Act on Special Measures Concerning Taxation

machinery and equipment, and furniture and fixtures: 35 percent (50 percent for those that an individual who has obtained the approval under Article 13, paragraph (4) or (78) of the Act on Strengthening a Framework for Regional Growth and Development by Promoting Regional Economy Advancement Projects on or after April 1, 2019 (referred to as a "specified individual" in paragraph (3), item (i)) has put to use in its approved regional economy advancement project (limited to one specified by Cabinet Order as contributing significantly to strengthening the framework for regional growth and development; the same applies in that item));

transfer of land, etc. to an approved developer of land for regional economy advancement projects prescribed in Article 12-4 of the Act on Strengthening a Framework for Regional Growth and Development by Promoting Regional Economy Advancement Projects that carries out the approved development of land for regional economy advancement projects prescribed in that Article, with the transferred land, etc. being used for that approved development of land for regional economy advancement projects (excluding that which falls under the category of a transfer listed in item (v), (vi) or (viii) or the preceding item);

transfer of land, etc. (excluding that pertaining to a right to an adjacent project site prescribed in Article 55, paragraph (1), item (ii) of the Act on Facilitation of the Regeneration, etc. of Condominiums (Act No. 78 of 2002) (hereinafter referred to in this item as a "right to an adjacent project site") and that pertaining to a right to the underlying land of a project prescribed in item (iii) of that paragraph) to the project implementer (meaning the project implementer prescribed in Article 2, paragraph (1), item (x) of that Act; hereinafter the same applies in this item) of a condominium regeneration project (meaning a condominium regeneration project prescribed in Article 2, paragraph (1), item (x) of that Act, limited to one specified by Cabinet Order as contributing to securing a good living environment; hereinafter the same applies in this item) based on a demand under Article 15, paragraph (1) or Article 64, paragraph (1) or paragraph (3) of that Act or an offer under Article 56, paragraph (1) of that Act, or transfer of land, etc. (limited to that pertaining to a right to an adjacent project site) to the project implementer of a condominium regeneration project in which the pre-reconstruction condominium prescribed in Article 2, paragraph (1), item (xi) of that Act or the lost condominium (meaning a condominium prescribed in item (i) of that paragraph; hereinafter the same applies in this item and the following item) that stood on the reconstruction site prescribed in item (xiii) of that paragraph falls under a building specified by Cabinet Order, and the total floor area of the post-regeneration condominium prescribed in item (xiv) of that paragraph is the total floor area of that pre-reconstruction condominium or that lost condominium or more, with the land, etc. pertaining to these transfers being used for those condominium regeneration projects (excluding that which falls under the category of a transfer listed in itemitems (vii) through the preceding item(ix));

transfer of land, etc., which is located in a district as specified by Cabinet Order within a city planning district as prescribed in Article 4, paragraph (2) of the City Planning Act, to a person who carries out a project to construct a building whose building area is the area specified by Cabinet Order or more (limited to a project that meets the requirement that the area of the district where the project is to be carried out is 500 square meters or more, as well as any other requirements specified by Cabinet Order), with the transferred land, etc. being used for the project (excluding that which falls under the category of a transfer listed in items (vii) through (x)ix), item (x), or items (xiii) through (xvi));

transfer of land, etc. to an individual or a corporation that is to construct a group of houses or mid-to-high-rise fire-proof apartment houses (limited to that which meets the following requirements) (in the case where an heir or universal legatee has succeeded to the project for the construction due to the death of the individual carrying out the development, and where the heir or universal legatee then carries out the construction, such individual is to be the deceased individual who was to carry out the construction or the heir or universal legatee; the same applies in the following item and paragraph (5)) (in the case where the corporation carrying out the construction has extinguished as a result of a merger and the merging corporation prescribed in Article 2, item (xii) of the Corporation Tax Act that was involved in the merger has succeeded to the project for the construction and carries out the construction, such corporation is to be the extinguished corporation that was to carry out the construction or the merging corporation; and in the case where the corporation carrying out the construction has been split off and the succeedingsuccessor corporation in the company split prescribed in item (xii)-3 of that Article that was involved in the company split has succeeded to the project for the construction and carries out the construction, such corporation is to be the split-off corporation that was to carry out the construction or the succeedingsuccessor corporation in the company split; the same applies in the following item and that paragraph), with the transferred land, etc. being used for constructing the group of houses or mid-to-high-rise fire-proof apartment houses (excluding that which falls under the category of a transfer listed in items (vii) through (x)ix), item (x), or the preceding two items):

transfer of land, etc. (limited to land, etc. within a district for a land readjustment project as prescribed in Article 2, paragraph (4) of the Land Readjustment Act (Act No. 119 of 1954) carried out under the Act, for which provisional substitute land has been designated under Article 98, paragraph (1) of the Act (including the case where the land or the part thereof subject to the right to provisionally use or to receive proceeds therefrom has been designed; hereinafter the same applies in this item)) to an individual or a corporation that constructs a house or a mid-to-high-rise fire-proof apartment house (limited to that which meets the following requirements), which is made not later than December 31 of the year that includes the day on which three years have elapsed from the day on which the designation has become effective (in the case where the day on which the individual or the corporation may start using or receiving proceeds from the right is determined pursuant to the provisions of Article 99, paragraph (2) of the Act, from that day), with the land, etc. designated as provisional substitute land for the transferred land, etc. being used for constructing the house or mid-to-high-rise fire-proof apartment house (excluding that which falls under the category of a transfer listed in items (vii) through (x)ix), item (x), or the preceding three items):

