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 the preceding paragraph, the application of the provisions of the Act on General Rules for National Taxes with regard to corporation tax or special corporation tax for reconstruction is as follows:

with regard to the application of the provisions of Article 71, paragraph (1), item (i) of the Act on General Rules for National Taxes, corporation tax and special corporation tax for reconstruction are deemed to be national taxes falling under the same tax item;

if an appeal has been filed against a reassessment or determination, etc. prescribed in Article 58, paragraph (1), item (i), (a) of the Act on General Rules for National Taxes pertaining to corporation tax or special corporation tax for reconstruction (hereinafter referred to as a "reassessment or determination, etc." in this Article), and there is a reassessment or determination, etc. made with regard to other special corporation tax for reconstruction or corporation tax for which the taxpayer and the business year are the same as those of that corporation tax or special corporation tax for reconstruction, then, with regard to the application of the provisions of Article 90, paragraph (1) or (2), Article 104, paragraph (2), or Article 115, paragraph (1), item (ii) of that Act, the reassessment or determination, etc. made with regard to that other special corporation tax for reconstruction or corporation tax is deemed to be another reassessment or determination, etc. made with regard to the tax basis, etc. or tax amount, etc. prescribed in Article 19, paragraph (1) of that Act of that corporation tax or special corporation tax for reconstruction.

If a reassessment pertaining to a request for reassessment (meaning a request for reassessment under the provisions of Article 23, paragraph (1) of the Act on General Rules for National Taxes; hereinafter the same applies in this paragraph and paragraph (5)) has been made with respect to corporation tax pursuant to the provisions of Article 70, paragraph (3) of the Act on General Rules for National Taxes (including as read and applied with the replacement of terms pursuant to the provisions of Article 66-4, paragraph (21) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the Act Partially Amending the Income Tax Act, etc. (Act No. 6 of 2019; hereinafter referred to as the "2019 Amendment Act" in this Article) in the case where the provisions then in force continue to govern pursuant to the provisions of Article 56, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, or of Article 68-88, paragraph (22) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 73, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act), a reassessment or determination (meaning a determination under the provisions of Article 25 of the Act on General Rules for National Taxes; the same applies in paragraph (5)) with respect to the special corporation tax for reconstruction pertaining to that corporation tax, or an assessment and determination (meaning a determination under the provisions of Article 32, paragraph (1) or (2) of the Act on General Rules for National Taxes; hereinafter the same applies in this Article) with regard to penalty tax (meaning penalty tax prescribed in Article 69 of the Act on General Rules for National Taxes; hereinafter the same applies in this Article) to be imposed upon that reassessment or determination, may be made until the day on which six months have elapsed from the day on which that request for reassessment was made, notwithstanding the provisions of Article 70, paragraphs (1) and (2) of the Act on General Rules for National Taxes and the provisions of paragraph (8). The same applies to a reassessment or an assessment and determination with respect to the corporation tax pertaining to special corporation tax for reconstruction in the case where a reassessment pertaining to a request for reassessment has been made with respect to that special corporation tax for reconstruction pursuant to the provisions of paragraph (3) of that Article (including as read and applied with the replacement of terms pursuant to the provisions of paragraph (8)).

In the case referred to in the preceding paragraph, with regard to the application of the provisions of Article 70, paragraph (5), Article 71, and Article 72 of the Act on General Rules for National Taxes, the phrase "or the preceding two paragraphs" in that paragraph is deemed to be replaced with "or the preceding two paragraphs, or Article 63, paragraph (3) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation 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 (hereinafter referred to as the 'Special Measures Act')"; the phrase "or paragraph (3)" in item (ii) of that paragraph is deemed to be replaced with "or paragraph (3), or Article 63, paragraph (3) of the Special Measures Act"; the phrase "the day ... the preceding Article" in Article 71, paragraph (1) of that Act is deemed to be replaced with "the day ... the preceding Article or Article 63, paragraph (3) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation Tax for Reconstruction) of the Special Measures Act"; the phrase "that Article" is deemed to be replaced with "the preceding Article and that paragraph"; the phrase "the preceding Article" in item (iv), (b) of that paragraph is deemed to be replaced with "the preceding Article or Article 63, paragraph (3) of the Special Measures Act"; and the phrase "the day on which ... was made" in Article 72, paragraph (1) of that Act is deemed to be replaced with "the day on which ... was made, and, for tax to be paid as a result of a reassessment or determination or an assessment and determination under the provisions of Article 63, paragraph (3) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation Tax for Reconstruction) of the Special Measures Act, the day on which the reassessment or determination prescribed in that paragraph was made".

