act on General Rules for National Taxes; the same applies in Article 30, paragraph (1)).

The amount of special income tax for reconstruction to be collected under the preceding paragraph is the amount calculated by multiplying the amount of income tax to be collected and paid pursuant to the provisions prescribed in that paragraph or other provisions of laws and regulations concerning income tax (or, if there is an amount deducted under Article 9-3-2, paragraph (3), Article 41-3-7, paragraph (1) or (2), or Article 41-3-9, paragraph (1) or (2) of the Act on Special Measures Concerning Taxation as applied with the replacement of terms pursuant to Article 33, paragraph (1), the amount of income tax calculated without making the deduction under those provisionsthat paragraph) by a tax rate of 21.1 percent.

A person who is to refund income tax pursuant to the provisions set forth in the following items must, at the time of that refund (limited to the refund specified in each of those items for the category of provisions set forth in that item), refund special income tax for reconstruction equivalent to the amount calculated by multiplying the amount of income tax to be refunded by 21.1 percent to the person receiving the refund of that income tax, together with that income tax.

the provisions of Article 37-11-4, paragraph (3) or Article 37-11-6, paragraph (7) of the Act on Special Measures Concerning Taxation: a refund to be made pursuant to those provisions during the period from January 1, 2013 to December 31, 20372047;

the provisions of Article 41-12, paragraph (5) or (6) of the Act on Special Measures Concerning Taxation: a refund to be made pursuant to those provisions with regard to discount bonds prescribed in paragraph (7) of that Article that were issued during the period from January 1, 2013 to December 31, 20372047.

A person who is to make a refund, pursuant to the provisions of Article 37-11-6, paragraph (7) of the Act on Special Measures Concerning Taxation, of income tax already collected pursuant to the provisions of Article 9-3-2, paragraph (1) of that Act must, notwithstanding the provisions of the preceding paragraph, at the time of that refund (limited to a refund to be made pursuant to the provisions of Article 37-11-6, paragraph (7) of that Act during the period from January 1, 2020 to December 31, 20372047), if the amount of special income tax for reconstruction already collected together with that income tax exceeds the amount of special income tax for reconstruction to be collected together with the income tax to be collected pursuant to the provisions of Article 9-3-2, paragraph (1) of that Act as calculated by applying the provisions of Article 37-11-6, paragraph (6) of that Act, refund special income tax for reconstruction equivalent to the amount of that excess, together with the income tax to be refunded, to the person receiving the refund of that income tax.

If special income tax for reconstruction and income tax have been collected and paid, or refunded, pursuant to the provisions of the preceding paragraphs, special income tax for reconstruction in an amount equivalent to 21.1/102101.1 of the amount so to be collected and paid or refunded, and income tax in an amount equivalent to 100/102101.1 of that amount, are to be treated as having been collected and paid or refunded.

the amount of income tax under the provisions of Article 185, paragraph (1) or Article 186, paragraph (1) of the Income Tax Act and the amount of special income tax for reconstruction prescribed in paragraph (2) of the preceding Article that pertains to that income tax: the amount according to a table specified by the Minister of Finance in consideration of the amounts specified in Appended Tables 2 through 4 of that Act and the calculation of the amount of special income tax for reconstruction specified in this Act;

the amount of income tax calculated pursuant to the provisions of Article 189, paragraph (1) of the Income Tax Act and the amount of special income tax for reconstruction prescribed in paragraph (2) of the preceding Article that pertains to that income tax: the amount calculated by a method specified by the Minister of Finance in consideration of the method specified by the Minister of Finance as prescribed in Article 189, paragraph (1) of that Act and the calculation of the amount of special income tax for reconstruction specified in this Act.

the total amount of the amount of tax set forth in Article 190, item (ii) of the Income Tax Act (or, if the provisions of Article 41-2-2, paragraph (1) or Article 41-3-8, paragraph (1) of the Act on Special Measures Concerning Taxation apply, the amount of tax after applying thosethe provisions of that paragraph) and the amount of special income tax for reconstruction calculated by multiplying that amount of tax by 21.1 percent (or, if that total amount includes a fraction of less than 100 yen or the whole of that total amount is less than 100 yen, the amount after rounding down that fractional amount or the whole amount).

