Act on Special Measures Concerning Taxation

With regard to land, etc. relating to a project listed below for the development of a single tract of housing land that is carried out within a city planning area prescribed in Article 4, paragraph (2) of the City Planning Act (referred to as a "city planning area" in this paragraph and the following paragraph) mainly for the purpose of use for housing construction (limited to a project for which it has been certified, pursuant to the provisions of Cabinet Order, that the development of that housing land contributes to the supply of superior housing land and that the supply of that housing land is carried out through the sale of land, etc. in lots or the creation of a land lease right prescribed in Article 2, item (i) of the Act on Land and Building Leases (Act No. 90 of 1991) to which the provisions of Article 22, paragraph (1) of that Act apply (referred to as a "fixed-term land lease right" hereinafter in this Article)), which is held as of the taxation date by a person specified by Cabinet Order as a person who implements that project (referred to as a "superior housing land developer" in this paragraph and paragraph (3)) (or, in the case where the housing land to be developed includes housing land to be sold in lots to persons from whom land, etc. was purchased for use in that project and other housing land specified by Cabinet Order (referred to as "priority sale housing lots, etc." in this paragraph), excluding the part specified by Cabinet Order as the part corresponding to those priority sale housing lots, etc.; referred to as "planned supply land" in this paragraph and paragraph (3)), excluding land, etc. that is exempt from land value tax under the provisions of Articles 6 through 8 and Article 3, paragraph (2) of the Supplementary Provisions of the Land-holding Tax Act and the provisions of Article 71-2 through the preceding Article, the value to be included in the taxable value of land value tax prescribed in Article 16 of that Act for that superior housing land developer is the amount equivalent to one-fifth of the value of the land, etc. that is that planned supply land:

a project for the development of a single tract of housing land carried out with the permission under Article 29, paragraph (1) of the City Planning Act (limited to permission relating to development activity prescribed in Article 4, paragraph (12) of that Act carried out within a city planning area; referred to as a "development permit" in this paragraph) (limited, in the case where the housing land to be developed includes priority sale housing lots, etc., to a project in which the proportion of the area of those priority sale housing lots, etc. in the area of that single tract of land, etc. is less than 10 percent; the same applies in item (iii)), in which the area of that single tract of land, etc. (excluding priority sale housing lots, etc.; the same applies in item (iii)) is 1,000 square meters or more (or, for the area of that single tract of land, etc. within an area specified by Cabinet Order as an area in which the area requiring a development permit is less than 1,000 square meters, the area specified by Cabinet Order or more);

a project for the development of a single tract of housing land carried out as a land readjustment project under the Land Readjustment Act, in which the area of the planned supply land of that superior housing land developer located within the project implementation district prescribed in Article 2, paragraph (4) of that Act of that land readjustment project is 1,000 square meters or more;

a project for the development of a single tract of housing land not requiring a development permit that satisfies the standards specified by Cabinet Order as standards equivalent to the standards for a development permit, in which the area of that single tract of land, etc. is 1,000 square meters or more.

With regard to land, etc. relating to a project listed below for the construction of housing that is carried out within a city planning area (limited to a project for which it has been certified, pursuant to the provisions of Cabinet Order, that the construction of that housing contributes to the supply of superior housing and that the supply of the land to be used for that housing is carried out through the sale of land, etc. in lots or the creation of a fixed-term land lease right), which is held as of the taxation date by a person who implements that project (referred to as a "superior housing construction business operator" in this paragraph and the following paragraph) (or, in the case where the housing to be constructed includes housing to be sold in lots to persons from whom land, etc. was purchased for use in that project and other persons specified by Cabinet Order (referred to as "priority sale housing" in this paragraph), excluding the part specified by Cabinet Order as the part used for that priority sale housing; referred to as "land planned for housing for sale" in this paragraph and the following paragraph), excluding land, etc. that is exempt from land value tax under the provisions of Articles 6 through 8 and Article 3, paragraph (2) of the Supplementary Provisions of the Land-holding Tax Act and the provisions of Article 71-2 through the preceding Article, the value to be included in the taxable value of land value tax prescribed in Article 16 of that Act for that superior housing construction business operator is the amount equivalent to one-fifth of the value of the land, etc. that is that land planned for housing for sale:

a project for the construction of a group of houses in which the number of houses to be constructed is 25 or more (limited, in the case where those houses include priority sale housing, to a project in which the proportion of the number of units of priority sale housing in the number of those houses is less than 10 percent and the number of houses obtained by deducting the number of units of priority sale housing from the number of those houses is 25 or more);

a project for the construction of mid-to-high-rise fire-proof apartment houses specified by Cabinet Order, in which the number of units of each independent part used as a residence (meaning a part equivalent to the part of a building prescribed in Article 2, paragraph (1) of the Act on Building Unit Ownership; the same applies hereinafter in this item) of those mid-to-high-rise fire-proof apartment houses is 15 or more, or in which the floor area of those mid-to-high-rise fire-proof apartment houses is 1,000 square meters or more (limited, in the case where each independent part of those mid-to-high-rise fire-proof apartment houses includes priority sale housing, to a project in which the proportion of the number of units of priority sale housing in the number of units of each independent part is less than 10 percent and either the number of units of each independent part obtained by deducting the number of units of priority sale housing from the number of units of each independent part is 15 or more, or the floor area obtained by deducting the floor area of priority sale housing from the floor area of those mid-to-high-rise fire-proof apartment houses is 1,000 square meters or more).

