Act on Special Measures Concerning Taxation

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 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.