machinery and equipment, and furniture and fixtures: 35 percent (50 percent for those that a corporation that has obtained the approval under Article 13, paragraph (4) or (78) of the Act on Strengthening a Framework for Regional Growth and Development by Promoting Regional Economy Advancement Projects on or after April 1, 2019 (referred to as a "specified corporation" in item (i) of the following paragraph) has put to use in its approved regional economy advancement project (limited to one specified by Cabinet Order as contributing significantly to strengthening the framework for regional growth and development; the same applies in that item));

transfer of land, etc. to an approved developer of land for regional economy advancement projects prescribed in Article 12-4 of the Act on Strengthening a Framework for Regional Growth and Development by Promoting Regional Economy Advancement Projects that carries out the approved development of land for regional economy advancement projects prescribed in that Article, with the transferred land, etc. being used for that approved development of land for regional economy advancement projects (excluding that which falls under the category of a transfer listed in item (v), (vi) or (viii) or the preceding item);

transfer of land, etc. (excluding that pertaining to a right to an adjacent project site prescribed in Article 55, paragraph (1), item (ii) of the Act on Facilitation of the Regeneration, etc. of Condominiums (hereinafter referred to in this item as a "right to an adjacent project site") and that pertaining to a right to the underlying land of a project prescribed in item (iii) of that paragraph) to the project implementer (meaning the project implementer prescribed in Article 2, paragraph (1), item (x) of that Act; hereinafter the same applies in this item) of a condominium regeneration project (meaning a condominium regeneration project prescribed in Article 2, paragraph (1), item (x) of that Act, limited to one specified by Cabinet Order as contributing to securing a good living environment; hereinafter the same applies in this item) based on a demand under Article 15, paragraph (1) or Article 64, paragraph (1) or paragraph (3) of that Act or an offer under Article 56, paragraph (1) of that Act, or transfer of land, etc. (limited to that pertaining to a right to an adjacent project site) to the project implementer of a condominium regeneration project in which the pre-reconstruction condominium prescribed in Article 2, paragraph (1), item (xi) of that Act or the lost condominium (meaning a condominium prescribed in item (i) of that paragraph; hereinafter the same applies in this item and the following item) that stood on the reconstruction site prescribed in item (xiii) of that paragraph falls under a building specified by Cabinet Order, and the total floor area of the post-regeneration condominium prescribed in item (xiv) of that paragraph is the total floor area of that pre-reconstruction condominium or that lost condominium or more, with the land, etc. pertaining to these transfers being used for those condominium regeneration projects (excluding that which falls under the category of a transfer listed in itemitems (vii) through the preceding item(ix));

transfer of land, etc., which is located in an areaa district specified by Cabinet Order within a city planning area as prescribed in Article 4, paragraph (2) of the City Planning Act, to a person who carries out a project to construct a building whose building area is the area specified by Cabinet Order or more (limited to a project that meets the requirement that the area of the district where the project is to be carried out is 500 square meters or more, as well as any other requirements specified by Cabinet Order), with the transferred land, etc. being used for the project (excluding that which falls under the category of a transfer listed in items (vii) through (x)ix), item (x), or the following item through item (xvi));

transfer of land, etc. to an individual or a corporation that is to construct a group of houses or mid-to-high-rise fire-proof apartment houses (each limited to that which meets the following requirements) (in the case where an heir or universal legatee has succeeded to the project for the construction due to the death of the individual carrying out the development, and where the heir or universal legatee then carries out the construction, such individual is to be the deceased individual who was to carry out the construction or the heir or universal legatee; the same applies in the following item and paragraph (7)) (in the case where the corporation carrying out the construction has extinguished as a result of a merger and the merging corporation that was involved in the merger has succeeded to the project for the construction and carries out the construction, such corporation is to be the extinguished corporation that was to carry out the construction or the merging corporation; and in the case where the corporation carrying out the construction has been split off and the successor corporation in the company split that was involved in the company split has succeeded to the project for the construction and carries out the construction, such corporation is to be the split-off corporation that was to carry out the construction or the successor corporation in the company split; the same applies in that item and that paragraph), with the transferred land, etc. being used for constructing the group of houses or mid-to-high-rise fire-proof apartment houses (excluding that which falls under the category of a transfer listed in items (vii) through (x)ix), item (x), or the preceding two items):

transfer of land, etc. (limited to land, etc. within a district for a land readjustment project as prescribed in Article 2, paragraph (4) of the Land Readjustment Act carried out under the Act, for which provisional substitute land has been designated under Article 98, paragraph (1) of the Act (including the case where the land or the part thereof subject to the right to provisionally use or to receive proceeds therefrom has been designed; hereinafter the same applies in this item)) to an individual or a corporation that constructs a house or mid-to-high-rise fire-proof apartment house (each limited to that which meets the following requirements), which is made not later than December 31 of the year that includes the day on which three years have elapsed from the day on which the designation has become effective (in the case where the day on which the individual or the corporation may start using or receiving proceeds from the right is determined pursuant to the provisions of Article 99, paragraph (2) of the Act, from that day), with the land, etc. designated as provisional substitute land for the transferred land, etc. being used for constructing the house or mid-to-high-rise fire-proof apartment house (excluding that which falls under the category of a transfer listed in items (vii) through (x)ix), item (x), or the preceding three items):