Act on Special Measures Concerning Taxation

Where a land readjustment project under the Land Readjustment Act, land consolidation under the Act on Development of Infrastructures for New Cities, a land improvement project under the Land Improvement Act, or a residential block improvement project under the Urban Housing Supply Promotion Act has been implemented with regard to land, etc. that an individual owns, and the individual has acquired, through a replotting disposition pertaining to that land, etc., land, etc., or a part of a building prescribed in Article 93, paragraph (1), (2), (4) or (5) of the Land Readjustment Act and a share of co-ownership of the land on which the building stands, a part, etc. of the facility housing prescribed in Article 74, paragraph (1) of the Urban Housing Supply Promotion Act, or rights concerning the facility housing or the site of the facility housing prescribed in Article 90, paragraph (2) of the Urban Housing Supply Promotion Act, then with regard to the application of the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33 or Article 35 of the Income Tax Act, the land, etc. transferred through the replotting disposition (where settlement money has been acquired together with land, etc., or where reserved land has been designated pursuant to the provisions of Article 16, paragraph (1) of the Act on Vitalization in City Center (Act No. 92 of 1998), Article 39, paragraph (1) of the Act on Promotion of Smooth Transportation, etc. of Elderly Persons, Disabled Persons, etc. (Act No. 91 of 2006), Article 19, paragraph (1) of the Act on Promotion of Low-Carbon Cities (Act No. 84 of 2012), Article 21, paragraph (1) of the Urban Housing Supply Promotion Act, or Article 28, paragraph (1) of the Act on Comprehensive Development of Regional Core Cities with Relocation of Office-Work Function (Act No. 76 of 1992), the part of the transferred land, etc. specified by Cabinet Order as the part other than the part corresponding to the amount of the settlement money or the amount of the consideration for the reserved land) is deemed not to have been transferred.

Where a type 1 urban redevelopment project under the Urban Renewal Act has been implemented with regard to assets that an individual owns, and the individual has acquired, through a rights conversion pertaining to those assets, a right to acquire a part of a facility building or a right to acquire a building lease right for a part of a facility building, and a facility building site or a share of co-ownership thereof or a share of co-ownership of a superficies right (where the rights conversion pertaining to those assets is one set forth in a rights conversion plan established pursuant to the provisions of Article 110, paragraph (1) or Article 110-2, paragraph (1) of that Act, a right to acquire rights concerning a facility building site or rights concerning a facility building), or residential land within an individual use zone or a right to use and profit therefrom, or where assets that an individual owns have been purchased or expropriated in connection with the implementation of a type 2 urban redevelopment project under that Act and the individual has acquired, as consideration therefor, a right to receive the grant of a portion of a building facility prescribed in Article 118-11, paragraph (1) of that Act pursuant to the provisions of that paragraph (where the grant is one set forth in a management and disposal plan established pursuant to the provisions of Article 118-25-3, paragraph (1) of that Act, the grant of rights concerning a facility building site or a facility building), then with regard to the application of the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33 or Article 35 of the Income Tax Act, the assets transferred through the rights conversion or the purchase or expropriation (where compensation, etc. has been acquired together with the right to receive the grant, the part of the transferred assets specified by Cabinet Order as the part other than the part corresponding to the amount of the compensation, etc.; referred to as "former assets" in the following paragraph and paragraph (1) of the following Article) are deemed not to have been transferred.

