Act on Special Measures Concerning Taxation

In the case where a tax payment grace period has been granted for the gift tax prescribed in Article 70-4, paragraph (1) pursuant to the provisions of that paragraph, when the donor of the farmland, etc. relating to that gift tax has died (excluding the case where the provisions of the proviso to that paragraph or paragraph (30) of that Article have been applied before the day of that death, the case where the deadline of the tax payment grace period has been accelerated under the provisions of paragraph (31) of that Article before that day, and the case where the donee relating to that gift tax has died at or before the time of that death), with regard to the inheritance tax relating to inheritance or bequest due to the death of that donor, the donee of that farmland, etc. is deemed to have acquired that farmland, etc. (including farmland, etc. used as land temporarily used for roads, etc. prescribed in paragraph (18) of that Article, and excluding, in the case where the provisions of paragraph (4) or (5) of that Article have already been applied, the farmland, etc. to which those provisions have been applied; the same applies hereinafter in this paragraph) from the donor by inheritance (or, in the case where the donee has renounced the inheritance due to that death, by bequest; the same applies in the following paragraph). In this case, the value of that farmland, etc. to be included in the basis for calculating the taxable value for inheritance tax relating to inheritance or bequest due to that death is its value as of the day of that death (or, in the case where that farmland, etc. is farmland, etc. used as that land temporarily used for roads, etc. to which the provisions of paragraph (1) of the following Article apply, its value as that farmland, etc. on the assumption that it is not used as that land temporarily used for roads, etc.).

In the case where a donee has obtained approval under the provisions of Article 70-4, paragraphs (15) through (17) with regard to a transfer, etc. of farmland, etc., if the donee has acquired farmland or pasture land with all or part of the amount of consideration for a transfer, etc. falling under the provisions of paragraph (15) or (17) of that Article within one year on or after the day on which that transfer, etc. took place (or, in the case where the donor of that farmland, etc. has died within that one year, until the day of that death; the same applies hereinafter in this paragraph), or has made replacement farmland, etc. of a value equivalent to all or part of the amount of consideration for a transfer, etc. falling under the provisions of paragraph (16) of that Article into farmland or pasture land used for the donee's agriculture in place of the farmland, etc. relating to that transfer, etc. within one year on or after the day on which that transfer, etc. took place, then, with regard to the application of the provisions of the preceding paragraph, the farmland or pasture land so acquired, or the replacement farmland, etc. used for the donee's agriculture in place of the farmland, etc. relating to that transfer, etc., is deemed to be farmland, etc. acquired from that donor by inheritance.