Act on Special Measures Concerning Taxation

Where a corporation that files a blue return and that is a certified decommissioning operator prescribed in Article 55-3, paragraph (1) of the Nuclear Damage Compensation and Decommissioning Facilitation Corporation Act (Act No. 94 of 2011) (referred to in paragraph (3), item (i) as a "certified decommissioning operator"), in each business year that includes a day within the period from the date of enforcement of the Act Partially Amending the Nuclear Damage Compensation and Decommissioning Facilitation Corporation Act (Act No. 30 of 2017) to March 31, 2029 (excluding the business year that includes the day of dissolution and each business year during liquidation), in order to appropriate it for the expenditure of the costs required for the removal of severely damaged reactor cores, etc. (referred to in the following paragraph as the "cost of removing reactor cores, etc.") pertaining to a power reactor facility prescribed in Article 43-3-5, paragraph (2), item (v) of the Act on the Regulation of Nuclear Source Material, Nuclear Fuel Material and Reactors (Act No. 166 of 1957) or a commercial reprocessing facility prescribed in Article 38, paragraph (1), item (ii) of the Nuclear Damage Compensation and Decommissioning Facilitation Corporation Act, which has been designated as a specified nuclear facility pursuant to the provisions of Article 64-2, paragraph (1) of the Act on the Regulation of Nuclear Source Material, Nuclear Fuel Material and Reactors (hereinafter referred to in this paragraph and the following paragraph as a "specified nuclear facility"), sets aside as a reserve for removal of reactor cores, etc. from specified nuclear facilities, for each specified nuclear facility, by the method of accounting as an expense or loss, an amount not exceeding the amount equivalent to the amount deposited with the Nuclear Damage Compensation and Decommissioning Facilitation Corporation as decommissioning, etc. reserve funds pursuant to the provisions of Article 55-3, paragraph (1) and paragraph (2) of the Nuclear Damage Compensation and Decommissioning Facilitation Corporation Act for that specified nuclear facility in that business year, the amount so set aside is included in deductible expenses in calculating the amount of income for that business year.

Where a corporation that has set aside the reserve for removal of reactor cores, etc. from specified nuclear facilities referred to in the preceding paragraph has expended the cost of removing reactor cores, etc. for the specified nuclear facility pertaining to that reserve for removal of reactor cores, etc. from specified nuclear facilities, the amount equivalent to the amount so expended, out of the amount of the reserve for removal of reactor cores, etc. from specified nuclear facilities pertaining to that specified nuclear facility as of the day of the expenditure (where there are amounts that have been included, or are to be included, in gross profit by that day pursuant to the provisions of this paragraph or the following paragraph, the amount obtained by deducting those amounts; the same applies in that paragraph and paragraph (4)), is included in gross profit in calculating the amount of income for the business year that includes the day of the expenditure.

Where a corporation that has set aside the reserve for removal of reactor cores, etc. from specified nuclear facilities referred to in paragraph (1) comes to fall under any of the cases listed in the following items, the amount equivalent to the amount specified in that item is included in gross profit in calculating the amount of income for the business year that includes the day on which it came to fall under that case.

where the corporation has ceased to be a certified decommissioning operator: the amount of the reserve for removal of reactor cores, etc. from specified nuclear facilities as of the day on which it ceased to be a certified decommissioning operator;

where the corporation has dissolved: the amount of the reserve for removal of reactor cores, etc. from specified nuclear facilities as of the day of dissolution;

where the corporation has reversed the reserve for removal of reactor cores, etc. from specified nuclear facilities in a case other than the cases referred to in the preceding paragraph, the preceding two items and the following paragraph: the amount equivalent to the amount reversed out of the amount of the reserve for removal of reactor cores, etc. from specified nuclear facilities as of the day of the reversal.

Where a corporation that has set aside the reserve for removal of reactor cores, etc. from specified nuclear facilities referred to in paragraph (1) has had the approval for filing blue returns revoked, or has submitted a written notification to the effect that it will discontinue filing returns by blue return, the amount of the reserve for removal of reactor cores, etc. from specified nuclear facilities as of the day on which the fact that gave rise to the revocation of the approval occurred (where it falls under any of the cases listed in the following items, the day specified in that item) or the day on which the written notification was submitted (where the day on which the written notification was submitted is after the end of the business year in which it discontinued filing returns by blue return, the end of that business year) is included in gross profit in calculating the amount of income for the business year that includes that day. In this case, the provisions of the preceding two paragraphs do not apply.

where a group tax sharing corporation has received the notice under Article 127, paragraph (2) of the Corporation Tax Act pertaining to the disposition of that revocation: the day before the day on which it received the notice (where that day before is the end of the business year of the group tax sharing parent corporation of that group tax sharing corporation, the day on which it received the notice);

where a corporation that was a group tax sharing corporation has received the notice under Article 127, paragraph (2) of the Corporation Tax Act pertaining to the disposition of that revocation: the day on which the fact that gave rise to the revocation of the approval occurred or the day before the day on which the approval under Article 64-9, paragraph (1) of that Act ceased to be effective (where that day before is the end of the business year of the group tax sharing parent corporation of that corporation, the day on which the approval ceased to be effective), whichever is later.

The provisions of Article 56, paragraph (6) apply mutatis mutandis where the provisions of paragraph (1) are applied.

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