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Subsection 2 Special Deduction for Income in the Case of Purchase of Sites, etc. for Specified Projects第二款 特定事業の用地買収等の場合の所得の特別控除
Article 65-3第六十五条の三
Special Deduction for Income in the Case of Transfer of Land, etc. for Specified Land Readjustment Projects, etc.（特定土地区画整理事業等のために土地等を譲渡した場合の所得の特別控除）
Article 65-3, paragraph (1)
Where land or a right existing on land held by a corporation (excluding a corporation in liquidation; hereinafter the same applies in this Subsection) (excluding that which falls under inventory assets; hereinafter referred to as "land, etc." in this Subsection) has come to fall under any of the cases listed in the following items, if the amount of the consideration or the value of the assets (hereinafter referred to as "assets acquired by exchange" in this paragraph) that the corporation has acquired through the transfer of the land, etc. that has come to fall under any of those items (where the value of the assets acquired by exchange acquired through the transfer exceeds the value of the transferred land, etc., and an amount equivalent to the difference has been paid upon the transfer, the amount after deducting the amount equivalent to that difference) exceeds the total of the book value of the transferred land, etc. immediately before the transfer and the amount calculated pursuant to the provisions of Cabinet Order as the expenses required for the transfer of the transferred land, etc. that pertain to the consideration or the assets acquired by exchange, and the corporation does not receive the application of the provisions of Articles 65-7 through 65-9 or Article 66 with regard to any of the land, etc. that has so come to fall under those items during the portion of that business year falling within the same calendar year, the lower of the amount of that excess and 20 million yen (where there is an amount that has been included or is to be included in deductible expenses pursuant to the provisions of this paragraph with regard to the amount of consideration or the value of the assets acquired by exchange acquired through transfers in the year that includes the date of the transfer, the amount after deducting that amount) is included in deductible expenses in calculating the amount of income for the business year that includes the date of the transfer.
where land, etc. is purchased by the State, a local government, the Urban Renaissance Agency or a Local Housing Corporation (including an organization established by a local government that is specified by Cabinet Order) for use in a project for the improvement of public facilities, the development of residential land, the construction of apartment houses, or the development of buildings and building sites, which any of those persons carries out as a land readjustment project under the Land Readjustment Act, a residential block improvement project under the Urban Housing Supply Promotion Act, a type 1 urban redevelopment project under the Urban Renewal Act, or a disaster prevention block improvement project under the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts (excluding the case where the provisions of Article 64, paragraph (1), items (iii)-4 through (iii)-6 apply);
where land, etc. within a planned project site prescribed in Article 56, paragraph (1) of the City Planning Act for a type 1 urban redevelopment project under the Urban Renewal Act is purchased, pursuant to the provisions of that paragraph, by an urban redevelopment association established with the authorization referred to in Article 11, paragraph (2) of the Urban Renewal Act that carries out the type 1 urban redevelopment project;
where land, etc. within a planned project site prescribed in Article 56, paragraph (1) of the City Planning Act for a disaster prevention block improvement project under the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts is purchased, pursuant to the provisions of that paragraph, by a disaster prevention block improvement project association established with the authorization referred to in Article 136, paragraph (2) of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts that carries out the disaster prevention block improvement project;
where land, etc. is purchased pursuant to the provisions of Article 12, paragraph (1) of the Act on Special Measures concerning Preservation of Traditional Scenic Beauty in Ancient Capitals, Article 17, paragraph (1) or paragraph (3) of the Urban Green Space Conservation Act, Article 8, paragraph (1) of the Act on Special Measures concerning Countermeasures against Aircraft Noise around Specified Airports, Article 49, paragraph (4) of the Civil Aeronautics Act (including as applied mutatis mutandis pursuant to Article 55-2, paragraph (3) of that Act), Article 5, paragraph (2) of the Act on Improvement of Living Environment of Areas Around Defense Facilities, or Article 9, paragraph (2) of the Act on Prevention of Damage caused by Aircraft Noise in Areas around Public Airports, or the provisions of any other Act specified by Cabinet Order;
where target land prescribed in Article 13, paragraph (1) of the Act on Special Measures concerning Preservation of Traditional Scenic Beauty in Ancient Capitals is purchased, pursuant to the provisions of paragraph (4) of that Article, by the urban greening support organization referred to in that paragraph (limited to the case where the urban greening support organization satisfies the requirements specified by Cabinet Order, such as being an incorporated public interest association or an incorporated public interest foundation);
where target land prescribed in Article 17-2, paragraph (1) of the Urban Green Space Conservation Act is purchased, pursuant to the provisions of paragraph (4) of that Article, by the urban greening support organization referred to in that paragraph (limited to the case where the urban greening support organization satisfies the requirements specified by Cabinet Order, such as being an incorporated public interest association or an incorporated public interest foundation);