The provisions of Articles 191 through 193 of the Income Tax Act apply mutatis mutandis to cases where an appropriation or a payment is made pursuant to the provisionsIf an appropriation or a payment is made pursuant to the provisions of the preceding paragraph, for the purpose of applying the provisions of Articles 191 through 193 of the preceding paragraph. In this caseIncome Tax Act, the phrase "the case referred to in the preceding Article" in Article 191 of that Act is deemed to be replaced with "the case referred to in Article 30, paragraph (1) (Year-End Adjustment) of the Act on Special Measures for Securing the Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake (Act No. 117 of 2011; referred to as the 'Special Measures Act' in the following Article)"; the phrase "that Article" with "that paragraph"; the term "income tax" with "income tax and special income tax for reconstruction"; the phrase "Article 190" in Article 192, paragraph (1) of that Act with "Article 30, paragraph (1) of the Special Measures Act"; the phrase "prescribed in that Article" with "prescribed in that paragraph"; the phrase "referred to in that Article" with "prescribed in Article 190 (Year-End Adjustment)"; the phrase "prescribed in Article 190" in paragraph (2) of that Article with "prescribed in Article 30, paragraph (1) of the Special Measures Act"; the phrase "the resident referred to in that Article" with "the resident prescribed in Article 190"; the phrase ", Article 190" with ", Article 30, paragraph (1) of the Special Measures Act"; the phrase "and Article 190" in item (i) of that paragraph with ", and Article 28, paragraph (1) (Withholding Obligation, etc.) and Article 30, paragraph (1) of the Special Measures Act"; the phrase "the amount of income tax" with "the total amount of income tax and special income tax for reconstruction"; the phrase "the provisions" in item (ii) of that paragraph with "the provisions and the provisions of Article 28, paragraph (1) of the Special Measures Act"; and the phrase "the amount of income tax" with "the amount of income tax and special income tax for reconstruction".

The provisions of Article 28, paragraphs (9) and (11) apply mutatis mutandis to cases where there has been an appropriation or payment, or a refund or collection, of income tax and special income tax for reconstruction under the provisions of paragraph (1) or under the provisions of Article 191 or Article 192 of the Income Tax Act as applied mutatis mutandis with the replacement of terms pursuant to the preceding paragraph.

The provisions of Article 74-2, paragraph (1) (limited to the part pertaining to item (i); the same applies in the following paragraph) and Articles 74-8 through 74-11 of the Act on General Rules for National Taxes apply mutatis mutandis to cases where an examination concerning special income tax for reconstruction is conducted.

Beyond what is provided for in paragraph (1), the application of the provisions of this Chapter in cases where the provisions of the Act on Exemption, etc. of Income Tax, etc. on Income of Foreign Residents, etc. Based on the Principle of Reciprocity (hereinafter referred to as the "Act on Reciprocal Exemption for Income of Foreign Residents, etc." in this Article) apply is as follows:

covered dividends and similar income prescribed in Article 15, paragraph (1) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity to which the provisions of that paragraph apply;

covered dividends and similar income prescribed in Article 15, paragraph (3) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity to which the provisions of that paragraph apply;

covered dividends and similar income prescribed in Article 15, paragraph (5) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity to which the provisions of that paragraph apply;

third-country entity covered business income prescribed in Article 7, paragraph (5) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity, third-country entity covered international transportation business income prescribed in Article 11, paragraph (4) of thatthe Act, on Reciprocal Exemption for Income of Foreign Residents, etc., third-country entity covered dividends and similar income prescribed in Article 15, paragraph (7) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc. to which the provisions of that paragraph apply, tax-exempt covered interest prescribed in paragraph (8) of that Article to which the provisions of that paragraph apply, or third-country entity covered capital gains prescribed in Article 19, paragraph (5) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.;

