Act on Special Measures Concerning Taxation

The Act on Special Measures Concerning Taxation (Act No. 15 of 1946) is wholly amended.

This Act is to provide, for the time being, for the reduction of, exemption from, or refund of income tax, corporation tax, local corporation tax, inheritance tax, gift tax, land value tax, registration and license tax, consumption tax, liquor tax, tobacco tax, gasoline tax, local gasoline tax, petroleum and coal tax, aviation fuel tax, motor vehicle tonnage tax, international tourist tax, stamp tax, and other internal taxes, or for special provisions of the Income Tax Act (Act No. 33 of 1965), the Corporation Tax Act (Act No. 34 of 1965), the Local Corporation Tax Act (Act No. 11 of 2014), the Inheritance Tax Act (Act No. 73 of 1950), the Land-holding Tax Act (Act No. 69 of 1991), the Registration and License Tax Act (Act No. 35 of 1967), the Consumption Tax Act (Act No. 108 of 1988), the Liquor Tax Act (Act No. 6 of 1953), the Tobacco Tax Act (Act No. 72 of 1984), the Gasoline Tax Act (Act No. 55 of 1957), the Local Gasoline Tax Act (Act No. 104 of 1955), the Petroleum and Coal Tax Act (Act No. 25 of 1978), the Aviation Fuel Tax Act (Act No. 7 of 1972), the Motor Vehicle Tonnage Tax Act (Act No. 89 of 1971), the International Tourist Tax Act (Act No. 16 of 2018), the Stamp Tax Act (Act No. 23 of 1967), the Act on General Rules for National Taxes (Act No. 66 of 1962), and the National Tax Collection Act (Act No. 147 of 1959) concerning the tax liability, the calculation of the tax base or the amount of tax, the due date for filing returns, or the collection pertaining to these taxes.

The meanings of the terms listed in the following items as used in Chapter II are as prescribed respectively in those items:

in Japan or outside Japan:These mean "in Japan" or "outside Japan" as prescribed in Article 2, paragraph (1), item (i) or item (ii) of the Income Tax Act;

resident or nonresident:These mean a resident or a nonresident as prescribed in Article 2, paragraph (1), item (iii) or item (v) of the Income Tax Act;

domestic corporation or foreign corporation:These mean a domestic corporation or a foreign corporation as prescribed in Article 2, paragraph (1), item (vi) or item (vii) of the Income Tax Act, including an association or foundation without juridical personality as prescribed in item (viii) of the paragraph that has its head office or principal office in Japan as prescribed in item (i) or that has its head office or principal office outside Japan as prescribed in the item;

trust subject to corporation taxation, permanent establishment, government or company bonds, deposits or savings, jointly managed trust, loan trust, investment trust, securities investment trust, bond investment trust, bond-based investment trust, bond-based investment trust under public offering, special purpose trust, specified trust that issues beneficiary certificates, or securities: These respectively mean a trust subject to corporation taxation, permanent establishment, government or company bonds, deposits or savings, jointly managed trust, loan trust, investment trust, securities investment trust, bond investment trust, bond-based investment trust, bond-based investment trust under public offering, special purpose trust, specified trust that issues beneficiary certificates, and securities as prescribed in Article 2, paragraph (1), items (viii)-3 through (xiii), items (xv) through (xv)-5, or item (xvii) of the Income Tax Act;

depreciable assets:These mean depreciable assets as prescribed in Article 2, paragraph (1), item (xix) of the Income Tax Act;

deferred assets: These mean deferred assets as prescribed in Article 2, paragraph (1), item (xx) of the Income Tax Act;

interest income, dividend income, real estate income, business income, employment income, retirement income, timber income, capital gains, occasional income, or miscellaneous income:These respectively mean interest income, dividend income, real estate income, business income, employment income, retirement income, timber income, capital gain, occasional income, and miscellaneous income as prescribed in Part II, Chapter II, Section 2, Subsection 1 of the Income Tax Act;

the amount of dividend income, the amount of real estate income, the amount of business income, the amount of employment income, the amount of timber income, the amount of capital gains, or the amount of miscellaneous income:These respectively mean the amount of dividend income, the amount of real estate income, the amount of business income, the amount of employment income, the amount of timber income, the amount of capital gain, and the amount of miscellaneous income as prescribed in Part II, Chapter II, Section 2, Subsection 1 of the Income Tax Act;

the amount of gross income, the amount of retirement income, or the amount of timber income:These respectively mean the amount of gross income, the amount of retirement income, and the amount of timber income as prescribed in Article 22, paragraph (2) or paragraph (3) of the Income Tax Act;

tax return:These mean the tax return as prescribed in Article 2, paragraph (1), item (xxxvii) of the Income Tax Act.

blue return:These mean the blue return as prescribed in Article 2, paragraph (1), item (xl) of the Income Tax Act;

tax return form filed after the due date:These mean a tax return filed after the due date as prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes;

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

due date for filing a tax return:These mean the due date for filing a tax return as prescribed in Article 2, paragraph (1), item (xli) of the Income Tax Act;

request for reassessment:These mean a request for reassessment as prescribed in Article 23, paragraph (2) 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.

The meanings of the terms listed in the following items as used in Chapter III are as prescribed respectively in those items:

in Japan or outside Japan:These mean "in Japan" or "outside Japan" as prescribed in Article 2, item (i) or item (ii) of the Corporation Tax Act;

domestic corporation or foreign corporation: These mean a domestic corporation or a foreign corporation as prescribed in Article 2, item (iii) or item (iv) of the Corporation Tax Act, including an association or foundation without juridical personality as prescribed in item (ii) that has its head office or principal office in Japan as prescribed in the preceding item or that has its head office or principal office outside Japan as prescribed in the item;

public corporation: These mean a public corporation as prescribed in Article 2, item (v) of the Corporation Tax Act;

public interest corporation, etc.: These mean a public interest corporation, etc. as prescribed in Article 2, item (vi) of the Corporation Tax Act;

cooperative, etc.: These mean a cooperative, etc. as prescribed in Article 2, item (vii) of the Corporation Tax 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;

ordinary corporation: These mean an ordinary corporation as prescribed in Article 2, item (ix) of the Corporation Tax Act;

merged corporation:These mean a merged corporation as prescribed in Article 2, item (xi) of the Corporation Tax Act;

merging corporation:These mean a merging corporation as prescribed in Article 2, item (xii) of the Corporation Tax Act;

splitting corporation:These mean a split corporation as prescribed in Article 2, item (xii)-2 of the Corporation Tax Act;

succeeding corporation in a company split:These mean a succeeding corporation in a company split as prescribed in Article 2, item (xii)-3 of the Corporation Tax Act;

corporation making a capital contribution in kind:These mean a corporation making a capital contribution in kind as prescribed in Article 2, item (xii)-4 of the Corporation Tax Act;

corporation receiving a capital contribution in kind:These mean a corporation receiving a capital contribution in kind as prescribed in Article 2, item (xii)-5 of the Corporation Tax Act;

corporation making a distribution in kind: These mean a corporation making a distribution in kind as prescribed in Article 2, item (xii)-5-2 of the Corporation Tax Act;

corporation receiving a distribution in kind: These mean a corporation receiving a distribution in kind as prescribed in Article 2, item (xii)-5-3 of the Corporation Tax Act;

wholly owned subsidiary corporation in a share exchange, etc.: These mean a wholly owned subsidiary corporation in a share exchange, etc. as prescribed in Article 2, item (xii)-6-2 of the Corporation Tax Act;

wholly owned subsidiary corporation in a share transfer:These mean a wholly owned subsidiary corporation in a share transfer as prescribed in Article 2, item (xii)-6-5 of the Corporation Tax Act;

group tax sharing parent corporation: These mean the group tax sharing parent corporation as prescribed in Article 2, item (xii)-6-7 of the Corporation Tax Act;

group tax sharing subsidiary corporation: These mean a group tax sharing subsidiary corporation as prescribed in Article 2, item (xii)-7 of the Corporation Tax Act;

group tax sharing corporation: These mean a group tax sharing corporation as prescribed in Article 2, item (xii)-7-2 of the Corporation Tax Act;

group tax sharing full controlling interest: These mean a group tax sharing full controlling interest as prescribed in Article 2, item (xii)-7-7 of the Corporation Tax Act;

qualified merger:These mean a qualified merger as prescribed in Article 2, item (xii)-8 of the Corporation Tax Act;

company split by split-off:These mean a company split by split-off as prescribed in Article 2, item (xii)-9 of the Corporation Tax Act;

company split by spin-off:These mean a company split by spin-off as prescribed in Article 2, item (xii)-10 of the Corporation Tax Act;

qualified company split:These mean a qualified company split as prescribed in Article 2, item (xii)-11 of the Corporation Tax Act;

qualified company split by split-off:These mean a qualified company split by split-off as prescribed in Article 2, item (xii)-12 of the Corporation Tax Act;

qualified capital contribution in kind:These mean a qualified capital contribution in kind as prescribed in Article 2, item (xii)-14 of the Corporation Tax Act;

qualified in-kind distribution: These mean a qualified in-kind distribution as prescribed in Article 2, item (xii)-15 of the Corporation Tax Act;

permanent establishment: These mean a permanent establishment as prescribed in Article 2, item (xii)-19 of the Corporation Tax Act;

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

business year:These mean a business year as prescribed in Article 13 and Article 14 of the Corporation Tax Act;

the amount of revenue reserves:These mean the amount of revenue reserves as prescribed in Article 2, item (xviii) of the Corporation Tax Act.

the amount of loss:These mean the amount of loss as prescribed in Article 2, item (xix) of the Corporation Tax Act;

inventory assets:These mean inventory assets as prescribed in Article 2, item (xx) of the Corporation Tax Act;

fixed assets:These mean fixed assets as prescribed in Article 2, item (xxii) of the Corporation Tax Act;

depreciable assets:These mean depreciable assets as prescribed in Article 2, item (xxiii) of the Corporation Tax Act;

deferred assets: These mean deferred assets as prescribed in Article 2, item (xxiv) of the Corporation Tax Act;

accounting as an expense or loss: These mean accounting as an expense or loss as prescribed in Article 2, item (xxv) of the Corporation Tax Act (when calculating the amount listed in Article 72, paragraph (1), item (i) or Article 144-4, paragraph (1), item (i) or item (ii) or paragraph (2), item (i) of that Act, this means accounting for an amount as an expense or loss in the settlement of accounts for the period prescribed in Article 72, paragraph (1) or Article 144-4, paragraph (1) or paragraph (2) of that Act (for a group tax sharing subsidiary corporation prescribed in item (x)-5, the period prescribed in Article 72, paragraph (5), item (i) of that Act));

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

tax return, etc.: These mean the interim return form as prescribed in Article 2, item (xxx) of the Corporation Tax Act containing the matters listed in the items of Article 72, paragraph (1) of that Act and the one containing the matters listed in the items of Article 144-4, paragraph (1) of that Act or the items of paragraph (2) of that Article, and the tax return as prescribed in Article 2, item (xxxi) of that Act;

blue return: These mean a blue return as prescribed in Article 2, item (xxxvi) of the Corporation Tax Act;

tax return filed after the due date: These mean a tax return filed after the due date as prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes;

amended return form: These mean an amended return form 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.

In Chapter IV, the meanings of the terms listed in the following items are as prescribed respectively in those items:

return filed by the due date: These mean a return filed by the due date as prescribed in Article 17, paragraph (2) of the Act on General Rules for National Taxes;

return filed after the due date: These mean a return filed after the due date as prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes;

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

In Chapter VI, the meanings of the terms listed in the following items are as prescribed respectively in those items:

liquor: These mean liquor as prescribed in Article 2, paragraph (1) of the Liquor Tax Act;

liquor manufacturer: These mean a liquor manufacturer as prescribed in Article 7, paragraph (1) of the Liquor Tax Act;

manufactured tobacco: These mean manufactured tobacco as prescribed in Article 3 of the Tobacco Tax Act;

manufacturer of manufactured tobacco: These mean a manufacturer of manufactured tobacco as prescribed in Article 6, paragraph (4) of the Tobacco Tax Act;

crude oil, petroleum products, gaseous hydrocarbons, or coal: These respectively mean crude oil, petroleum products, gaseous hydrocarbons, or coal as prescribed in Article 2, items (i) through (iv) of the Petroleum and Coal Tax Act;

aviation fuel: These mean aviation fuel as prescribed in Article 2, item (ii) of the Aviation Fuel Tax Act;

bonded area: These mean a bonded area as prescribed in Article 29 of the Customs Act (Act No. 61 of 1954).

With regard to the trustee of a trust subject to corporate taxation as prescribed in Article 2, item (xxix)-2 of the Corporation Tax Act (hereinafter referred to in this paragraph as a "trust subject to corporate taxation"), the provisions of this Act (excluding Chapters IV through VI) apply by deeming the trustee to be a separate person with regard to each of the trust assets, etc. of each trust subject to corporate taxation (meaning the assets and liabilities belonging to the trust property and the revenue and expenses attributed to that trust property; the same applies hereinafter in this paragraph) and its own assets, etc. (meaning the assets and liabilities and the revenue and expenses other than the trust assets, etc. of trusts subject to corporate taxation).

The provisions of Article 6-2, paragraph (2) and Article 6-3 of the Income Tax Act apply mutatis mutandis in the case where the provisions of the preceding paragraph apply in the following Chapter.

The provisions of Article 4-2, paragraph (2), Article 4-3, and Article 4-4 of the Corporation Tax Act apply mutatis mutandis in the case where the provisions of paragraph (1) apply in Chapter III.

Beyond what is prescribed in the preceding two paragraphs, Cabinet Order provides for the necessary particulars concerning the application of the provisions of paragraph (1).

With regard to the interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act, other than that listed in the following items, that a resident or a nonresident with a permanent establishment is to receive in Japan on or after January 1, 2016 (excluding interest and similar income specified by Cabinet Order as that on which withholding at the source prescribed in Article 2, paragraph (1), item (xlv) of the Act is not to be performed (referred to in the following Article as "non-applicable interest"); hereinafter referred to in this Article as "general interest and similar income"), income tax is imposed separately from other income by applying the tax rate of 15 percent on the receivable amount, notwithstanding the provisions of Article 22, Article 89, and Article 165 of the Act.

interest on specified public and corporate bonds (meaning public and corporate bonds listed in Article 37-10, paragraph (2), item (vii) that are listed in Article 37-11, paragraph (2), item (i) or items (v) through (xiv); the same applies in items (iv) and (v));

a distribution of proceeds from a bond investment trust whose public offering of beneficial rights pertaining to its establishment was conducted by way of public offering (meaning a solicitation of offers to acquire prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act (Act No. 25 of 1948) that is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph), or whose beneficial rights fall under the shares, etc. listed in Article 37-11, paragraph (2), item (i);

a distribution of proceeds from a bond-based investment trust under public offering;

interest on public and corporate bonds other than specified public and corporate bonds, which is received by the covered person or any other person specified by Cabinet Order in the case where, on the day on which the payment is determined (for interest on bearer public and corporate bonds, the day on which the payment is made), the corporation that paid the interest on the public and corporate bonds would fall under the category of a family corporation prescribed in Article 2, item (x) of the Corporation Tax Act if that person (hereinafter referred to in this item as the "covered person") or a corporation having a special relationship specified by Cabinet Order with the covered person were selected as a shareholder that forms the basis for the determination;

interest on public and corporate bonds other than specified public and corporate bonds, received from a corporation (hereinafter referred to in this item as a "specified corporation") other than a corporation (hereinafter referred to in this item as a "family corporation") that would fall under the category of a family corporation prescribed in Article 2, item (x) of the Corporation Tax Act if, on the day on which the payment is determined (for interest on bearer public and corporate bonds, the day on which the payment is made), that person (hereinafter referred to in this item as the "covered person") or a corporation having a special relationship specified by Cabinet Order with the covered person were selected as a shareholder that forms the basis for the determination, which, in the case specified by Cabinet Order as a case where the interest is found to be substantively received from the family corporation, the covered person or any other person specified by Cabinet Order receives from the specified corporation.

The provisions of the preceding paragraph do not apply to general interest and similar income to be received by a nonresident with a permanent establishment that does not fall under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act.

With regard to the application of the provisions of Article 93 and Article 165-5-3 of the Income Tax Act to a resident or a nonresident with a permanent establishment who receives payment of general interest and similar income, in Article 93, paragraph (1) of that Act, the phrase "distribution of proceeds" is deemed to be replaced with "distribution of proceeds (excluding general interest and similar income (meaning general interest and similar income prescribed in paragraph (1) of that Article to which the provisions of Article 3, paragraph (1) (Separate Taxation on Interest Income) of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957) have been applied; the same applies hereinafter); the same applies hereinafter in this paragraph)", and the phrase "in that paragraph" is deemed to be replaced with "in Article 176, paragraph (3)"; and in Article 165-5-3, paragraph (1) of that Act, the phrase "distribution of proceeds" is deemed to be replaced with "distribution of proceeds (excluding general interest and similar income; the same applies hereinafter in this paragraph)", and the phrase "in that paragraph" is deemed to be replaced with "in paragraph (3) of that Article".

The part of the provisions of Article 224, Article 225, paragraph (1) and Article 228, paragraph (1) of the Income Tax Act and of the following Article that pertains to general interest and similar income to be received on or after January 1, 2016 does not apply to a resident or a nonresident who receives the payment of the general interest and similar income, a person who makes the payment, a resident or a nonresident who receives the general interest and similar income from a person who receives general interest and similar income as a registered person on behalf of another person in connection with a business, or a person who receives the general interest and similar income as the registered person.

Where a person, who pays the interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act (excluding non-applicable interest) payable on or after January 1, 2016 or the dividends, etc. prescribed in Article 24, paragraph (1) of the Income Tax Act (excluding dividends of surplus prescribed in the paragraph (hereinafter referred to in this Section as "dividends of surplus")) pertaining to a distribution of proceeds from an investment trust (excluding a bond investment trust, a specified stock investment trust (meaning a securities investment trust which has as its purpose the management of its trust property through investment exclusively in stocks, whose beneficial rights are listed on a financial instruments exchange as prescribed in Article 2, paragraph (16) of the Financial Instruments and Exchange Act, and which meets other requirements specified by Cabinet Order; hereinafter the same applies in this Section), and a bond-based investment trust under public offering) or a distribution of proceeds from a specified trust that issues beneficiary certificates, to a resident or a nonresident with a permanent establishment, or a domestic corporation or a foreign corporation with a permanent establishment, in Japan, prepares the record set forth in Article 225, paragraph (1) of the Act concerning the payment of the interest and similar income or dividends, etc. for each payment to the same resident or nonresident with a permanent establishment, or the same domestic corporation or foreign corporation with a permanent establishment, as specified by Order of the Ministry of Finance, such person must submit the record to the district director no later than the last day of the month following the month that includes the day on which the payment was determined (for a record concerning interest on bearer public and corporate bonds or a distribution of proceeds based on bearer beneficiary certificates of a loan trust, investment trust (excluding a specified stock investment trust), or specified trust that issues beneficiary certificates, no later than the last day of the month following the month that includes the day on which the payment was made), notwithstanding the provisions of the paragraph.

Where a resident receives, through a person in charge of handling payment in Japan who is specified by Cabinet Order (hereinafter referred to in this Article as a "person in charge of handling payment"), the delivery of interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act pertaining to interest on public and corporate bonds issued outside Japan (excluding public and corporate bonds denominated in a foreign currency which are issued by the State or any other person and specified by Cabinet Order (referred to in the following paragraph as "foreign-currency bonds")) or to a distribution of proceeds from beneficial interests in a bond investment trust, which is to be received on or after January 1, 2016, other than that listed in Article 3, paragraph (1), item (i) and item (ii) (limited to that paid outside Japan; hereinafter referred to in this Article as "interest and similar income on general foreign public and corporate bonds, etc."), income tax is imposed on the interest and similar income on general foreign public and corporate bonds, etc. to be received, separately from other income, by applying the tax rate of 15 percent on the receivable amount, notwithstanding the provisions of Article 22 and Article 89 of that Act.

Where a domestic corporation receives, through a person in charge of handling payment in Japan, the delivery of interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act pertaining to interest on public and corporate bonds issued outside Japan (excluding foreign-currency bonds) or to a distribution of proceeds from beneficial interests in a bond investment trust or a bond-based investment trust under public offering, which is to be received on or after January 1, 2016 (limited to that paid outside Japan; hereinafter referred to in this Article as "interest and similar income on foreign public and corporate bonds, etc."), the domestic corporation is to be liable to pay income tax on the interest and similar income on foreign public and corporate bonds, etc. to be received, and income tax is imposed by applying the tax rate of 15 percent on the receivable amount.

A person in charge of handling payment in Japan of interest and similar income on foreign public and corporate bonds, etc. paid to a resident or a domestic corporation on or after January 1, 2016 must, when delivering the interest and similar income on foreign public and corporate bonds, etc. to the resident or domestic corporation, collect income tax in the amount calculated by multiplying the amount delivered (where the interest and similar income on foreign public and corporate bonds, etc. is interest and similar income on general foreign public and corporate bonds, etc. and there is an amount of foreign income tax prescribed in the following paragraph, the amount delivered plus that amount) by the tax rate of 15 percent, and pay it to the State by the tenth day of the month following the month that includes the day of collection.

In the cases referred to in the preceding two paragraphs, where there is an amount of foreign income tax prescribed in Article 95, paragraph (1) of the Income Tax Act (including taxes specified by Cabinet Order) imposed at the time of payment on interest and similar income on foreign public and corporate bonds, etc. that a resident or a domestic corporation is to receive on or after January 1, 2016, the following provisions apply:

where the interest and similar income on foreign public and corporate bonds, etc. is interest and similar income on general foreign public and corporate bonds, etc., the amount of the foreign income tax is to be deducted from the amount of income tax on the interest and similar income on general foreign public and corporate bonds, etc. that is to be collected and paid pursuant to the provisions of the preceding paragraph, up to that amount of income tax, and is deemed not to exist with regard to the application of the provisions of Article 95 of the Income Tax Act to the resident;

where the interest and similar income on foreign public and corporate bonds, etc. is interest and similar income on foreign public and corporate bonds, etc. other than interest and similar income on general foreign public and corporate bonds, etc., the receivable amount prescribed in paragraph (2) is the amount remaining after deducting an amount equivalent to the amount of the foreign income tax from the amount of the interest and similar income on foreign public and corporate bonds, etc.

Income tax to be collected and paid pursuant to the provisions of paragraph (3) is deemed to be income tax pertaining to withholding at the source as prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act, and the provisions of that Act, the Act on General Rules for National Taxes, and the National Tax Collection Act apply. In this case, where the person who is to receive payment of the interest and similar income on foreign public and corporate bonds, etc. is a domestic corporation, with regard to the application of the provisions of the Corporation Tax Act to the domestic corporation, in Article 68, paragraph (1) of that Act, the phrase "or prize money" is deemed to be replaced with "or prize money, or interest and similar income on foreign public and corporate bonds, etc. prescribed in Article 3-3, paragraph (2) (Separate Taxation on Interest Income from Public and Corporate Bonds, etc. Issued outside Japan) of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957)", and the phrase "that Act" is deemed to be replaced with "the Income Tax Act or the Act on Special Measures Concerning Taxation".

Where a domestic corporation listed in Appended Table 1 of the Income Tax Act, or a financial institution prescribed in Article 8, paragraph (1) (limited to a domestic corporation) or a financial instruments business operator, etc. prescribed in paragraph (2) of that Article (limited to a domestic corporation), receives payment of interest and similar income on foreign public and corporate bonds, etc., if, pursuant to the provisions of Cabinet Order, it has submitted a return stating that it seeks the application of the provisions of this paragraph to the interest and similar income on foreign public and corporate bonds, etc. to be received, and other matters specified by Order of the Ministry of Finance, to the district director via the person in charge of handling payment in Japan of the interest and similar income on foreign public and corporate bonds, etc., the provisions of paragraph (2) and paragraph (3) do not apply to the interest and similar income on foreign public and corporate bonds, etc.

Where income tax is to be collected pursuant to the provisions of paragraph (3) on interest and similar income on foreign public and corporate bonds, etc. other than interest and similar income on general foreign public and corporate bonds, etc., the provisions of Article 8-5 apply to a resident who holds the interest and similar income on foreign public and corporate bonds, etc. as prescribed in item (i) where the interest and similar income on foreign public and corporate bonds, etc. is received from a domestic corporation, and as prescribed in item (i) and item (ii) where the interest and similar income on foreign public and corporate bonds, etc. is received from a person other than a domestic corporation:

the amount to be delivered by the person in charge of handling payment in Japan of the interest and similar income on foreign public and corporate bonds, etc. is deemed to be the amount of interest and similar income to be received as prescribed in Article 8-5, paragraph (4);

the interest and similar income on foreign public and corporate bonds, etc. is deemed to be received from a domestic corporation.

A domestic corporation, financial institution, or financial instruments business operator, etc. prescribed in paragraph (6) may, in lieu of submitting a return under that paragraph, provide the person in charge of handling payment referred to in that paragraph with the matters to be stated in the return by electronic or magnetic means (meaning a means using an electronic data processing system or any other means using information and communications technology). In this case, the domestic corporation, financial institution, or financial instruments business operator, etc. is deemed to have submitted the return to the person in charge of handling payment.

Beyond what is prescribed in paragraph (5) and the preceding two paragraphs, special provisions on the provisions of Article 224 and Article 225 of the Income Tax Act concerning interest and similar income on foreign public and corporate bonds, etc. and other necessary matters concerning the application of the provisions of paragraphs (1) through (4) and paragraph (6) are specified by Cabinet Order.

With regard to the application of the provisions of Article 10 of the Income Tax Act to the deposits and savings, jointly managed trusts, specified bond-based investment trusts under public offering, or securities prescribed in paragraph (1) of that Article for which an individual who has a domicile in Japan and who is a person with a disability or other eligible person prescribed in Article 10, paragraph (1) of that Act (referred to in the following Article as a "person with a disability or other eligible person") makes a placement prescribed in that paragraph on or after January 1, 1994, the phrase "3,000,000 yen" in paragraph (7), item (i) of that Article is deemed to be replaced with "3,500,000 yen".

Where an individual who has a domicile in Japan and who is a person with a disability or other eligible person purchases, at a business office or other office of a financial instruments business operator or financial institution specified by Cabinet Order (hereinafter referred to in this paragraph as a "business office, etc. of a selling institution"), government bonds and local government bonds specified by Cabinet Order (hereinafter referred to in this paragraph and paragraph (3) as "public bonds"), if, pursuant to the provisions of Cabinet Order, the individual has submitted, at the time of the purchase, a document stating that the individual seeks the application of the provisions of this paragraph with regard to the public bonds, the individual's name, date of birth, and address, the fact that the individual falls under the category of a person with a disability or other eligible person, and other necessary matters (hereinafter referred to in this paragraph as an "application for special tax-exempt savings"), income tax is not imposed on the interest corresponding to each calculation period of interest on the public bonds, only if the following requirements are met throughout that calculation period (where the public bonds were purchased in the middle of the calculation period, for the calculation period that includes the day of purchase, throughout the period from that day to the last day of the calculation period):

the public bonds are managed by means of entries or records in a transfer account book prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001) or any other method specified by Cabinet Order;

the total of the face value of the public bonds and the face value of other public bonds purchased at the business office, etc. of the selling institution by submitting an application for special tax-exempt savings does not exceed the maximum limitation listed in item (iii) of Article 10, paragraph (3) of the Income Tax Act as applied mutatis mutandis pursuant to the following paragraph that is stated in the statement of special tax-exempt savings prescribed in Article 10, paragraph (3) of that Act which the individual has submitted via the business office, etc. of the selling institution (where a statement of change to the maximum limitation for special tax-exempt savings prescribed in paragraph (4) of that Article as applied mutatis mutandis pursuant to the following paragraph has been submitted, on and after the day of submission, the maximum limitation after the change).

