Act on Special Measures Concerning Taxation

In the case where a manufacturer of petrochemical products specified by Cabinet Order has manufactured those petrochemical products using as raw materials gasoline listed in Article 90-4, paragraph (1), item (ii), or kerosene or light oil listed in item (iii) of that paragraph, manufactured in Japan from taxed crude oil, etc. (referred to as "specified gasoline, etc." in this Article), with the approval of the district director with jurisdiction over the location of its manufacturing site obtained through the procedures specified by Cabinet Order, an amount equivalent to the amount of petroleum and coal tax calculated at the tax rate prescribed in Article 90-3-2, item (i) for the specified gasoline, etc. used as those raw materials is, for the time being, refunded pursuant to the provisions of Cabinet Order to the manufacturer of that specified gasoline, etc. (or, in the case where the manufacturer of that specified gasoline, etc. is not the taxpayer of petroleum and coal tax on the taxed crude oil, etc. used as the raw material of that specified gasoline, etc., to the manufacturer of that specified gasoline, etc., by deeming that manufacturer to have paid that petroleum and coal tax on that taxed crude oil, etc.).

In the case where an application for the approval referred to in the preceding paragraph has been filed, when the district director finds that the application is particularly inappropriate for control purposes because the manufacturing site of the petrochemical products prescribed in that paragraph is a manufacturing site of those petrochemical products that uses gasoline, kerosene or light oil other than specified gasoline, etc. as raw materials, or for any other reason, the district director may refuse to grant the approval.

When granting the approval referred to in paragraph (1), if the district director finds it necessary for control purposes, the district director may order that the specified gasoline, etc. to be used as raw materials for the petrochemical products prescribed in that paragraph and the petrochemical products manufactured using it as raw materials be stored separately from other gasoline, kerosene or light oil and from other petrochemical products, respectively.

When a manufacturer of the petrochemical products prescribed in paragraph (1) has completed the manufacture of the petrochemical products relating to the approval referred to in that paragraph, it must, without delay, notify the district director with jurisdiction over the location of its manufacturing site to that effect and obtain confirmation that those petrochemical products have been manufactured and of the product names of the specified gasoline, etc. used as raw materials for those petrochemical products and the quantity for each product name.

The provisions of Article 21 and Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)), Articles 74-8 through 74-11 and Article 74-13 of the Act on General Rules for National Taxes apply mutatis mutandis to a manufacturer of the petrochemical products prescribed in paragraph (1) or a manufacturer or seller of specified gasoline, etc. In this case, the phrase "an extractor or seller of crude oil, an extractor of gaseous hydrocarbons or coal, an importer of crude oil, etc., a petroleum refiner specified by Cabinet Order, a special filer, or a person who has obtained the approval referred to in Article 15, paragraph (1)" in Article 21 of the Petroleum and Coal Tax Act is deemed to be replaced with "a manufacturer of petrochemical products prescribed in Article 90-5, paragraph (1) of the Act on Special Measures Concerning Taxation or a manufacturer or seller of gasoline, kerosene or light oil prescribed in that paragraph", and the phrase "the extraction of crude oil, gaseous hydrocarbons or coal, or the purchase, storage, consumption, sale or taking out of a bonded area of crude oil, etc." in that Article is deemed to be replaced with "the manufacture, purchase, storage, consumption or sale of gasoline, kerosene, light oil or petrochemical products prescribed in that paragraph"; the phrase "crude oil, etc. (meaning crude oil, etc. prescribed in Article 4, paragraph (2) (Persons Liable for Tax) of that Act" in Article 74-5, item (iv), (a) of the Act on General Rules for National Taxes is deemed to be replaced with "specified petroleum products, etc. (meaning gasoline, kerosene, light oil or petrochemical products prescribed in Article 90-5, paragraph (1) of the Act on Special Measures Concerning Taxation"; and the phrase "crude oil, etc. or the crude oil, etc. prescribed in (b)" in (c) of that item is deemed to be replaced with "specified petroleum products, etc.".

A manufacturer of the petrochemical products referred to in the preceding paragraph or a manufacturer or seller of specified gasoline, etc. referred to in that paragraph (including a person who succeeds to the obligation to keep books pursuant to the provisions of Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act as applied mutatis mutandis pursuant to the provisions of that paragraph), to whom the provisions of Article 21 of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)) of the Act on General Rules for National Taxes apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be, respectively, the person prescribed in Article 21 of the Petroleum and Coal Tax Act, and the provisions of Article 24 (limited to the part relating to item (v)) and Article 25, paragraph (1) of that Act and Article 128 (limited to the part of item (ii) relating to Article 74-5, item (iv), (a) and (c) of that Act and the part of item (iii) relating to item (iv), (a) of that Article) and Article 130 of the Act on General Rules for National Taxes apply to them.

No interest on refund under the provisions of the Act on General Rules for National Taxes is added to a refund under the provisions of paragraph (1).