specified covered business income prescribed in Article 7, paragraph (6) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity, specified covered international transportation business income prescribed in Article 11, paragraph (5) of thatthe Act, on Reciprocal Exemption for Income of Foreign Residents, etc., specified covered dividends and similar income prescribed in Article 15, paragraph (9) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc. to which the provisions of that paragraph apply, or specified tax-exempt covered interest prescribed in paragraph (10) of that Article to which the provisions of that paragraph apply;

the provisions of Article 17, paragraphs (5) and (7) and Article 18, paragraphs (12) through (15) apply mutatis mutandis to a person who is to file a return under the provisions of Article 172, paragraph (1) of the Income Tax Act as applied mutatis mutandis pursuant to Article 7, paragraph (7) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity (including as applied mutatis mutandis pursuant to Article 11, paragraph (6), Article 15, paragraph (12), or Article 19, paragraph (6) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.) with regard to the income set forth in (d) of the preceding item. In this case, the term "paragraph (13)" in paragraph (14) of that Article is deemed to be replaced with "paragraph (13) as applied mutatis mutandis pursuant to Article 33, paragraph (4), item (ii)";

if the amount of income tax is calculated, or income tax is imposed, pursuant to the provisions of the second sentence of Article 7, paragraph (8) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity (including as applied mutatis mutandis pursuant to Article 11, paragraph (7) or Article 15, paragraph (13) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.), the second sentence of paragraph (10) of that Article (including as applied mutatis mutandis pursuant to Article 11, paragraph (8) or Article 15, paragraph (14) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.), the second sentence of paragraph (12) of that Article (including as applied mutatis mutandis pursuant to Article 11, paragraph (9) or Article 15, paragraph (15) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.), the second sentence of paragraph (14) of that Article (including as applied mutatis mutandis pursuant to Article 11, paragraph (10) or Article 15, paragraph (16) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.), the second sentence of paragraph (16) of that Article (including as applied mutatis mutandis pursuant to Article 11, paragraph (11) or Article 15, paragraph (17) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.), or the second sentence of paragraph (18) of that Article (including as applied mutatis mutandis pursuant to Article 11, paragraph (12) or Article 15, paragraph (18) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.) with regard to the income set forth in item (i), (d) or (e), the provisions of this Chapter apply by deeming the amount of income tax calculated with regard to that income pursuant to those provisions at the tax rate before deducting the post-deduction applicable tax rate prescribed in Article 15, paragraph (9) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc. to be the amount of income tax specified in Article 10, items (i) through (iii).

The provisions of Article 32, paragraph (1) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity apply mutatis mutandis to cases where, as a result of the application of the provisions concerning exemption, etc. of income tax, etc. prescribed in that paragraph or the provisions of the Act on Special Measures Concerning Taxation prescribed in that paragraph, or as a result of the provisions of Article 15, paragraph (30) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity not being applied, the content of the tax base, etc. or tax amount, etc. prescribed in Article 19, paragraph (1) of the Act on General Rules for National Taxes that forms the basis for calculating the base income tax amount pertaining to the return of special income tax for reconstruction or the determination of a person who has filed a return of special income tax for reconstruction or has received a determination has come to differ.

The provisions of Article 32, paragraphs (2) and (3) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity apply mutatis mutandis to cases where, as a result of the confirmation by the Commissioner of the National Tax Agency referred to in paragraph (1) of that Article, any part of the amount of special income tax for reconstruction for each year of a resident, or of the amount of special income tax for reconstruction for each year of a foreign resident, etc. who is a nonresident (meaning a foreign resident, etc. prescribed in Article 2, item (iii) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc.; the same applies in the following paragraph), is to be reduced.