Where the provisions of the preceding paragraph have been applied, if a transfer, inheritance (limited to inheritance involving qualified acceptance; hereinafter the same applies in this Article, Article 33-6, Article 36-4, Article 37-3, Article 37-6, and Article 37-8, paragraph (4)), legacy (limited to legacy to a corporation, legacy to an individual who is the trustee of a public interest trust prescribed in Article 2, paragraph (1), item (i) of the Act on Public Interest Trusts (hereinafter referred to in this paragraph as a "public interest trust") (limited to legacy for the purpose of making it trust property), and universal legacy to an individual involving qualified acceptance; hereinafter the same applies in this Article, Article 33-6, Article 36-4, Article 37-3, Article 37-6, and Article 37-8, paragraph (4)) or gift (limited to gift to a corporation and gift to an individual who is the trustee of a public interest trust (limited to gift for the purpose of making it trust property); hereinafter the same applies in this Article, Article 33-6, Article 36-4, Article 37-3, Article 37-6, and Article 37-8, paragraph (4)) has been made with regard to the right to acquire a part of a facility building or the right to acquire a building lease right for a part of a facility building referred to in that paragraph (including a right to acquire rights concerning a facility building pertaining to a rights conversion plan established pursuant to the provisions of Article 110, paragraph (1) or Article 110-2, paragraph (1) of the Urban Renewal Act) or the right to receive the grant prescribed in the preceding paragraph, or if an offer of a wish to acquire under the provisions of Article 118-5, paragraph (1) of the Urban Renewal Act has been withdrawn with regard to the portion of a building facility prescribed in the preceding paragraph (including rights concerning a facility building site or a facility building pertaining to a management and disposal plan established pursuant to the provisions of Article 118-25-3, paragraph (1) of that Act) (including where the offer of a wish to acquire is deemed to have been withdrawn pursuant to the provisions of Article 118-12, paragraph (1) or Article 118-19, paragraph (1) of that Act), then, pursuant to the provisions of Cabinet Order, the provisions of Article 28-4, Article 31, Article 32 or Article 33 of this Act, or Article 27, Article 33, Article 35, Article 40 or Article 59 of the Income Tax Act apply by deeming that a transfer, inheritance, legacy or gift of the former assets, or a transfer of the former assets through expropriation, etc., has been made on the date of the transfer, inheritance, legacy or gift or of the withdrawal of the offer of a wish to acquire, or on the date on which the withdrawal is deemed to have been made pursuant to the provisions of Article 118-12, paragraph (1) or Article 118-19, paragraph (1) of the Urban Renewal Act; and where an amount equivalent to the difference prescribed in Article 104, paragraph (1) of the Urban Renewal Act (including as applied with the deemed replacement of terms pursuant to the provisions of Article 110-2, paragraph (6) or Article 111 of that Act) or Article 118-24 of that Act (including as applied with the deemed replacement of terms pursuant to the provisions of Article 118-25-3, paragraph (3) of that Act) has come to be granted pursuant to those provisions with regard to the right to acquire a part of a facility building and a facility building site or a share of co-ownership thereof or a share of co-ownership of a superficies right referred to in the preceding paragraph (including a right to acquire rights concerning a facility building site or rights concerning a facility building pertaining to a rights conversion plan established pursuant to the provisions of Article 110-2, paragraph (1) of the Urban Renewal Act), or residential land within an individual use zone or a right to use and profit therefrom, or the right to receive the grant prescribed in the preceding paragraph, the provisions of Article 33 apply by deeming that a transfer through expropriation, etc. has been made, on the day on which it has come to be so granted, with regard to the part of the former assets specified by Cabinet Order as corresponding to that amount.

Where a disaster prevention block improvement project under the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts has been implemented with regard to assets that an individual owns, and the individual has acquired, through a rights conversion pertaining to those assets, a right to acquire a part of a disaster prevention facility building or a right to acquire a building lease right for a part of a disaster prevention facility building, and a disaster prevention facility building site or a share of co-ownership thereof or a share of co-ownership of a superficies right (where the rights conversion pertaining to those assets is one set forth in a rights conversion plan established pursuant to the provisions of Article 255, paragraph (1) or Article 257, paragraph (1) of that Act, a right to acquire rights concerning a disaster prevention facility building site or rights concerning a disaster prevention facility building), or residential land within an individual use zone or a right to use and profit therefrom, then with regard to the application of the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33 or Article 35 of the Income Tax Act, the assets transferred through the rights conversion (referred to as "former assets in a disaster prevention project" in the following paragraph and paragraph (1) of the following Article) are deemed not to have been transferred.

