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

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.