The provisions of Article 32, paragraph (5) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity apply mutatis mutandis to a resident, or a foreign resident, etc. who is a nonresident, who has received a reassessment under Article 7, paragraph (1) or (2) 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. (hereinafter referred to as the "Act on Special Provisions for the Enforcement of Tax Treaties" in this Article and Article 63) as applied mutatis mutandis pursuant to Article 32, paragraph (2) or (3) of thatthe Act on Reciprocal Exemption for Income of Foreign Residents, etc. (including where these provisions are applied mutatis mutandis pursuant to the preceding paragraph) with regard to the amounts set forth in the items of Article 21, paragraph (2), in cases where, as a result of that reassessment, the amount set forth in Article 17, paragraph (1), items (ii) through (iv) (or, if an amended return has been filed or a reassessment has been made with regard to that amount, the amount after that filing or reassessment) stated in the return of special income tax for reconstruction for each year following the year to which the reassessment pertains, or pertaining to a year for which a determination was received, becomes excessive, or the amount set forth in paragraph (2), item (i) or (ii) of that Article (or, if an amended return has been filed or a reassessment has been made with regard to that amount, the amount after that filing or reassessment) stated in the return of special income tax for reconstruction for each year following the year to which the reassessment pertains, or pertaining to a year for which a determination was received, becomes too small. In this case, the phrase "the row of Article 153 of the Income Tax Act and7, paragraph (4)" in Article 32, paragraph (5) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity is deemed to be replaced with "the row of Article 153 ofArticle 7, paragraph (4) (limited to the Income Tax Act,part pertaining to the phrase 'Act on Special Provisionsrow of Article 153 of the Income Tax Act, in the Corporation Tax Act andtable of that paragraph)"; the Local Tax Act Incidental to Enforcementphrase "the row of Tax Treaties, etc.' is deemed to be replaced with 'Act on Special ProvisionsArticle 153 of the Income Tax Act and the row of Article 81 of the IncomeCorporation Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement in the table of paragraph (4) of that Article" with "the row of Tax Treaties, etc. as applied mutatis mutandis pursuant to Article 32, paragraph (2) orArticle 153 of the Income Tax Act in that table"; and the phrase "paragraph (3) (Special Provisions, etc. on Request for Reassessment Where Confirmation by the Commissioner of the National Tax Agency Has Been Given) of the Act on Exemption" with "paragraph (3) (Special Provisions, etc. of Income Tax, etc. on Income of Foreign Residents, etc. Based on the Principle of Reciprocity on Request for Reassessment Where Confirmation by the Commissioner of the National Tax Agency Has Been Given) (including where these provisions are applied mutatis mutandis pursuant to Article 33, paragraph (76) (Special Provisions, etc. on Application of the Income Tax Act Concerning Special Income Tax for Reconstruction) of the Act on Special Measures for Securing the Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake)', and in that table".

The provisions of Article 32, paragraph (6) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity apply mutatis mutandis to refunds or overpayments pertaining to a reassessment under the provisions of Article 7, paragraph (1) of the Act on Special Provisions for the Enforcement of Tax Treaties as applied mutatis mutandis pursuant to paragraph (2) of that Article as applied mutatis mutandis pursuant to paragraph (6), or under the provisions of Article 7, paragraph (2) of the Act on Special Provisions for the Enforcement of Tax Treaties as applied mutatis mutandis pursuant to Article 32, paragraph (3) of the Act on Exemption, etc. of Income Tax, etc. onReciprocal Exemption for Income of Foreign Residents, etc. Based on the Principle of Reciprocity as applied mutatis mutandis pursuant to paragraph (6).