If a reassessment pertaining to a request for reassessment has been made with respect to corporation tax pursuant to the provisions of Article 71, paragraph (1) of the Act on General Rules for National Taxes (limited to the part pertaining to item (iii), and including as read and applied with the replacement of terms pursuant to the provisions of Article 66-4, paragraph (21) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 56, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, or of Article 68-88, paragraph (22) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 73, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act), and the day on which the period specified in that item expires comes after the day on which the period during which a reassessment or determination, etc. may be made with respect to the special corporation tax for reconstruction pertaining to that corporation tax pursuant to the provisions of Article 70 of the Act on General Rules for National Taxes or the provisions of paragraph (3) or (8) expires, a reassessment or a determination with respect to that special corporation tax for reconstruction, or an assessment and determination with regard to penalty tax to be imposed upon that reassessment or determination, may also be made within six months from the day on which that request for reassessment was made, notwithstanding the provisions of that Article and the provisions of paragraphs (3) and (8). The same applies to a reassessment or an assessment and determination with respect to the corporation tax pertaining to special corporation tax for reconstruction in the case where a reassessment pertaining to a request for reassessment has been made with respect to that special corporation tax for reconstruction pursuant to the provisions of Article 71, paragraph (1) of that Act (limited to the part pertaining to that item, and including as read and applied with the replacement of terms pursuant to the provisions of paragraph (8)), and the day on which the period specified in that item expires comes after the day on which the period during which a reassessment or determination, etc. may be made with respect to that corporation tax pursuant to the provisions of Article 70 of that Act, the provisions of Article 66-4, paragraph (21) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 56, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act or of Article 68-88, paragraph (22) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 73, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, or the provisions of paragraph (3) expires.

In the case referred to in the preceding paragraph, with regard to the application of the provisions of Article 72, paragraph (1) of the Act on General Rules for National Taxes, the phrase "was made" in that paragraph is deemed to be replaced with "was made, and, for a national tax to be paid based on a reassessment or determination or an assessment and determination under the provisions of Article 63, paragraph (5) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation 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, the day on which the reassessment or determination prescribed in that paragraph was made".

If the provisions of Article 66-4, paragraph (20) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 56, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, or of Article 68-88, paragraph (21) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 73, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, apply to the corporation tax on the income for each taxable business year or the corporation tax on the consolidated income of a corporation, then, with regard to the application of the provisions of Article 23, paragraph (1) (excluding item (ii)) of the Act on General Rules for National Taxes pertaining to the special corporation tax for reconstruction for each of those taxable business years (limited to the part pertaining to the application of those provisions), the phrase "five years" in that paragraph is deemed to be replaced with "six years".

A reassessment or determination, etc. set forth in any of the following items may be made, notwithstanding the provisions of Article 70, paragraph (1) of the Act on General Rules for National Taxes, until the day on which six years have elapsed from the due date or the day specified in the relevant item. In such a case, with regard to the application of the provisions of paragraphs (3) and (5) of that Article and Article 71, paragraph (1) of that Act, the phrase "pursuant to the provisions of" in Article 70, paragraph (3) of that Act is deemed to be replaced with "pursuant to the provisions of ... and Article 63, paragraph (8) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation 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 (hereinafter referred to as the 'Special Measures Act')"; the phrase ", the preceding two paragraphs" is deemed to be replaced with ", the preceding two paragraphs and paragraph (8) of that Article"; the phrase "or the preceding two paragraphs" in paragraph (5) of that Article is deemed to be replaced with "or the preceding two paragraphs, or Article 63, paragraph (8) of the Special Measures Act"; the phrase "the day ... the preceding Article" in Article 71, paragraph (1) of that Act is deemed to be replaced with "the day ... the preceding Article and Article 63, paragraph (8) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation Tax for Reconstruction) of the Special Measures Act"; the phrase "that Article" is deemed to be replaced with "the preceding Article and that paragraph"; and the phrase "the preceding Article" in item (iv), (b) of that paragraph is deemed to be replaced with "the preceding Article and Article 63, paragraph (8) of the Special Measures Act".