Where the provisions of the preceding paragraph have been applied, if a transfer, inheritance, legacy or gift has been made with regard to the right to acquire a part of a disaster prevention facility building or the right to acquire a building lease right for a part of a disaster prevention facility building referred to in that paragraph (including a right to acquire rights concerning a disaster prevention facility building pertaining to a rights conversion plan established pursuant to the provisions of Article 255, paragraph (1) or Article 257, paragraph (1) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts), then, pursuant to the provisions of Cabinet Order, the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33, Article 35, Article 40 or Article 59 of the Income Tax Act apply by deeming that a transfer, inheritance, legacy or gift of the former assets in a disaster prevention project has been made on the date of the transfer, inheritance, legacy or gift; and where an amount equivalent to the difference prescribed in Article 248, paragraph (1) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts (including as applied with the deemed replacement of terms pursuant to provisions specified by Cabinet Order) has come to be granted pursuant to the provisions of that paragraph with regard to the right to acquire a part of a disaster prevention facility building and a disaster prevention facility building site or a share of co-ownership thereof or a share of co-ownership of a superficies right referred to in the preceding paragraph (including a right to acquire rights concerning a disaster prevention facility building site or rights concerning a disaster prevention facility building pertaining to a rights conversion plan established pursuant to the provisions of Article 255, paragraph (1) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts), or residential land within an individual use zone or a right to use and profit therefrom, the provisions of Article 33 apply by deeming that a transfer through expropriation, etc. has been made, on the day on which it has come to be so granted, with regard to the part of the former assets in a disaster prevention project specified by Cabinet Order as corresponding to that amount.

Where a condominium regeneration project prescribed in Article 2, paragraph (1), item (x) of the Act on Facilitation of the Regeneration, etc. of Condominiums has been implemented with regard to assets that an individual owns (limited to those specified by Cabinet Order; hereinafter the same applies in this paragraph), and the individual has acquired, through a rights conversion under that Act pertaining to those assets, a right to acquire rights concerning the post-regeneration condominium prescribed in item (xiv) of that paragraph or a right to use the site pertaining to that post-regeneration condominium (meaning the right to use the site prescribed in item (xxxv) of that paragraph), then with regard to the application of the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33 or Article 35 of the Income Tax Act, the assets transferred through the rights conversion (referred to as "assets before conversion" in the following paragraph) are deemed not to have been transferred.

Where the provisions of the preceding paragraph have been applied, if a transfer, inheritance, legacy or gift has been made with regard to the right to acquire rights concerning the post-regeneration condominium referred to in that paragraph, then, pursuant to the provisions of Cabinet Order, the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33, Article 35, Article 40 or Article 59 of the Income Tax Act apply by deeming that a transfer, inheritance, legacy or gift of the assets before conversion has been made on the date of the transfer, inheritance, legacy or gift; and where an amount equivalent to the difference prescribed in Article 85 of the Act on Facilitation of the Regeneration, etc. of Condominiums has come to be granted pursuant to the provisions of that Article with regard to the right to acquire rights concerning that post-regeneration condominium or the right to use the site pertaining to the post-regeneration condominium referred to in that paragraph, the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33 or Article 35 of the Income Tax Act apply by deeming that a transfer has been made, on the day on which it has come to be so granted, with regard to the part of the assets before conversion specified by Cabinet Order as corresponding to that amount.