The provisions of Article 10, paragraphs (2) through (10) of the Income Tax Act apply mutatis mutandis in the case where the provisions of the preceding paragraph apply. In this case, the phrase "statement of tax-exempt savings" in paragraphs (2) through (7) and paragraph (10) of that Article is deemed to be replaced with "statement of special tax-exempt savings", the phrase "application for tax-exempt savings" in paragraph (2) and paragraph (10) of that Article is deemed to be replaced with "application for special tax-exempt savings", the phrase "paragraph (1)" in paragraph (3), paragraph (7), and paragraph (10) of that Article is deemed to be replaced with "Article 4, paragraph (1) of the Act on Special Measures Concerning Taxation", the phrase "statement of change to the maximum limitation for tax-exempt savings" in paragraphs (4) through (7) and paragraph (9) of that Article is deemed to be replaced with "statement of change to the maximum limitation for special tax-exempt savings", and the phrase "paragraph (1), paragraph (3), or" in paragraph (8) of that Article is deemed to be replaced with "Article 4, paragraph (1) or paragraph (3) of the Act on Special Measures Concerning Taxation, or".

With regard to the application of the provisions of the preceding two paragraphs to public bonds purchased on or after January 1, 1994 by an individual who has a domicile in Japan and who is a person with a disability or other eligible person, the phrase "3,000,000 yen" in Article 10, paragraph (7), item (i) of the Income Tax Act as applied mutatis mutandis pursuant to the preceding paragraph is deemed to be replaced with "3,500,000 yen".

Where a wage earner prescribed in Article 2, item (i) of the Workers' Property Accumulation Promotion Act (Act No. 92 of 1971) makes, at a business office or other office of a financial institution or financial instruments business operator specified by Cabinet Order (hereinafter referred to in this Article and the following Article as "the business office of a financial institution or other such place"), a deposit, entrustment, or purchase of deposits and savings, jointly managed trusts, or securities, or a payment of premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid, under a workers' property accumulation housing savings contract prescribed in Article 6, paragraph (4) of that Act (hereinafter referred to in this Article as a "workers' property accumulation housing savings contract"), which are specified by Cabinet Order (hereinafter referred to in this Article as "asset-building housing savings") (such deposit, entrustment, purchase, or payment is hereinafter referred to in this Article and the following Article as a "placement"), if, pursuant to the provisions of Cabinet Order, the wage earner has submitted, at the time of the placement, a document stating that the wage earner seeks the application of the provisions of this paragraph with regard to the asset-building housing savings and other necessary matters (hereinafter referred to in this Article as an "application to exempt asset-building housing savings from taxation") via the office, place of business, or any other equivalent place of the wage payer prescribed in Article 2, item (ii) of that Act (limited to the payer via which the wage earner submitted the salary income earner's return for deduction for Dependents, etc. prescribed in Article 194, paragraph (8) of the Income Tax Act) that handles the administrative affairs of paying the wages (hereinafter referred to in this Article as the "place of employment") (where the wage payer (limited to an employer of a small and medium sized enterprise prescribed in Article 14, paragraph (2) of the Workers' Property Accumulation Promotion Act; referred to in paragraph (4) as a "specified wage payer") has entrusted the administrative affairs pertaining to workers' property accumulation housing savings contracts to an administrative agent organization prescribed in Article 14, paragraph (2) of that Act (hereinafter referred to in this Article as an "administrative agent organization"), the place of employment and the office or any other equivalent place of the administrative agent organization pertaining to the entrustment that performs those administrative affairs; hereinafter referred to in this Article as the "place of employment, etc."), income tax is not imposed on what is specified in each of the following items, only in the case listed in that item:

where the total of the principal of the deposits and savings and the principal of other deposits and savings deposited at the business office of the financial institution or other such place by submitting an application to exempt asset-building housing savings from taxation does not exceed, throughout the calculation period of interest on the deposits and savings, the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building housing savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place (where a statement of change to the maximum limitation for tax-exempt asset-building housing savings prescribed in paragraph (5) has been submitted, on and after the day of submission, the maximum limitation after the change; the same applies hereinafter in this paragraph): the interest on the deposits and savings corresponding to the calculation period;

where the total of the principal of the jointly managed trust and the principal of other jointly managed trusts entrusted at the business office of the financial institution or other such place by submitting an application to exempt asset-building housing savings from taxation does not exceed, throughout the calculation period of the distribution of proceeds from the jointly managed trust, the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building housing savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place (where the jointly managed trust is a loan trust, limited to the case where it is managed, throughout the calculation period of the distribution of proceeds, by means of entries or records in a transfer account book prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares or any other method specified by Cabinet Order): the distribution of proceeds from the jointly managed trust corresponding to the calculation period;

where the securities are managed, throughout the calculation period of the interest or distribution of proceeds (where the securities were purchased in the middle of the calculation period, for the calculation period that includes the day of purchase, throughout the period from that day to the last day of the calculation period; the same applies hereinafter in this item), by means of entries or records in a transfer account book prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares or any other method specified by Cabinet Order, and the total of the face value of the securities or the amount specified by Cabinet Order as being equivalent thereto (hereinafter referred to in this Article as the "face value or equivalent amount") and the face value or equivalent amount of other securities purchased at the business office of the financial institution or other such place by submitting an application to exempt asset-building housing savings from taxation does not exceed, throughout the calculation period, the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building housing savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place: the interest or distribution of proceeds on the securities corresponding to the calculation period;

where the total of the amount of premiums for the life insurance or casualty insurance or the amount of mutual aid premiums for the life mutual aid and the amount of premiums for other life insurance or casualty insurance or the amount of mutual aid premiums for other life mutual aid paid at the business office of the financial institution or other such place by submitting an application to exempt asset-building housing savings from taxation does not exceed, throughout the insurance period of the life insurance or casualty insurance or the mutual aid period of the life mutual aid, the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building housing savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place: the gain equivalent to the amount obtained by deducting the total of the amount of premiums or the amount of mutual aid premiums for the life insurance or casualty insurance or life mutual aid from the amount of the lump-sum payments specified by Cabinet Order as maturity refunds, etc., out of the lump-sum payments paid under a contract for the life insurance or casualty insurance or life mutual aid.

The provisions of the preceding paragraph do not apply, where an individual who has submitted a statement of tax-exempt asset-building housing savings prescribed in paragraph (4) comes, after the submission, to fall under the case where the individual ceases to be a wage earner prescribed in the preceding paragraph in relation to the wage payer stated in the statement due to retirement, transfer, or any other reason, or any other case specified by Cabinet Order, to the interest, distribution of proceeds, or gain listed in the items of that paragraph pertaining to the asset-building housing savings for which the individual has made a placement at the business office of the financial institution or other such place via which the statement was submitted, which is to be received on or after the day on which the individual comes to fall under the case specified by that Cabinet Order and which is specified by Cabinet Order.

An application to exempt asset-building housing savings from taxation may be submitted only to the business office of the financial institution or other such place via which the statement of tax-exempt asset-building housing savings prescribed in the following paragraph was submitted.

The provisions of paragraph (1) apply only where the person has submitted a return stating the following matters (hereinafter referred to in this Article as a "statement of tax-exempt asset-building housing savings"), with a document by the head of the place of employment (where a specified wage payer has entrusted the administrative affairs pertaining to workers' property accumulation housing savings contracts to an administrative agent organization, the office or any other equivalent place of the administrative agent organization pertaining to the entrustment that performs those administrative affairs; the same applies in paragraph (7)) certifying the matters listed in item (iv) attached thereto, to the district director with jurisdiction over the place of the person's domicile, via the place of employment, etc. and the business office of the financial institution or other such place at which the person intends to make a placement of the asset-building housing savings for which the person seeks the application of the provisions of paragraph (1), by the day on which the person first makes the placement:

the names and locations of the business office of the financial institution or other such place, the wage payer prescribed in paragraph (1), and the place of employment, etc.;

which of deposits and savings, jointly managed trusts, or securities, or premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid the person seeks the application of the provisions of paragraph (1) for;

the maximum limitation on the current balance of the asset-building housing savings for which a placement is made at the business office of the financial institution or other such place and for which the person seeks the application of the provisions of paragraph (1) (for securities, the current balance calculated on the basis of the face value or equivalent amount, and for premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid, the total of the amount of premiums paid or the amount of mutual aid premiums paid);

where the person has already submitted a statement of tax-exempt asset-building pension savings prescribed in paragraph (4) of the following Article, the name of the business office of the financial institution or other such place stated in that statement and the maximum limitation referred to in item (iii) of that paragraph (where a statement of change to the maximum limitation for tax-exempt asset-building pension savings prescribed in paragraph (5) of that Article has been submitted, the maximum limitation after the change).

Where a person who has submitted a statement of tax-exempt asset-building housing savings intends to change the maximum limitation listed in item (iii) of the preceding paragraph stated in the statement (where the person has already submitted a return under this paragraph, the maximum limitation after the change stated in that return), the person is to submit, pursuant to the provisions of Cabinet Order, a return stating to that effect, the maximum limitation after the change, and other necessary matters (referred to in the following paragraph as a "statement of change to the maximum limitation for tax-exempt asset-building housing savings") to the district director with jurisdiction over the place for tax payment, via the place of employment, etc. and the business office of the financial institution or other such place via which the statement of tax-exempt asset-building housing savings was submitted.

In the cases referred to in the preceding two paragraphs, when a statement of tax-exempt asset-building housing savings or a statement of change to the maximum limitation for tax-exempt asset-building housing savings has been accepted by the business office of the financial institution or other such place prescribed in those provisions, the statement is deemed to have been submitted to the district director prescribed in those provisions on the day on which it was accepted.

A statement of tax-exempt asset-building housing savings may not be submitted where the wage earner prescribed in paragraph (1) has already submitted such a statement (excluding the cases specified by Cabinet Order), and the place of employment may not accept a statement of tax-exempt asset-building housing savings where it falls under any of the following cases:

where the maximum limitation listed in paragraph (4), item (iii) stated in the statement of tax-exempt asset-building housing savings exceeds 5,500,000 yen;

where the total of the maximum limitations listed in paragraph (4), items (iii) and (iv) stated in the statement of tax-exempt asset-building housing savings exceeds 5,500,000 yen.

Beyond what is prescribed in paragraph (3) through the preceding paragraph, the method of calculating the principal and the face value or equivalent amount referred to in paragraph (1), the submission of an application to exempt asset-building housing savings from taxation and a statement of tax-exempt asset-building housing savings, matters concerning the filing of a return in the case where a person who has submitted the statement has changed the matters stated in the statement after its submission or intends to cease to receive the application of the provisions of that paragraph, and other necessary matters concerning the application of the provisions of that paragraph are specified by Cabinet Order.

Where, with regard to a workers' property accumulation housing savings contract or its performance, a fact has arisen by which the requirements prescribed in Article 6, paragraph (4), item (i), (b) or (c), item (ii), (c) or (d), or item (iii), (c) or (d) of the Workers' Property Accumulation Promotion Act are no longer met, the provisions of this Act and the Income Tax Act apply by deeming that the provisions of paragraph (1) have not applied to the interest, distribution of proceeds, or gain listed in the items of that paragraph that is specified by Cabinet Order and was paid within five years before the day on which the fact arose, and that the interest, distribution of proceeds, or gain was paid on the day on which the fact arose. In this case, matters concerning withholding at the source prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act by the person who pays the interest, distribution of proceeds, or gain, and other necessary matters concerning the application of the provisions of this paragraph and that Act are specified by Cabinet Order.

Where a wage earner prescribed in paragraph (1) of the preceding Article makes, at the business office of a financial institution or other such place, a placement of deposits and savings, jointly managed trusts, or securities, or of premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid, under a workers' property accumulation pension savings contract prescribed in Article 6, paragraph (2) of the Workers' Property Accumulation Promotion Act (hereinafter referred to in this Article as a "workers' property accumulation pension savings contract"), which are specified by Cabinet Order (hereinafter referred to in this Article as "asset-building pension savings"), if, pursuant to the provisions of Cabinet Order, the wage earner has submitted, at the time of the placement, a document stating that the wage earner seeks the application of the provisions of this paragraph with regard to the asset-building pension savings and other necessary matters (hereinafter referred to in this Article as an "application to exempt asset-building pension savings from taxation") via the office, place of business, or any other equivalent place of the wage payer prescribed in paragraph (1) of the preceding Article (limited to the payer via which the wage earner submitted the salary income earner's return for deduction for Dependents, etc. prescribed in Article 194, paragraph (8) of the Income Tax Act) that handles the administrative affairs of paying the wages (hereinafter referred to in this Article as the "place of employment") (where the wage payer (limited to an employer of a small and medium sized enterprise prescribed in Article 14, paragraph (2) of the Workers' Property Accumulation Promotion Act; referred to in paragraph (4) as a "specified wage payer") has entrusted the administrative affairs pertaining to workers' property accumulation pension savings contracts to an administrative agent organization prescribed in Article 14, paragraph (2) of that Act (hereinafter referred to in this Article as an "administrative agent organization"), the place of employment and the office or any other equivalent place of the administrative agent organization pertaining to the entrustment that performs those administrative affairs; hereinafter referred to in this Article as the "place of employment, etc."), income tax is not imposed on what is specified in each of the following items, only in the case listed in that item:

where the total of the principal of the deposits and savings and the principal of other deposits and savings deposited at the business office of the financial institution or other such place by submitting an application to exempt asset-building pension savings from taxation does not exceed, throughout the calculation period of interest on the deposits and savings, the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building pension savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place (where a statement of change to the maximum limitation for tax-exempt asset-building pension savings prescribed in paragraph (5) has been submitted, on and after the day of submission, the maximum limitation after the change; the same applies hereinafter in this paragraph): the interest on the deposits and savings corresponding to the calculation period;

where the total of the principal of the jointly managed trust and the principal of other jointly managed trusts entrusted at the business office of the financial institution or other such place by submitting an application to exempt asset-building pension savings from taxation does not exceed, throughout the calculation period of the distribution of proceeds from the jointly managed trust, the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building pension savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place: the distribution of proceeds from the jointly managed trust corresponding to the calculation period;

where the total of the face value of the securities or the amount specified by Cabinet Order as being equivalent thereto (hereinafter referred to in this Article as the "face value or equivalent amount") and the face value or equivalent amount of other securities purchased at the business office of the financial institution or other such place by submitting an application to exempt asset-building pension savings from taxation does not exceed, throughout the calculation period of the interest or distribution of proceeds on the securities (where the securities were purchased in the middle of the calculation period, for the calculation period that includes the day of purchase, throughout the period from that day to the last day of the calculation period), the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building pension savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place: the interest or distribution of proceeds on the securities corresponding to the calculation period;

where the total of the amount of premiums for the life insurance or casualty insurance or the amount of mutual aid premiums for the life mutual aid and the amount of premiums for other life insurance or casualty insurance or the amount of mutual aid premiums for other life mutual aid paid at the business office of the financial institution or other such place by submitting an application to exempt asset-building pension savings from taxation does not exceed, throughout the period from the day of conclusion of the workers' property accumulation pension savings contract to the pension payment commencement date specified in the contract (meaning the pension payment commencement date prescribed in Article 6, paragraph (2), item (ii), (b) or item (iii), (b) of the Workers' Property Accumulation Promotion Act), the maximum limitation listed in item (iii) of paragraph (4) that is stated in the statement of tax-exempt asset-building pension savings prescribed in that paragraph which the person has submitted via the place of employment, etc. and the business office of the financial institution or other such place: the gain equivalent to the amount calculated pursuant to the provisions of Cabinet Order as the part of the amount of pensions paid under a contract for the life insurance or casualty insurance or life mutual aid (including cancellation refunds paid where the contract has been cancelled due to a disaster, illness, or any other unavoidable circumstances, and any other money specified by Cabinet Order) that exceeds the total of the amount of premiums for the life insurance or casualty insurance or the amount of mutual aid premiums for the life mutual aid.

The provisions of the preceding paragraph do not apply, where an individual who has submitted a statement of tax-exempt asset-building pension savings prescribed in paragraph (4) has received payment of money under a workers' property accumulation pension savings contract by a method other than the methods prescribed in Article 6, paragraph (2), item (i), (b), item (ii), (b), or item (iii), (b) of the Workers' Property Accumulation Promotion Act, or in any other case specified by Cabinet Order, to the interest, distribution of proceeds, or gain listed in the items of that paragraph pertaining to the asset-building pension savings for which a placement has been made under the workers' property accumulation pension savings contract, which is specified by Cabinet Order.

An application to exempt asset-building pension savings from taxation may be submitted only to the business office of the financial institution or other such place via which the statement of tax-exempt asset-building pension savings prescribed in the following paragraph was submitted.

The provisions of paragraph (1) apply only where the person has submitted a return stating the following matters (hereinafter referred to in this Article as a "statement of tax-exempt asset-building pension savings"), with a document by the head of the place of employment (where a specified wage payer has entrusted the administrative affairs pertaining to workers' property accumulation pension savings contracts to an administrative agent organization, the office or any other equivalent place of the administrative agent organization pertaining to the entrustment that performs those administrative affairs; the same applies in paragraph (7)) certifying the matters listed in item (iv) attached thereto, to the district director with jurisdiction over the place of the person's domicile, via the place of employment, etc. and the business office of the financial institution or other such place at which the person intends to make a placement of the asset-building pension savings for which the person seeks the application of the provisions of paragraph (1), by the day on which the person first makes the placement:

the names and locations of the business office of the financial institution or other such place, the wage payer prescribed in paragraph (1), and the place of employment, etc.;

which of deposits and savings, jointly managed trusts, or securities, or premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid the person seeks the application of the provisions of paragraph (1) for;

the maximum limitation on the current balance of the asset-building pension savings for which a placement is made at the business office of the financial institution or other such place and for which the person seeks the application of the provisions of paragraph (1) (for securities, the current balance calculated on the basis of the face value or equivalent amount, and for premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid, the total of the amount of premiums paid or the amount of mutual aid premiums paid);

where the person has already submitted a statement of tax-exempt asset-building housing savings prescribed in paragraph (4) of the preceding Article via the business office of a financial institution or other such place, the name of each such business office of the financial institution or other such place and the maximum limitation referred to in item (iii) of that paragraph stated in that statement (where a statement of change to the maximum limitation for tax-exempt asset-building housing savings prescribed in paragraph (5) of that Article has been submitted, the maximum limitation after the change).

Where a person who has submitted a statement of tax-exempt asset-building pension savings intends to change the maximum limitation listed in item (iii) of the preceding paragraph stated in the statement (where the person has already submitted a return under this paragraph, the maximum limitation after the change stated in that return), the person is to submit, pursuant to the provisions of Cabinet Order, a return stating to that effect, the maximum limitation after the change, and other necessary matters (referred to in the following paragraph as a "statement of change to the maximum limitation for tax-exempt asset-building pension savings") to the district director with jurisdiction over the place for tax payment, via the place of employment, etc. and the business office of the financial institution or other such place via which the statement of tax-exempt asset-building pension savings was submitted.

In the cases referred to in the preceding two paragraphs, when a statement of tax-exempt asset-building pension savings or a statement of change to the maximum limitation for tax-exempt asset-building pension savings has been accepted by the business office of the financial institution or other such place prescribed in those provisions, the statement is deemed to have been submitted to the district director prescribed in those provisions on the day on which it was accepted.

A statement of tax-exempt asset-building pension savings may not be submitted where the wage earner prescribed in paragraph (1) has already submitted such a statement (excluding the cases specified by Cabinet Order), and the place of employment may not accept a statement of tax-exempt asset-building pension savings where it falls under any of the following cases:

where the maximum limitation listed in paragraph (4), item (iii) stated in the statement of tax-exempt asset-building pension savings exceeds 5,500,000 yen (or 3,850,000 yen for the maximum limitation pertaining to premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid, or any other maximum limitation specified by Cabinet Order);

where the total of the maximum limitations listed in paragraph (4), items (iii) and (iv) stated in the statement of tax-exempt asset-building pension savings exceeds 5,500,000 yen.

Where a wage earner prescribed in paragraph (1) has made a placement, at the business office of a financial institution or other such place, of asset-building pension savings for which the wage earner seeks the application of the provisions of that paragraph, the wage earner must have the securities or certificates of deposit or other certificates pertaining to the asset-building pension savings managed by custody, entries or records in a transfer account book prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares, or any other method specified by Cabinet Order, and the head of the business office of the financial institution or other such place must, when accepting the placement of the asset-building pension savings, establish an account for each individual and manage the matters concerning the asset-building pension savings through that account, pursuant to the provisions of Cabinet Order.

Beyond what is prescribed in paragraph (3) through the preceding paragraph, the method of calculating the principal and the face value or equivalent amount referred to in paragraph (1), the submission of an application to exempt asset-building pension savings from taxation and a statement of tax-exempt asset-building pension savings, matters concerning the filing of a return in the case where a person who has submitted the statement has changed the matters stated in the statement after its submission, intends to cease to receive the application of the provisions of that paragraph, or has ceased to be a wage earner in relation to the wage payer referred to in that paragraph, and other necessary matters concerning the application of the provisions of that paragraph are specified by Cabinet Order.

Where, with regard to a workers' property accumulation pension savings contract or its performance, a fact has arisen by which the requirements prescribed in Article 6, paragraph (2), item (i), (b) or (c), item (ii), (b) or (c), or item (iii), (b) or (c) of the Workers' Property Accumulation Promotion Act are no longer met, the provisions of this Act and the Income Tax Act apply by deeming that the provisions of paragraph (1) have not applied to the interest, distribution of proceeds, or gain listed in the items of that paragraph that is specified by Cabinet Order and was paid within five years before the day on which the fact (where the day on which the fact arose is on or after the pension payment commencement date prescribed in item (i), (b), item (ii), (b), or item (iii), (b) of that paragraph, limited to the fact that arose within five years from the pension payment commencement date) arose, and that the interest, distribution of proceeds, or gain was paid on the day on which the fact arose. In this case, matters concerning withholding at the source prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act by the person who pays the interest, distribution of proceeds, or gain, and other necessary matters concerning the application of the provisions of this paragraph and that Act are specified by Cabinet Order.

Where the place of employment prescribed in Article 4-2, paragraph (1) or paragraph (1) of the preceding Article (hereinafter referred to in this paragraph through paragraph (3) and in paragraph (5) as the "place of employment") via which a wage earner prescribed in Article 4-2, paragraph (1) (hereinafter referred to in this paragraph and paragraph (5) as a "wage earner") is to make the submission of the documents listed in the following items (hereinafter referred to in this paragraph through paragraph (3) as the "submission of an application to exempt asset-building savings from taxation, etc.") meets the requirements specified by Cabinet Order, such as having taken measures that enable it to properly receive the provision, by electronic or magnetic means (meaning a means using an electronic data processing system or any other means using information and communications technology, which is specified by Order of the Ministry of Finance; the same applies hereinafter in this Article), of the matters to be stated (hereinafter referred to in this Article as the "required particulars") in the documents prescribed in those items (hereinafter referred to in this paragraph through paragraph (3) as an "application to exempt asset-building savings from taxation, etc."), the wage earner may, in lieu of the submission of an application to exempt asset-building savings from taxation, etc., provide the place of employment with the required particulars by electronic or magnetic means. In this case, the wage earner must take measures specified by Order of the Ministry of Finance that make the wage earner's name clear, and when the wage earner has taken those measures, the wage earner is deemed to have submitted the application to exempt asset-building savings from taxation, etc. to the place of employment.

the submission of an application to exempt asset-building housing savings from taxation prescribed in Article 4-2, paragraph (1) pursuant to the provisions of that paragraph;

the submission of a statement of tax-exempt asset-building housing savings prescribed in Article 4-2, paragraph (4) pursuant to the provisions of that paragraph;

the submission of a statement of change to the maximum limitation for tax-exempt asset-building housing savings prescribed in Article 4-2, paragraph (5) pursuant to the provisions of that paragraph;

the submission of an application to exempt asset-building pension savings from taxation prescribed in paragraph (1) of the preceding Article pursuant to the provisions of that paragraph;

the submission of a statement of tax-exempt asset-building pension savings prescribed in paragraph (4) of the preceding Article pursuant to the provisions of that paragraph;

the submission of a statement of change to the maximum limitation for tax-exempt asset-building pension savings prescribed in paragraph (5) of the preceding Article pursuant to the provisions of that paragraph.

The head of a place of employment listed in each of the following items (hereinafter referred to in this paragraph, the following paragraph, and paragraph (6) as an "entrusting workplace") may, where the office or any other equivalent place of the administrative agent organization (meaning an administrative agent organization prescribed in Article 4-2, paragraph (1) or paragraph (1) of the preceding Article; the same applies hereinafter in this paragraph) pertaining to the entrustment referred to in that item that performs the administrative affairs referred to in that item (hereinafter referred to in this paragraph, the following paragraph, and paragraph (6) as an "administrative agent's office") meets the requirements specified by Cabinet Order, such as having taken measures that enable it to properly receive the provision of required particulars by electronic or magnetic means, provide the administrative agent's office pertaining to the entrustment referred to in that item with the required particulars by electronic or magnetic means, in lieu of the submission of an application to exempt asset-building savings from taxation, etc. (limited to the submission of the documents specified in each of the following items according to the category of place of employment listed in that item). In this case, the head of the entrusting workplace must take measures specified by Order of the Ministry of Finance that make the name of the entrusting workplace clear, and when the head has taken those measures, the head is deemed to have submitted the application to exempt asset-building savings from taxation, etc. to the administrative agent's office.

a place of employment that has accepted the documents prescribed in items (i) through (iii) of the preceding paragraph, where the specified wage payer prescribed in Article 4-2, paragraph (1) pertaining to that place of employment has entrusted the administrative affairs pertaining to workers' property accumulation housing savings contracts prescribed in that paragraph to an administrative agent organization: the documents prescribed in items (i) through (iii) of the preceding paragraph;

a place of employment that has accepted the documents prescribed in items (iv) through (vi) of the preceding paragraph, where the specified wage payer prescribed in paragraph (1) of the preceding Article pertaining to that place of employment has entrusted the administrative affairs pertaining to workers' property accumulation pension savings contracts prescribed in that paragraph to an administrative agent organization: the documents prescribed in items (iv) through (vi) of the preceding paragraph.

The head of a place of employment that has accepted an application to exempt asset-building savings from taxation, etc. (excluding an entrusting workplace; hereinafter referred to in this paragraph and paragraph (6) as a "workplace doing the administrative work") or the head of an administrative agent's office that has accepted an application to exempt asset-building savings from taxation, etc. may, where the business office of the financial institution or other such place prescribed in Article 4-2, paragraph (1) to which the application to exempt asset-building savings from taxation, etc. is to be submitted or via which it is to be submitted meets the requirements specified by Cabinet Order, such as having taken measures that enable it to properly receive the provision of required particulars by electronic or magnetic means, provide the business office of the financial institution or other such place with the required particulars by electronic or magnetic means, in lieu of the submission of an application to exempt asset-building savings from taxation, etc. In this case, the head of the workplace doing the administrative work or the head of the administrative agent's office must take measures specified by Order of the Ministry of Finance that make the name of the workplace doing the administrative work or the administrative agent's office clear, and when the head has taken those measures, the head is deemed to have submitted the application to exempt asset-building savings from taxation, etc. to the business office of the financial institution or other such place.

With regard to the application of the provisions of Article 4-2, paragraph (6) and paragraph (6) of the preceding Article in the case where the provisions of the preceding paragraph apply, the phrase "when a statement" in those provisions is deemed to be replaced with "when the matters to be stated in a statement", the phrase "or a statement of change" with "or the matters to be stated in a statement of change", the phrase "has been accepted by" with "have been provided to", and the phrase "the day on which it was accepted" with "the day on which they were provided".

Where a wage earner provides required particulars by electronic or magnetic means pursuant to the provisions of paragraph (1) (limited to the part pertaining to item (ii) or item (v)), the wage earner may, pursuant to the provisions of Cabinet Order, in lieu of submitting, pursuant to the provisions of Article 4-2, paragraph (4) or paragraph (4) of the preceding Article, the document certifying the matters listed in item (iv) of Article 4-2, paragraph (4) prescribed in that paragraph or the document certifying the matters listed in item (iv) of paragraph (4) of the preceding Article prescribed in that paragraph, provide the place of employment with the matters to be stated in those documents by electronic or magnetic means. In this case, the wage earner is deemed to have submitted the statement of tax-exempt asset-building housing savings prescribed in Article 4-2, paragraph (4) or the statement of tax-exempt asset-building pension savings prescribed in paragraph (4) of the preceding Article with those documents attached thereto pursuant to those provisions.