where land designated as an Important Cultural Property pursuant to the provisions of Article 27, paragraph (1) of the Act on Protection of Cultural Properties, land designated as a historic site, place of scenic beauty or natural monument pursuant to the provisions of Article 109, paragraph (1) of that Act, land within the area designated as a special zone pursuant to the provisions of Article 20, paragraph (1) of the Natural Parks Act, or land within the area designated as a special district pursuant to the provisions of Article 25, paragraph (1) of the Nature Conservation Act is purchased by the State or a local government (including an organization established by it that is specified by Cabinet Order) (this includes the case where the land designated as an Important Cultural Property or the land designated as a historic site, place of scenic beauty or natural monument is purchased by the National Institutes for Cultural Heritage, the National Museum of Nature and Science, a local independent administrative agency (limited to one specified by Cabinet Order from among those whose main purpose is the services listed in Article 21, item (vi) of the Local Independent Administrative Agency Act) or a cultural property preservation and utilization support organization prescribed in Article 192-2, paragraph (1) of the Act on Protection of Cultural Properties (where the land is purchased by the cultural property preservation and utilization support organization, limited to the case where that organization satisfies the requirements specified by Cabinet Order, such as being an incorporated public interest association or an incorporated public interest foundation), and excludes the case where the provisions of Article 64, paragraph (1), item (ii) apply);
where land within the area designated as a protection forest pursuant to the provisions of Article 25 or Article 25-2 of the Forest Act or land within a protection facility district designated pursuant to the provisions of Article 41 of that Act is purchased by the State or a local government for a protection facility project prescribed in paragraph (3) of that Article;
where farmland, etc. prescribed in Article 3, paragraph (2), item (vi) of the Act on Special Financial Support for Promoting Group Relocation for Disaster Mitigation located within a relocation promotion area prescribed in Article 2, paragraph (1) of that Act that is specified in a group relocation promotion project plan prescribed in Article 3, paragraph (1) of that Act for which the consent referred to in that paragraph has been obtained is purchased by a local government based on the group relocation promotion project plan (excluding the case where the provisions of Article 64, paragraph (1), item (ii) apply);
where agricultural land prescribed in Article 4, paragraph (1), item (i) of the Act on Promotion of Improvement of Agricultural Management Foundation that is located within the area prescribed in Article 22-4, paragraph (1) of that Act is purchased, based on the request referred to in paragraph (2) of that Article, by the farmland intermediary management organization referred to in that paragraph (limited to the case where the farmland intermediary management organization satisfies the requirements specified by Cabinet Order, such as being an incorporated public interest association or an incorporated public interest foundation).
Where, with regard to land, etc. held by a corporation, two or more purchases referred to in those provisions have been made for use in a single project pertaining to the purchases referred to in the items of the preceding paragraph, if those purchases were made over two or more years, the provisions of that paragraph do not apply to the purchases other than those made in the year in which the purchases referred to in those provisions were first made.
Where, with regard to land, etc. held by a corporation, the purchases referred to in those provisions have been made, for use in a single project pertaining to the purchases referred to in the items of paragraph (1), from a corporation that falls under the category of corporation listed in any of the following items, the provisions of that paragraph do not apply to the purchases specified in each of those items:
the merged corporation in a qualified merger: the purchase made with regard to the assets transferred, where the merging corporation has received a transfer of assets pertaining to the project through the qualified merger;
the splitting corporation in a qualified company split: the purchase made with regard to the assets transferred, where the succeeding corporation in a company split has received a transfer of assets pertaining to the project through the qualified company split;
the corporation making a capital contribution in kind in a qualified capital contribution in kind: the purchase made with regard to the assets transferred, where the corporation receiving a capital contribution in kind has received a transfer of assets pertaining to the project through the qualified capital contribution in kind;
the corporation making a distribution in kind in a qualified in-kind distribution: the purchase made with regard to the assets transferred, where the corporation receiving a distribution in kind has received a transfer of assets pertaining to the project through the qualified in-kind distribution.
The provisions of paragraph (1) apply only where the final return, etc. contains a statement concerning the inclusion in deductible expenses of the amount to be included in deductible expenses pursuant to the provisions of that paragraph and has attached to it a written statement concerning the calculation of the amount to be included in deductible expenses, and the document, delivered by the person making the purchase referred to in the items of that paragraph, certifying that the purchase of the land, etc. referred to in that paragraph has been made, and other documents specified by Order of the Ministry of Finance, are preserved.
Even where a final return, etc. without the statement or attachment referred to in the preceding paragraph has been filed, or the documents specified by Order of the Ministry of Finance referred to in that paragraph have not been preserved, the district director may, if the district director finds that there were unavoidable circumstances for the failure to include the statement or attachment or to preserve the documents, apply the provisions of paragraph (1), but only where a document containing the statement, the written statement referred to in that paragraph and the documents specified by Order of the Ministry of Finance are submitted.
A person making a purchase referred to in the items of paragraph (1) must, pursuant to the provisions of Order of the Ministry of Finance, submit a report on payments for the purchase of the land, etc. referred to in that paragraph to the district director having jurisdiction over the location of the business office, place of business or other business establishment involved in the implementation of the project.
With regard to the application of the provisions of Article 67, paragraphs (3) and (5) of the Corporation Tax Act, the amount that a corporation that has received the application of the provisions of paragraph (1) has included in deductible expenses pursuant to the provisions of that paragraph is to be included in the amount of income, etc. prescribed in those provisions of that Act.
Beyond what is provided for in paragraph (2) through the preceding paragraph, the calculation of the amount of revenue reserves of a corporation that has received the application of the provisions of paragraph (1), and other matters necessary for the application of the provisions of that paragraph, are specified by Cabinet Order.