With regard to land, etc. on which a land lease right, etc. has been created, as of the taxation date, by a superior housing land developer or a superior housing construction business operator in order to make it planned supply land or land planned for housing for sale to which the provisions of the preceding two paragraphs apply (excluding land, etc. that is exempt from land value tax under the provisions of Articles 6 through 8 and Article 3, paragraph (2) of the Supplementary Provisions of the Land-holding Tax Act and the provisions of Article 71-2 through the preceding Article), the value to be included in the taxable value of land value tax prescribed in Article 16 of that Act is the amount equivalent to one-fifth of the value of that land, etc.

With regard to the application of the provisions of the Land-holding Tax Act in the case where the provisions of the preceding three paragraphs apply, the phrase "the preceding Article" in Article 18, paragraph (1), item (ii) of that Act and the phrase "Article 17" in Article 29 of that Act are deemed to be replaced with "Article 71-7, paragraphs (1) through (3) (Special Provisions on Calculation of Taxable Value for Planned Supply Land, etc. Relating to Superior Housing Land Development Projects, etc.) of the Act on Special Measures Concerning Taxation", the phrase "one half" in those provisions is deemed to be replaced with "one-fifth", and the phrase "Article 17" in Article 33 of that Act is deemed to be replaced with "Article 17 and Article 71-7, paragraphs (1) through (3) (Special Provisions on Calculation of Taxable Value for Planned Supply Land, etc. Relating to Superior Housing Land Development Projects, etc.) of the Act on Special Measures Concerning Taxation".

The provisions of paragraphs (1) through (3) apply only in the case where the return under the provisions of Article 25, paragraph (1) of the Land-holding Tax Act relating to the taxation date for which the application of those provisions is sought (including a return filed after the due date prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes relating to that return and an amended return prescribed in Article 19, paragraph (3) of that Act relating to those returns; referred to as a "land value tax return" in the following paragraph and Article 71-17, paragraphs (2) and (3)) contains a statement that the application of the provisions of paragraphs (1) through (3) is sought, and documents specified by Order of the Ministry of Finance as documents certifying that any of those provisions applies are attached to that return.

Even in the case where no land value tax return has been filed or a land value tax return without the statement or attachment referred to in the preceding paragraph has been filed, if the district director finds that there were unavoidable circumstances for the failure to file it or the absence of that statement or attachment, the district director may apply the provisions of paragraphs (1) through (3) only in the case where a document containing that statement and the documents specified by Order of the Ministry of Finance referred to in that paragraph have been submitted.

With regard to land, etc. held as of the taxation date by a passenger railway company prescribed in Article 1, paragraph (1) of the Act on Passenger Railway Companies and Japan Freight Railway Company (Act No. 88 of 1986) (referred to as a "passenger railway company" in this paragraph and the following paragraph) (excluding land, etc. that is exempt from land value tax under the provisions of Articles 6 through 8 and Article 3, paragraph (2) of the Supplementary Provisions of the Land-holding Tax Act and the provisions of Articles 71-2 through 71-6, and land, etc. that falls under the provisions of the preceding Article; the same applies in this paragraph and the following paragraph), the value to be included in the taxable value of land value tax prescribed in Article 16 of the Land-holding Tax Act for that passenger railway company relating to the taxation date of each year from 1992 to 2001 is the amount equivalent to one half of the value of that land, etc.

With regard to land, etc. that falls under any of the following items as of the taxation date, the value to be included in the taxable value of land value tax prescribed in Article 16 of the Land-holding Tax Act relating to the taxation date of each year from 1992 to 2001 is the amount equivalent to one half of the value of that land, etc.:

land, etc. on which a land lease right, etc. has been created by a passenger railway company, and other land, etc. leased to a passenger railway company (excluding land, etc. whose lease period is short-term and other land, etc. specified by Cabinet Order);

land, etc. used for buildings or other structures leased exclusively to a passenger railway company (referred to as "buildings, etc." hereinafter in this Chapter) that are specified by Cabinet Order.

With regard to the application of the provisions of the Land-holding Tax Act in the case where the provisions of the preceding two paragraphs apply, the phrase "the preceding Article" in Article 18, paragraph (1), item (ii) of that Act and the phrase "Article 17" in Article 29 of that Act are deemed to be replaced with "Article 71-8, paragraph (1) or (2) (Special Provisions on Calculation of Taxable Value for Land, etc. Held by Passenger Railway Companies) of the Act on Special Measures Concerning Taxation", and the phrase "Article 17" in Article 33 of that Act is deemed to be replaced with "Article 17 and Article 71-8, paragraph (1) or (2) (Special Provisions on Calculation of Taxable Value for Land, etc. Held by Passenger Railway Companies) of the Act on Special Measures Concerning Taxation".

The provisions of paragraphs (5) and (6) of the preceding Article apply mutatis mutandis where the provisions of paragraph (2) are applied.