The provisions of the preceding paragraph apply mutatis mutandis in the case where the head of an entrusting workplace provides required particulars by electronic or magnetic means pursuant to the provisions of paragraph (2) (limited to the part pertaining to the submission of the documents listed in paragraph (1), item (ii) or item (v)), or where the head of a workplace doing the administrative work or the head of an administrative agent's office provides required particulars by electronic or magnetic means pursuant to the provisions of paragraph (3) (limited to the part pertaining to the submission of the documents listed in paragraph (1), item (ii) or item (v)).

Beyond what is prescribed in the preceding three paragraphs, necessary matters concerning the application of the provisions of the preceding two Articles and paragraphs (1) through (3) in the case where required particulars are provided by electronic or magnetic means are specified by Cabinet Order.

With regard to the gain received by a wage earner prescribed in Article 2, item (i) of the Workers' Property Accumulation Promotion Act (referred to in paragraph (3) as a "wage earner") under a contract for life insurance or casualty insurance or life mutual aid (referred to in the following paragraph as a "workers' property accumulation savings insurance contract, etc.") pertaining to a workers' property accumulation savings contract, workers' property accumulation pension savings contract, or workers' property accumulation housing savings contract prescribed in Article 6, paragraph (1), (2), or (4) of that Act (referred to in paragraph (3) as a "workers' property accumulation savings contract, etc.") (meaning the balance remaining after deducting the total of the amount of premiums for the life insurance or casualty insurance or the amount of mutual aid premiums for the life mutual aid from the amount of the lump-sum payments specified by Cabinet Order as maturity refunds, etc., out of the lump-sum payments paid under the workers' property accumulation savings contract, or the gain prescribed in Article 4-2, paragraph (1), item (iv) or Article 4-3, paragraph (1), item (iv)), the provisions of the Income Tax Act and this Chapter apply by deeming the gain to be interest and similar income prescribed in Article 23, paragraph (1) of that Act.

The provisions of Article 76, paragraphs (1) through (4) and Article 77, paragraph (1) of the Income Tax Act do not apply to premiums for life insurance or casualty insurance or mutual aid premiums for life mutual aid pertaining to a workers' property accumulation savings insurance contract, etc.

Where, with regard to beneficial interests in a securities investment trust (limited to one whose public offering of beneficial rights pertaining to its establishment was conducted by way of public offering prescribed in Article 3, paragraph (1), item (ii)) purchased by a wage earner under a workers' property accumulation savings contract, etc., there has been a termination of the securities investment trust (where it pertains to a merger of trusts of the securities investment trust, limited to a termination pertaining to a merger of trusts in which assets other than beneficial interests in the trust newly formed by the merger of trusts (excluding money or other assets delivered as consideration based on a demand for purchase made by a beneficiary of the securities investment trust who objects to the merger of trusts) have been delivered to the beneficiaries of the securities investment trust) or a partial cancellation thereof, the provisions of the Income Tax Act and this Chapter apply by deeming the amount, out of the total of the amount of money and the value of assets other than money delivered as a result of the termination or partial cancellation, up to the amount entrusted for the securities investment trust (limited to the amount of the part pertaining to the beneficial interests in the securities investment trust), to be the revenue pertaining to income from the transfer, etc. of listed shares, etc. prescribed in Article 37-11, paragraph (1), notwithstanding the provisions of paragraph (4) of that Article.

Income tax is not imposed on interest on public and corporate bonds or deposits and savings or distributions of proceeds from jointly managed trusts accruing from the trust property of a trust established under a specified donation trust contract (hereinafter referred to in this Article as a "specified donation trust") (for interest on public and corporate bonds or distributions of proceeds from loan trusts, limited to the part equivalent to the amount calculated pursuant to the provisions of Cabinet Order as the amount of the part corresponding to the period during which the public and corporate bonds or the beneficial interests in the loan trust continued to belong to the trust property, where the public and corporate bonds or the beneficial interests in the loan trust are managed by means of entries or records in a transfer account book prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares or any other method specified by Cabinet Order; referred to in paragraph (3) and paragraph (8) as "interest and similar income").

The specified donation trust contract prescribed in the preceding paragraph means a trust contract concluded by a resident with a trust company (limited to one that has obtained a license under Article 3 or Article 53, paragraph (1) of the Trust Business Act (Act No. 154 of 2004), and including a financial institution prescribed in Article 1, paragraph (1) of the Act on Engagement in Trust Business by Financial Institutions (Act No. 43 of 1943) that engages in the trust business prescribed in that paragraph pursuant to that Act), under which the resident is the beneficiary and which prescribes the requirements specified by Cabinet Order as requirements for the proper implementation of planned donations, such as that its main purpose is to expend the trust property as specified donations prescribed in Article 78, paragraph (2) of the Income Tax Act (including those deemed to be specified donations pursuant to the provisions of Article 41-18-2, paragraph (1)) that are specified by Cabinet Order as contributing to a business for the purpose of public interest conducted by a private organization (referred to in paragraph (8) as "covered specified donations").

The provisions of paragraph (1) apply only where the resident referred to in the preceding paragraph has, after the conclusion of the specified donation trust contract prescribed in that paragraph and by the day preceding the day on which the resident first receives payment of interest and similar income for which the resident seeks the application of the provisions of paragraph (1), submitted a return stating the resident's name, address, and individual number (meaning the individual number prescribed in Article 2, paragraph (5) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No. 27 of 2013); the same applies hereinafter in this Chapter) and other matters specified by Order of the Ministry of Finance (hereinafter referred to in this Article as a "return for a specified donation trust"), with a copy of the contract document of the specified donation trust contract attached thereto, to the district director with jurisdiction over the location of the business office or similar place of the trustee of the specified donation trust, via the business office, other office, or any other equivalent place (hereinafter referred to in this Article as the "business office or similar place") of the trustee of the specified donation trust pertaining to the specified donation trust contract.

In the case referred to in the preceding paragraph, when a return for a specified donation trust has been submitted to the district director prescribed in that paragraph, it is deemed to have been submitted on the day on which it was accepted at the business office or similar place of the trustee of the specified donation trust referred to in that paragraph.

The resident referred to in paragraph (3) may, in lieu of submitting a return for a specified donation trust under that paragraph, provide the business office or similar place of the trustee of the specified donation trust referred to in that paragraph with the matters to be stated in the return for a specified donation trust by electronic or magnetic means (meaning the electronic or magnetic means prescribed in Article 3-3, paragraph (8); the same applies in paragraph (7)). In this case, the resident is deemed to have submitted the return for a specified donation trust to the business office or similar place of the trustee of the specified donation trust.

With regard to the application of the provisions of paragraph (4) in the case where the provisions of the preceding paragraph apply, in that paragraph, the phrase "a return for a specified donation trust has been submitted to" is deemed to be replaced with "the matters to be stated in a return for a specified donation trust have been submitted to", and the phrase "the day on which it was accepted" is deemed to be replaced with "the day on which the provision was received".

Where the resident referred to in paragraph (3) provides the matters to be stated in a return for a specified donation trust by electronic or magnetic means pursuant to the provisions of paragraph (5), the resident may, in lieu of submitting a copy of the contract document of the specified donation trust contract prescribed in paragraph (3) under that paragraph, provide the business office or similar place of the trustee of the specified donation trust referred to in that paragraph with the matters to be stated in the copy by electronic or magnetic means. In this case, the resident is deemed to have submitted the return for a specified donation trust with the copy attached thereto pursuant to the provisions of that paragraph.

Where, with regard to a specified donation trust contract prescribed in paragraph (2) or its performance, a fact specified by Cabinet Order as a fact by which planned donations are found not to be properly implemented has arisen, such as that the main purpose of the contract has ceased to be the expenditure of the trust property as covered specified donations, the provisions of this Act and the Income Tax Act apply by deeming that the provisions of paragraph (1) have not applied to the interest and similar income paid during the period from the time of conclusion of the specified donation trust contract to the day on which the fact arose, and by deeming, respectively, that the interest and similar income was paid on the day on which the fact arose and that the trustee of the specified donation trust pertaining to the specified donation trust contract paid the interest and similar income.

With regard to the application of the provisions of Article 78 of the Income Tax Act and the provisions of Article 41-18-2 and Article 41-18-3 in the case where the provisions of paragraph (1) apply, in Article 78, paragraph (2) of that Act, the phrase "excluding those made in connection with admission to a school" is deemed to be replaced with "excluding the part equivalent to the amount of interest and similar income prescribed in Article 4-5, paragraph (1) (Tax Exemption on Interest Income of Specified Donation Trusts) of the Act on Special Measures Concerning Taxation to which the provisions of that paragraph have been applied, and those made in connection with admission to a school", and in Article 41-18-2, paragraph (1), the phrase "the person who made the donation" is deemed to be replaced with "the part equivalent to the amount of interest and similar income prescribed in Article 4-5, paragraph (1) to which the provisions of that paragraph have been applied, and the person who made the donation".

Beyond what is prescribed in paragraph (3) through the preceding paragraph, matters concerning the books to be kept with regard to the trust property of a specified donation trust, matters concerning notification in the case where a person who has submitted a return for a specified donation trust has changed or is to change the matters stated in the return for a specified donation trust after its submission, and other necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

Income tax is not imposed on interest on tax payment reserve deposits; provided, however, that if any amount has been withdrawn from the deposits for a purpose other than the payment of taxes, income tax is imposed on the interest corresponding to the calculation period of interest that includes the day of the withdrawal.

The tax payment reserve deposits prescribed in the preceding paragraph means deposits made with a bank or any other financial institution specified by Cabinet Order for the purpose of appropriating them for the payment of taxes, which the financial institution accounts for separately from other deposits.

Where a nonresident or foreign corporation receives payment of interest (excluding interest subject to the provisions of Article 8, paragraph (1) or paragraph (2)) on book-entry government bonds prescribed in Article 88 of the Act on Book-Entry Transfer of Corporate Bonds and Shares (excluding coupon-only book-entry government bonds prescribed in Article 90, paragraph (3) of that Act; hereinafter referred to in this Article as "book-entry government bonds") or municipal bonds which are subject to the provisions of that Act pursuant to Article 66 of that Act as applied mutatis mutandis pursuant to Article 113 of that Act (hereinafter referred to in this Article as "book-entry municipal bonds"), for which the nonresident or foreign corporation has made entries or records under the book-entry transfer system in the account that they or it has established with a specified book-entry transfer institution, a specified account management institution, or a specified secondary account management institution (hereinafter referred to in this Article as a "specified book-entry transfer institution, etc.") or a qualified foreign intermediary, via a business office or any other office of the specified book-entry transfer institution, etc. located in Japan (hereinafter referred to in this Article as a "business office or similar place") or the specified overseas business office, etc. of the qualified foreign intermediary, if, when seeking the application of the provisions of this paragraph for the first time with regard to interest on book-entry government bonds or book-entry municipal bonds, the nonresident or foreign corporation has submitted a document stating such intention, their or its name or title and address (for a nonresident who has a residence in Japan or any other person specified by Order of the Ministry of Finance, the place specified by Order of the Ministry of Finance; the same applies hereinafter in this Article), and any other matters specified by Order of the Ministry of Finance (hereinafter referred to in this Article as a "written application for a tax exemption") to the district director with jurisdiction over the place where the head office or principal office of the specified book-entry transfer institution, etc. is located, via the specified book-entry transfer institution, etc., or via the qualified foreign intermediary and the specified book-entry transfer institution, etc. through which the qualified foreign intermediary makes entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds (in the case where the qualified foreign intermediary is a tertiary foreign account management institution, the specified book-entry transfer institution, etc. through which the secondary foreign account management institution pertaining to the entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds makes entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds), income tax is not imposed on the interest so received.

With respect to interest on book-entry government bonds and interest on book-entry municipal bonds to be received by a nonresident or foreign corporation who is the trustee of a foreign investment trust (meaning a foreign investment trust prescribed in Article 2, paragraph (24) of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951); hereinafter the same applies in this paragraph), for the trust property under the foreign investment trust, the provisions of the preceding paragraph apply only where the foreign investment trust is one that falls under the category of a securities investment trust or a bond-based investment trust and satisfies any of the following requirements (referred to as a "qualified foreign securities investment trust" in item (ii) and paragraph (11)):

the following requirements:

the public offering of beneficial rights based on the establishment of the foreign investment trust has been conducted, outside Japan, by way of a solicitation of offers to acquire prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which is equivalent to the one listed in item (i) of Article 2, paragraph (3), and it is stated in the prospectus (meaning the prospectus prescribed in paragraph (10) of that Article; the same applies hereinafter in this paragraph) of the foreign investment trust or any other document similar thereto that the relevant solicitation of offers to acquire is equivalent to the one listed in the item;

where the public offering of beneficial rights based on the establishment of the foreign investment trust is also conducted in Japan, the following requirements are satisfied:

the public offering of the beneficial rights has been conducted, in Japan, by way of a solicitation of offers to acquire prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which falls under the case listed in item (i) of that paragraph;

the distribution of proceeds pertaining to the beneficial rights for which the public offering referred to in (1) has been conducted is delivered through a person in charge of handling payment in Japan prescribed in Article 3-3, paragraph (1) or a person in charge of handling payment prescribed in Article 8-3, paragraph (1);

it is stated in the prospectus of the foreign investment trust or any other document similar thereto that the public offering and the distribution of proceeds are to be conducted in accordance with the provisions of (1) and (2).

all of the beneficial interests in the foreign investment trust have been acquired as the trust property of another qualified foreign securities investment trust, and it is stated in the prospectus of the foreign investment trust or any other document similar thereto that all of its beneficial interests are to be acquired as the trust property of another qualified foreign securities investment trust.

With regard to interest on book-entry government bonds or book-entry municipal bonds accruing from the trust property of a trust that is established under the laws and regulations of a foreign state and is similar to a retirement pension trust, etc. prescribed in Article 13, paragraph (3), item (ii) of the Income Tax Act (limited to one that falls under the category of a trust in which the beneficiary prescribed in paragraph (1) of that Article (including a person deemed to be a beneficiary prescribed in paragraph (1) of that Article pursuant to the provisions of paragraph (2) of that Article) is deemed to hold the assets and liabilities belonging to its trust property (referred to in the following paragraph as a "trust taxed on its beneficiaries")) and which is operated in that foreign state mainly for the purpose of managing or paying retirement pensions, retirement allowances, or any other similar remuneration (hereinafter referred to in this paragraph and the following paragraph as a "foreign pension trust"), the provisions of paragraph (1) apply by deeming the trustee of the foreign pension trust to receive payment of the interest. In this case, the phrase "revenue and expenses" in paragraph (1) of that Article is deemed to be replaced with "revenue (excluding interest on book-entry government bonds or book-entry municipal bonds prescribed in that paragraph to which the provisions of Article 5-2, paragraph (3) (Special Provisions on Taxation on Interest from Book-Entry Government Bonds) of the Act on Special Measures Concerning Taxation apply) and expenses".

The provisions of paragraph (1) apply to interest received by a nonresident or foreign corporation on book-entry government bonds or book-entry municipal bonds belonging to the partnership property prescribed in Article 668 of the Civil Code (Act No. 89 of 1896) (including property specified by Cabinet Order as being similar thereto; hereinafter referred to in this paragraph as "partnership property") pertaining to a partnership contract prescribed in Article 667, paragraph (1) of that Code (including a contract specified by Cabinet Order as being similar thereto; hereinafter referred to in this paragraph as a "partnership contract") or to the trust property of a trust (limited to a trust taxed on its beneficiaries, and excluding a foreign pension trust; hereinafter the same applies in this Article), only where the nonresident or foreign corporation has submitted a written application for a tax exemption under paragraph (1), and the person who executes the business of the partnership pertaining to the partnership contract or the trustee of the trust (hereinafter referred to in this Article as a "business executor, etc.") has, when the nonresident or foreign corporation seeks the application of the provisions of that paragraph with regard to interest on book-entry government bonds or book-entry municipal bonds belonging to the partnership property or trust property, submitted a document stating the name of the partnership or the trust, the name or title and address of the business executor, etc., and other matters specified by Order of the Ministry of Finance (hereinafter referred to in this Article as a "written notification of a partnership, etc.") and a copy of the partnership contract document pertaining to the partnership contract or of the trust contract document pertaining to the trust (hereinafter referred to in this Article as a "copy of the partnership contract, etc.") to the district director with jurisdiction over the place where the head office or principal office of the specified book-entry transfer institution, etc. is located, via the specified book-entry transfer institution, etc. referred to in that paragraph, or via the qualified foreign intermediary and specified book-entry transfer institution, etc. referred to in that paragraph, in accordance with the provisions of that paragraph.

The provisions of paragraph (1) do not apply to interest on book-entry government bonds and book-entry municipal bonds received by a nonresident who has a permanent establishment, which falls under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act. In this case, where the nonresident has submitted a written application for a tax exemption to the district director prescribed in paragraph (1), via the specified book-entry transfer institution, etc. referred to in that paragraph or via the qualified foreign intermediary and specified book-entry transfer institution, etc. referred to in that paragraph, in accordance with the provisions of paragraph (1) (with regard to interest the nonresident receives on book-entry government bonds or book-entry municipal bonds belonging to the partnership property or trust property referred to in the preceding paragraph, where the nonresident has submitted a written application for a tax exemption to the district director prescribed in paragraph (1), via the specified book-entry transfer institution, etc. referred to in that paragraph or via the qualified foreign intermediary and specified book-entry transfer institution, etc. referred to in that paragraph, in accordance with the provisions of paragraph (1), and the business executor, etc. referred to in the preceding paragraph has submitted the written notification of a partnership, etc. and the copy of the partnership contract, etc. to the district director prescribed in paragraph (1), via the specified book-entry transfer institution, etc. referred to in that paragraph or via the qualified foreign intermediary and specified book-entry transfer institution, etc. referred to in that paragraph, in accordance with the provisions of paragraph (1)), the provisions of Article 9-3-2 of this Act and Article 212 of the Income Tax Act do not apply to the interest so received.

With regard to the application of the provisions of Article 225 of the Income Tax Act and the provisions of Article 3-2 and Article 8-5 in the case where the provisions of paragraph (1) and the preceding paragraph apply, in Article 225, paragraph (1), item (viii) of that Act, the phrase "foreign corporation" is deemed to be replaced with "foreign corporation (excluding a foreign government or any other corporation specified by Cabinet Order)", and the phrase "person who makes the payment" is deemed to be replaced with "person who makes the payment (where the nonresident or foreign corporation has received the application of the provisions of Article 5-2, paragraph (1) (Special Provisions on Taxation on Interest from Book-Entry Government Bonds) of the Act on Special Measures Concerning Taxation or of the second sentence of paragraph (5) of that Article with regard to interest on book-entry government bonds or book-entry municipal bonds prescribed in paragraph (1) of that Article, the specified book-entry transfer institution, etc. prescribed in paragraph (1) of that Article)"; in Article 3-2, the phrase "a resident or a nonresident with a permanent establishment, or a domestic corporation or a foreign corporation with a permanent establishment" is deemed to be replaced with "a nonresident or a foreign corporation", the phrase "interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act (excluding non-applicable interest)" is deemed to be replaced with "interest to which the provisions of Article 5-2, paragraph (1) or the second sentence of paragraph (5) of that Article apply", the phrase "a person, who pays" is deemed to be replaced with "a person (for interest to which the provisions of Article 5-2, paragraph (1) or the second sentence of paragraph (5) of that Article apply, the specified book-entry transfer institution, etc. prescribed in paragraph (1) of that Article), who pays", and the phrase "the interest and similar income" is deemed to be replaced with "the interest"; and in Article 8-5, paragraph (1), the phrase "the following" is deemed to be replaced with "the following (excluding those to which the provisions of the second sentence of Article 5-2, paragraph (5) apply)".

In this Article, the meanings of the terms listed in the following items are as prescribed respectively in those items:

specified book-entry transfer institution:A book-entry transfer institution as prescribed in Article 2, paragraph (2) of the Act on the Book-Entry Transfer of Company Bonds, Shares, etc. (including an institution that is deemed to be a book-entry transfer institution pursuant to the provisions of Article 48 of the Act), which has obtained consent from the State for handling government bonds pursuant to the provisions of Article 13 of the Act or obtained consent from the issuer of local government bonds for handling the local government bonds pursuant to the provisions of the Article;

specified account management institution:An account management institution prescribed in Article 2, paragraph (4) of the Act on the Book-Entry Transfer of Company Bonds, Shares (referred to in the following item and item (vii) as an "account management institution"), with which a specified book-entry transfer institution has established an account pursuant to the provisions of Article 12, paragraph (1) of the Act;

specified secondary account management institution: An account management institution that falls under any one of the following (excluding an institution that falls under the category of a secondary foreign account management institution):

an institution with which a specified account management institution has established an account pursuant to the provisions of Article 44, paragraph (1) of the Act on the Book-Entry Transfer of Company Bonds, Shares;

an institution with which an institution that falls under the category of a specified secondary account management institution pursuant to the provisions of (a) or (c) has established an account pursuant to the provisions of Article 44, paragraph (1) of the Act on the Book-Entry Transfer of Company Bonds, Shares; or

an institution with which an institution that falls under the category of a specified secondary account management institution pursuant to the provisions of (b) has established an account pursuant to the provisions of Article 44, paragraph (1) of the Act on the Book-Entry Transfer of Company Bonds, Shares;

qualified foreign intermediary: A secondary foreign account management institution or tertiary foreign account management institution that has obtained, pursuant to the provisions of Cabinet Order, the approval of the Commissioner of the National Tax Agency as an institution that has its head office or principal office in the foreign state (referred to in the following item as a "treaty partner state, etc.") in the case where the information may be provided to a foreign authority pursuant to provisions specified by Cabinet Order as provisions concerning the provision of information on taxes to a contracting state or contracting party other than Japan to a convention prescribed in the proviso to Article 2, paragraph (1), item (viii)-4 of the Income Tax Act or any other international agreement concluded by Japan (limited to one that has provisions for the mutual provision of information on the assessment and collection of taxes), or to any other foreign authority;

specified overseas business office, etc.: A business office or any other office of a qualified foreign intermediary, which is located in a treaty partner state, etc.;

entries or records under the book-entry transfer system:Entries or records in a transfer account book provided for in the Act on the Book-Entry Transfer of Company Bonds, Shares which are made pursuant to the provisions of the Act;

tertiary foreign account management institution: An account management institution (limited to an institution that falls under the category of institution prescribed in Article 44, paragraph (1), item (xiii) of the Act on the Book-Entry Transfer of Company Bonds, Shares, and excluding a domestic corporation; referred to in the following item as a "foreign account management institution"), which falls under any one of the following:

an institution with which a secondary foreign account management institution has established an account pursuant to the provisions of Article 44, paragraph (1) of the Act on the Book-Entry Transfer of Company Bonds, Shares;

an institution with which an institution that falls under the category of a tertiary foreign account management institution pursuant to the provisions of (a) or (c) has established an account pursuant to the provisions of Article 44, paragraph (1) of the Act on the Book-Entry Transfer of Company Bonds, Shares; or

an institution with which an institution that falls under the category of a tertiary foreign account management institution pursuant to the provisions of (b) has established an account pursuant to the provisions of Article 44, paragraph (1) of the Act on the Book-Entry Transfer of Company Bonds, Shares;

secondary foreign account management institution:A foreign account management institution with which a specified account management institution or specified secondary account management institution has established an account pursuant to the provisions of Article 44, paragraph (1) of the Act on the Book-Entry Transfer of Company Bonds, Shares.

Where an application for approval set forth in item (iv) of the preceding paragraph has been filed, the Commissioner of the National Tax Agency may dismiss the application when they find a fact that falls under any one of the following items with regard to the applicant:

any document necessary for filing the application contains a defective or false entry or that the application has not otherwise been filed pursuant to the provisions of Cabinet Order prescribed in item (iv) of the preceding paragraph;

the applicant is delinquent in paying national taxes at the time in question, and it is significantly difficult to collect the amount of taxes in arrears; or

there are reasonable grounds for finding that it is difficult for the applicant to keep the books, make records therein, or preserve the books pursuant to the provisions of paragraph (14) or to give notice pursuant to the provisions of paragraph (15) or paragraph (16).

The Commissioner of the National Tax Agency may, pursuant to the provisions of Cabinet Order, rescind the approval set forth in paragraph (7), item (iv) when the Commissioner finds that any of the following facts has arisen with regard to the person who has obtained the approval:

the fact that, where the district director has requested the person who has obtained the approval to make the submission of the documents found necessary to confirm whether the person properly implements the measures based on the provisions of this Article, the person did not submit them without delay; or

a fact that falls under any of the items of the preceding paragraph.

In the case referred to in paragraph (1) or paragraph (4), where a written application for a tax exemption or a written notification of a partnership, etc. and a copy of the partnership contract, etc. have been submitted to the district director prescribed in paragraph (1), they are deemed to have been submitted at the time when they were received at the business office or similar place of the specified book-entry transfer institution, etc. or the specified overseas business office, etc. of the qualified foreign intermediary via which they were to be submitted.

A person who submits a written application for a tax exemption must, upon submission, present the documents specified by Order of the Ministry of Finance as documents certifying that the person falls under the category of a nonresident or foreign corporation (where the provisions of paragraph (2) apply, a nonresident or foreign corporation that is the trustee of a qualified foreign securities investment trust) to the head of the business office or similar place of the specified book-entry transfer institution, etc. or the head of the specified overseas business office, etc. of the qualified foreign intermediary to which the written application for a tax exemption is submitted, and the head of the business office or similar place of the specified book-entry transfer institution, etc. or the head of the specified overseas business office, etc. of the qualified foreign intermediary must confirm, by those documents, the name or title and address (where the provisions of that paragraph apply, the name or title and address, and the name of the qualified foreign securities investment trust and the statement under that paragraph pertaining to the qualified foreign securities investment trust, stated in the written application for a tax exemption) stated in the written application for a tax exemption.

Where a person who has submitted a written application for a tax exemption or a business executor, etc. who has submitted a written notification of a partnership, etc. comes to fall under any of the cases listed in the following items, the person or business executor, etc. must submit the return or the written notification and copy of the partnership contract, etc. specified in the relevant item to the district director prescribed in paragraph (1), via the specified book-entry transfer institution, etc., or via the qualified foreign intermediary and the specified book-entry transfer institution, etc. through which the qualified foreign intermediary makes entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds (in the case where the qualified foreign intermediary is a tertiary foreign account management institution, the specified book-entry transfer institution, etc. through which the secondary foreign account management institution pertaining to the entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds makes entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds), by the day preceding the day on which the person or business executor, etc. is first to receive, on or after the day on which the person or business executor, etc. comes to fall under that case, payment of interest on book-entry government bonds or book-entry municipal bonds for which entries or records under the book-entry transfer system have been made through the specified book-entry transfer institution, etc. or qualified foreign intermediary to which the written application for a tax exemption or the written notification of a partnership, etc. was submitted. In this case, if the return or the written notification and copy of the partnership contract, etc. specified in the relevant item have not been submitted, the provisions of that paragraph and the second sentence of paragraph (5) do not apply to the interest on the book-entry government bonds and book-entry municipal bonds received on or after the day on which the person or business executor, etc. comes to fall under that case.

where there has been a change in the name or title or address or any other matter specified by Order of the Ministry of Finance stated in the written application for a tax exemption or the return specified in item (iii): a return stating the name or title and address of the person who submitted the written application for a tax exemption or the return after the change, and other matters specified by Order of the Ministry of Finance;

where there has been a change in the name of the partnership or trust referred to in paragraph (4), the name or title or address of the business executor, etc. pertaining to the partnership or trust, or any other matter specified by Order of the Ministry of Finance stated in the written notification of a partnership, etc. or the written notification specified in item (iv): a written notification stating the name of the partnership or trust after the change and other matters specified by Order of the Ministry of Finance, and a copy of the partnership contract, etc.;

where five years have elapsed from the day following the latest of the day on which the written application for a tax exemption was submitted, the day on which the return specified in item (i) was submitted, or the day on which the return specified in this item was submitted: a return stating the name or title and address of the person who submitted the written application for a tax exemption and other matters specified by Order of the Ministry of Finance;

where five years have elapsed from the day following the latest of the day on which the written notification of a partnership, etc. and the copy of the partnership contract, etc. were submitted, the day on which the written notification and copy of the partnership contract, etc. specified in item (ii) were submitted, or the day on which the written notification and copy of the partnership contract, etc. specified in this item were submitted: a written notification stating the name of the partnership or trust pertaining to the business executor, etc. who submitted the written notification of a partnership, etc. and the copy of the partnership contract, etc., the name or title and address of the business executor, etc., and other matters specified by Order of the Ministry of Finance, and a copy of the partnership contract, etc.

