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

In this Chapter, the meanings of the terms set forth in the following items are as prescribed in those items:

domestic corporation: a domestic corporation as prescribed in Article 2, item (iii) of the Corporation Tax Act;

foreign corporation: a foreign corporation as prescribed in Article 2, item (iv) of the Corporation Tax Act;

public interest corporation, etc.: a public interest corporation, etc. as prescribed in Article 2, item (vi) of the Corporation Tax Act (including one deemed to be a public interest corporation, etc. prescribed in that item for the purpose of applying the provisions of laws and regulations concerning corporation tax under an Act other than that Act);

association or foundation without juridical personality: These mean an association or foundation without juridical personality as prescribed in Article 2, item (viii) of the Corporation Tax Act;

consolidated parent corporation: a consolidated parent corporation as prescribed in Article 2, item (xii)-6-7 of the Corporation Tax Act;

consolidated subsidiary corporation: a consolidated subsidiary corporation as prescribed in Article 2, item (xii)-7 of the Corporation Tax Act;

consolidated full controlling interest: a consolidated full controlling interest as prescribed in Article 2, item (xii)-7-7 of the Corporation Tax Act;

profit-making business: a profit-making business as prescribed in Article 2, item (xiii) of the Corporation Tax Act;

consolidated income: consolidated income as prescribed in Article 2, item (xviii)-4 of the Corporation Tax Act;

designated period: the period from April 1, 2012 to March 31, 2014;

business year: a business year as prescribed in Articles 13 and 14 of the Corporation Tax Act and Article 66-11-3, paragraph (5) of the Act on Special Measures Concerning Taxation;

consolidated business year: a consolidated business year as prescribed in Article 15-2 of the Corporation Tax Act;

trust subject to corporate taxation: These mean a trust subject to corporate taxation as prescribed in Article 2, item (xxix)-2 of the Corporation Tax Act;

return of special corporation tax for reconstruction: a return under the provisions of Article 53, paragraph (1) (including a return filed after the deadline prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes pertaining to that return) and a return under the provisions of Article 54;

amended return: These mean an amended return as prescribed in Article 19, paragraph (3) of the Act on General Rules for National Taxes;

written request for reassessment: a written request for reassessment as prescribed in Article 23, paragraph (3) of the Act on General Rules for National Taxes;

reassessment: a reassessment under the provisions of Article 24 or Article 26 of the Act on General Rules for National Taxes;

accessory tax: accessory tax as prescribed in Article 2, item (iv) of the Act on General Rules for National Taxes;

appropriation: an appropriation under the provisions of Article 57, paragraph (1) of the Act on General Rules for National Taxes;

interest on refund: interest on refund as prescribed in Article 58, paragraph (1) of the Act on General Rules for National Taxes.

An association or foundation without juridical personality and an individual who is the trustee of a trust subject to corporate taxation are deemed to be corporations, and the provisions of this Chapter (excluding Section 6) apply to them.

The trustee of a trust subject to corporate taxation is deemed to be a different person for the trust assets and other holdings of each trust subject to corporate taxation and for its personal assets and other holdings, as prescribed in Article 4-6, paragraph (1) of the Corporation Tax Act, respectively, and the provisions of this Chapter (excluding the following Article, Article 46, and Section 6) apply.

The provisions of Article 4-6, paragraph (2), Article 4-7, and Article 4-8 of the Corporation Tax Act apply mutatis mutandis in the case where the provisions of the preceding paragraph apply.

A corporation is obligated to pay special corporation tax for reconstruction on its base corporation tax amount pursuant to this Act.

Special corporation tax for reconstruction is imposed pursuant to this Act on the base corporation tax amount of a corporation for each taxable business year.

The term "base corporation tax amount" as used in this Chapter means the amount specified in each of the following items according to the category of corporation set forth in that item:

a corporation other than a consolidated parent corporation: the amount of corporation tax (excluding the amount of accessory tax) calculated, on the amount of income for each business year that is the tax base for corporation tax of that corporation, pursuant to the provisions of the Corporation Tax Act and other laws and regulations concerning the calculation of the amount of corporation tax (excluding the provisions of Articles 67 through 70-2 and Article 144 of that Act and the provisions of Chapter III, Sections 5 and 5-2 of the Act on Special Measures Concerning Taxation);

a consolidated parent corporation: the amount of corporation tax (excluding the amount of accessory tax) calculated, on the amount of consolidated income for each consolidated business year that is the tax base for corporation tax of that consolidated parent corporation, pursuant to the provisions of the Corporation Tax Act and other laws and regulations concerning the calculation of the amount of corporation tax (excluding the provisions of Articles 81-13 through 81-17 of that Act and the provisions of Chapter III, Sections 17 and 18 of the Act on Special Measures Concerning Taxation).

The term "taxable business year" as used in this Chapter means a business year that includes a day within the period from the first day of the business year of a corporation that begins first within the designated period until the day on which two years have elapsed from that day.