a reassessment or determination (meaning a reassessment or a determination under the provisions of Article 25 of the Act on General Rules for National Taxes; hereinafter the same applies in this paragraph) with respect to special corporation tax for reconstruction which is to cause a change in the tax basis, etc. prescribed in Article 19, paragraph (1) of that Act (hereinafter referred to as the "tax basis, etc." in this paragraph) or the tax amount, etc. prescribed in paragraph (1) of that Article (hereinafter referred to as the "tax amount, etc." in this paragraph) as a result of any of the following reassessments or determinations: the statutory tax return due date prescribed in Article 2, item (vii) of that Act for the special corporation tax for reconstruction pertaining to that reassessment or determination (or, if the reassessment with respect to the corporation tax referred to in (a) or (b) is a reassessment pertaining to a return of refund claim prescribed in Article 61, paragraph (1) of that Act, the day on which that return of refund claim was filed);

a reassessment or determination with respect to corporation tax which is made based on the fact that a corporation conducted a transaction with a foreign related person prescribed in Article 66-4, paragraph (1) or Article 68-88, paragraph (1) of the Act on Special Measures Concerning Taxation pertaining to that corporation for a consideration amount different from the arm's length price prescribed in those provisions;

a reassessment or determination with respect to corporation tax which is to cause a change in the tax basis, etc. or tax amount, etc. as a result of the reassessment or determination set forth in (a);

a reassessment or determination with respect to special corporation tax for reconstruction which is to cause a change in the tax basis, etc. or tax amount, etc. as a result of a reassessment or determination set forth in (a) or (b) of the preceding item, or of the filing of a tax return prescribed in Article 2, item (vi) of the Act on General Rules for National Taxes (excluding a return filed by the due date prescribed in Article 17, paragraph (2) of that Act; hereinafter referred to as a "tax return" in this item) with respect to corporation tax based on the fact prescribed in (a) of that item or the filing of a tax return with respect to corporation tax which is to cause the change prescribed in (b) of the preceding item, or an assessment and determination with regard to penalty tax pertaining to that special corporation tax for reconstruction which is to be made upon the filing of a tax return: the day on which its tax liability was established.

The provisions of Article 66-4, paragraphs (22) and (23) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 56, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, and of Article 68-88, paragraphs (23) and (24) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 73, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, apply mutatis mutandis to the extinctive prescription of the national tax collection right prescribed in Article 72, paragraph (1) of the Act on General Rules for National Taxes with respect to special corporation tax for reconstruction.

With regard to the application of the provisions of Article 72, paragraph (1) of the Act on General Rules for National Taxes to special corporation tax for reconstruction to be paid based on a reassessment or an assessment and determination under the provisions of Article 70, paragraph (3) of that Act as read and applied with the replacement of terms pursuant to the provisions of paragraph (8), the phrase "(Article 70, paragraph (3)" in that paragraph is deemed to be replaced with "(Article 70, paragraph (3) as read and applied with the replacement of terms pursuant to the provisions of Article 63, paragraph (8) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation Tax for Reconstruction) of the Special Measures Act", and the phrase ", Article 70, paragraph (3)" is deemed to be replaced with ", Article 70, paragraph (3) as read and applied with the replacement of terms pursuant to the provisions of Article 63, paragraph (8) of the Special Measures Act".