The provisions of paragraph (10) apply mutatis mutandis to the submission of the returns prescribed in items (i) and (iii) of the preceding paragraph and to the submission of the written notifications prescribed in items (ii) and (iv) of that paragraph and copies of the partnership contract, etc., and the provisions of paragraph (11) apply mutatis mutandis to the submission of the returns prescribed in items (i) and (iii) of the preceding paragraph. In this case, in paragraph (10), the phrase "paragraph (1) or paragraph (4)" is deemed to be replaced with "paragraph (12)", and the phrase "a written application for a tax exemption or a written notification of a partnership, etc. and a copy of the partnership contract, etc. have been submitted to the district director prescribed in paragraph (1)" is deemed to be replaced with "a return or written notification prescribed in the items of that paragraph and a copy of the partnership contract, etc. have been submitted to the district director prescribed in paragraph (1)"; and in paragraph (11), the phrase "a person who submits a written application for a tax exemption" is deemed to be replaced with "a person who submits a return prescribed in item (i) or item (iii) of the following paragraph", the phrase "the written application for a tax exemption" is deemed to be replaced with "the return prescribed in those items", the phrase "氏名又は" (name or) is deemed to be replaced with "氏名若しくは" (name or, joining a smaller group of alternatives), the phrase "address (where the provisions of that paragraph apply" is deemed to be replaced with "address or the name and address after the change (where the provisions of paragraph (2) apply", the phrase "address, and" is deemed to be replaced with "address or the name and address after the change, and", and the phrase "the name of the qualified foreign securities investment trust" is deemed to be replaced with "the name or the name after the change of the qualified foreign securities investment trust".

A specified book-entry transfer institution, etc. and a qualified foreign intermediary must keep books with regard to book-entry government bonds or book-entry municipal bonds for which a person who has submitted a written application for a tax exemption made entries or records under the book-entry transfer system through the specified book-entry transfer institution, etc. or the qualified foreign intermediary, and must state or record in such books, pursuant to the provisions of Cabinet Order, the day on which entries or records under the book-entry transfer system were made with regard to the book-entry government bonds or book-entry municipal bonds, and any other matters specified by Order of the Ministry of Finance, for each person who has submitted the written application for a tax exemption.

Where a person who has submitted a written application for a tax exemption receives payment of interest on book-entry government bonds or book-entry municipal bonds for which the person has made entries or records under the book-entry transfer system through a qualified foreign intermediary, the qualified foreign intermediary must, no later than the day preceding the day on which the person is to receive the payment of the interest, give notice of the brand of the book-entry government bonds or book-entry municipal bonds, the amount of redemption money for each brand, and any other matters specified by Order of the Ministry of Finance, to the specified account management institution or specified secondary account management institution through which the qualified foreign intermediary made entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds (in the case where the qualified foreign intermediary is a tertiary foreign account management institution, notice must be given to the specified account management institution or specified secondary account management institution through which the secondary foreign account management institution pertaining to the entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds made entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds), by way of a document or any other means specified by Cabinet Order.

Where a person who has submitted a written application for a tax exemption receives payment of interest on book-entry government bonds or book-entry municipal bonds for which the person has made entries or records under the book-entry transfer system through a qualified foreign intermediary, the qualified foreign intermediary must, pursuant to the provisions of Cabinet Order, give notice of the name and address of the person who has submitted the written application for a tax exemption, the amount of interest received, and any other matters specified by Order of the Ministry of Finance, no later than the tenth day of the month following the month that includes the day on which the payment was determined, to the specified account management institution or specified secondary account management institution through which the qualified foreign intermediary made entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds (in the case where the qualified foreign intermediary is a tertiary foreign account management institution, notice must be given to the specified account management institution or specified secondary account management institution through which the secondary foreign account management institution pertaining to the entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds made entries or records under the book-entry transfer system regarding the book-entry government bonds or book-entry municipal bonds), by way of a document or any other means specified by Cabinet Order.

A nonresident or foreign corporation referred to in paragraph (1), a business executor, etc. referred to in paragraph (4), a nonresident or business executor, etc. referred to in the second sentence of paragraph (5), or a person who has submitted a written application for a tax exemption or a business executor, etc. who has submitted a written notification of a partnership, etc. referred to in paragraph (12) (hereinafter referred to in this paragraph as a "nonresident, etc.") may, in lieu of submitting a written application for a tax exemption pursuant to the provisions of paragraph (1) or the second sentence of paragraph (5), submitting a written notification of a partnership, etc. and a copy of the partnership contract, etc. pursuant to the provisions of paragraph (4) or the second sentence of paragraph (5), or submitting a return prescribed in item (i) or item (iii) of paragraph (12) or a written notification prescribed in item (ii) or item (iv) of that paragraph and a copy of the partnership contract, etc. pursuant to the provisions of that paragraph, provide the specified book-entry transfer institution, etc. via which those documents are to be submitted (or, where they are to be submitted via a qualified foreign intermediary and a specified book-entry transfer institution, etc., provide the specified book-entry transfer institution, etc. via the qualified foreign intermediary) with the matters to be stated in the written application for a tax exemption, the matters to be stated in the written notification of a partnership, etc. and the matters stated in the copy of the partnership contract, etc. pertaining to that written notification of a partnership, etc., or the matters to be stated in the return or the matters to be stated in the written notification and the matters stated in the copy of the partnership contract, etc. pertaining to that written notification, by electronic or magnetic means (meaning a means using an electronic data processing system or any other means using information and communications technology, which is specified by Order of the Ministry of Finance). In this case, the nonresident, etc. is deemed to have submitted the written application for a tax exemption, the written notification of a partnership, etc. and the copy of the partnership contract, etc., or the return or the written notification and the copy of the partnership contract, etc. to the specified book-entry transfer institution, etc.

With regard to the application of the provisions of paragraph (10) and paragraph (13) in the case where the provisions of the preceding paragraph apply, in paragraph (10), the phrase "written application for a tax exemption or a written notification of a partnership, etc. and a copy of the partnership contract, etc." is deemed to be replaced with "matters to be stated in a written application for a tax exemption or matters to be stated in a written notification of a partnership, etc. and matters stated in a copy of the partnership contract, etc.", and the phrase "the time when they were received" is deemed to be replaced with "the time when the matters were provided"; and in paragraph (13), the phrase "written application for a tax exemption or a written notification of a partnership, etc. and a copy of the partnership contract, etc." is deemed to be replaced with "matters to be stated in a written application for a tax exemption or matters to be stated in a written notification of a partnership, etc. and matters stated in a copy of the partnership contract, etc.", and the phrase "a return or written notification prescribed in the items of that paragraph and a copy of the partnership contract, etc." is deemed to be replaced with "matters to be stated in a return prescribed in item (i) or item (iii) of that paragraph or matters to be stated in a written notification prescribed in item (ii) or item (iv) of that paragraph and matters stated in a copy of the partnership contract, etc. prescribed in those items".

Matters concerning the preservation of documents, etc. pertaining to the notice set forth in paragraph (15) and paragraph (16) and other necessary matters concerning the application of the provisions of paragraphs (1) through (6) and paragraph (8) through the preceding paragraph are specified by Cabinet Order.

Where a nonresident or foreign corporation receives payment of interest (excluding interest subject to the provisions of Article 8, paragraph (1) or paragraph (2)) on specified book-entry corporate bonds, etc. for which the nonresident or foreign corporation has made entries or records under the book-entry transfer system in the account that they or it has established with a specified book-entry transfer institution, a specified account management institution, or a specified secondary account management institution (hereinafter referred to in this paragraph and paragraph (3) as a "specified book-entry transfer institution, etc.") or a qualified foreign intermediary, via a business office or any other office of the specified book-entry transfer institution, etc. located in Japan or the specified overseas business office, etc. of the qualified foreign intermediary, if, when seeking the application of the provisions of this paragraph for the first time with regard to interest on specified book-entry corporate bonds, etc., the nonresident or foreign corporation has submitted a document stating such intention, their or its name and address (meaning the address prescribed in paragraph (1) of the preceding Article), and any other matters specified by Order of the Ministry of Finance (hereinafter referred to in this Article as a "written application for a tax exemption") to the district director with jurisdiction over the place where the head office or principal office of the specified book-entry transfer institution, etc. is located, via the specified book-entry transfer institution, etc. (where the specified book-entry corporate bonds, etc. fall under government or company bonds other than the specified government or company bonds prescribed in Article 3, paragraph (1), item (i) (referred to in paragraph (7) and paragraph (8) as "general bonds, etc."), limited to one that falls under the category of a qualified account management institution; hereinafter the same applies in this paragraph), or via the qualified foreign intermediary and the specified book-entry transfer institution, etc. through which the qualified foreign intermediary makes entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc. (in the case where the qualified foreign intermediary is a tertiary foreign account management institution, the specified book-entry transfer institution, etc. through which the secondary foreign account management institution pertaining to the entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc. makes entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc.), income tax is not imposed on the interest so received.

The provisions of the preceding paragraph do not apply to interest on specified book-entry corporate bonds, etc. received by a specially-related person of the issuer of the specified book-entry corporate bonds, etc. (meaning a person who has a special relationship specified by Cabinet Order with the issuer of the specified book-entry corporate bonds, etc.; the same applies hereinafter in this Article) (excluding interest received by a nonresident or foreign corporation that is the trustee of a qualified foreign securities investment trust prescribed in paragraph (2) of the preceding Article as applied mutatis mutandis pursuant to paragraph (9), for the trust property of that qualified foreign securities investment trust, and interest that the trustee of a foreign pension trust prescribed in paragraph (3) of that Article is deemed to receive pursuant to the provisions of that paragraph as applied mutatis mutandis pursuant to paragraph (9)).

The provisions of paragraph (1) do not apply to interest on specified book-entry corporate bonds, etc. received by a nonresident who has a permanent establishment, which falls under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act. In this case, where the nonresident (limited to one that is not a specially-related person of the issuer of the specified book-entry corporate bonds, etc.; hereinafter the same applies in this paragraph) has submitted a written application for a tax exemption to the district director prescribed in paragraph (1), via the specified book-entry transfer institution, etc. referred to in that paragraph or via the qualified foreign intermediary and specified book-entry transfer institution, etc. referred to in that paragraph, in accordance with the provisions of paragraph (1) (with regard to interest the nonresident receives on specified book-entry corporate bonds, etc. belonging to the partnership property or trust property referred to in paragraph (4) of the preceding Article, where the nonresident has submitted a written application for a tax exemption to the district director prescribed in paragraph (1), via the specified book-entry transfer institution, etc. referred to in that paragraph or via the qualified foreign intermediary and specified book-entry transfer institution, etc. referred to in that paragraph, in accordance with the provisions of paragraph (1), and the business executor, etc. prescribed in paragraph (4) of that Article has submitted the written notification of a partnership, etc. and the copy of the partnership contract, etc. prescribed in paragraph (4) of that Article as applied mutatis mutandis pursuant to paragraph (9) to the district director prescribed in paragraph (1), via the specified book-entry transfer institution, etc. referred to in that paragraph or via the qualified foreign intermediary and specified book-entry transfer institution, etc. referred to in that paragraph, in accordance with the provisions of paragraph (1)), the provisions of Article 9-3-2 of this Act and Article 212 of the Income Tax Act do not apply to the interest so received.

In this Article, the meanings of the terms listed in the following items are as prescribed respectively in those items:

specified book-entry transfer institution: A book-entry transfer institution as prescribed in Article 2, paragraph (2) of the Act on Book-Entry Transfer of Corporate Bonds and Shares, which has obtained consent for handling corporate bonds (including those specified by Cabinet Order as being similar thereto; hereinafter referred to in this item as "bonds, etc.") from the issuer of the bonds, etc. referred to in paragraph (1) of Article 13 of that Act, pursuant to the provisions of that Article;

specified account management institution: A specified account management institution as prescribed in paragraph (7), item (ii) of the preceding Article;

specified secondary account management institution: A specified secondary account management institution as prescribed in paragraph (7), item (iii) of the preceding Article;

qualified foreign intermediary: A secondary foreign account management institution or tertiary foreign account management institution that has obtained, pursuant to the provisions of Cabinet Order, the approval of the Commissioner of the National Tax Agency as an institution that has its head office or principal office in the foreign state (referred to in the following item as a "treaty partner state, etc.") in the case where the information may be provided to a foreign authority pursuant to provisions specified by Cabinet Order as provisions concerning the provision of information on taxes to a contracting state or contracting party other than Japan to a convention prescribed in the proviso to Article 2, paragraph (1), item (viii)-4 of the Income Tax Act or any other international agreement concluded by Japan (limited to one that has provisions for the mutual provision of information on the assessment and collection of taxes), or to any other foreign authority;

specified overseas business office, etc.: A business office or any other office of a qualified foreign intermediary, which is located in a treaty partner state, etc.;

entries or records under the book-entry transfer system: Entries or records under the book-entry transfer system as prescribed in paragraph (7), item (vi) of the preceding Article;

specified book-entry corporate bonds, etc.: Of the corporate bonds listed in Article 66, item (ii) of the Act on Book-Entry Transfer of Corporate Bonds and Shares that fall under the category of book-entry corporate bonds prescribed in that Article (including the following; hereinafter referred to in this item as "book-entry corporate bonds, etc."), those other than bonds whose amount of interest is calculated on the basis of an indicator specified by Cabinet Order concerning the issuer of the book-entry corporate bonds, etc. or a specially-related person of that issuer:

investment corporation bonds prescribed in Article 115 of the Act on Book-Entry Transfer of Corporate Bonds and Shares which are subject to the provisions of that Act pursuant to the provisions of Article 66 of that Act as applied mutatis mutandis pursuant to Article 115 of that Act;

corporate bonds of a mutual company prescribed in Article 117 of the Act on Book-Entry Transfer of Corporate Bonds and Shares which are subject to the provisions of that Act pursuant to the provisions of Article 66 of that Act as applied mutatis mutandis pursuant to Article 117 of that Act;

specified corporate bonds prescribed in Article 118 of the Act on Book-Entry Transfer of Corporate Bonds and Shares which are subject to the provisions of that Act pursuant to the provisions of Article 66 of that Act as applied mutatis mutandis pursuant to Article 118 of that Act;

special corporation bonds prescribed in Article 120 of the Act on Book-Entry Transfer of Corporate Bonds and Shares which are subject to the provisions of that Act pursuant to the provisions of Article 66 of that Act as applied mutatis mutandis pursuant to Article 120 of that Act;

foreign bonds prescribed in Article 127 of the Act on Book-Entry Transfer of Corporate Bonds and Shares which are subject to the provisions of that Act pursuant to the provisions of Article 66 of that Act as applied mutatis mutandis pursuant to Article 127 of that Act;

book-entry bonds with share options prescribed in Article 192, paragraph (1) of the Act on Book-Entry Transfer of Corporate Bonds and Shares;

book-entry convertible specified corporate bonds prescribed in Article 250 of the Act on Book-Entry Transfer of Corporate Bonds and Shares;

book-entry specified corporate bonds with preemptive rights for new preferred equity investments prescribed in Article 253 of the Act on Book-Entry Transfer of Corporate Bonds and Shares.

qualified account management institution: A specified account management institution or specified secondary account management institution that has obtained the approval of the Commissioner of the National Tax Agency pursuant to the provisions of Cabinet Order;

tertiary foreign account management institution: A tertiary foreign account management institution as prescribed in paragraph (7), item (vii) of the preceding Article.

secondary foreign account management institution: A secondary foreign account management institution as prescribed in paragraph (7), item (viii) of the preceding Article.

Where an application for approval set forth in item (viii) of the preceding paragraph has been filed, the Commissioner of the National Tax Agency may dismiss the application when they find a fact that falls under any of the following with regard to the applicant:

it is found that any document necessary for filing the application contains a defective or false entry, or it is otherwise found that the application has not been filed pursuant to the provisions of Cabinet Order prescribed in item (viii) of the preceding paragraph;

there are reasonable grounds for finding that it is difficult for the applicant to give notice pursuant to the provisions of paragraph (8) or to submit the record prescribed in Article 225, paragraph (1) of the Income Tax Act as applied with the terms and phrases replaced pursuant to the provisions of paragraph (6) of the preceding Article as applied mutatis mutandis pursuant to paragraph (9).

When the Commissioner of the National Tax Agency finds that a fact that falls under any one of the items of the preceding paragraph has occurred with regard to an institution that has obtained the approval set forth in paragraph (4), item (viii), they may rescind the approval pursuant to the provisions of Cabinet Order.

Where a person who has submitted a written application for a tax exemption receives payment of interest on specified book-entry corporate bonds, etc. (excluding those falling under general bonds, etc.; hereinafter the same applies in this paragraph) for which the person has made entries or records under the book-entry transfer system through a qualified foreign intermediary, the qualified foreign intermediary must, no later than the day preceding the day on which the person is to receive the payment of the interest, give notice of the brand of the specified book-entry corporate bonds, etc., the amount of redemption money for each brand, and any other matters specified by Order of the Ministry of Finance, to the specified account management institution or specified secondary account management institution through which the qualified foreign intermediary made entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc. (in the case where the qualified foreign intermediary is a tertiary foreign account management institution, the specified account management institution or specified secondary account management institution through which the secondary foreign account management institution pertaining to the entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc. made entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc.), by way of a document or any other means specified by Cabinet Order.

Where a person who has submitted a written application for a tax exemption receives payment of interest on specified book-entry corporate bonds, etc. (limited to those falling under general bonds, etc.; hereinafter the same applies in this paragraph) for which the person has made entries or records under the book-entry transfer system through a qualified account management institution or qualified foreign intermediary, the qualified account management institution or qualified foreign intermediary must, no later than the day preceding the day on which the person is to receive the payment of the interest, give notice of the brand of the specified book-entry corporate bonds, etc., the amount of redemption money for each brand, and any other matters specified by Order of the Ministry of Finance, to the person who pays the interest, via a specified book-entry transfer institution, or via the qualified account management institution through which the qualified foreign intermediary made entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc. (in the case where the qualified foreign intermediary is a tertiary foreign account management institution, the qualified account management institution through which the secondary foreign account management institution pertaining to the entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc. made entries or records under the book-entry transfer system regarding the specified book-entry corporate bonds, etc.) and a specified book-entry transfer institution, by way of a document or any other means specified by Cabinet Order.

Where income tax has not been collected pursuant to the provisions of Article 9-3-2, paragraph (1) or Article 212 of the Income Tax Act with regard to interest on specified book-entry corporate bonds, etc. on the grounds that the provisions of paragraph (1) or the second sentence of paragraph (3) apply, the person who issued the specified book-entry corporate bonds, etc. must, pursuant to the provisions of Cabinet Order, submit to the district director a document stating the name or title of any nonresident or foreign corporation that is a specially-related person of the issuer, their or its domicile or residence or the location of its head office or principal office outside Japan, and other matters specified by Order of the Ministry of Finance.

The determination of whether a person receiving payment of interest on specified book-entry corporate bonds, etc. is a specially-related person, matters concerning the preservation of documents, etc. pertaining to the notice set forth in paragraph (7) and paragraph (8), and other necessary matters concerning the application of the provisions of paragraphs (1) through (3) and paragraph (5) through the preceding paragraph are specified by Cabinet Order.

A domestic corporation is liable to pay income tax with respect to interest (excluding interest subject to the provisions of Article 3-3, paragraph (2) or paragraph (6) or Article 41-12-2, paragraph (1)) receivable on private foreign bonds (meaning bonds issued outside Japan by a corporation (for bonds issued by a foreign corporation, limited to bonds specified by Cabinet Order as those pertaining to the business conducted by the foreign corporation through its permanent establishment), interest on which is to be paid outside Japan; the same applies hereinafter in this Article) which have been issued on or after April 1, 1998, and income tax is imposed by applying a tax rate of 15 percent to the amount of interest receivable (for interest on private foreign bonds issued by a foreign corporation, to the amount specified by Cabinet Order as that pertaining to the business conducted by the foreign corporation through its permanent establishment).

A person who pays interest (excluding interest subject to the provisions of Article 3-3, paragraph (3) or paragraph (6) or Article 41-12-2, paragraph (4)) on private foreign bonds that the person has issued on or after April 1, 1998, to a resident or domestic corporation, upon payment, must collect income tax equivalent to the amount calculated by multiplying the amount of interest payable (for interest on private foreign bonds issued by a foreign corporation, the amount specified by Cabinet Order as that pertaining to the business conducted by the foreign corporation through its permanent establishment) by a tax rate of 15 percent, and pay it to the State no later than the last day of the month following the month that includes the date of collection.

Income tax to be collected and paid pursuant to the provisions of the preceding paragraph is deemed to be withholding at the source as prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act, and the provisions of the Act, the Act on General Rules for National Taxes, and the National Tax Collection Act are applied thereto. In this case, where the person who is to receive interest receivable on private foreign bonds prescribed in paragraph (1) is a domestic corporation, with regard to the application of the provisions of the Corporation Tax Act to the domestic corporation, the phrase "or prize money" in Article 68, paragraph (1) of the Act is deemed to be replaced with "or prize money, or interest receivable on private foreign bonds prescribed in Article 6, paragraph (1) (Special Provisions on Taxation on Interest from Foreign Private Bonds) of the Act on Special Measures Concerning Taxation", and the phrase "the Act" is deemed to be replaced with "the Income Tax Act or the Act on Special Measures Concerning Taxation".

Where a nonresident or foreign corporation receives a payment of interest on private foreign bonds (excluding those whose amount of interest is calculated on the basis of an indicator specified by Cabinet Order concerning the person who issues the private foreign bonds or a specially-related person of the issuer (meaning a person who has a special relationship specified by Cabinet Order with the person who issues the private foreign bonds; the same applies hereinafter in this Article); the same applies in the following paragraph, paragraph (6), paragraph (12), and paragraph (14)) issued on or after April 1, 1998, and the nonresident or foreign corporation has submitted, upon receiving payment of interest, a written application stating that that person or it seeks the application of the provisions of this paragraph with respect to the interest receivable, as well as their or its name and their domicile or residence or the location of its head office or principal office, each of which is located outside Japan, and any other matters specified by Order of the Ministry of Finance (hereinafter referred to in this Article as a "written application for a tax exemption"), via the person who pays the interest (in the case where the interest is paid via a person in charge of handling payment specified by Cabinet Order (hereinafter referred to in this paragraph, paragraph (8), and paragraph (10) as a "person in charge of handling payment"), submission is made via the person in charge of handling payment and the person who pays the interest), to the competent district director with jurisdiction over the place for tax payment pursuant to the provisions of Article 17 of the Income Tax Act which pertains to the person who makes payment in terms of the interest (in the case where another place has been designated pursuant to the provisions of Article 18, paragraph (2) of the Act: the designated place for tax payment), income tax is not imposed on the interest to be received.

The provisions of the preceding paragraph do not apply to interest on private foreign bonds received by a specially-related person of the person who issues the private foreign bonds.

The provisions of paragraph (4) do not apply to interest on private foreign bonds received by a nonresident who has a permanent establishment, which falls under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act. In this case, where the nonresident has submitted a written application for a tax exemption under paragraph (4) and is not a specially-related person of the person who issues the private foreign bonds, the provisions of Article 212 of that Act do not apply to the interest so received, and the provisions of Article 8-5, paragraph (1) apply by deeming the phrase "the following" in that paragraph to be replaced with "the following (excluding those for which income tax has not been collected under the provisions of Article 212 of that Act pursuant to the second sentence of Article 6, paragraph (6))".

In the case referred to in paragraph (4), where a written application for a tax exemption has been submitted to the district director of the tax office prescribed in the paragraph, it is deemed that the submission to the district director of the tax office has been made when the written application has been received by the person who pays the interest prescribed in the paragraph.

A nonresident or foreign corporation referred to in paragraph (4) or a nonresident referred to in the second sentence of paragraph (6) (hereinafter referred to in this paragraph as a "nonresident, etc.") may, in lieu of submitting a written application for a tax exemption under paragraph (4), provide the person who pays the interest referred to in that paragraph (in the case where the interest is paid via a person in charge of handling payment, the person who pays the interest, via the person in charge of handling payment) with the matters to be stated in the written application for a tax exemption by electronic or magnetic means (meaning a means using an electronic data processing system or any other means using information and communications technology, which is specified by Order of the Ministry of Finance). In this case, the nonresident, etc. is deemed to have submitted the written application for a tax exemption to the person who pays the interest.

With regard to the application of the provisions of paragraph (7) in the case where the provisions of the preceding paragraph apply, in that paragraph, the phrase "a written application for a tax exemption" is deemed to be replaced with "the matters to be stated in a written application for a tax exemption", and the phrase "when the written application has been received by" is deemed to be replaced with "when the matters have been provided to".

Where a nonresident or foreign corporation receives payment of interest on specified private foreign bonds issued on or after April 1, 1998, for which the nonresident or foreign corporation has, pursuant to the provisions of Cabinet Order, entrusted custody with a person in charge of handling payment (excluding the case where a specially-related person of the person who issues the specified private foreign bonds receives the payment), if [1] the person in charge of handling payment thus entrusted with custody (hereinafter referred to in this paragraph as the "person in charge of handling custody and payment") who provides intermediary, brokerage or agent services (hereinafter referred to in this paragraph as the "intermediary services, etc.") for the receipt of interest on the specified private foreign bonds has, before receiving the delivery of such interest in the course of the intermediary services, etc., given notice of the matters specified in each of the following items for the category listed in the relevant item and any other matters specified by Order of the Ministry of Finance with respect to the person who is to receive the interest (excluding interest subject to the provisions of Article 3-3, paragraph (3) or paragraph (6); hereinafter the same applies in this paragraph) (these matters hereinafter referred to in this paragraph and paragraph (15) as "interest recipient information"), to the person who pays the interest (in the case where the interest is delivered via another person in charge of handling payment with whom the person in charge of handling custody and payment has further entrusted custody, notice is given to the person who pays the interest via such other person in charge of handling payment), and [2] the person who pays the interest has, upon payment of the interest, prepared a document stating the matters concerning the person who is to receive the interest and any other matters specified by Order of the Ministry of Finance (limited to a document prepared based on the interest recipient information provided by the person in charge of handling custody and payment; referred to in that paragraph as the "document identifying the interest recipient"), and submitted it to the competent district director with jurisdiction over the place for tax payment prescribed in Article 17 of the Income Tax Act which pertains to the person who makes payment in terms of the interest (in the case where another place has been designated pursuant to the provisions of Article 18, paragraph (2) of the Act: the designated place for tax payment), the nonresident or foreign corporation is deemed to have submitted a written application for a tax exemption pursuant to the provisions of paragraph (4) with respect to the interest receivable thereby:

where all persons who are to receive payment of the interest are nonresidents or foreign corporations that are not specially-related persons of the person who issues the specified private foreign bonds: This fact; or

where there is a resident(s), domestic corporation(s), or nonresident(s) or foreign corporation(s) that are specially-related persons of the person who issues the specified private foreign bonds among the persons who are to receive payment of the interest: The total amount receivable by the nonresidents and foreign corporations that are not specially-related persons of the person who issues the specified private foreign bonds, among the persons who are to receive the interest.

