Act on Special Measures Concerning Taxation

If the property acquired through inheritance or bequest (including a gift that takes effect upon the death of the donor; hereinafter the same applies up to Article 70-8-2) includes property that was located outside the area where the Inheritance Tax Act is in force on August 15, 1945, or other property specified by Order of the Ministry of Finance (referred to as "overseas property, etc." in this Article and the following Article), the value of that overseas property, etc. (excluding that whose value can be calculated, as provided by Order of the Ministry of Finance, by the due date for filing the return under the provisions of Article 27 of that Act pertaining to that inheritance) is not included in the basis for calculating the taxable value for inheritance tax pertaining to that inheritance or bequest.

If the obligations of the decedent succeeded to through inheritance or universal legacy include obligations specified by Order of the Ministry of Finance that are to be performed outside the area where the Inheritance Tax Act is in force and that existed on August 15, 1945, the amount of those obligations is not included in the amount of debt deduction under the provisions of Article 13 of that Act in calculating the taxable value for inheritance tax pertaining to that inheritance.

The provisions of paragraph (1) do not apply if the return under the provisions of Article 27 of the Inheritance Tax Act pertaining to that inheritance of the person seeking the application of the provisions of that paragraph does not contain a statement to the effect that the person seeks the application of the provisions of that paragraph and of the matters concerning the details of the overseas property, etc.

A person who has filed a return pertaining to the inheritance or bequest prescribed in paragraph (1) of the preceding Article upon receiving the application of the provisions of that paragraph (including that person's heirs and universal legatees) must, if it has become possible to calculate the value of the overseas property, etc. to which the provisions of that paragraph were applied as provided by the Order of the Ministry of Finance prescribed in that paragraph, file an amended return form within four months from the day following the day on which it became possible to calculate it, and pay the amount of tax to be paid as a result of filing that amended return form within that time limit.

If a person who has received the application of the provisions of paragraph (1) of the preceding Article comes to be required to file a return under the provisions of Article 27 of the Inheritance Tax Act as a result of calculating the value of the property to which the provisions of that paragraph were applied, as provided by the Order of the Ministry of Finance prescribed in that paragraph, and including it in the taxable value for inheritance tax, the person must file a tax return form filed after the due date within four months from the day following the day on which it became possible to calculate it, and pay the amount of tax to be paid as a result of filing that tax return form filed after the due date within that time limit.

If a person who is required to file a return under the provisions of the preceding two paragraphs fails to file that return, the district director is to make a reassessment under the provisions of Article 24 or 26 of the Act on General Rules for National Taxes or a determination under the provisions of Article 25 of that Act with respect to the taxable value, the amount of inheritance tax and other matters that should have been stated in that return.

With regard to the application of the provisions of the Act on General Rules for National Taxes to an amended return form under the provisions of paragraph (1) and a reassessment referred to in the preceding paragraph (limited to one pertaining to a person who is required to file that return), the following applies:

an amended return form that has been filed within the time limit for filing prescribed in paragraph (1) is deemed to be a return filed by the due date, except where the provisions of Article 20 of the Act on General Rules for National Taxes are applied;

with regard to an amended return form that has been filed after the time limit for filing prescribed in paragraph (1) and that reassessment, the phrases "statutory due date for filing a return" and "statutory due date for payment" in the provisions of Chapters II through VII of the Act on General Rules for National Taxes are deemed to be replaced with "the time limit for filing an amended return form prescribed in Article 69-3, paragraph (1) of the Act on Special Measures Concerning Taxation", the phrase "return filed by the due date" in Article 61, paragraph (1), item (i) of that Act with "return under the provisions of Article 27 of the Inheritance Tax Act", the phrase "return filed by the due date or return filed after the due date" in paragraph (2) of that Article with "amended return form under the provisions of Article 69-3, paragraph (1) of the Act on Special Measures Concerning Taxation", and the phrase "return filed by the due date" in Article 65, paragraph (1), paragraph (3), item (ii) and paragraph (5), item (ii) of that Act with "return under the provisions of Article 27 of the Inheritance Tax Act";

the provisions of Article 61, paragraph (1), item (ii) and Article 66 of the Act on General Rules for National Taxes do not apply to the amended return form and the reassessment prescribed in the preceding item.

With regard to the application of the provisions of the Act on General Rules for National Taxes to a tax return form filed after the due date under the provisions of paragraph (2) and a reassessment (limited to one pertaining to a person who is required to file that return) or determination referred to in paragraph (3), the following applies:

a tax return form filed after the due date that has been filed within the time limit for filing prescribed in paragraph (2) is deemed to be a return filed by the due date;

with regard to a tax return form filed after the due date that has been filed after the time limit for filing prescribed in paragraph (2) and that reassessment or determination, the phrases "statutory due date for filing a return" and "statutory due date for payment" in the provisions of Chapters II through VII of the Act on General Rules for National Taxes are deemed to be replaced with "the time limit for filing a tax return form filed after the due date prescribed in Article 69-3, paragraph (2) of the Act on Special Measures Concerning Taxation".