Act on Special Measures Concerning Taxation

If an individual who has applied the provisions of Article 41, paragraph (1) with regard to the income tax for the year that includes the date of use as a residence prescribed in paragraph (1) of that Article (hereinafter referred to as the "date of moving in" in this Article) or for any year within the eight years following that year (or within the 11 years, if the year that includes the date of moving in is 2022 or 2023 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a residential house, acquisition of a renovated resale house, new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is 2024 or 2025 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is any year from 2026 to 2030 and the provisions of Article 41 are applied pursuant to the provisions of paragraph (6) of that Article, or if the provisions of that Article are applied pursuant to the provisions of paragraph (11) or paragraph (14) of that Article) is to receive, in any year within the nine years following the year that includes the date of moving in (or within the 12 years, if the year that includes the date of moving in is 2022 or 2023 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a residential house, acquisition of a renovated resale house, new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is 2024 or 2025 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is any year from 2026 to 2030 and the provisions of Article 41 are applied pursuant to the provisions of paragraph (6) of that Article, or if the provisions of that Article are applied pursuant to the provisions of paragraph (11) or paragraph (14) of that Article), payment of a salary or other wage prescribed in Article 190 of the Income Tax Act to which the provisions of that Article apply (hereinafter referred to as a "salary or other wage" in this Article), and has submitted a return stating that the individual seeks the application of the provisions of this paragraph, the estimated amount of the individual's total income under Article 2, paragraph (1), item (xxx) of that Act for that year (referred to as "total income" in the following paragraph) and other matters specified by Order of the Ministry of Finance, via the person paying the salary or other wage, to the district director having jurisdiction over the place for tax payment under Article 17 of that Act (or, where a designation has been made under Article 18, paragraph (2) of that Act, the designated place for tax payment) for the income tax on the salary or other wage, then, with regard to the application of the provisions of Article 190 of that Act to the salary or other wage for that year, the amount of tax listed in item (ii) of that Article is the amount equivalent to the amount after deducting, from the amount equivalent to that amount of tax, the amount equivalent to the amount to be deducted under Article 41, paragraph (1) (limited to the amount stated in the return, and, if that amount exceeds that amount of tax, the amount equivalent to that amount of tax).

The return prescribed in the preceding paragraph must be submitted, by the day before the day on which the individual receives the last payment of a salary or other wage for that year from the person paying the salary or other wage referred to in that paragraph, as provided by Order of the Ministry of Finance, with the certificate issued under paragraph (7) and other documents attached, and may not be submitted if, as of that day, the estimated amount of the individual's total income for that year exceeds 20,000,000 yen (or 10,000,000 yen, if the year that includes the date of moving in is any year from 2022 to 2025 and the housing acquisition, etc. relating to the residence is new construction, etc. of a special residential house prescribed in Article 41, paragraph (16) that is deemed to fall under new construction, etc. of a residential house pursuant to the provisions of that paragraph (hereinafter referred to as "new construction, etc. of a special residential house" in this paragraph) or new construction or acquisition, etc. of a special certified house, etc. prescribed in paragraph (18) of that Article that is deemed to fall under building or acquiring a certified house, etc. prescribed in paragraph (6) of that Article pursuant to the provisions of paragraph (18) of that Article (hereinafter referred to as "new construction or acquisition, etc. of a special certified house, etc." in this paragraph), or if the year that includes the date of moving in is any year from 2026 to 2030 and the housing acquisition, etc. relating to the residence is new construction, etc. of a special residential house, an acquisition of a special renovated resale house prescribed in paragraph (17) of that Article that is deemed to fall under acquisition of a renovated resale house pursuant to the provisions of that paragraph, an acquisition of a special existing house prescribed in paragraph (17) of that Article that is deemed to fall under acquisition of an existing house prescribed in paragraph (1) of that Article pursuant to the provisions of paragraph (17), special extension, rebuilding, etc. prescribed in paragraph (17) of that Article that is deemed to fall under extension, rebuilding, etc. prescribed in paragraph (1) of that Article pursuant to the provisions of paragraph (17), or new construction or acquisition, etc. of a special certified house, etc.).