The provisions of paragraph (4) and paragraph (7) through the preceding paragraph apply mutatis mutandis where a financial institution or financial instruments business operator specified by Cabinet Order (limited to a domestic corporation; referred to in the following paragraph as a "domestic financial institution, etc.") receives payment of interest (excluding interest subject to Article 3-3, paragraph (2) or paragraph (6)) on private foreign bonds issued on or after April 1, 1998. In this case: in paragraph (4), the phrase "private foreign bonds (excluding those whose amount of interest is calculated on the basis of an indicator specified by Cabinet Order concerning the person who issues the private foreign bonds or a specially-related person of the issuer (meaning a person who has a special relationship specified by Cabinet Order with the person who issues the private foreign bonds; the same applies hereinafter in this Article); the same applies in the following paragraph, paragraph (6), paragraph (12), and paragraph (14))" is deemed to be replaced with "private foreign bonds", and the phrase "their or its name and their domicile or residence or the location of its head office or principal office, each of which is located outside Japan" is deemed to be replaced with "its name, the location of its head office or principal office, and its corporate number prescribed in Article 2, paragraph (16) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures"; in the preceding paragraph, the phrase "custody with a person in charge of handling payment (excluding the case where a specially-related person of the person who issues the specified private foreign bonds receives the payment)" is deemed to be replaced with "custody with a person in charge of handling payment"; in item (i) of that paragraph, the phrase "nonresidents or foreign corporations" is deemed to be replaced with "nonresidents or foreign corporations or domestic financial institutions, etc. prescribed in the following paragraph"; and in item (ii) of that paragraph, the phrase "domestic corporation(s)" is deemed to be replaced with "domestic corporation(s) (excluding domestic financial institution(s), etc. prescribed in the following paragraph)", and the phrase "and foreign corporations" is deemed to be replaced with "and foreign corporations and domestic financial institutions, etc. prescribed in that paragraph".

Specified private foreign bonds prescribed in paragraph (10) mean private foreign bonds that satisfy the following requirements:

in the underwriting contract, etc. (meaning a contract for underwriting, dealings in a public offering or secondary distribution, or any other operations equivalent thereto pertaining to the issue of bonds (hereinafter referred to in this item as "underwriting, etc."); the same applies hereinafter in this item) concluded by the person who issues the private foreign bonds, it is provided that the person who performs the underwriting, etc. of the private foreign bonds must not pressure any resident, domestic corporation (excluding a domestic financial institution, etc.), or nonresident or foreign corporation that is a specially-related person of the person who issues the private foreign bonds (excluding a person concluding the underwriting contract, etc. that is a nonresident or foreign corporation that is a specially-related person of the person who issues the private foreign bonds, in the case where it acquires or buys, from another person concluding the underwriting contract, etc., the remainder of the private foreign bonds pertaining to the underwriting contract, etc. that the other person was unable to have acquired or to sell in full in a public offering or secondary distribution or any other operations equivalent thereto under the underwriting contract, etc.) into acquiring or buying the private foreign bonds by way of public offering or secondary distribution, dealings in a public offering or secondary distribution, or any other operations equivalent thereto under the underwriting contract, etc.; and

it is stated on the certificates of the private foreign bonds and in the prospectus pertaining to their issue (where no certificates of the private foreign bonds have been issued, in the prospectus pertaining to the issue of the private foreign bonds) that income tax is imposed on interest on the private foreign bonds where a resident, domestic corporation, or nonresident or foreign corporation that is a specially-related person of the person who issues the private foreign bonds receives payment of interest on the private foreign bonds (excluding the case where a domestic financial institution, etc. has submitted a written application for a tax exemption pursuant to the provisions of paragraph (4) and paragraph (7) as applied mutatis mutandis pursuant to the preceding paragraph (including the case where it is deemed to have submitted a written application for a tax exemption pursuant to the provisions of paragraph (10) as applied mutatis mutandis pursuant to the preceding paragraph), and the case where a domestic corporation, financial institution, or financial instruments business operator, etc. prescribed in Article 3-3, paragraph (6) (hereinafter referred to in this item as a "public corporation, etc.") receives the payment through a person in charge of handling payment in Japan prescribed in paragraph (1) of that Article (limited to the case where the public corporation, etc. has submitted the return prescribed in paragraph (6) of that Article)).

The provisions of the preceding paragraphs apply mutatis mutandis to interest on foreign-denominated bonds (limited to foreign-denominated bonds as prescribed in Article 2, paragraph (1) and Article 4 of the Act on Issue of Government Bonds in Foreign Currency (Act No. 63 of 1963), which are issued outside Japan and interest on which is paid outside Japan) issued on or after April 1, 1998. In this case, the phrase "Article 6, paragraph (1) (Special Provisions on Taxation on Interest from Foreign Private Bonds)" in paragraph (3) is deemed to be replaced with "Article 6, paragraph (1) as applied mutatis mutandis pursuant to Article 6, paragraph (13) (Special Provisions on Taxation on Interest from Foreign Private Bonds)", and the phrase "the second sentence of Article 6, paragraph (6)" in paragraph (6) is deemed to be replaced with "the second sentence of Article 6, paragraph (6) as applied mutatis mutandis pursuant to Article 6, paragraph (13)".

A person who has issued private foreign bonds and has not collected income tax pursuant to the provisions of Article 212 of the Income Tax Act with regard to interest on the private foreign bonds on the grounds that the provisions of paragraph (4) or the second sentence of paragraph (6) apply must, pursuant to the provisions of Cabinet Order, submit to the district director a document stating the name or title of any nonresident or foreign corporation that is a specially-related person of the issuer, their or its domicile or residence or the location of its head office or principal office outside Japan, and other matters specified by Order of the Ministry of Finance.

Beyond what is specified in paragraph (3), the procedure for confirmation of the matters stated in a written application for a tax exemption and any other matters concerning the submission of a written application for a tax exemption, matters concerning a notice of the interest recipient information as well as preservation and management of such information provided in the notice, special provisions for omitting a notice in the case where there is no change in the interest recipient information provided in the previous notice, matters concerning the submission of a document identifying the interest recipient, matters concerning documents to be attached to a final return which is filed by a person who has been subject to the collection of income tax pursuant to the provisions of paragraph (2) with respect to interest on private foreign bonds, and other necessary matters concerning the application of the provisions of paragraph (1), paragraph (2), and paragraph (4) to the preceding paragraph are specified by Cabinet Order.

Where a financial institution prescribed in paragraph (3) of Article 21 of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) has received deposits or borrowings on or after April 1, 1998, from a foreign corporation that has been certified, pursuant to the provisions of Order of the Ministry of Finance, as falling under the category of nonresident prescribed in the paragraph, and has managed such deposits or borrowings in a Special International Financial Transactions Account prescribed in the paragraph (hereinafter referred to in this Article as a "Special International Financial Transactions Account"), income tax is not imposed with respect to any interest on the deposits or borrowings paid to the foreign corporation (including gains specified by Cabinet Order as arising from transactions specified by Cabinet Order as sales and purchases of bonds with repurchase or resale agreements); provided, however, that where any event has occurred that is in violation of the provisions of Cabinet Order established pursuant to the provisions of Article 21, paragraph (4) of the Act, which pertains to the matters concerning the settlement of a Special International Financial Transactions Account, the provisions of the main clause of this Article do not apply to such interest pertaining to the accounting period that includes the day on which such event has occurred.

The provisions of Article 174, Article 175, Article 178, Article 179, and Article 212, paragraphs (1) through (3) of the Income Tax Act do not apply to the following interest on public and corporate bonds or deposits and savings, distributions of proceeds from a jointly managed trust or bond-based investment trust under public offering (limited to an investment trust operated without instruction from the settlor as prescribed in Article 2, paragraph (2) of the Act on Investment Trusts and Investment Corporations; referred to in item (iv) as a "specific form of bond-based investment trust under public offering"), or dividends of surplus on bond-type beneficial interests (meaning bond-type beneficial interests as prescribed in Article 230, paragraph (1), item (ii) of the Act on the Securitization of Assets (Act No. 105 of 1998); the same applies hereinafter in this Chapter), which are received by a bank with business offices in Japan and any other financial institution specified by Cabinet Order (hereinafter referred to in this Article as a "financial institution"):

interest on public and corporate bonds which is entered or recorded in a transfer account book as prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares (referred to in item (iv) and item (v) as a "transfer account book") (such interest excludes the interest on entered or recorded public and corporate bonds of a financial institution that is engaged in a trust business as prescribed in Article 1, paragraph (1) of the Act on Engagement in Trust Business by Financial Institutions under that Act and which is specified by Cabinet Order);

interest on corporate bonds (meaning corporate bonds as prescribed in Article 2, paragraph (1), item (ix) of the Income Tax Act which fall under the rights prescribed in Article 29-2, paragraph (1), item (viii) of the Financial Instruments and Exchange Act; hereinafter the same applies in this item, item (ii) of the following paragraph, and paragraph (3), item (ii)) which are held as proprietary property of a financial institution by a specified management method (meaning a method that satisfies the requirements specified by Cabinet Order, such as imposing restrictions on the transfer of corporate bonds; hereinafter the same applies in this item, item (ii) of the following paragraph, and paragraph (3), item (ii)), or which have been placed in custody by a specified management method with a financial instruments business operator as prescribed in Article 2, paragraph (9) of that Act (limited to a person engaged in type I financial instruments business as prescribed in Article 28, paragraph (1) of that Act; referred to in item (ii) of the following paragraph and paragraph (3), item (ii) as a "financial instruments business operator") or with a registered financial institution as prescribed in Article 2, paragraph (11) of that Act (referred to in item (ii) of the following paragraph and paragraph (3), item (ii) as a "registered financial institution") (excluding the interest on corporate bonds so placed in custody of a financial institution prescribed in the preceding item which is specified by Cabinet Order);

interest on deposits or savings at a financial institution (excluding the interest specified by Cabinet Order); and

distribution of proceeds from a jointly managed trust or specific form of bond-based investment trust under public offering, with a financial institution as both a settlor and a beneficiary, which accrued within the period of the entrustment (for distribution of proceeds from a loan trust, within the period during which its beneficiary certificate (including rights to be indicated thereon) continued to be registered or was entered or recorded in a transfer account book);

dividends of surplus on bond-type beneficial interests which are entered or recorded in a transfer account book (excluding the dividends of surplus on entered or recorded bond-type beneficial interests of a financial institution prescribed in item (i) which are specified by Cabinet Order).

The provisions of Article 174, Article 175, Article 178, Article 179, and Article 212, paragraphs (1) through (3) of the Income Tax Act do not apply to the following interest on public and corporate bonds or dividends of surplus on bond-type beneficial interests which are received by a financial instruments business operator, a financial instruments clearing organization, or a securities finance company specified by Cabinet Order (referred to in item (ii) and the following paragraph as a "financial instruments business operator, etc."):

interest on public and corporate bonds or dividends of surplus on bond-type beneficial interests listed in item (i) or item (v) of the preceding paragraph;

interest on corporate bonds which are held as proprietary property of a financial instruments business operator, etc. by a specified management method, or which have been placed in custody by a specified management method with another financial instruments business operator or with a registered financial institution.

The provisions of Article 174, Article 175, and Article 212, paragraph (3) of the Income Tax Act do not apply to interest on public and corporate bonds or dividends of surplus on bond-type beneficial interests which are received by a domestic corporation (excluding a financial institution, financial instruments business operator, etc., and any other corporation specified by Cabinet Order and limited to a domestic corporation which is specified by Cabinet Order as a principal trader of public and corporate bonds and bond-type beneficial interests) and which are listed in the following items and specified by Cabinet Order:

interest on public and corporate bonds or dividends of surplus on bond-type beneficial interests listed in paragraph (1), item (i) or item (v);

interest on corporate bonds which have been placed in custody by a specified management method with a financial instruments business operator or with a registered financial institution.

Where a financial institution receives payment of distribution of proceeds prescribed in paragraph (1), item (iv), it must submit a detailed statement that separates the portion of the distribution of proceeds which is subject to the provisions of the paragraph and the other portion, to the competent district director with jurisdiction over the place for tax payment under the provisions of Article 17 of the Income Tax Act for the income tax on the distribution of proceeds (or, where a designation has been made under the provisions of Article 18, paragraph (2) of that Act, the place for tax payment so designated), via the person in charge of handling payment, as specified by Order of the Ministry of Finance.

A financial institution referred to in the preceding paragraph may, in lieu of submitting the written statement pursuant to the provisions of that paragraph, provide the person in charge of handling payment referred to in that paragraph with the matters to be stated in the written statement by electronic or magnetic means prescribed in Article 3-3, paragraph (8). In this case, the financial institution is deemed to have submitted the written statement to the person in charge of handling payment.

Necessary matters concerning the period of the entrustment, the period of registration, or the period during which the relevant information was entered or recorded, as prescribed in paragraph (1), item (iv), and the calculation of the amount of the portion that has accrued within these periods are specified by Order of the Ministry of Finance.

With regard to dividends of surplus which a resident or a nonresident who has a permanent establishment is to receive in Japan on or after January 1, 2016, and which pertain to distributions of proceeds from the following beneficial rights (hereinafter referred to in this Article as "dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc."), notwithstanding the provisions of Article 22, Article 89, and Article 165 of the Income Tax Act, income tax is imposed by applying a tax rate of 15 percent to the amount to be received, separately from other income:

beneficial rights in a bond-based investment trust (excluding one for which the public offering of beneficial rights at its establishment was conducted through a public offering (meaning a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph)) (excluding those falling under the shares, etc. listed in Article 37-11, paragraph (2), item (i));

bond-type beneficial interests in a special purpose trust (excluding one for which the public offering of bond-type beneficial interests held at the time of conclusion of its trust contract by the original entrustor prescribed in Article 224 of the Act on the Securitization of Assets (referred to in Article 8-4, paragraph (1), item (v), Article 8-5, paragraph (1), item (vi), Article 9-3, item (v), Article 9-3-2, paragraph (1), item (v), and Article 37-11, paragraph (2), item (iv) as the "original entrustor") was conducted through a public offering (meaning a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph)) (excluding those falling under the shares, etc. listed in Article 37-11, paragraph (2), item (i)).

The provisions of the preceding paragraph do not apply to dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. which are received by a nonresident who has a permanent establishment and which do not fall under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act.

With regard to the application of the provisions of Article 170, Article 175, or Article 179 of the Income Tax Act to dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. which a nonresident, a domestic corporation, or a foreign corporation is to receive on or after January 1, 2016 (for those to be received by a nonresident who has a permanent establishment, limited to those that do not fall under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of that Act), the tax rate of 20 percent prescribed in those provisions is to be a tax rate of 15 percent.

With regard to the application of the provisions of Article 182 or Article 213 of the Income Tax Act to dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. to be received on or after January 1, 2016, the tax rate of 20 percent prescribed in those provisions is to be a tax rate of 15 percent.

With regard to the application of the provisions of Article 9-6-3 and Article 9-6-4 to a resident or a nonresident who has a permanent establishment who receives payment of dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc., the phrase "of a dividend of surplus" in Article 9-6-3, paragraph (3) and Article 9-6-4, paragraph (3) is deemed to be replaced with "of a dividend of surplus (excluding dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. prescribed in Article 8-2, paragraph (1) to which the provisions of that paragraph have been applied; the same applies hereinafter in this paragraph)".

The provisions of Article 224, Article 225, paragraph (1), and Article 228, paragraph (1) of the Income Tax Act, insofar as they pertain to dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc., do not apply to a resident or a nonresident who receives payment of dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. to be received on or after January 1, 2016 and the person who makes that payment, or to a resident or a nonresident who receives payment of dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. from a person who receives payment of dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. as a nominee for another person in connection with the person's business, and the person who receives payment of the dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. as the nominee.

Where a resident receives delivery of dividends of surplus pertaining to distributions of proceeds from the beneficial rights listed in the items of paragraph (1) of the preceding Article issued outside Japan which the resident is to receive on or after January 1, 2016 (limited to those paid outside Japan; hereinafter referred to in this Article as "dividends and similar income on foreign privately placed bond-based investment trusts, etc.") through a person in charge of handling payment in Japan that is specified by Cabinet Order (hereinafter referred to in this Article as the "person in charge of handling payment"), notwithstanding the provisions of Article 22 and Article 89 of the Income Tax Act, income tax is imposed on the dividends and similar income on foreign privately placed bond-based investment trusts, etc. to be received by applying a tax rate of 15 percent to the amount to be received, separately from other income.

Where a domestic corporation (excluding a domestic corporation listed in Appended Table 1 of the Income Tax Act; hereinafter the same applies in this Article) receives delivery, through a person in charge of handling payment in Japan, of dividends and similar income prescribed in Article 24, paragraph (1) of that Act pertaining to distributions of proceeds from, or dividends of surplus on, beneficial interests in an investment trust (excluding a bond investment trust and a bond-based investment trust under public offering) or a specified trust that issues beneficiary certificates, or bond-type beneficial interests, issued outside Japan which it is to receive on or after January 1, 2016 (limited to those paid outside Japan; hereinafter referred to in this Article as "dividends and similar income on foreign investment trusts, etc."), the domestic corporation is to be liable to pay income tax on the dividends and similar income on foreign investment trusts, etc. to be received, and income tax is imposed on the amount to be received by applying the tax rate specified in each of the following items according to the category of dividends and similar income on foreign investment trusts, etc. listed in those items:

dividends and similar income on foreign privately placed bond-based investment trusts, etc.: 15 percent;

dividends and similar income on foreign investment trusts, etc. other than dividends and similar income on foreign privately placed bond-based investment trusts, etc.: 20 percent.

A person in charge of handling payment in Japan of dividends and similar income on foreign investment trusts, etc. to be paid to a resident or a domestic corporation on or after January 1, 2016 must, when delivering the dividends and similar income on foreign investment trusts, etc. to the resident or domestic corporation, collect income tax in the amount calculated by multiplying the amount to be delivered (where the dividends and similar income on foreign investment trusts, etc. are dividends and similar income on foreign privately placed bond-based investment trusts, etc. and there is an amount of foreign income tax prescribed in the following paragraph, the amount obtained by adding that amount) by the tax rate specified in each item of the preceding paragraph according to the category of dividends and similar income on foreign investment trusts, etc. listed in those items, and pay it to the State by the 10th day of the month following the month that includes the day of collection.

In the cases referred to in the preceding two paragraphs, where there is an amount of foreign income tax prescribed in Article 95, paragraph (1) of the Income Tax Act (including the tax specified by Cabinet Order) imposed at the time of payment on dividends and similar income on foreign investment trusts, etc. which a resident or a domestic corporation is to receive, the following provisions apply:

where the dividends and similar income on foreign investment trusts, etc. are dividends and similar income on foreign privately placed bond-based investment trusts, etc., the amount of the foreign income tax is to be deducted from the amount of income tax to be collected and paid pursuant to the provisions of the preceding paragraph with respect to the dividends and similar income on foreign privately placed bond-based investment trusts, etc., up to the amount of that income tax, and is deemed not to exist with regard to the application of the provisions of Article 95 of the Income Tax Act to the resident;

where the dividends and similar income on foreign investment trusts, etc. are the dividends and similar income on foreign investment trusts, etc. listed in paragraph (2), item (ii), the amount to be received prescribed in that paragraph is to be the amount remaining after deducting an amount equivalent to the amount of the foreign income tax from the amount of the dividends and similar income on foreign investment trusts, etc..

Income tax to be collected and paid pursuant to the provisions of paragraph (3) is deemed to be income tax pertaining to withholding at the source as prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act, and the provisions of that Act, the Act on General Rules for National Taxes, and the National Tax Collection Act apply thereto. In this case, where the person who is to receive the dividends and similar income on foreign investment trusts, etc. is a domestic corporation, with regard to the application of the provisions of the Corporation Tax Act to the domestic corporation, the phrase "or prize money" in Article 68, paragraph (1) of that Act is deemed to be replaced with "or prize money, or dividends and similar income on foreign investment trusts, etc. prescribed in Article 8-3, paragraph (2) of the Act on Special Measures Concerning Taxation (Separate Taxation, etc. on Dividend Income from Distributions of Proceeds of Investment Trusts, etc. Issued Outside Japan)", and the phrase "that Act" is deemed to be replaced with "the Income Tax Act or the Act on Special Measures Concerning Taxation".

Where income tax is to be collected pursuant to the provisions of paragraph (3) on the dividends and similar income on foreign investment trusts, etc. listed in paragraph (2), item (ii), the provisions of Article 8-5 apply to a resident who has the dividends and similar income on foreign investment trusts, etc., as provided in item (i) where the dividends and similar income on foreign investment trusts, etc. are received from a domestic corporation, and as provided in that item and item (ii) where the dividends and similar income on foreign investment trusts, etc. are received from a person other than a domestic corporation:

the amount to be delivered by the person in charge of handling payment in Japan of the dividends and similar income on foreign investment trusts, etc. is deemed to be the amount to be received prescribed in Article 8-5, paragraph (1), item (i) or the amount of dividends and similar income to be received prescribed in paragraph (4) of that Article;

the dividends and similar income on foreign investment trusts, etc. are deemed to be received from a domestic corporation.

Beyond what is provided for in the preceding two paragraphs, special provisions of Article 224 and Article 225 of the Income Tax Act pertaining to dividends and similar income on foreign investment trusts, etc. and other necessary matters concerning the application of the provisions of paragraphs (1) through (4) are specified by Cabinet Order.

Where a resident or a nonresident who has a permanent establishment has interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act (excluding general interest and similar income prescribed in Article 3, paragraph (1), interest and similar income on foreign general public and corporate bonds, etc. prescribed in Article 3-3, paragraph (1), and others specified by Cabinet Order; hereinafter referred to in this paragraph and paragraph (5) as "interest and similar income") or dividends and similar income prescribed in Article 24, paragraph (1) of that Act (excluding dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. prescribed in Article 8-2, paragraph (1), dividends and similar income on foreign privately placed bond-based investment trusts, etc. prescribed in paragraph (1) of the preceding Article, and others specified by Cabinet Order; hereinafter referred to in this paragraph, paragraph (4), and paragraph (5) as "dividends and similar income") which the person is to receive on or after January 1, 2016 and which are listed in the following items (hereinafter referred to in this paragraph, the following paragraph, and paragraph (4) as "dividends and similar income on listed shares, etc."), notwithstanding the provisions of Article 22, Article 89, and Article 165 of that Act, income tax is imposed on the interest income and dividend income pertaining to the dividends and similar income on listed shares, etc., separately from other income, on the amount calculated, as specified by Cabinet Order, as the amount of interest income and the amount of dividend income pertaining to the dividends and similar income on listed shares, etc. for that year (hereinafter referred to in this paragraph as the "amount of dividend income, etc. on listed shares, etc."), in an amount equivalent to 15 percent of the taxable amount of dividend income, etc. on listed shares, etc. (meaning the amount of dividend income, etc. on listed shares, etc. (where the provisions of Articles 72 through 87 of that Act as replaced pursuant to the provisions of paragraph (3), item (iii) apply, the amount after that application)). In this case, the provisions of Article 92, paragraph (1) of that Act do not apply to the dividend income pertaining to the dividends and similar income on listed shares, etc..

interest and similar income or dividends and similar income on shares, etc. listed in Article 37-11, paragraph (2), item (i), other than dividends and similar income received from a domestic corporation by a person who holds, as of the record date for the payment of the dividends and similar income paid by the domestic corporation (where the dividends and similar income pertain to those deemed to be a dividend of surplus, a dividend of profits, a distribution of surplus, or a distribution of monies pursuant to the provisions of Article 25, paragraph (1) of the Income Tax Act, the date specified by Cabinet Order; hereinafter the same applies in this item and paragraph (9)), shares (including investment units; hereinafter the same applies in this Chapter) or capital contributions that account for 3 percent or more of the total number or the total amount of the issued shares (for an investment corporation (meaning an investment corporation as prescribed in Article 2, paragraph (12) of the Act on Investment Trusts and Investment Corporations; the same applies in item (iii), Article 9-3, item (iii), and Article 9-3-2, paragraph (3), item (iii)), the issued investment units (meaning investment units as prescribed in Article 2, paragraph (14) of the Act on Investment Trusts and Investment Corporations; hereinafter the same applies in this paragraph, paragraph (1), item (iv) of the following Article, Article 9-3, item (iii), and Article 9-3-2, paragraph (1), item (iii) and paragraph (3), item (iii)); hereinafter the same applies in this item, paragraph (9), and Article 9-3, item (i)) of or capital contributions to the domestic corporation (including a person who receives the dividends and similar income and who, together with a corporation that would fall under a family company as prescribed in Article 2, item (x) of the Corporation Tax Act if that person were selected as a shareholder serving as the basis for the determination as of the record date for the payment of the dividends and similar income, holds shares or capital contributions that account for 3 percent or more of the total number or the total amount of issued shares of or capital contributions to the domestic corporation);

distributions of proceeds from an investment trust for which the public offering of beneficial rights at its establishment was conducted through a public offering (meaning a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph) (excluding a specified stock investment trust);

dividends and similar income on investment units of a specified investment corporation (meaning an investment corporation whose articles of incorporation provide that it will refund investment units at the request of its unitholders as prescribed in Article 2, paragraph (16) of the Act on Investment Trusts and Investment Corporations, and for which the public offering of securities as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act with respect to its investment units at its incorporation was conducted through a solicitation of offers to acquire as prescribed in that paragraph which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph);

distributions of proceeds from a specified trust that issues beneficiary certificates (limited to one for which the public offering of beneficial rights acquired by the settlor at the time of conclusion of its trust contract as prescribed in Article 3, item (i) of the Trust Act (Act No. 108 of 2006) (referred to in paragraph (1), item (v) of the following Article, Article 9-3, item (iv), Article 9-3-2, paragraph (1), item (iv), and Article 37-11, paragraph (2), item (iii)-2 as a "trust contract") was conducted through a public offering (meaning a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph));

dividends of surplus on bond-type beneficial interests in a special purpose trust (limited to one for which the public offering of bond-type beneficial interests held by the original entrustor at the time of conclusion of its trust contract was conducted through a public offering as prescribed in Article 8-2, paragraph (1), item (ii));

interest on specified public and corporate bonds prescribed in Article 3, paragraph (1), item (i).

Of the provisions of the preceding paragraph, the part pertaining to dividend income from dividends and similar income on listed shares, etc. listed in items (i) through (iii) of that paragraph (for distributions of proceeds listed in item (ii) of that paragraph, limited to those pertaining to a securities investment trust other than a bond investment trust; hereinafter referred to in this paragraph as "dividends and similar income on specified listed shares, etc.") applies only where a resident or a nonresident who has a permanent establishment has filed a final return stating that the person seeks the application of the provisions of the preceding paragraph to dividend income from dividends and similar income on specified listed shares, etc. which the person is to receive during that year; and where the provisions of Article 22 and Article 89 or Article 165 of the Income Tax Act have been applied to dividend income from dividends and similar income on specified listed shares, etc. which a resident or a nonresident who has a permanent establishment is to receive during that year, the provisions of that paragraph do not apply to dividend income from other dividends and similar income on specified listed shares, etc. which the person is to receive during the same year.