The provisions of Article 66-4, paragraph (25) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 56, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, and of Article 68-88, paragraph (26) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 11 of the 2019 Amendment Act in the case where the provisions then in force continue to govern pursuant to the provisions of Article 73, paragraph (1) of the Supplementary Provisions of the 2019 Amendment Act, apply mutatis mutandis to delinquent tax with respect to special corporation tax for reconstruction.

The provisions of Article 66-4-2 of the Act on Special Measures Concerning Taxation apply mutatis mutandis to the amount of special corporation tax for reconstruction to be paid as a result of a reassessment or determination set forth in paragraph (8), item (i) and the amount of penalty tax pertaining to that amount of special corporation tax for reconstruction. In such a case, the phrase "Grace Period for Tax Payment under the Special Provisions on Taxation of Transactions with a Foreign Affiliate)" in paragraph (4) of that Article is deemed to be replaced with "Grace Period for Tax Payment under the Special Provisions on Taxation of Transactions with a Foreign Affiliate) (including as applied mutatis mutandis pursuant to Article 63, paragraph (12) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation 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; the same applies hereinafter)"; the phrase "including a grace period for tax payment under the provisions of ...) or'; Article 52, paragraph (1) of that Act" in paragraph (6) of that Article is deemed to be replaced with "including a grace period for tax payment under the provisions of ... (including as applied mutatis mutandis pursuant to Article 63, paragraph (12) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation 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; the same applies hereinafter)) or'; Article 52, paragraph (1) of that Act"; and the phrase "including a grace period for tax payment under the provisions of ...) or'; item (x) of that Article" is deemed to be replaced with "including a grace period for tax payment under the provisions of ... (including as applied mutatis mutandis pursuant to Article 63, paragraph (12) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation 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); the same applies hereinafter)) or'; item (x) of that Article".

The provisions of Article 7, paragraph (1) of the Act on Special Provisions for the Enforcement of Tax Treaties apply mutatis mutandis to cases where, as a result of an agreement prescribed in that paragraph having been reached, any part of the amount of special corporation tax for reconstruction for each taxable business year of a domestic corporation, or of the amount of special corporation tax for reconstruction for each taxable business year of a treaty partner resident, etc. (meaning a treaty partner resident, etc. prescribed in Article 2, item (iv) of the Act on Special Provisions for the Enforcement of Tax Treaties; the same applies in the following paragraph), is to be reduced.

The provisions of Article 7, paragraph (4) of the Act on Special Provisions for the Enforcement of Tax Treaties apply mutatis mutandis to a domestic corporation or treaty partner resident, etc. that has received a reassessment under Article 7, paragraph (1) of the Act on Special Provisions for the Enforcement of Tax Treaties (including as applied mutatis mutandis pursuant to the preceding paragraph) with regard to the amounts set forth in the items of Article 57, in cases where, as a result of that reassessment, the amount set forth in Article 53, paragraph (1), item (i) or (ii) (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 corporation tax for reconstruction for each taxable business year following the business year or consolidated business year to which the reassessment pertains, or pertaining to a taxable business year for which a determination under the provisions of Article 25 of the Act on General Rules for National Taxes was received, becomes excessive, or the amount set forth in item (iii) of that paragraph (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) pertaining to a taxable business year stated in the return of special corporation tax for reconstruction for each taxable business year following the business year or consolidated business year to which the reassessment pertains becomes too small. In this case, the phrase "Special Provisions on Reassessment)" in the row of Article 80-2 of the Corporation Tax Act and the row of Article 82 of the Corporation Tax Act in the 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 63, paragraph (13) (Special Provisions, etc. on Application of the Corporation Tax Act Concerning Special Corporation 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))".

The provisions of Article 7, paragraph (5) of the Act on Special Provisions for the Enforcement of Tax Treaties apply mutatis mutandis to refunds or overpayments pertaining to a reassessment under the provisions of paragraph (1) of that Article as applied mutatis mutandis pursuant to paragraph (13).

Beyond what is provided for in the preceding paragraphs, the technical replacement of terms in the provisions of laws and regulations concerning corporation tax with regard to special corporation tax for reconstruction, and other necessary matters concerning the application of the provisions of this Chapter, are specified by Cabinet Order.