Notwithstanding the provisions of the preceding paragraph, the taxable business year of a corporation set forth in each of the following items is the business year specified in that item:

a corporation established within the designated period (excluding a corporation set forth in the following item through item (v)): a business year that includes a day within the designated period;

a public interest corporation, etc. or an association or foundation without juridical personality that has newly commenced a profit-making business within the designated period (excluding a corporation set forth in item (iv) or (v)): a business year that includes a day within the period from the day on which it commenced that business until the last day of the designated period;

a public interest corporation, etc. (limited to one that does not conduct a profit-making business) that has come to fall under an ordinary corporation prescribed in Article 2, item (ix) of the Corporation Tax Act or a cooperative, etc. prescribed in item (vii) of that Article (referred to as an "ordinary corporation, etc." in item (v), (a), 2.) within the designated period (excluding a corporation set forth in item (v)): a business year that includes a day within the period from the day on which it came so to fall until the last day of the designated period;

a foreign corporation that has newly come to fall under any of the foreign corporations set forth in Article 141, items (i) through (iii) of the Corporation Tax Act or the foreign corporations set forth in item (iv) of that Article (limited to those having domestic source income set forth in (a) or (b) of that item) within the designated period (excluding a corporation set forth in the following item): a business year that includes a day within the period from the day on which it came so to fall until the last day of the designated period (excluding a business year that began before the first day of the designated period);

the following corporations: a business year specified by Cabinet Order as equivalent to a business year that includes a day within the period prescribed in the preceding paragraph, or as equivalent to a business year that includes a day within the designated period:

the merging corporation, in cases where a qualified merger prescribed in Article 2, item (xii)-8 of the Corporation Tax Act (limited to one in which the merged corporation prescribed in item (xi) of that Article is the base corporation (meaning the corporation specified by Cabinet Order as being of the largest scale out of that merged corporation and the merging corporation prescribed in item (xii) of that Article pertaining to that qualified merger)) has been carried out within the period subject to taxation (meaning the period specified below for the category of corporation set forth below) of that merged corporation or merging corporation:

a corporation having a business year that includes the first day of the designated period (excluding a corporation set forth in 2.): the period from the first day of the business year of that corporation that begins first on or after that day until the day on which two years have elapsed from that day;

a corporation established within the designated period, a public interest corporation, etc. that has newly commenced a profit-making business within the designated period, a public interest corporation, etc. (limited to one that does not conduct a profit-making business) that has come to fall under an ordinary corporation, etc. within the designated period, and a foreign corporation that has newly come to fall under any of the foreign corporations set forth in Article 141, items (i) through (iii) of the Corporation Tax Act or the foreign corporations set forth in item (iv) of that Article (limited to those having domestic source income set forth in (a) or (b) of that item) within the designated period: the designated period;

the consolidated subsidiary corporation, in cases where, within the period of the consolidated parent corporation business year prescribed in Article 15-2, paragraph (1) of the Corporation Tax Act that includes a day within the period subject to taxation prescribed in (a) of a consolidated parent corporation or of a consolidated subsidiary corporation having a consolidated full controlling interest with that consolidated parent corporation, the approval under Article 4-2 of that Act has been rescinded for that consolidated subsidiary corporation pursuant to the provisions of Article 4-5, paragraph (1) or (2) of that Act.

The place for tax payment for special corporation tax for reconstruction of a corporation is the place for tax payment for corporation tax of that corporation under the provisions of Articles 16 through 18 of the Corporation Tax Act.

The provisions of Article 19 of the Corporation Tax Act apply mutatis mutandis to special corporation tax for reconstruction in cases where a disposition designating the place for tax payment for corporation tax has been revoked.

The tax base of special corporation tax for reconstruction is the tax base corporation tax amount for each taxable business year.

The tax base corporation tax amount for each taxable business year is the base corporation tax amount for each taxable business year; provided, however, that the tax base corporation tax amount for the last taxable business year of the taxable business years of a corporation set forth in any of the following items is the amount calculated by multiplying the base corporation tax amount by the ratio that the number of months in the period specified in the relevant item for the category of corporation set forth in that item bears to the number of months in that last taxable business year:

a corporation for which the total number of months of its taxable business years exceeds 24 months as a result of a change in its business year or any other reason (excluding a corporation set forth in the following item or item (iii)): the period from the first day of that last taxable business year until the day on which two years have elapsed from the first day of the business year of that corporation that begins first within the designated period;

a corporation set forth in Article 45, paragraph (2), items (i) through (iv): the period from the first day of that last taxable business year until the last day of the designated period (or, if the corporation has dissolved due to a merger on or before that day, or its residual assets have been finalized before that day, the day preceding the day of that merger or the day on which those residual assets were finalized);

a corporation set forth in Article 45, paragraph (2), item (v): the period specified by Cabinet Order as equivalent to the periods specified in the preceding two items.

The number of months referred to in the preceding paragraph is calculated according to the calendar, and any fraction of less than one month is counted as one month.

The amount of special corporation tax for reconstruction is the amount calculated by multiplying the tax base corporation tax amount for each taxable business year by a tax rate of 10 percent.