Where the provisions of paragraph (1) apply, the provisions of the Income Tax Act and other laws and regulations concerning income tax apply as follows:

with regard to the application of the provisions of Article 2, paragraph (1), items (xxx) through (xxxiv)-5 of the Income Tax Act, the phrase "amount of timber income" in item (xxx) of that paragraph is deemed to be replaced with "amount of timber income, and the amount of dividend income, etc. on listed shares, etc. prescribed in Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Taxation on Dividend Income, etc. on Listed Shares, etc.) (hereinafter referred to as the "amount of dividend income, etc. on listed shares, etc.")";

with regard to the application of the provisions of Article 69 of the Income Tax Act, the phrase "amount of each type of income" in paragraph (1) of that Article is deemed to be replaced with "amount of each type of income (excluding the amount of dividend income, etc. on listed shares, etc.)";

with regard to the application of the provisions of Article 71 and Articles 72 through 87 of the Income Tax Act, the phrase "amount of gross income" in those provisions is deemed to be replaced with "amount of gross income, the amount of dividend income, etc. on listed shares, etc.";

with regard to the application of the provisions of Article 92, Article 93, Article 95, Article 165-5-3, and Article 165-6 of the Income Tax Act: in Article 92, paragraph (1) of that Act, the phrase "excluding those)" is deemed to be replaced with "excluding those) and dividend income pertaining to dividends and similar income on listed shares, etc. prescribed in Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Taxation on Dividend Income, etc. on Listed Shares, etc.) (limited to that for which the application of the provisions of that paragraph is sought)", the phrase "the preceding Section (Tax Rates)" is deemed to be replaced with "the preceding Section (Tax Rates) and that paragraph", and the phrase "taxable gross income" is deemed to be replaced with "the sum of taxable gross income and the taxable amount of dividend income, etc. on listed shares, etc. prescribed in Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation"; in paragraph (2) of that Article, the phrase "amount of income tax on taxable gross income" is deemed to be replaced with "amount of income tax on taxable gross income, the amount of income tax under the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation"; in Article 93, paragraph (1) of that Act, the phrase "receives payment of distribution of proceeds" is deemed to be replaced with "receives payment of distribution of proceeds or dividends and similar income of a specified corporation (meaning a dividend of profits prescribed in Article 9-6, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Profits of Specific Purpose Companies) of a specific purpose company prescribed in that paragraph, dividends and similar income prescribed in Article 9-6-2, paragraph (1) of that Act (Special Provisions on Withholding at the Source, etc. for Dividends and Similar Income of Investment Corporations) on investment units prescribed in paragraph (3) of that Article of an investment corporation prescribed in paragraph (1) of that Article, a dividend of surplus on beneficial interests in a special purpose trust, or a dividend of surplus on beneficial interests in a specified investment trust prescribed in Article 9-6-4, paragraph (1) of that Act (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Specified Investment Trusts); the same applies hereinafter), or receives delivery of dividends and similar income on listed shares, etc. prescribed in Article 9-3-2, paragraph (1) of that Act (Special Provisions on Withholding Obligation, etc. for Dividends and Similar Income on Listed Shares, etc.) (hereinafter referred to as "dividends and similar income on specified listed shares, etc.") (limited to cases where the provisions of Article 8-4, paragraph (1) of that Act (Special Provisions on Taxation on Dividend Income, etc. on Listed Shares, etc.) apply to the distribution of proceeds, the dividends and similar income of a specified corporation, or the dividends and similar income on specified listed shares, etc.)", the phrase "that paragraph" is deemed to be replaced with "Article 176, paragraph (3)", the phrase "amount (" is deemed to be replaced with "amount, the amount equivalent to the foreign tax for adjustment of a specified corporation pertaining to the dividends and similar income of a specified corporation (meaning the amount equivalent to the foreign tax adjusted at distribution by a specific purpose company prescribed in Article 9-6, paragraph (3) of that Act, the amount equivalent to the foreign tax adjusted at distribution by an investment corporation prescribed in Article 9-6-2, paragraph (3) of that Act, the amount equivalent to the foreign tax adjusted at distribution by a special purpose trust prescribed in Article 9-6-3, paragraph (3) of that Act (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Special Purpose Trusts), and the amount equivalent to the foreign tax adjusted at distribution by a specified investment trust prescribed in Article 9-6-4, paragraph (3) of that Act; the same applies hereinafter), and the amount specified by Cabinet Order as the amount of the portion other than the portion corresponding to the amount of income tax (hereinafter referred to as the "specified amount equivalent to foreign tax for adjustment") out of the amount equivalent to the amount specified in each item of Article 9-3-2, paragraph (3) of that Act which has been deducted pursuant to the provisions of that paragraph with respect to the dividends and similar income on specified listed shares, etc. (", and the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 8-4, paragraph (1) of that Act"; in Article 95, paragraph (1) of that Act, the phrase "of the amount of income tax for that year" is deemed to be replaced with "of the amount of income tax for that year and the amount of income tax under the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Taxation on Dividend Income, etc. on Listed Shares, etc.)", and the phrase "from the amount of income tax for that year" is deemed to be replaced with "from the amount of income tax for that year and the amount of income tax under the provisions of that paragraph"; in Article 95, paragraphs (2) and (3) of the Income Tax Act, the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation"; in Article 165-5-3, paragraph (1) of that Act, the phrase "receives payment (limited to cases where it receives payment of that which falls under income attributable to a permanent establishment" is deemed to be replaced with "receives payment, or receives payment of dividends and similar income of a specified corporation or delivery of dividends and similar income on specified listed shares, etc. (limited to cases where it receives payment or delivery of that which falls under income attributable to a permanent establishment and where the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Taxation on Dividend Income, etc. on Listed Shares, etc.) apply to the distribution of proceeds, the dividends and similar income of a specified corporation, or the dividends and similar income on specified listed shares, etc.", the phrase "in that paragraph" is deemed to be replaced with "in Article 176, paragraph (3)", the phrase "amount (" is deemed to be replaced with "amount, the amount equivalent to the foreign tax for adjustment of a specified corporation pertaining to the dividends and similar income of a specified corporation, and the specified amount equivalent to foreign tax for adjustment pertaining to the dividends and similar income on specified listed shares, etc. (", and the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 8-4, paragraph (1) of that Act", and in Article 165-5-3, paragraph (3) of the Income Tax Act, the phrase "amount of income tax," is deemed to be replaced with "amount of income tax, the amount of income tax under the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation, calculated in accordance with the provisions of Article 165, paragraph (1)," and the phrase "or" is deemed to be replaced with "or calculated in accordance with the provisions of that paragraph"; and in Article 165-6, paragraph (1) of that Act, the phrase "of the amount of income tax for that year" is deemed to be replaced with "of the amount of income tax for that year and the amount of income tax under the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Taxation on Dividend Income, etc. on Listed Shares, etc.)", and the phrase "from the amount of income tax for that year" is deemed to be replaced with "from the amount of income tax for that year and the amount of income tax under the provisions of Article 8-4, paragraph (1) of that Act", in Article 165-6, paragraphs (2) and (3) of the Income Tax Act, the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation", and in paragraph (8) of that Article, the phrase "amount of income tax," is deemed to be replaced with "amount of income tax, the amount of income tax under the provisions of Article 8-4, paragraph (1) of the Act on Special Measures Concerning Taxation, calculated in accordance with the provisions of Article 165, paragraph (1)," and the phrase "or" is deemed to be replaced with "or calculated in accordance with the provisions of that paragraph";

beyond what is provided for in the preceding items, special provisions concerning applications or returns under the provisions of Part II, Chapter V of the Income Tax Act and other necessary matters concerning the application of the provisions of laws and regulations concerning income tax where the provisions of paragraph (1) apply are specified by Cabinet Order.

A person who pays in Japan, to a resident or a nonresident who has a permanent establishment, dividends and similar income on listed shares, etc. (excluding distributions of proceeds from an open-end securities investment trust as prescribed in Article 2, paragraph (1), item (xiv) of the Income Tax Act and dividends and similar income pertaining to those deemed to be a dividend of surplus, a dividend of profits, a distribution of surplus, or a distribution of monies pursuant to the provisions of Article 25, paragraph (1) of that Act; hereinafter referred to in this paragraph as "listed share dividends, etc.") (including a person specified by Cabinet Order as being equivalent thereto (hereinafter referred to in this paragraph and the following paragraph as a "quasi-payer")) must, as specified by Order of the Ministry of Finance, deliver a written notice concerning the payment of the listed share dividends, etc. to the person receiving the payment within one month (or within 45 days, where a quasi-payer delivers it) from the date on which the payment was finalized (for a written notice concerning interest on bearer public and corporate bonds, a dividend of surplus on bearer shares, etc. prescribed in Article 225, paragraph (1) of that Act, or distributions of proceeds pertaining to bearer beneficiary certificates of an investment trust or a specified trust that issues beneficiary certificates, the date on which the payment was made).

Where a person who pays listed share dividends, etc. prescribed in the preceding paragraph or a person listed in Article 225, paragraph (2), item (i) of the Income Tax Act (referred to in the following paragraph and paragraph (7) as a "payer of dividends and similar income") prepares, as specified by Order of the Ministry of Finance, the written notice prescribed in those provisions based on the total amount of interest and similar income and dividends and similar income paid to the same person during the year, the payer must, notwithstanding those provisions, deliver the written notice to the person receiving the payment by January 31 (or by February 15 of that year, where a quasi-payer delivers it) of the year following the year that includes the date on which the payment was finalized as prescribed in those provisions.

A payer of dividends and similar income may, in lieu of delivering the written notice pursuant to the provisions of the preceding two paragraphs, provide the matters to be stated in the written notice by electronic or magnetic means (meaning a means using an electronic data processing system or any other means using information and communications technology, which is specified by Order of the Ministry of Finance), with the consent of the person receiving the payment, as specified by Cabinet Order; provided, however, that where requested by the person receiving the payment, the payer must deliver the written notice to that person.

In the case referred to in the main clause of the preceding paragraph, the payer of dividends and similar income referred to in that paragraph is deemed to have delivered the written notice referred to in paragraph (4) or paragraph (5).

Beyond what is provided for in paragraph (2), paragraph (3), and the preceding two paragraphs, necessary matters concerning the application of the provisions of paragraph (1), paragraph (4), and paragraph (5) are specified by Cabinet Order.

A domestic corporation that is to pay the dividends and similar income referred to in paragraph (1), item (i) must, within one month from the date on which the payment of the dividends and similar income was finalized, prepare a report stating the name, individual number, and other matters specified by Order of the Ministry of Finance of each resident or nonresident who has a permanent establishment who holds, as of the record date for the payment of the dividends and similar income, shares or capital contributions that account for 1 percent or more of the total number or the total amount of issued shares of or capital contributions to the domestic corporation, and submit it to the competent district director with jurisdiction over the location of the head office or principal office of the domestic corporation.

When it is necessary for an investigation concerning the submission of the report referred to in the preceding paragraph, the relevant official of the National Tax Agency, the Regional Taxation Bureau, or the tax office may ask questions of a person who is obligated to submit the report, inspect that person's books and documents concerning the payment of the dividends and similar income referred to in that paragraph (including, where electromagnetic records (meaning records created in electronic form, magnetic form, or any other form that cannot be perceived by the human senses, which are used in information processing by computers) have been created or retained in lieu of the creation or retention of those books and documents, those electromagnetic records; the same applies hereinafter in this Chapter) and other articles, or request the presentation or submission of those articles (including copies thereof).

When it is necessary for an investigation concerning the submission of the report referred to in paragraph (9), the relevant official of the National Tax Agency, the Regional Taxation Bureau, or the tax office may retain articles submitted in the course of the investigation.

The relevant official of the National Tax Agency, the Regional Taxation Bureau, or the tax office, when asking questions, conducting an inspection, or requesting presentation or submission pursuant to the provisions of paragraph (10), must carry an identification card and present it to the person concerned when requested.

The authority of the official under the provisions of paragraph (10) and paragraph (11) must not be construed as being granted for the purpose of a criminal investigation.

Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (11) are specified by Cabinet Order.

A resident or a nonresident who has a permanent establishment who has interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act (excluding general interest and similar income prescribed in Article 3, paragraph (1) and others specified by Cabinet Order; hereinafter referred to in this Article as "interest and similar income") or dividends and similar income prescribed in Article 24, paragraph (1) of that Act (excluding distributions of proceeds from the beneficial rights listed in the items of Article 8-2, paragraph (1) and others specified by Cabinet Order; hereinafter referred to in this Article as "dividends and similar income") which are to be received on or after January 1, 2016 and which are listed in the following items may, with respect to income tax for each year from that year onward, apply the provisions of Article 93, paragraph (1), Articles 120 through 127 (including as applied mutatis mutandis pursuant to Article 166 of that Act), and Article 165-5-3, paragraph (1) of that Act, and the provisions of Article 123, paragraph (1) of that Act (including as applied mutatis mutandis pursuant to Article 166 of that Act) as applied mutatis mutandis pursuant to Article 37-12-2, paragraph (9) (including as applied mutatis mutandis pursuant to Article 37-13-3, paragraph (10)), by excluding the amount of interest income pertaining to the interest and similar income or the amount of dividend income pertaining to the dividends and similar income in calculating the amount of gross income, the amount of dividend tax credit, or the amount of net losses prescribed in Article 120, Article 123, or Article 127 of that Act (including as applied mutatis mutandis pursuant to Article 166 of that Act), the amount of income other than employment income and retirement income prescribed in Article 121, paragraph (1) of that Act (including as applied mutatis mutandis pursuant to Article 166 of that Act), the amount of income other than miscellaneous income from public pensions, etc. prescribed in Article 121, paragraph (3) of that Act (including as applied mutatis mutandis pursuant to Article 166 of that Act), or the amount of dividend income, etc. on listed shares, etc. prescribed in paragraph (1) of the preceding Article, and by excluding the amount equivalent to the foreign tax adjusted at distribution pertaining to the interest and similar income or dividends and similar income in calculating the amount equivalent to the foreign tax adjusted at distribution prescribed in Article 93, paragraph (1) or Article 165-5-3, paragraph (1) of that Act (hereinafter referred to in this paragraph and the following paragraph as the "amount equivalent to the foreign tax adjusted at distribution"):

dividends and similar income received from a domestic corporation (excluding those listed in the following item through item (vi)), where the amount to be received from the domestic corporation in a single payment is the amount calculated by multiplying 100,000 yen by the number of months in the dividend calculation period (meaning the period from the day following the record date for the payment of the dividends and similar income paid by the domestic corporation immediately before those dividends and similar income, to the record date for the payment of those dividends and similar income paid by the domestic corporation) and dividing the product by 12, or less;

interest and similar income or dividends and similar income listed in paragraph (1), item (i) of the preceding Article which are received from the State, a local government, or any other domestic corporation (referred to in item (vii) as a "domestic corporation, etc.");

distributions of proceeds from an investment trust received from a domestic corporation, for which the public offering of beneficial rights at its establishment was conducted through a public offering as prescribed in paragraph (1), item (ii) of the preceding Article (excluding a specified stock investment trust);

dividends and similar income on investment units received from a specified investment corporation (meaning a specified investment corporation as prescribed in paragraph (1), item (iii) of the preceding Article);

distributions of proceeds from a specified trust that issues beneficiary certificates (limited to one for which the public offering of beneficial rights acquired by the settlor at the time of conclusion of its trust contract was conducted through a public offering as prescribed in paragraph (1), item (iv) of the preceding Article);

dividends of surplus on bond-type beneficial interests in a special purpose trust received from a domestic corporation (limited to a special purpose trust for which the public offering of bond-type beneficial interests held by the original entrustor at the time of conclusion of its trust contract was conducted through a public offering as prescribed in Article 8-2, paragraph (1), item (ii));

interest on specified public and corporate bonds prescribed in Article 3, paragraph (1), item (i) which is received from a domestic corporation, etc.

Where a determination under the provisions of Article 25 of the Act on General Rules for National Taxes (including a reassessment under the provisions of Article 24 or Article 26 of that Act pertaining to the determination) is made with respect to income tax for each year from 2016 onward of a resident or a nonresident prescribed in the preceding paragraph, with regard to the application of those provisions, the amount of interest income falling under the provisions of that paragraph, the amount of dividend income falling under the provisions of that paragraph and the amount of dividend tax credit pertaining thereto, and the amount equivalent to the foreign tax adjusted at distribution falling under the provisions of that paragraph are not to be included in the tax base, etc. or the amount of tax, etc. prescribed in those Articles.

The number of months referred to in paragraph (1), item (i) is calculated in accordance with the calendar; where it exceeds 12 months, it is to be 12 months, and where it includes a fraction of less than one month, the fraction is to be counted as one month.

The provisions of paragraph (1) may be applied to the interest and similar income or dividends and similar income listed in the items of that paragraph held by a resident or a nonresident who has a permanent establishment referred to in that paragraph, separately for each amount of interest and similar income or each amount of dividends and similar income to be received in a single payment.

Special provisions of Article 224, Article 225, and Article 228 of the Income Tax Act pertaining to the interest and similar income or dividends and similar income listed in the items of paragraph (1) that are specified by Cabinet Order are specified by Cabinet Order.

Where an individual's amount of gross income for each year includes dividend income pertaining to the following dividends and similar income (meaning dividends and similar income prescribed in Article 24, paragraph (1) of the Income Tax Act; hereinafter the same applies in this Article), the provisions of Article 92, paragraph (1) of that Act do not apply to that dividend income:

dividends and similar income pertaining to distributions of proceeds from the beneficial rights listed in the items of Article 8-2, paragraph (1) to which the provisions of that paragraph apply (excluding beneficial interests in a foreign investment trust as prescribed in Article 2, paragraph (24) of the Act on Investment Trusts and Investment Corporations (referred to in the following item as a "foreign investment trust"));

dividends and similar income on foreign privately placed bond-based investment trusts, etc. prescribed in Article 8-3, paragraph (1) to which the provisions of that paragraph apply (excluding those pertaining to distributions of proceeds from the beneficial rights listed in Article 8-2, paragraph (1), item (i) (limited to beneficial interests in a foreign investment trust));

dividends and similar income pertaining to distributions of proceeds from a specified stock investment trust that invests its trust property in shares of foreign corporations included in a foreign stock index (meaning a stock index for shares of foreign corporations which is specified by Cabinet Order) (referred to in paragraph (3) as a "specified stock investment trust linked to a foreign stock index");

dividends and similar income pertaining to distributions of proceeds from a foreign-currency, etc. securities investment trust (meaning a securities investment trust specified by Cabinet Order as one that invests its trust property mainly in foreign-currency assets (meaning shares, bonds, and other assets denominated in a foreign currency; hereinafter the same applies in this item) or mainly in assets other than shares (excluding investment units as prescribed in Article 2, paragraph (14) of the Act on Investment Trusts and Investment Corporations; hereinafter the same applies in this item); the same applies in paragraph (4)) which is specified by Cabinet Order as a securities investment trust with a particularly high ratio of investment in foreign-currency assets or in assets other than shares (referred to in that paragraph as a "specified securities investment trust in foreign currency assets, etc.") (excluding those listed in the preceding three items);

dividends and similar income to be received from any of the following trusts (excluding those listed in item (i) or item (ii)):

an investment trust as prescribed in Article 2, paragraph (3) of the Act on Investment Trusts and Investment Corporations which falls under a trust subject to corporate taxation (limited to one for which the public offering of beneficial rights at its establishment was conducted through a private placement to institutional investors (meaning a private placement to qualified institutional investors as prescribed in Article 4, paragraph (2), item (xii) of that Act which is conducted only with persons specified by Order of the Ministry of Finance as counterparties; hereinafter the same applies in this item), where the public offering was conducted mainly in Japan and was conducted with a statement in the investment trust agreement (meaning the trust agreement for an investment trust with instructions from the settlor as prescribed in Article 4, paragraph (1) of that Act or the trust agreement for an investment trust without instructions from the settlor as prescribed in Article 49, paragraph (1) of that Act) to the effect that the public offering is a private placement to institutional investors);

a special purpose trust;

dividends and similar income to be received from a specific purpose company (meaning a specific purpose company as prescribed in Article 2, paragraph (3) of the Act on the Securitization of Assets; the same applies in Article 9-3-2, paragraph (3), item (ii));

dividends and similar income to be received from an investment corporation as prescribed in Article 2, paragraph (12) of the Act on Investment Trusts and Investment Corporations.

Where the provisions of the preceding paragraph apply and there is dividend income pertaining to dividends and similar income other than the dividends and similar income listed in the items of that paragraph, with regard to the application of the provisions of Article 92, paragraph (1) of the Income Tax Act, the phrase "excluding those)" in that paragraph is deemed to be replaced with "excluding those) and those pertaining to the dividends and similar income listed in the items of Article 9, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Dividend Tax Credit)".

Where an individual's amount of gross income for each year includes dividend income pertaining to distributions of proceeds from a specified stock investment trust (excluding a specified stock investment trust linked to a foreign stock index), with regard to the application of the provisions of Article 92, paragraph (1) of the Income Tax Act to the individual, the phrase "and distributions of monies" in item (i), (a) of that paragraph is deemed to be replaced with ", distributions of monies, and distributions of proceeds from a specified stock investment trust prescribed in Article 3-2 of the Act on Special Measures Concerning Taxation (Special Provisions on Payment Reports on Interest Income, etc.) (hereinafter referred to in this paragraph as a "specified stock investment trust")", the phrase "securities investment trust" in item (i), (b) of that paragraph is deemed to be replaced with "securities investment trust other than a specified stock investment trust", and the phrase "securities investment trust" in items (ii) and (iii) of that paragraph is deemed to be replaced with "securities investment trust other than a specified stock investment trust".

Where an individual's amount of gross income for each year includes dividend income pertaining to distributions of proceeds from a general foreign-currency, etc. securities investment trust (meaning dividends and similar income pertaining to distributions of proceeds from a foreign-currency, etc. securities investment trust other than a specified securities investment trust in foreign currency assets, etc. (excluding those listed in paragraph (1), items (i) through (iii))), with regard to the application of the provisions of Article 92, paragraph (1) of the Income Tax Act to the individual, the phrase "calculated amount" in item (i), (b) of that paragraph is deemed to be replaced with "calculated amount (where the dividend income pertaining to distributions of proceeds from the securities investment trust includes dividend income pertaining to distributions of proceeds from a general foreign-currency, etc. securities investment trust prescribed in Article 9, paragraph (4) of the Act on Special Measures Concerning Taxation (Special Provisions on Dividend Tax Credit) (hereinafter referred to in this paragraph as "distributions of proceeds from a general foreign-currency, etc. securities investment trust"), the sum of the amounts calculated by multiplying, of the amount of dividend income pertaining to distributions of proceeds from the securities investment trust, the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust by 2.5 percent and the other amount by 5 percent)", the phrase "sum" in item (ii), (b) of that paragraph is deemed to be replaced with "sum (where the dividend income pertaining to distributions of proceeds from the securities investment trust includes dividend income pertaining to distributions of proceeds from a general foreign-currency, etc. securities investment trust: if the amount obtained by deducting the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust from the taxable gross income for that year is 10 million yen or less, it is to be the sum of the amounts calculated by multiplying, of the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust, the amount equivalent to the amount obtained by deducting 10 million yen from the taxable gross income by 1.25 percent and the other amount by 2.5 percent, and, of the amount of dividend income pertaining to distributions of proceeds from the securities investment trust, the amount obtained by deducting the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust from the amount of dividend income pertaining to distributions of proceeds from the securities investment trust by 5 percent; and if the amount obtained by deducting the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust from the taxable gross income for that year exceeds 10 million yen, it is to be the sum of the amounts calculated by multiplying, of the amount of dividend income pertaining to distributions of proceeds from the securities investment trust, the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust by 1.25 percent, and, of the amount obtained by deducting the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust from the amount of dividend income pertaining to distributions of proceeds from the securities investment trust, the amount equivalent to the amount obtained by deducting the sum of 10 million yen and the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust from the taxable gross income by 2.5 percent and the other amount by 5 percent)", and the phrase "calculated amount" in item (iii), (b) of that paragraph is deemed to be replaced with "calculated amount (where the dividend income pertaining to distributions of proceeds from the securities investment trust includes dividend income pertaining to distributions of proceeds from a general foreign-currency, etc. securities investment trust, the sum of the amounts calculated by multiplying, of the amount of dividend income pertaining to distributions of proceeds from the securities investment trust, the amount of dividend income pertaining to the distributions of proceeds from a general foreign-currency, etc. securities investment trust by 1.25 percent and the other amount by 2.5 percent)".

Where a domestic corporation (excluding a domestic corporation listed in Appended Table 1 of the Income Tax Act; the same applies in the following paragraph and paragraph (4)) receives delivery, through a person in charge of handling payment in Japan that is specified by Cabinet Order (hereinafter referred to in this Article as the "person in charge of handling payment"), of dividends and similar income prescribed in Article 24, paragraph (1) of the Income Tax Act pertaining to dividends of surplus or dividends of profits (meaning dividends of profits as prescribed in that paragraph) on shares (including preferred equity investments as prescribed in Article 2, paragraph (5) of the Act on the Securitization of Assets) issued outside Japan which it is to receive on or after April 1, 1988 (limited to those paid outside Japan; hereinafter referred to in this Article as "dividends and similar income on foreign shares"), the domestic corporation is to be liable to pay income tax on the dividends and similar income on foreign shares to be received, and income tax is imposed by applying a tax rate of 20 percent to the amount to be received.

A person in charge of handling payment in Japan of dividends and similar income on foreign shares to be paid to a resident or a domestic corporation on or after April 1, 1988 must, when delivering the dividends and similar income on foreign shares to the resident or domestic corporation, collect income tax in the amount calculated by multiplying the amount to be delivered by a tax rate of 20 percent, and pay it to the State by the 10th day of the month following the month that includes the day of collection.

In the cases referred to in the preceding two paragraphs, where there is an amount of foreign income tax prescribed in Article 95, paragraph (1) of the Income Tax Act (including the tax specified by Cabinet Order) collected at the time of payment of dividends and similar income on foreign shares, the amount to be received prescribed in paragraph (1) and the amount to be delivered prescribed in the preceding paragraph are to be the amount remaining after deducting an amount equivalent to the amount of the foreign income tax from the amount of the dividends and similar income on foreign shares.

Income tax to be collected and paid pursuant to the provisions of paragraph (2) is deemed to be income tax pertaining to withholding at the source as prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act, and the provisions of that Act, the Act on General Rules for National Taxes, and the National Tax Collection Act apply thereto. In this case, where the person who is to receive the dividends and similar income on foreign shares is a domestic corporation, with regard to the application of the provisions of the Corporation Tax Act to the domestic corporation, the phrase "or prize money" in Article 68, paragraph (1) of that Act is deemed to be replaced with "or prize money, or dividends and similar income on foreign shares prescribed in Article 9-2, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividend Income from Shares Issued Outside Japan)", and the phrase "that Act" is deemed to be replaced with "the Income Tax Act or the Act on Special Measures Concerning Taxation".

Where income tax is to be collected pursuant to the provisions of paragraph (2) on dividends and similar income on foreign shares, the provisions of Article 8-5 apply to a resident who has the dividends and similar income on foreign shares as follows:

the amount to be delivered by the person in charge of handling payment in Japan of the dividends and similar income on foreign shares (where the provisions of paragraph (3) apply, the amount remaining after the deduction prescribed in that paragraph) is deemed to be the amount to be received prescribed in Article 8-5, paragraph (1), item (i) or the amount of dividends and similar income to be received prescribed in paragraph (4) of that Article;

the dividends and similar income on foreign shares are deemed to be received from a domestic corporation.

Beyond what is provided for in the preceding two paragraphs, special provisions of Article 224 and Article 225 of the Income Tax Act pertaining to dividends and similar income on foreign shares and other necessary matters concerning the application of the provisions of paragraphs (1) through (3) are specified by Cabinet Order.

With regard to the application of the provisions of Article 170, Article 175, Article 179, Article 182, and Article 213 of the Income Tax Act, Article 8-3, paragraphs (2) and (3), and paragraphs (1) and (2) of the preceding Article to dividends and similar income prescribed in Article 24, paragraph (1) of that Act (hereinafter referred to in this Article and the following Article as "dividends and similar income") to be received on or after January 1, 2016 which are listed in the following items, the tax rate of 20 percent prescribed in Article 170, Article 175, item (ii), Article 179, item (i), Article 182, item (ii), and Article 213, paragraph (1), item (i) and paragraph (2), item (ii) of that Act, Article 8-3, paragraph (2), item (ii), and paragraphs (1) and (2) of the preceding Article is to be a tax rate of 15 percent:

dividends and similar income on shares, etc. listed in Article 37-11, paragraph (2), item (i), which are received by a person other than an individual who holds, as of the record date for the payment of the dividends and similar income paid by a domestic corporation (where the dividends and similar income pertain to those deemed to be a dividend of surplus, a dividend of profits, a distribution of surplus, or a distribution of monies pursuant to the provisions of Article 25, paragraph (1) of the Income Tax Act, the date specified by Cabinet Order), shares or capital contributions that account for 3 percent or more of the total number or the total amount of issued shares of or capital contributions to the domestic corporation (referred to in paragraph (1) of the following Article as a "major shareholder, etc.");

distributions of proceeds from any of the following investment trusts for which the public offering of beneficial rights at its establishment was conducted through a public offering (meaning a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph) (excluding a specified stock investment trust):

a securities investment trust other than a bond investment trust;

an investment trust other than a securities investment trust (excluding a bond-based investment trust under public offering);

dividends and similar income on investment units of a specified investment corporation (meaning an investment corporation whose articles of incorporation provide that it will refund investment units at the request of its unitholders as prescribed in Article 2, paragraph (16) of the Act on Investment Trusts and Investment Corporations, and for which the public offering of securities as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act with respect to its investment units at its incorporation was conducted through a solicitation of offers to acquire as prescribed in that paragraph which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph);

distributions of proceeds from a specified trust that issues beneficiary certificates (limited to one for which the public offering of beneficial rights acquired by the settlor at the time of conclusion of its trust contract was conducted through a public offering as prescribed in Article 8-4, paragraph (1), item (iv));

dividends of surplus on bond-type beneficial interests in a special purpose trust (limited to one for which the public offering of bond-type beneficial interests held by the original entrustor at the time of conclusion of its trust contract was conducted through a public offering as prescribed in Article 8-2, paragraph (1), item (ii)).