the provisions of Article 17, paragraphs (5) and (7) and Article 18, paragraphs (12) through (15) apply mutatis mutandis to a person who is to file a return under the provisions of Article 172, paragraph (1) of the Income Tax Act as applied mutatis mutandis pursuant to Article 3-2, paragraph (13) of the Act on Special Provisions for the Enforcement of Tax Treaties with regard to dividends and similar income subject to a limit tax rate or dividends and similar income subject to exemption (limited to those pertaining to the dividends and similar income set forth in (c) of the preceding item). In this case, the term "paragraph (13)" in paragraph (14) of that Article is deemed to be replaced with "paragraph (13) as applied mutatis mutandis pursuant to Article 33, paragraph (9), item (ii)";

The provisions of Article 7, paragraph (4) of the Act on Special Provisions for the Enforcement of Tax Treaties (limited to the part pertaining to the row of Article 153 of the Income Tax Act in the table of that paragraph) apply mutatis mutandis to a resident or treaty partner resident, etc. who has received a reassessment under Article 7, paragraph (1) or (2) of the Act on Special Provisions for the Enforcement of Tax Treaties (including where these provisions are applied mutatis mutandis pursuant to the preceding paragraph) with regard to the amounts set forth in the items of Article 21, paragraph (2), in cases where, as a result of that reassessment, the amount set forth in Article 17, paragraph (1), items (ii) through (iv) (or, if an amended return has been filed or a reassessment has been made with regard to that amount, the amount after that filing or reassessment) stated in the return of special income tax for reconstruction for each year following the year to which the reassessment pertains, or pertaining to a year for which a determination was received, becomes excessive, or the amount set forth in paragraph (2), item (i) or (ii) of that Article (or, if an amended return has been filed or a reassessment has been made with regard to that amount, the amount after that filing or reassessment) stated in the return of special income tax for reconstruction for each year following the year to which the reassessment pertains, or pertaining to a year for which a determination was received, becomes too small. In this case, the phrase "Special Provisions on Reassessment)" in the row of Article 153 of the Income Tax Act in thethat table of Article 7, paragraph (4) of the Act on Special Provisions for the Enforcement of Tax Treaties is deemed to be replaced with "Special Provisions on Reassessment) (including as applied mutatis mutandis pursuant to Article 33, paragraph (10) (Special Provisions, etc. on Application of the Income Tax Act Concerning Special Income Tax for Reconstruction) of the Act on Special Measures for Securing the Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake (Act No. 117 of 2011))".

Reconstruction bonds and the refunding bonds pertaining to those reconstruction bonds (meaning refunding bonds issued pursuant to the provisions of Article 46, paragraph (1) or Article 47, paragraph (1) of the Special Accounts Act, and including refunding bonds successively issued pursuant to those provisions with regard to those refunding bonds; the same applies hereinafter) are to be redeemed by the end of fiscal 20372047.

The revenue from the special taxes for reconstruction during the period from fiscal 2012 to fiscal 20372047 is to be used to finance reconstruction costs and redemption costs (meaning the costs required for the redemption of reconstruction bonds (including refunding bonds pertaining to those reconstruction bonds; the same applies in the following Article, Article 74, paragraph (1), and Article 18 of the Supplementary Provisions) (excluding, if refunding bonds have been issued, the part covered by the proceeds of those refunding bonds); the same applies hereinafter).

The revenue from the special income tax for reconstruction in fiscal 20372047 is to be used first to finance redemption costs, and, if any remains, to finance the costs required for the redemption of public bonds other than reconstruction bonds (excluding public bonds issued pursuant to the provisions of the proviso to Article 4, paragraph (1) of the Public Finance Act (including refunding bonds pertaining to those public bonds)).

If the redemption of the reconstruction bonds issued up to a fiscal year that is fiscal 20362046 or earlier has been completed in that fiscal year, the provisions of the preceding paragraph apply mutatis mutandis to the revenue from the special taxes for reconstruction arising during the period from that fiscal year to fiscal 20362046, the revenue from the disposal of the shares set forth in the items of paragraph (3) of the preceding Article, and the revenue from the disposal of national property prescribed in paragraph (4) of that Article and other revenue other than tax revenue.