Where a site division project prescribed in Article 2, paragraph (1), item (xxviii) of the Act on Facilitation of the Regeneration, etc. of Condominiums has been implemented with regard to assets that an individual owns, and the individual has acquired, through a site rights conversion under that Act pertaining to those assets, a removal site share prescribed in Article 191, paragraph (1), item (ii) of that Act, a non-removal site share, etc. prescribed in item (v) of that paragraph, or a share of co-ownership of the housing complex common areas after the site division referred to in item (viii) of that paragraph, then with regard to the application of the provisions of Article 28-4, Article 31 or Article 32 of this Act, or Article 27, Article 33 or Article 35 of the Income Tax Act, the assets transferred through the site rights conversion (where an amount equivalent to the difference prescribed in Article 205 of the Act on Facilitation of the Regeneration, etc. of Condominiums has come to be granted with regard to those assets pursuant to the provisions of that Article, the part of the transferred assets specified by Cabinet Order as the part other than the part corresponding to the amount equivalent to the difference) are deemed not to have been transferred.

Where a land readjustment project for reconstruction of a disaster-damaged urban district has been implemented with regard to land, etc. that an individual owns (excluding inventory assets prescribed in Article 2, paragraph (1), item (xvi) of the Income Tax Act and other assets equivalent thereto specified by Cabinet Order; hereinafter the same applies in this Article) located within a promotion area for reconstruction of a disaster-damaged urban district, and the individual has acquired, through a replotting disposition pertaining to that land, etc., land, etc. and housing prescribed in Article 15, paragraph (1) of the Act on Special Measures concerning Reconstruction of Urban Districts Damaged by Disaster or housing, etc. prescribed in paragraph (2) of that Article constructed on that land, etc. (hereinafter referred to as "replacement housing, etc." in this paragraph, the following paragraph, and Article 33-6, paragraph (1), item (iv)), then with regard to the application of the provisions of Article 31 or Article 32 of this Act, or Article 33 of the Income Tax Act, the land, etc. transferred through the replotting disposition (where settlement money has been acquired together with replacement housing, etc., or where reserved land has been designated pursuant to the provisions of Article 17, paragraph (1) of the Act on Special Measures concerning Reconstruction of Urban Districts Damaged by Disaster, the part of the transferred land, etc. specified by Cabinet Order as the part other than the part corresponding to the amount of the settlement money or the amount of the consideration for the reserved land) is deemed not to have been transferred.

The provisions of the preceding paragraph apply only if the tax return for the year for which the individual seeks the application of the provisions of that paragraph contains a statement to the effect that the individual seeks the application of the provisions of that paragraph, and has attached to it a document, delivered by the project implementer of the land readjustment project for reconstruction of a disaster-damaged urban district, certifying that the individual acquired replacement housing, etc. through a replotting disposition pertaining to land, etc., and other documents specified by Order of the Ministry of Finance.

Even where no tax return has been filed, or where a tax return without the statement or attachment referred to in the preceding paragraph has been filed, the district director may, when the district director finds that there were unavoidable circumstances for the failure to file the return or to include the statement or attachment, apply the provisions of paragraph (9), only if a document containing the statement and the documents specified by Order of the Ministry of Finance referred to in that paragraph are submitted.

The provisions of paragraph (1) do not apply to a transfer of land, etc. through a replotting disposition prescribed in paragraph (9) to which the provisions of that paragraph apply.

With regard to the application of the provisions of paragraph (1) in the case where a land readjustment project for reconstruction of a disaster-damaged urban district has been implemented with regard to land or a right existing on land that an individual owns located within a promotion area for reconstruction of a disaster-damaged urban district, and the individual has acquired, through a replotting disposition pertaining to that land or right existing on land, land, etc. and housing prescribed in Article 15, paragraph (1) of the Act on Special Measures concerning Reconstruction of Urban Districts Damaged by Disaster or housing, etc. prescribed in paragraph (2) of that Article constructed on that land, etc., except where the provisions of paragraph (9) apply to the transfer of the land or right existing on land through the replotting disposition, the housing or housing, etc. acquired through the replotting disposition is deemed to fall under the settlement money prescribed in paragraph (1), and the value of the housing or housing, etc. is deemed to fall under the amount of the settlement money prescribed in that paragraph.