A person in charge of handling payment in Japan that is specified by Cabinet Order (referred to in paragraph (3) and paragraph (8) as the "person in charge of handling payment") of the following interest and similar income (meaning interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act; hereinafter the same applies in this paragraph and paragraph (8)) or dividends and similar income that are specified by Cabinet Order (limited to those paid in Japan, and excluding distributions of proceeds to which the provisions of Article 9-4-2, paragraph (1) apply; hereinafter referred to in this Article as "dividends and similar income on listed shares, etc.") and that are paid on or after January 1, 2016 to an individual, a domestic corporation (excluding a domestic corporation listed in Appended Table 1 of that Act), or a foreign corporation, must, when delivering the dividends and similar income on listed shares, etc. to the individual, domestic corporation, or foreign corporation, collect income tax in the amount calculated by multiplying the amount to be delivered (where there is an amount specified in any item of paragraph (3) to be deducted pursuant to the provisions of that paragraph, the amount obtained by adding that amount and any other amount specified by Cabinet Order) by a tax rate of 15 percent (or 20 percent, for dividends and similar income listed in item (i) delivered to a major shareholder, etc. of the domestic corporation paying the dividends and similar income), and pay it to the State by the 10th day of the month following the month that includes the day of collection:

interest and similar income or dividends and similar income on shares, etc. listed in Article 37-11, paragraph (2), item (i);

distributions of proceeds from an investment trust for which the public offering of beneficial rights at its establishment was conducted through a public offering as prescribed in item (ii) of the preceding Article (excluding a specified stock investment trust);

dividends and similar income on investment units of a specified investment corporation (meaning a specified investment corporation as prescribed in item (iii) of the preceding Article);

distributions of proceeds from a specified trust that issues beneficiary certificates (limited to one for which the public offering of beneficial rights acquired by the settlor at the time of conclusion of its trust contract was conducted through a public offering as prescribed in Article 8-4, paragraph (1), item (iv));

dividends of surplus on bond-type beneficial interests in a special purpose trust (limited to one for which the public offering of bond-type beneficial interests held by the original entrustor at the time of conclusion of its trust contract was conducted through a public offering as prescribed in Article 8-2, paragraph (1), item (ii));

interest on specified public and corporate bonds prescribed in Article 3, paragraph (1), item (i).

The provisions of Article 181, paragraph (1) and Article 212, paragraphs (1) and (3) of the Income Tax Act, insofar as they pertain to dividends and similar income on listed shares, etc., do not apply to a person who pays the dividends and similar income on listed shares, etc. subject to the provisions of the preceding paragraph.

In the case referred to in paragraph (1), where there is an amount specified in any of the following items according to the category of dividends and similar income on listed shares, etc. delivered by a person in charge of handling payment listed in those items, the amount specified in that item is deducted from the amount of income tax to be collected and paid pursuant to the provisions of that paragraph with respect to the dividends and similar income on listed shares, etc., up to the amount of that income tax:

distributions of proceeds from an investment trust (limited to a trust listed in Article 2, item (xxix), (b) of the Corporation Tax Act; hereinafter referred to in this item as a "securities investment trust, etc.") or a specified trust that issues beneficiary certificates: the amount calculated, as specified by Cabinet Order, as the amount of the portion corresponding to the distributions of proceeds, out of the amount of income tax prescribed in Article 176, paragraph (3) or Article 180-2, paragraph (3) of the Income Tax Act paid by the domestic corporation or foreign corporation that has undertaken the securities investment trust, etc. or the specified trust that issues beneficiary certificates with respect to the trust property of the securities investment trust, etc. or the specified trust that issues beneficiary certificates (including, where the securities investment trust, etc. falls under an investment trust specified by Cabinet Order whose purpose is to invest its trust property in beneficial rights of another securities investment trust specified by Cabinet Order, the trust property of that other securities investment trust);

dividends of profits of a specific purpose company (meaning dividends of profits as prescribed in Article 24, paragraph (1) of the Income Tax Act; hereinafter the same applies in this item): the amount calculated, as specified by Cabinet Order, as the amount of the portion corresponding to the dividends of profits, out of the amount of foreign country's corporate tax (meaning the amount of creditable foreign country's corporate tax as prescribed in Article 69, paragraph (1) of the Corporation Tax Act; hereinafter the same applies in this paragraph) paid by the specific purpose company;

dividends and similar income on investment units of an investment corporation: the amount calculated, as specified by Cabinet Order, as the amount of the portion corresponding to the dividends and similar income, out of the amount of foreign country's corporate tax paid by the investment corporation;

dividends of surplus on beneficial interests in a special purpose trust: the amount calculated, as specified by Cabinet Order, as the amount of the portion corresponding to the dividends of surplus, out of the amount of foreign country's corporate tax paid by the Trust Corporation prescribed in Article 9-6-3, paragraph (1) of the special purpose trust.

Income tax to be collected and paid pursuant to the provisions of paragraph (1) is deemed to be income tax pertaining to withholding at the source as prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act, and the provisions of that Act, the Act on General Rules for National Taxes, and the National Tax Collection Act apply thereto.

Where the provisions of paragraph (3) apply, with regard to the application of the provisions of Article 170, Article 175, and Article 179 of the Income Tax Act, the phrase "calculated amount" in Article 170, Article 175, items (i) and (ii), and Article 179, items (i) and (iii) of that Act is deemed to be replaced with "calculated amount (where the provisions of Article 9-3-2, paragraph (3) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding Obligation, etc. for Dividends and Similar Income on Listed Shares, etc.) apply, the amount obtained by deducting the amount specified in each item of that paragraph which has been deducted pursuant to the provisions of that paragraph)".

Where the provisions of paragraph (3) apply and the person who receives delivery of dividends and similar income on listed shares, etc. is an individual, with regard to the application of the provisions of the Income Tax Act to the individual: in Article 93, paragraph (1) of that Act, the phrase "payment of distribution of proceeds" is deemed to be replaced with "payment of distribution of proceeds or delivery of dividends and similar income on listed shares, etc. prescribed in Article 9-3-2, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding Obligation, etc. for Dividends and Similar Income on Listed Shares, etc.) (hereinafter referred to as "dividends and similar income on listed shares, etc.")", the phrase "that paragraph" is deemed to be replaced with "Article 176, paragraph (3)", and the phrase "amount (" is deemed to be replaced with "amount and the amount specified by Cabinet Order as the amount of the portion other than the portion corresponding to the amount of income tax (hereinafter referred to as the "amount equivalent to foreign tax for adjustment") out of the amount equivalent to the amount specified in each item of Article 9-3-2, paragraph (3) of that Act which has been deducted pursuant to the provisions of that paragraph with respect to the dividends and similar income on listed shares, etc. (hereinafter referred to as the "listed share dividend deduction amount") ("; in Article 120, paragraph (1), item (iv) of that Act (including as applied mutatis mutandis pursuant to Article 166 of that Act), the phrase "amount." is deemed to be replaced with "amount, and where dividends and similar income on listed shares, etc. have been delivered, it is to be the amount obtained by adding the amount specified by Cabinet Order as the amount of the portion corresponding to the amount of income tax out of the listed share dividend deduction amount pertaining to the dividends and similar income on listed shares, etc. (excluding those falling under the domestic source income referred to in Article 170 (Tax Rates for Income Taxes under Separate Taxation) to which the provisions of that Article have been applied, and interest and similar income and dividends and similar income prescribed in Article 8-5, paragraph (1) of the Act on Special Measures Concerning Taxation (Dividend Income, etc. for Which No Final Return Is Required) to which the provisions of that paragraph have been applied)."; and in Article 165-5-3, paragraph (1) of that Act, the phrase "payment of distribution of proceeds" is deemed to be replaced with "payment of distribution of proceeds or delivery of dividends and similar income on listed shares, etc. (excluding those falling under the domestic source income referred to in Article 170 (Tax Rates for Income Taxes under Separate Taxation) to which the provisions of that Article have been applied)", the phrase "limited to cases where it receives payment" is deemed to be replaced with "limited to cases where it receives payment or delivery", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to foreign tax for adjustment pertaining to the dividends and similar income on listed shares, etc. (".

Where the provisions of paragraph (3) apply and the person who receives delivery of dividends and similar income on listed shares, etc. is a domestic corporation or a foreign corporation prescribed in paragraph (1), with regard to the application of the provisions of the Corporation Tax Act and the Local Corporation Tax Act to the domestic corporation or foreign corporation: for the domestic corporation, in Article 68, paragraph (1) of the Corporation Tax Act, the phrase "excluding" is deemed to be replaced with "excluding (excluding the amount specified by Cabinet Order as the amount of the portion other than the portion corresponding to the amount of income tax (hereinafter referred to as the "amount equivalent to foreign tax for adjustment") out of the amount equivalent to the amount specified in each item of Article 9-3-2, paragraph (3) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding Obligation, etc. for Dividends and Similar Income on Listed Shares, etc.) which has been deducted pursuant to the provisions of that paragraph (hereinafter referred to as the "listed share dividend deduction amount")), and adding the amount specified by Cabinet Order as the amount of the portion corresponding to the amount of income tax out of the listed share dividend deduction amount pertaining to dividends and similar income on listed shares, etc. prescribed in Article 9-3-2, paragraph (1) of the Act on Special Measures Concerning Taxation (hereinafter referred to as "dividends and similar income on listed shares, etc.") delivered to the domestic corporation", and in Article 69-2, paragraph (1) of that Act, the phrase "payment of distribution of proceeds" is deemed to be replaced with "payment of distribution of proceeds or delivery of dividends and similar income on listed shares, etc.", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to foreign tax for adjustment pertaining to the dividends and similar income on listed shares, etc. ("; and for the foreign corporation, in Article 144 of that Act, the phrase "Article 68 (" is deemed to be replaced with "Article 68 as applied by replacing the terms pursuant to the provisions of Article 9-3-2, paragraph (7) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding Obligation, etc. for Dividends and Similar Income on Listed Shares, etc.) (", the phrase "Article 68, paragraph (1)" is deemed to be replaced with "Article 68, paragraph (1) as applied by replacing the terms pursuant to the provisions of that paragraph", the phrase "excluding" is deemed to be replaced with "excluding those", and the phrase "(that Act" is deemed to be replaced with "(the Income Tax Act", and in Article 144-2-2, paragraph (1) of that Act, the phrase "payment of distribution of proceeds" is deemed to be replaced with "payment of distribution of proceeds or delivery of dividends and similar income on listed shares, etc.", the phrase "payment of those" is deemed to be replaced with "payment or delivery of those", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to foreign tax for adjustment pertaining to the dividends and similar income on listed shares, etc. (".

Where income tax is to be collected pursuant to the provisions of paragraph (1) on dividends and similar income on listed shares, etc., the provisions of Article 8-5 apply to a resident or a nonresident who has a permanent establishment who has the dividends and similar income on listed shares, etc., by deeming the amount to be delivered by the person in charge of handling payment in Japan of the dividends and similar income on listed shares, etc. to be the amount of interest and similar income or the amount of dividends and similar income to be received prescribed in paragraph (4) of that Article.

Beyond what is provided for in paragraph (2) through the preceding paragraph, special provisions of Article 224 and Article 225 of the Income Tax Act pertaining to dividends and similar income on listed shares, etc. subject to the provisions of paragraph (1) and other necessary matters concerning the application of the provisions of that paragraph are specified by Cabinet Order.

Where a corporation listed in any of the following items has had the fact that public and corporate bonds, beneficial interests in a jointly managed trust, an investment trust, or a specified trust that issues beneficiary certificates, bond-type beneficial interests, shares, or capital contributions which it manages as its assets (hereinafter referred to in this Article as "public and corporate bonds, etc.") are assets under the management of the corporation listed in that item, and other matters specified by Order of the Ministry of Finance, entered in the books kept by the person who pays in Japan, on the public and corporate bonds, etc., interest and similar income prescribed in Article 23, paragraph (1) of the Income Tax Act (hereinafter referred to in this Article as "interest and similar income") or dividends and similar income prescribed in Article 24, paragraph (1) of that Act (hereinafter referred to in this Article as "dividends and similar income"), the provisions of Article 7, paragraph (1), item (iv), Article 174, Article 175, and Article 212, paragraph (3) of that Act do not apply to the interest and similar income or dividends and similar income paid on the public and corporate bonds, etc. within the period during which the entry has been made:

an investment corporation (meaning an investment corporation as prescribed in Article 2, paragraph (12) of the Act on Investment Trusts and Investment Corporations; hereinafter the same applies in this item) that falls under either of the following:

an investment corporation specified by Cabinet Order as having been established for the purpose of investing its assets mainly in securities;

an investment corporation for which the public offering of investment units (meaning investment units as prescribed in Article 2, paragraph (14) of the Act on Investment Trusts and Investment Corporations) at its incorporation was conducted through a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph;

a specific purpose company as prescribed in Article 2, paragraph (3) of the Act on the Securitization of Assets which is specified by Cabinet Order as one whose specified assets prescribed in paragraph (1) of that Article are mainly securities.

Where a domestic trust company prescribed in Article 176, paragraph (1) of the Income Tax Act has had the fact that public and corporate bonds, etc. belonging to the trust property of an investment trust other than a securities investment trust which it has undertaken (limited to one for which the public offering of beneficial rights at its establishment was conducted through a public offering as prescribed in Article 8-4, paragraph (1), item (ii), and which has been entrusted to a business office, office, or any other equivalent place located in Japan; the same applies in paragraph (4)) belong to that trust property, and other matters specified by Order of the Ministry of Finance, entered in the books kept by the person who pays interest and similar income or dividends and similar income in Japan on the public and corporate bonds, etc., the provisions of Article 7, paragraph (1), item (iv), Article 174, Article 175, and Article 212, paragraph (3) of that Act do not apply to the interest and similar income or dividends and similar income paid on the public and corporate bonds, etc. within the period during which the entry has been made.

Where the Trust Corporation (meaning a Trust Corporation prescribed in Article 6-3 of the Income Tax Act (limited to one to which the provisions of this Act apply as a domestic corporation pursuant to the provisions of Article 6-3, item (i) of that Act as applied mutatis mutandis pursuant to Article 2-2, paragraph (2))) of a special purpose trust (limited to one specified by Cabinet Order as a trust whose entrusted specified assets prescribed in Article 2, paragraph (1) of the Act on the Securitization of Assets are mainly securities; hereinafter the same applies in this paragraph) has had the fact that public and corporate bonds, etc. belonging to the trust property of the special purpose trust belong to that trust property, and other matters specified by Order of the Ministry of Finance, entered in the books kept by the person who pays interest and similar income or dividends and similar income in Japan on the public and corporate bonds, etc., the provisions of Article 7, paragraph (1), item (iv), Article 174, Article 175, and Article 212, paragraph (3) of the Income Tax Act do not apply to the interest and similar income or dividends and similar income paid on the public and corporate bonds, etc. within the period during which the entry has been made.

Where a foreign trust company prescribed in Article 180-2, paragraph (1) of the Income Tax Act has had the fact that public and corporate bonds, etc. belonging to the trust property of an investment trust other than a securities investment trust which it has undertaken belong to that trust property, and other matters specified by Order of the Ministry of Finance, entered in the books kept by the person who pays, on the public and corporate bonds, etc., domestic source income listed in Article 161, paragraph (1), item (viii) (excluding (c) of that item) or item (ix) of that Act (hereinafter referred to in this paragraph as "specified domestic source income"), the provisions of Article 7, paragraph (1), item (v), Article 178, Article 179, and Article 212, paragraphs (1) and (2) of that Act do not apply to the specified domestic source income paid on the public and corporate bonds, etc. within the period during which the entry has been made.

The provisions of Article 174, Article 175, Article 178, Article 179, and Article 212, paragraphs (1) through (3) of the Income Tax Act and Article 8-3, paragraphs (2) and (3) do not apply to distributions of proceeds which a domestic corporation (excluding a domestic corporation listed in Appended Table 1 of the Income Tax Act; the same applies in the following paragraph) or a foreign corporation that has a permanent establishment receives in Japan upon the termination or partial cancellation of any of the following trusts (limited to those whose beneficial rights are listed on a financial instruments exchange as prescribed in Article 2, paragraph (16) of the Financial Instruments and Exchange Act (including a similar exchange established under the laws and regulations of a foreign state) or which otherwise meet the requirements specified by Cabinet Order; referred to in the following paragraph and paragraph (3) as "listed securities investment trusts, etc.") (for those received by a foreign corporation that has a permanent establishment, limited to those falling under the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act):

a securities investment trust other than a bond investment trust for which the public offering of beneficial rights at its establishment was conducted through a public offering as prescribed in Article 9-3, item (ii) (excluding a specified stock investment trust);

a specified trust that issues beneficiary certificates.

A person who pays in Japan to a domestic corporation or a foreign corporation that has a permanent establishment money or other assets (for those paid to a foreign corporation that has a permanent establishment, limited to those attributable to the permanent establishment; hereinafter referred to in this paragraph and the following paragraph as "redemption money or a similar asset") upon the termination (where it pertains to a merger of trusts of a listed securities investment trust, etc., limited to a termination pertaining to a merger of trusts in which assets other than beneficial interests in the trust newly formed by the merger of trusts (excluding money or other assets delivered to a beneficiary who opposes the merger of trusts as consideration based on that beneficiary's demand for purchase) have been delivered to the beneficiaries of the listed securities investment trust, etc.; hereinafter the same applies in this paragraph) or partial cancellation of a listed securities investment trust, etc. must submit a report stating the name and the location of the head office or principal office of the corporation, the amount of the redemption money or a similar asset, and other matters specified by Order of the Ministry of Finance, for each domestic corporation or foreign corporation that has a permanent establishment receiving the payment of the redemption money or a similar asset (hereinafter referred to in this Article as a "payment report on redemption money, etc. of listed securities investment trusts, etc."), to the competent district director with jurisdiction over the location of the head office or principal office of the person making the payment, by the last day of the month following the month that includes the day on which the termination or partial cancellation of the listed securities investment trust, etc. occurred.

When it is necessary for an investigation concerning the submission of a payment report on redemption money, etc. of listed securities investment trusts, etc., the relevant official of the National Tax Agency, the Regional Taxation Bureau, or the tax office may ask questions of a person who is obligated to submit the payment report on redemption money, etc. of listed securities investment trusts, etc., inspect that person's books and documents concerning the listed securities investment trusts, etc. pertaining to the payment of redemption money or a similar asset and other articles, or request the presentation or submission of those articles (including copies thereof).

When it is necessary for an investigation concerning the submission of a payment report on redemption money, etc. of listed securities investment trusts, etc., the relevant official of the National Tax Agency, the Regional Taxation Bureau, or the tax office may retain articles submitted in the course of the investigation.

The relevant official of the National Tax Agency, the Regional Taxation Bureau, or the tax office, when asking questions, conducting an inspection, or requesting presentation or submission pursuant to the provisions of paragraph (3), must carry an identification card and present it to the person concerned when requested.

The authority of the official under the provisions of paragraph (3) and paragraph (4) must not be construed as being granted for the purpose of a criminal investigation.

Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (4) are specified by Cabinet Order.

Where a financial instruments business operator as prescribed in Article 2, paragraph (9) of the Financial Instruments and Exchange Act (limited to a person engaged in type I financial instruments business as prescribed in Article 28, paragraph (1) of that Act) or any other person specified by Cabinet Order (hereinafter referred to in this Article as a "financial instruments business operator, etc.") has purchased, from a customer in the handling, beneficial rights in a securities investment trust other than a bond investment trust for which the financial instruments business operator, etc. has conducted a public offering or other handling specified by Cabinet Order and for which the public offering of beneficial rights at its establishment was conducted through a public offering (meaning a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) of that Act which is specified by Cabinet Order as falling under the case listed in item (i) of that paragraph) (excluding a specified stock investment trust and a listed securities investment trust, etc. prescribed in paragraph (1) of the preceding Article; hereinafter referred to in this paragraph and the following paragraph as a "publicly offered securities investment trust in shares, etc."), and the beneficial rights are managed by entry or recording in a transfer account book as prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares or by any other method specified by Cabinet Order, the provisions of Article 174, Article 175, Article 178, Article 179, and Article 212, paragraphs (1) and (3) of the Income Tax Act do not apply to the portion, out of the distributions of proceeds which the financial instruments business operator, etc. receives upon the termination or partial cancellation of the publicly offered securities investment trust in shares, etc. on the day of the purchase or the business day following that day (in the cases specified by Cabinet Order, the day specified by Cabinet Order), that is equivalent to the amount calculated, as specified by Cabinet Order, as the amount of the portion corresponding to the period during which the customer continuously held the beneficial rights.

The provisions of the preceding paragraph apply only where a financial instruments business operator, etc. has submitted, as specified by Cabinet Order, a return stating that it seeks the application of the provisions of that paragraph to distributions of proceeds from the publicly offered securities investment trust in shares, etc. and other matters specified by Order of the Ministry of Finance, to the district director via the person who pays the distributions of proceeds from the publicly offered securities investment trust in shares, etc. (referred to in the following paragraph as the "payer").

A financial instruments business operator, etc. referred to in the preceding paragraph may, in lieu of submitting the return pursuant to the provisions of that paragraph, provide the payer referred to in that paragraph with the matters to be stated in the return by electronic or magnetic means prescribed in Article 3-3, paragraph (8). In this case, the financial instruments business operator, etc. is deemed to have submitted the return to the payer.

The amount of foreign country's corporate tax (meaning the amount of creditable foreign country's corporate tax as prescribed in Article 69, paragraph (1) of the Corporation Tax Act; hereinafter the same applies through Article 9-6-4) paid by a specific purpose company (meaning a specific purpose company as prescribed in Article 2, paragraph (3) of the Act on the Securitization of Assets; hereinafter the same applies in this Article) is, as specified by Cabinet Order, deducted from the amount of income tax on dividends of profits of the specific purpose company (meaning dividends of profits as prescribed in Article 24, paragraph (1) of the Income Tax Act; hereinafter the same applies in this Article), up to the amount of that income tax.

Where a specific purpose company subject to the provisions of the preceding paragraph is to pay dividends of profits to a resident, a nonresident, a domestic corporation, or a foreign corporation, the amount of dividends and similar income prescribed in Article 182, item (ii) of the Income Tax Act, the amount of domestic source income prescribed in Article 213, paragraph (1), item (i) of the Act, or the amount of dividends and similar income prescribed in paragraph (2), item (ii) of the Article is to be the amount obtained by adding the amount to be credited pursuant to the provisions of the preceding paragraph to these amounts, notwithstanding these provisions.

Where a resident or a nonresident who has a permanent establishment receives payment of dividends of profits of a specific purpose company (for the nonresident, limited to cases where it receives payment of those falling under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a specific purpose company pertaining to the dividends of profits (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of profits received by the resident or the nonresident who has a permanent establishment, out of the amount of foreign country's corporate tax paid by the specific purpose company which has been deducted from the amount of income tax on the dividends of profits pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act to the resident or the nonresident who has a permanent establishment, the phrase "distribution of proceeds" in Article 93, paragraph (1) and Article 165-5-3, paragraph (1) of that Act is deemed to be replaced with "distribution of proceeds or a dividend of profits prescribed in Article 9-6, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Profits of Specific Purpose Companies) of a specific purpose company prescribed in that paragraph", the phrase "that paragraph" is deemed to be replaced with "Article 176, paragraph (3)", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a specific purpose company prescribed in Article 9-6, paragraph (3) of that Act (".

Where a domestic corporation or a foreign corporation that has a permanent establishment receives payment of dividends of profits of a specific purpose company (for the foreign corporation, limited to cases where it receives payment of those falling under the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a specific purpose company pertaining to the dividends of profits (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of profits received by the domestic corporation or the foreign corporation that has a permanent establishment, out of the amount of foreign country's corporate tax paid by the specific purpose company which has been deducted from the amount of income tax on the dividends of profits pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act and the Local Corporation Tax Act to the domestic corporation or the foreign corporation that has a permanent establishment, the phrase "distribution of proceeds" in Article 69-2, paragraph (1) and Article 144-2-2, paragraph (1) of the Corporation Tax Act is deemed to be replaced with "distribution of proceeds or a dividend of profits prescribed in Article 9-6, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Profits of Specific Purpose Companies) of a specific purpose company", the phrase "that paragraph or that Act" is deemed to be replaced with "Article 176, paragraph (3) of the Income Tax Act or", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a specific purpose company prescribed in Article 9-6, paragraph (4) of the Act on Special Measures Concerning Taxation (".

Matters concerning the notice to be given by the specific purpose company referred to in paragraph (1) to persons receiving payment of dividends of profits of the specific purpose company and other necessary matters concerning the application of the provisions of the preceding paragraphs are specified by Cabinet Order.

The amount of foreign country's corporate tax paid by an investment corporation (meaning an investment corporation as prescribed in Article 2, paragraph (12) of the Act on Investment Trusts and Investment Corporations; hereinafter the same applies in this Article) is, as specified by Cabinet Order, deducted from the amount of income tax on dividends and similar income of the investment corporation (meaning dividends and similar income as prescribed in Article 24, paragraph (1) of the Income Tax Act; hereinafter the same applies in this Article), up to the amount of that income tax.

The provisions of paragraph (2) of the preceding Article apply mutatis mutandis where the provisions of the preceding paragraph are applied.

Where a resident or a nonresident who has a permanent establishment receives payment of dividends and similar income on investment units (meaning investment units as prescribed in Article 2, paragraph (14) of the Act on Investment Trusts and Investment Corporations; the same applies in the following paragraph) of an investment corporation (for the nonresident, limited to cases where it receives payment of those falling under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by an investment corporation pertaining to the dividends and similar income (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends and similar income received by the resident or the nonresident who has a permanent establishment, out of the amount of foreign country's corporate tax paid by the investment corporation which has been deducted from the amount of income tax on the dividends and similar income pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act to the resident or the nonresident who has a permanent establishment, the phrase "distribution of proceeds" in Article 93, paragraph (1) and Article 165-5-3, paragraph (1) of that Act is deemed to be replaced with "distribution of proceeds or dividends and similar income prescribed in Article 9-6-2, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends and Similar Income of Investment Corporations) on investment units prescribed in paragraph (3) of that Article of an investment corporation prescribed in paragraph (1) of that Article", the phrase "that paragraph" is deemed to be replaced with "Article 176, paragraph (3)", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by an investment corporation prescribed in Article 9-6-2, paragraph (3) of that Act (".

Where a domestic corporation or a foreign corporation that has a permanent establishment receives payment of dividends and similar income on investment units of an investment corporation (for the foreign corporation, limited to cases where it receives payment of those falling under the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by an investment corporation pertaining to the dividends and similar income (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends and similar income received by the domestic corporation or the foreign corporation that has a permanent establishment, out of the amount of foreign country's corporate tax paid by the investment corporation which has been deducted from the amount of income tax on the dividends and similar income pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act and the Local Corporation Tax Act to the domestic corporation or the foreign corporation that has a permanent establishment, the phrase "distribution of proceeds" in Article 69-2, paragraph (1) and Article 144-2-2, paragraph (1) of the Corporation Tax Act is deemed to be replaced with "distribution of proceeds or dividends and similar income prescribed in paragraph (1) of that Article on investment units prescribed in Article 9-6-2, paragraph (3) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends and Similar Income of Investment Corporations) of an investment corporation", the phrase "that paragraph or that Act" is deemed to be replaced with "Article 176, paragraph (3) of the Income Tax Act or", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by an investment corporation prescribed in Article 9-6-2, paragraph (4) of the Act on Special Measures Concerning Taxation (".