In the case referred to in paragraph (1), when the person paying the salary or other wage via whom the return prescribed in that paragraph is to be submitted has received the return, the return is deemed to have been submitted to the district director prescribed in that paragraph on the date on which that person has received it.

An individual who has applied the provisions of Article 41, paragraph (1) with regard to the income tax for the year that includes the date of moving in or for any year within the eight years following that year (or within the 11 years, if the year that includes the date of moving in is 2022 or 2023 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a residential house, acquisition of a renovated resale house, new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is 2024 or 2025 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is any year from 2026 to 2030 and the provisions of Article 41 are applied pursuant to the provisions of paragraph (6) of that Article, or if the provisions of that Article are applied pursuant to the provisions of paragraph (11) or paragraph (14) of that Article) may, if the person paying the salary or other wage via whom the return prescribed in paragraph (1) is to be submitted satisfies the requirements specified by Cabinet Order prescribed in Article 198, paragraph (2) of the Income Tax Act, provide the matters to be stated in the return to the person paying the salary or other wage by electronic or magnetic means (meaning the electronic or magnetic means prescribed in that paragraph; the same applies in paragraph (8)) in lieu of submitting the return. In this case, the provisions of the second sentence of paragraph (2) of that Article apply mutatis mutandis.

With regard to the application of the provisions of paragraph (3) where the provisions of the preceding paragraph apply, the phrase "the return" in that paragraph is deemed to be replaced with "the matters to be stated in the return", and the phrase "has received" with "has been provided with".

Where the provisions of paragraph (1) apply, the following applies:

with regard to the application of the provisions of Article 2, paragraph (1), item (xlv) of the Income Tax Act, the phrase "through Chapter VI (Withholding at the Source)" in that item is deemed to be replaced with "through Chapter VI (Withholding at the Source) and Article 41-2-2, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Income Tax Credit Where a Person Has Housing Loans, etc. in Year-End Adjustment)";

with regard to the application of the provisions of Article 120, paragraph (1) of the Income Tax Act, the phrase "the amount of dividend tax credit" in that paragraph is deemed to be replaced with "the total of the amount of dividend tax credit and the amount deducted pursuant to the provisions of Article 41-2-2, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Income Tax Credit Where a Person Has Housing Loans, etc. in Year-End Adjustment)".

The district director must, as provided by Cabinet Order, issue a certificate concerning the date of moving in and other matters, if an application for its issuance has been filed by an individual who has applied the provisions of Article 41, paragraph (1) with regard to the income tax for the year that includes the date of moving in or for any year within the eight years following that year (or within the 11 years, if the year that includes the date of moving in is 2022 or 2023 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a residential house, acquisition of a renovated resale house, new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is 2024 or 2025 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is any year from 2026 to 2030 and the provisions of Article 41 are applied pursuant to the provisions of paragraph (6) of that Article, or if the provisions of that Article are applied pursuant to the provisions of paragraph (11) or paragraph (14) of that Article).

An individual who has applied the provisions of Article 41, paragraph (1) with regard to the income tax for the year that includes the date of moving in (limited to any year from 2019 to 2030; hereinafter referred to as the "tax year of moving in" in this paragraph) or for any year within the eight years following the tax year of moving in (or within the 11 years, if the year that includes the date of moving in is 2022 or 2023 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a residential house, acquisition of a renovated resale house, new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is 2024 or 2025 and the housing acquisition, etc. relating to the residence falls under new construction, etc. of a certified house, etc. or acquisition of a renovated resale certified house, etc., if the year that includes the date of moving in is any year from 2026 to 2030 and the provisions of Article 41 are applied pursuant to the provisions of paragraph (6) of that Article, or if the provisions of that Article are applied pursuant to the provisions of paragraph (11) or paragraph (14) of that Article) may, when providing the matters to be stated in the return prescribed in paragraph (1) by electronic or magnetic means pursuant to the provisions of paragraph (4), provide, as provided by Order of the Ministry of Finance, the matters to be stated in the documents to the person paying the salary or other wage via whom the return is to be submitted by electronic or magnetic means, in lieu of submitting the documents under the provisions of paragraph (2). In this case, the individual is deemed to have submitted the return with the documents attached pursuant to the provisions of that paragraph.