Matters concerning the notice to be given by the investment corporation referred to in paragraph (1) to persons receiving payment of dividends and similar income of the investment corporation and other necessary matters concerning the application of the provisions of the preceding paragraphs are specified by Cabinet Order.

The amount of foreign country's corporate tax paid by the Trust Corporation (meaning a Trust Corporation prescribed in Article 6-3 of the Income Tax Act (limited to one to which the provisions of this Act apply as a domestic corporation pursuant to the provisions of Article 6-3, item (i) of that Act as applied mutatis mutandis pursuant to Article 2-2, paragraph (2)); hereinafter the same applies in this Article) of a special purpose trust is, as specified by Cabinet Order, deducted from the amount of income tax on dividends of surplus of the special purpose trust, up to the amount of that income tax.

The provisions of Article 9-6, paragraph (2) apply mutatis mutandis where the provisions of the preceding paragraph are applied.

Where a resident or a nonresident who has a permanent establishment receives payment of dividends of surplus on beneficial interests in a special purpose trust (for the nonresident, limited to cases where it receives payment of those falling under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a special purpose trust pertaining to the dividends of surplus (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of surplus received by the resident or the nonresident who has a permanent establishment, out of the amount of foreign country's corporate tax paid by the Trust Corporation of the special purpose trust which has been deducted from the amount of income tax on the dividends of surplus pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act to the resident or the nonresident who has a permanent establishment, the phrase "distribution of proceeds" in Article 93, paragraph (1) and Article 165-5-3, paragraph (1) of that Act is deemed to be replaced with "distribution of proceeds or a dividend of surplus on beneficial interests in a special purpose trust", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a special purpose trust prescribed in Article 9-6-3, paragraph (3) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Special Purpose Trusts) (".

Where a domestic corporation or a foreign corporation that has a permanent establishment receives payment of dividends of surplus on beneficial interests in a special purpose trust (for the foreign corporation, limited to cases where it receives payment of those falling under the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a special purpose trust pertaining to the dividends of surplus (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of surplus received by the domestic corporation or the foreign corporation that has a permanent establishment, out of the amount of foreign country's corporate tax paid by the Trust Corporation of the special purpose trust which has been deducted from the amount of income tax on the dividends of surplus pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act and the Local Corporation Tax Act to the domestic corporation or the foreign corporation that has a permanent establishment, the phrase "distribution of proceeds" in Article 69-2, paragraph (1) and Article 144-2-2, paragraph (1) of the Corporation Tax Act is deemed to be replaced with "distribution of proceeds or a dividend of surplus on beneficial interests in a special purpose trust listed in Article 2, item (xxix)-2, (e) (Definitions)", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a special purpose trust prescribed in Article 9-6-3, paragraph (4) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Special Purpose Trusts) (".

Matters concerning the notice to be given by the Trust Corporation referred to in paragraph (1) to persons receiving payment of dividends of surplus of the special purpose trust and other necessary matters concerning the application of the provisions of the preceding paragraphs are specified by Cabinet Order.

The amount of foreign country's corporate tax paid by the Trust Corporation (meaning a Trust Corporation prescribed in Article 6-3 of the Income Tax Act (limited to one to which the provisions of this Act apply as a domestic corporation pursuant to the provisions of Article 6-3, item (i) of that Act as applied mutatis mutandis pursuant to Article 2-2, paragraph (2)); hereinafter the same applies in this Article) of a specified investment trust (meaning an investment trust as prescribed in Article 2, paragraph (3) of the Act on Investment Trusts and Investment Corporations which falls under a trust subject to corporate taxation; hereinafter the same applies in this Article) is, as specified by Cabinet Order, deducted from the amount of income tax on dividends of surplus of the specified investment trust, up to the amount of that income tax.

The provisions of Article 9-6, paragraph (2) apply mutatis mutandis where the provisions of the preceding paragraph are applied.

Where a resident or a nonresident who has a permanent establishment receives payment of dividends of surplus on beneficial interests in a specified investment trust (for the nonresident, limited to cases where it receives payment of those falling under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a specified investment trust pertaining to the dividends of surplus (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of surplus received by the resident or the nonresident who has a permanent establishment, out of the amount of foreign country's corporate tax paid by the Trust Corporation of the specified investment trust which has been deducted from the amount of income tax on the dividends of surplus pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act to the resident or the nonresident who has a permanent establishment, the phrase "distribution of proceeds" in Article 93, paragraph (1) and Article 165-5-3, paragraph (1) of that Act is deemed to be replaced with "distribution of proceeds or a dividend of surplus on beneficial interests in a specified investment trust prescribed in Article 9-6-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Specified Investment Trusts)", the phrase "that paragraph" is deemed to be replaced with "Article 176, paragraph (3)", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a specified investment trust prescribed in Article 9-6-4, paragraph (3) of that Act (".

Where a domestic corporation or a foreign corporation that has a permanent establishment receives payment of dividends of surplus on beneficial interests in a specified investment trust (for the foreign corporation, limited to cases where it receives payment of those falling under the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a specified investment trust pertaining to the dividends of surplus (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of surplus received by the domestic corporation or the foreign corporation that has a permanent establishment, out of the amount of foreign country's corporate tax paid by the Trust Corporation of the specified investment trust which has been deducted from the amount of income tax on the dividends of surplus pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act and the Local Corporation Tax Act to the domestic corporation or the foreign corporation that has a permanent establishment, the phrase "distribution of proceeds" in Article 69-2, paragraph (1) and Article 144-2-2, paragraph (1) of the Corporation Tax Act is deemed to be replaced with "distribution of proceeds or a dividend of surplus on beneficial interests in a specified investment trust prescribed in Article 9-6-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Specified Investment Trusts)", the phrase "that paragraph or that Act" is deemed to be replaced with "Article 176, paragraph (3) of the Income Tax Act or", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a specified investment trust prescribed in Article 9-6-4, paragraph (4) of the Act on Special Measures Concerning Taxation (".

Matters concerning the notice to be given by the Trust Corporation referred to in paragraph (1) to persons receiving payment of dividends of surplus of the specified investment trust and other necessary matters concerning the application of the provisions of the preceding paragraphs are specified by Cabinet Order.

Where an individual who has acquired property by inheritance or bequest (including a gift that takes effect upon the death of the donor; hereinafter the same applies in this paragraph) (including an acquisition deemed to be an acquisition of property by inheritance or bequest pursuant to the provisions of the Inheritance Tax Act or Article 70-7-3 or Article 70-7-7) and who has an amount of inheritance tax payable under the provisions of that Act with respect to the inheritance or bequest transfers, during the period from the day following the date of the commencement of the succession until the day on which three years have elapsed from the day following the due date for filing the return under the provisions of Article 27, paragraph (1) or Article 29, paragraph (1) of that Act pertaining to the inheritance (for assets acquired due to the occurrence of a cause prescribed in Article 4, paragraph (1) of that Act after the filing of those returns, the return under the provisions of Article 31, paragraph (2) of that Act pertaining to that acquisition), shares issued by a stock company other than a stock company that has issued shares listed on a financial instruments exchange as prescribed in Article 2, paragraph (16) of the Financial Instruments and Exchange Act or other shares specified by Cabinet Order as being similar thereto (hereinafter referred to in this paragraph as an "unlisted company"), which were included in the basis for calculating the taxable value pertaining to the amount of inheritance tax (where the provisions of Article 19 or Articles 21-14 through 21-18 of that Act apply, the amount deemed to be the taxable value pursuant to those provisions), to the unlisted company that issued them, and the amount of money that the individual who made the transfer received from the unlisted company as consideration for the transfer exceeds the amount of the portion, out of the amount of stated capital, etc. of the unlisted company as prescribed in Article 2, item (xvi) of the Corporation Tax Act, that corresponds to the shares prescribed in Article 25, paragraph (1) of the Income Tax Act pertaining to the shares that gave rise to the delivery of the money, the provisions of that paragraph do not apply to the amount of the excess.

Where the provisions of the preceding paragraph apply, with regard to the application of the provisions of Article 37-10, paragraph (3) and Article 37-12, paragraph (2), the phrase "amount" in those provisions is deemed to be replaced with "amount (excluding the amount to which the provisions of Article 9-7, paragraph (1) apply)".

Necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

Income tax is not imposed on dividends and similar income as prescribed in Article 24, paragraph (1) of the Income Tax Act (excluding dividends and similar income pertaining to distributions of proceeds from privately placed bond-based investment trusts, etc. prescribed in Article 8-2, paragraph (1) and dividends and similar income from foreign privately placed bond-based investment trusts, etc. prescribed in Article 8-3, paragraph (1); hereinafter referred to as "dividends and similar income" in this Article and the following Article) on listed shares, etc. in a tax-exempt account prescribed in Article 37-14, paragraph (1) (hereinafter referred to as "listed shares, etc. in a tax-exempt account" in this Article), which are to be received by a resident, or a nonresident who has a permanent establishment, who has opened a tax-exempt account prescribed in Article 37-14, paragraph (5), item (i) (hereinafter referred to as a "tax-exempt account" in this Article) at a business office (meaning a business office prescribed in that paragraph; the same applies in the following Article) of a financial instruments business operator, etc. prescribed in Article 37-14, paragraph (1) (hereinafter referred to as a "financial instruments business operator, etc." in this Article and the following Article), and which are listed below (limited to those for which the financial instruments business operator, etc. is a person in charge of handling payment in Japan who is specified by Cabinet Order; referred to as "dividends and similar income on listed shares, etc. in a tax-exempt account" in Article 37-14, paragraphs (35) and (36)).

the following dividends and similar income on listed shares, etc. in a tax-exempt account held in a tax-exempt management account prescribed in Article 37-14, paragraph (5), item (iii) that has been established in the tax-exempt account, which are to be received during the period from the date on which the tax-exempt management account was established until the date on which five years have elapsed from January 1 of the year that includes that date;

dividends and similar income on shares, etc. listed in Article 37-11, paragraph (2), item (i), other than those received from a domestic corporation by a person who, as of the record date prescribed in Article 8-4, paragraph (1), item (i) pertaining to the payment of the dividends and similar income paid by the domestic corporation, holds shares or capital contributions whose number or amount accounts for 3 percent or more of the total number or the total amount of issued shares (meaning issued shares as prescribed in that item) of or capital contributions to the domestic corporation;

distributions of proceeds from a securities investment trust other than a bond investment trust for which the public offering of beneficial rights upon its creation was conducted by way of a public offering prescribed in Article 8-4, paragraph (1), item (ii) (excluding a specified stock investment trust);

dividends and similar income on investment units of a specified investment corporation listed in Article 8-4, paragraph (1), item (iii).

the following dividends and similar income on listed shares, etc. in a tax-exempt account held in a cumulative investment account prescribed in Article 37-14, paragraph (5), item (v) that has been established in the tax-exempt account, which are to be received during the period from the date on which the cumulative investment account was established until the date on which 20 years have elapsed from January 1 of the year that includes that date;

distributions of proceeds on those beneficial rights in securities investment trusts other than bond investment trusts which fall under shares, etc. listed in Article 37-11, paragraph (2), item (i);

distributions of proceeds listed in (b) of the preceding item.

dividends and similar income listed in (a) or (b) of the preceding item on listed shares, etc. in a tax-exempt account held in a specified cumulative investment account prescribed in Article 37-14, paragraph (5), item (vii) that has been established in the tax-exempt account, which are to be received on or after the date on which the specified cumulative investment account was established;

dividends and similar income listed in item (i), (a) through (c) on listed shares, etc. in a tax-exempt account held in a specified tax-exempt management account prescribed in Article 37-14, paragraph (5), item (viii) that has been established in the tax-exempt account, which are to be received on or after the date on which the specified tax-exempt management account was established.

Income tax is not imposed on the dividends and similar income on listed shares, etc. in a minor's account prescribed in Article 37-14-2, paragraph (1) (hereinafter referred to as "listed shares, etc. in a minor's account" in this paragraph) which are listed in item (i), (a) through (c) of the preceding Article and which a resident, or a nonresident who has a permanent establishment, who has opened a minor's account prescribed in Article 37-14-2, paragraph (5), item (i) (hereinafter referred to as a "minor's account" in this Article) at a business office of a financial instruments business operator, etc. is to receive within the period specified in each of the following items for the category of listed shares, etc. in a minor's account listed in that item (limited to those for which the financial instruments business operator, etc. is a person in charge of handling payment in Japan as prescribed in that Article; hereinafter referred to as "dividends, etc. on listed shares, etc. in a minor's account" in this Article and Article 37-14-2, paragraphs (27) and (31)).

listed shares, etc. in a minor's account held in a tax-exempt management account prescribed in Article 37-14-2, paragraph (5), item (iii): the period from the date on which the tax-exempt management account was established in the minor's account until the date on which five years have elapsed from January 1 of the year that includes that date;

listed shares, etc. in a minor's account held in a continued management account prescribed in Article 37-14-2, paragraph (5), item (iv): the period from the date on which the continued management account was established in the minor's account until December 31 of the year preceding the year in which the person who opened the minor's account is 18 years of age as of January 1.

If, by December 31 of the year preceding the base year prescribed in Article 37-14-2, paragraph (4), item (iii) of a resident, or a nonresident who has a permanent establishment, who opens a minor's account and a taxable minor's account prescribed in paragraph (5), item (v) of that Article, or by December 31, 2023, whichever is earlier, an event of non-performance of contract, etc. prescribed in paragraph (6) of that Article (hereinafter referred to as an "event of non-performance of contract, etc." in this Article) occurs, the provisions of this Act and the Income Tax Act apply by deeming that the provisions of the preceding paragraph did not apply to the dividends, etc. on listed shares, etc. in a minor's account to be received during the period from the time of the establishment of the minor's account until the time of the occurrence of the event of non-performance of contract, etc., and that the dividends, etc. on listed shares, etc. in a minor's account were paid at the time of the occurrence of the event of non-performance of contract, etc.

The provisions of Article 8-5, paragraph (1) are to be applied to dividends, etc. on listed shares, etc. in a minor's account to which the provisions of the preceding paragraph have been applied, notwithstanding the provisions of paragraph (4) of that Article, for each total of the amount of dividend income pertaining to the dividends, etc. on listed shares, etc. in a minor's account deemed to have been paid at the time of the occurrence of the event of non-performance of contract, etc. referred to in the preceding paragraph.

If an individual who files a blue return has an amount of experimental research expenses for a year (excluding the year that includes the date on which the individual discontinued the business), the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that year by the rate specified in each of the following items according to the category of case listed in that item (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate specified in that item exceeds 10 percent, 10 percent) (hereinafter referred to as the "maximum tax credit" in this paragraph) is deducted, pursuant to the provisions of Cabinet Order, from the amount of income tax on the amount of gross income for that year. In this case, if the maximum tax credit exceeds the upper limit of the credit (meaning the amount equivalent to 25 percent of the individual's income tax on business income before adjustment for that year), the amount to be deducted is limited to the upper limit of the credit.

if the ratio of increase or decrease in experimental research expenses exceeds 3 percent (excluding the case listed in item (iii)): the rate obtained by adding to 8.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 3 percent by 0.25;

if the ratio of increase or decrease in experimental research expenses is 3 percent or less (excluding the case listed in the following item): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying 3 percent less the ratio of increase or decrease in experimental research expenses by 8.5/13 (or zero, if the rate so obtained is less than zero);

if the year is the year that includes the date on which the individual started the business (excluding the year that includes the date on which the individual succeeded to the business by inheritance or universal legacy; hereinafter referred to as the "year of starting business" in this Article), or if the amount of comparative experiment and research expenses is zero: 8.5 percent.

With regard to the application of the provisions of the preceding paragraph to an individual who files a blue return referred to in that paragraph for each year from 2022 to 2029, the maximum tax credit referred to in that paragraph is, notwithstanding the provisions of that paragraph, the amount specified in each of the following items according to the category of year listed in that item.

a year of 2027 or earlier (excluding a year listed in item (iii)): the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that year by the rate specified in each of the following according to the category of case listed therein (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate specified below exceeds 14 percent, 14 percent);

if the ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding the case listed in (d)): the rate obtained by adding to 11.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 12 percent by 0.375;

if the ratio of increase or decrease in experimental research expenses is zero or more and 12 percent or less (excluding the case listed in (d)): the rate obtained by subtracting from 11.5 percent the rate calculated by multiplying 12 percent less the ratio of increase or decrease in experimental research expenses by 0.25;

if the ratio of increase or decrease in experimental research expenses is less than zero (excluding the case listed in (d)): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying the percentage by which it falls short of zero by 8.5/30 (or zero, if the rate so obtained is less than zero);

if the year is the year of starting business, or if the amount of comparative experiment and research expenses is zero: 8.5 percent.

a year of 2028 or later (excluding a year listed in the following item): the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that year by the rate specified in each of the following according to the category of case listed therein (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate specified below exceeds 14 percent, 14 percent);

if the ratio of increase or decrease in experimental research expenses exceeds 15 percent (excluding the case listed in (d)): the rate obtained by adding to 11.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 15 percent by 0.375;

if the ratio of increase or decrease in experimental research expenses exceeds 3 percent and is 15 percent or less (excluding the case listed in (d)): the rate obtained by adding to 8.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 3 percent by 0.25;

if the ratio of increase or decrease in experimental research expenses is 3 percent or less (excluding the case listed in (d)): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying 3 percent less the ratio of increase or decrease in experimental research expenses by 8.5/13 (or zero, if the rate so obtained is less than zero);

if the year is the year of starting business, or if the amount of comparative experiment and research expenses is zero: 8.5 percent.

a year in which the ratio of experimental research expenses exceeds 10 percent: the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that year by the sum of the following rates (if that sum has a fraction beyond the third decimal place, the sum with that fraction discarded, and if that sum exceeds 14 percent, 14 percent).

the rate specified in (a) through (d) of the preceding item according to the category of case listed in (a) through (d) of that item (if that year is a year of 2027 or earlier, the rate specified in item (i), (a) through (d) according to the category of case listed in item (i), (a) through (d));

the rate calculated by multiplying the rate listed in (a) by the additional credit rate (meaning the rate calculated by multiplying the ratio of experimental research expenses less 10 percent by 0.5 (or 10 percent, if the rate so calculated exceeds 10 percent)).

With regard to the application of the provisions of paragraph (1) to an individual who files a blue return referred to in that paragraph for any of the years listed in the following items among the years from 2024 to 2029, the upper limit of the credit referred to in that paragraph is, notwithstanding the provisions of that paragraph, the amount obtained by adding to the amount equivalent to 25 percent of the individual's income tax on business income before adjustment for that year the amount calculated by multiplying that income tax on business income before adjustment by the rate specified in each of those items (if a year listed in item (i) falls under both a year listed in (a) of that item and a year listed in item (iii), the higher of the rate specified in item (i), (a) and the rate specified in item (iii), and if a year listed in item (ii) falls under both a year listed in (a) of that item and a year listed in item (iii), the higher of the rate specified in item (ii), (a) and the rate specified in item (iii)).

a year of 2027 or earlier (excluding the year of starting business and a year for which the amount of comparative experiment and research expenses is zero): the rate specified in each of the following according to the category of year listed therein;

a year in which the ratio of increase or decrease in experimental research expenses exceeds 4 percent: the rate calculated by multiplying that ratio of increase or decrease in experimental research expenses less 4 percent by 0.625 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

a year in which the ratio of increase or decrease in experimental research expenses is less than zero and the percentage by which it falls short of zero exceeds 4 percent (excluding a year listed in item (iii)): the rate obtained by subtracting from zero the rate calculated by multiplying that percentage by which it falls short less 4 percent by 0.625 (if the rate so calculated has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent).

a year of 2028 or later (excluding the year of starting business and a year for which the amount of comparative experiment and research expenses is zero): the rate specified in each of the following according to the category of year listed therein;

a year in which the ratio of increase or decrease in experimental research expenses exceeds 7 percent: the rate calculated by multiplying that ratio of increase or decrease in experimental research expenses less 7 percent by 0.625 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

a year in which the ratio of increase or decrease in experimental research expenses is less than zero and the percentage by which it falls short of zero exceeds 1 percent (excluding a year listed in the following item): the rate obtained by subtracting from zero the rate calculated by multiplying that percentage by which it falls short less 1 percent by 0.625 (if the rate so calculated has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent).

a year in which the ratio of experimental research expenses exceeds 10 percent: the rate calculated by multiplying that ratio of experimental research expenses less 10 percent by 2 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 10 percent, 10 percent).

If a small and medium sized business operator who files a blue return has an amount of experimental research expenses for a year (excluding a year for which the provisions of paragraph (1) are applied and the year that includes the date on which the operator discontinued the business), the amount equivalent to 12 percent of the amount of credit-eligible experimental research expenses for that year (hereinafter referred to as the "maximum credit for small and medium sized business operators" in this paragraph) is deducted, pursuant to the provisions of Cabinet Order, from the amount of income tax on the amount of gross income for that year. In this case, if the maximum credit for small and medium sized business operators exceeds the upper limit of the credit for small and medium sized business operators (meaning the amount equivalent to 25 percent of the small and medium sized business operator's income tax on business income before adjustment for that year), the amount to be deducted is limited to the upper limit of the credit for small and medium sized business operators.

With regard to the application of the provisions of the preceding paragraph to a small and medium sized business operator who files a blue return referred to in that paragraph for any of the years listed in the following items among the years from 2022 to 2029, the maximum credit for small and medium sized business operators referred to in that paragraph is, notwithstanding the provisions of that paragraph, the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that year by the rate obtained by adding to 12 percent the rate specified in each of those items (if that rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so obtained exceeds 17 percent, 17 percent).

a year in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding the year of starting business, a year for which the amount of comparative experiment and research expenses is zero, and a year in which the ratio of experimental research expenses exceeds 10 percent): the rate calculated by multiplying that ratio of increase or decrease in experimental research expenses less 12 percent by 0.375;

a year in which the ratio of experimental research expenses exceeds 10 percent (excluding a year that is neither the year of starting business nor a year for which the amount of comparative experiment and research expenses is zero and in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent): the rate calculated by multiplying 12 percent by the additional credit rate (meaning the rate calculated by multiplying that ratio of experimental research expenses less 10 percent by 0.5 (or 10 percent, if the rate so calculated exceeds 10 percent));

a year in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent and the ratio of experimental research expenses exceeds 10 percent (excluding the year of starting business and a year for which the amount of comparative experiment and research expenses is zero): the sum of the following rates.

the rate specified in item (i);

the rate calculated by multiplying the rate listed in (a) by the additional credit rate prescribed in the preceding item;

the rate specified in the preceding item.

With regard to the application of the provisions of paragraph (4) to a small and medium sized business operator who files a blue return referred to in that paragraph for any of the years listed in the following items among the years from 2022 to 2029, the upper limit of the credit for small and medium sized business operators referred to in that paragraph is, notwithstanding the provisions of that paragraph, the amount obtained by adding the amount specified in each of those items to the amount equivalent to 25 percent of the small and medium sized business operator's income tax on business income before adjustment for that year.

a year in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding the year of starting business and a year for which the amount of comparative experiment and research expenses is zero): the amount equivalent to 10 percent of that income tax on business income before adjustment;

a year in which the ratio of experimental research expenses exceeds 10 percent (excluding a year listed in the preceding item): the amount calculated by multiplying that income tax on business income before adjustment by the rate calculated by multiplying that ratio of experimental research expenses less 10 percent by 2 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 10 percent, 10 percent).

If, for a year (excluding a year for which the provisions of paragraph (1) are applied and the year that includes the date on which the individual discontinued the business), the amount of experimental research expenses of an individual who files a blue return exceeds the individual's amount of comparative experiment and research expenses, and the individual has a carried-over excess of the tax credit limit, the amount equivalent to the carried-over excess of the tax credit limit is deducted, pursuant to the provisions of Cabinet Order, from the amount of income tax on the amount of gross income for that year. In this case, if the individual's carried-over excess of the tax credit limit for that year exceeds the amount equivalent to 25 percent of the individual's income tax on business income before adjustment for that year (if the provisions of paragraph (4) are applied for that year, the remaining amount obtained by deducting, from the individual's upper limit of the credit for small and medium sized business operators prescribed in that paragraph, the amount deducted from the amount of income tax on the amount of gross income for that year pursuant to the provisions of that paragraph), the amount to be deducted is limited to the amount equivalent to that 25 percent.

In this Article and the following Article, the meanings of the terms listed in the following items are as prescribed respectively in those items:

amount of experimental research expenses: The sum of the following amounts (if there is an amount received from another person (including, where the individual is a nonresident, a place of business or similar place prescribed in Article 161, paragraph (1), item (i) of the Income Tax Act; the same applies in item (ix)) to cover the expenses pertaining to those amounts, the amount obtained by deducting the amount so received, and excluding, where the individual is a resident, the amount of expenses pertaining to the business that the individual conducts through a foreign office or similar establishment prescribed in Article 95, paragraph (4), item (i) of that Act);

the amount of the following expenses that is included in necessary expenses in calculating the amount of business income for each year (excluding any amount that falls under the cost of sales pertaining to the gross revenue from business income referred to in Article 37, paragraph (1) of the Income Tax Act or any other amount of expenses directly required to earn that gross revenue);

expenses required for experimental research relating to the manufacture of products or to the improvement, devising or invention of technology (limited to experimental research conducted to obtain new knowledge or to devise a new application of available knowledge) (excluding, where, of the amount accounted for as research and development expenses, there is an amount of expenses that should be treated as an amount required for the acquisition of fixed assets prescribed in (b) (meaning fixed assets prescribed in Article 2, paragraph (1), item (xviii) of the Income Tax Act; the same applies hereinafter in this item) or an amount of expenses that become deferred assets prescribed in (b), the depreciation allowance for those fixed assets or deferred assets, and losses from their retirement and losses from their transfer; the same applies in (2)), which are specified by Cabinet Order;

expenses required for experimental research specified by Cabinet Order as experimental research relating to the development of new services to be provided for consideration, which are specified by Cabinet Order.

of the amount of expenses listed in (a)(1) or (2) (limited to those pertaining to the amount of business income) that is accounted for as research and development expenses in each year, the amount of expenses that should be treated as an amount required for the acquisition of inventory (meaning inventory as prescribed in Article 2, paragraph (1), item (xvi) of the Income Tax Act; the same applies in item (viii)) or fixed assets (excluding fixed assets that, at the time they are put to use for business, are put to use for the experimental research prescribed in (a)(1) or the experimental research specified by Cabinet Order prescribed in (a)(2)), or the amount of expenses that become deferred assets (excluding deferred assets pertaining to expenses paid for the experimental research prescribed in (a)(1) or the experimental research specified by Cabinet Order prescribed in (a)(2)).

amount of credit-eligible experimental research expenses: The sum of the following amounts out of the amount of experimental research expenses;

the amount equivalent to 50 percent (70 percent for a year of 2027 or earlier, and 60 percent for the year 2028) of the amount of experimental research expenses pertaining to experimental research outsourced abroad;

the amount of experimental research expenses pertaining to experimental research other than experimental research outsourced abroad.

ratio of increase or decrease in experimental research expenses: The ratio of the amount of increase or decrease in experimental research expenses (meaning the amount obtained by subtracting the amount of comparative experiment and research expenses from the amount of experimental research expenses for the year for which the application of the provisions of paragraph (1) or (4) is sought (hereinafter referred to as the "applicable year" in this paragraph)) to that amount of comparative experiment and research expenses;

amount of comparative experiment and research expenses: The amount calculated by dividing the sum of the amounts of experimental research expenses for each year within three years before the covered year (meaning the year for which the application of the provisions of paragraph (1) or (4) or the preceding paragraph is sought; the same applies hereinafter in this item and in paragraph (12)) (if any of those years includes the date on which the individual started business, for that year, the amount calculated by multiplying the amount of experimental research expenses for that year by 12 and dividing the result by the number of months in the period during which the individual conducted business in that year) by the number of years within three years before the covered year (limited to the year that includes the date on which the individual started business and subsequent years);

income tax on business income before adjustment: The amount specified by Cabinet Order as the amount of income tax on the amount of business income;

ratio of experimental research expenses: The ratio of the amount of experimental research expenses for the applicable year to the average sales amount;

small and medium sized business operator: An individual specified by Cabinet Order as falling under the category of small and medium sized business operators;