In the case where a person engaged in agriculture, forestry or fisheries purchases, by March 31, 2028, by the method specified by Cabinet Order, heavy oil listed in subheading 2710.19 1 (3) A or 2710.20 1 (4) A of the Appended Table of the Customs Tariff Act manufactured in Japan from taxed crude oil, etc. (for heavy oil listed in subheading 2710.19 1 (3) A (a) or (c) or 2710.20 1 (4) A (a) or (c) of that Table, limited to that to be used for agriculture, forestry or fisheries) for use for agriculture, forestry or fisheries, an amount equivalent to the amount of petroleum and coal tax calculated at the tax rate prescribed in Article 90-3-2, item (i) for the heavy oil so purchased is refunded, pursuant to the provisions of Cabinet Order, to the manufacturer of that heavy oil (or, in the case where the manufacturer of that heavy oil is not the taxpayer of petroleum and coal tax on the taxed crude oil, etc. used as the raw material of that heavy oil, to the manufacturer of that heavy oil, by deeming that manufacturer to have paid that petroleum and coal tax on that taxed crude oil, etc.).

The provisions of Article 18-2 of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)), Articles 74-8 through 74-11 and Article 74-13 of the Act on General Rules for National Taxes apply mutatis mutandis to a person who uses heavy oil purchased by the method prescribed in the preceding paragraph for the use prescribed in that paragraph. In this case, the phrase "Article 4 and Articles 13 through 17" in Article 18-2 of the Petroleum and Coal Tax Act is deemed to be replaced with "Article 90-6, paragraphs (6) and (7) of the Act on Special Measures Concerning Taxation"; the phrase "the person prescribed in Article 21 (Obligation to Keep Books) of the Petroleum and Coal Tax Act" in Article 74-5, item (iv), (a) of the Act on General Rules for National Taxes is deemed to be replaced with "a person who uses heavy oil purchased by the method prescribed in Article 90-6, paragraph (1) of the Act on Special Measures Concerning Taxation (referred to as 'heavy oil' in this item) for the use prescribed in Article 90-6, paragraph (1) of that Act", the phrase "these" in (a) of that item is deemed to be replaced with "that", and the phrase "crude oil, etc. (meaning crude oil, etc. prescribed in Article 4, paragraph (2) (Persons Liable for Tax) of that Act; the same applies hereinafter in this item)" in (a) of that item is deemed to be replaced with "heavy oil"; and the phrase "crude oil, etc. or the crude oil, etc. prescribed in (b)" in (c) of that item is deemed to be replaced with "heavy oil".

A person who uses heavy oil purchased by the method referred to in the preceding paragraph for the use referred to in that paragraph, to whom the provisions of Article 74-5, item (iv) (excluding (b) and (d)) of the Act on General Rules for National Taxes apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be the person prescribed in (a) of that item, and the provisions of Article 128 (limited to the part of item (ii) relating to Article 74-5, item (iv), (a) and (c) of that Act and the part of item (iii) relating to item (iv), (a) of that Article) and Article 130 of that Act apply to that person.

The provisions of Article 21 and Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)), Articles 74-8 through 74-11 and Article 74-13 of the Act on General Rules for National Taxes apply mutatis mutandis to a manufacturer or seller of the heavy oil prescribed in paragraph (1). In this case, the phrase "an extractor or seller of crude oil, an extractor of gaseous hydrocarbons or coal, an importer of crude oil, etc., a petroleum refiner specified by Cabinet Order, a special filer, or a person who has obtained the approval referred to in Article 15, paragraph (1)" in Article 21 of the Petroleum and Coal Tax Act is deemed to be replaced with "a manufacturer or seller of heavy oil prescribed in Article 90-6, paragraph (1) of the Act on Special Measures Concerning Taxation (referred to as 'heavy oil' in this Article)", and the phrase "the extraction of crude oil, gaseous hydrocarbons or coal, or the purchase, storage, consumption, sale or taking out of a bonded area of crude oil, etc." in that Article is deemed to be replaced with "the manufacture, purchase, storage or sale of heavy oil"; the phrase "crude oil, etc. (meaning crude oil, etc. prescribed in Article 4, paragraph (2) (Persons Liable for Tax) of that Act" in Article 74-5, item (iv), (a) of the Act on General Rules for National Taxes is deemed to be replaced with "heavy oil (meaning heavy oil prescribed in Article 90-6, paragraph (1) of the Act on Special Measures Concerning Taxation"; and the phrase "crude oil, etc. or the crude oil, etc. prescribed in (b)" in (c) of that item is deemed to be replaced with "heavy oil".

A manufacturer or seller of the heavy oil referred to in the preceding paragraph (including a person who succeeds to the obligation to keep books pursuant to the provisions of Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act as applied mutatis mutandis pursuant to the provisions of that paragraph), to whom the provisions of Article 21 of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)) of the Act on General Rules for National Taxes apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be, respectively, the person prescribed in Article 21 of the Petroleum and Coal Tax Act, and the provisions of Article 24 (limited to the part relating to item (v)) and Article 25, paragraph (1) of that Act and Article 128 (limited to the part of item (ii) relating to Article 74-5, item (iv), (a) and (c) of that Act and the part of item (iii) relating to item (iv), (a) of that Article) and Article 130 of the Act on General Rules for National Taxes apply to them.

Heavy oil to which the provisions of paragraph (1) have been applied must not, within two years from the day on which it was purchased by the method prescribed in that paragraph, be used for a use other than the use prescribed in that paragraph, or be transferred for use for a use other than that use; provided, however, that this does not apply in the case where there are unavoidable reasons and the approval of the district director has been obtained pursuant to the provisions of Cabinet Order.

When the approval referred to in the proviso to the preceding paragraph has been obtained, or when, without obtaining that approval, the heavy oil referred to in that paragraph has been used for a use other than the use prescribed in that paragraph or transferred for use for a use other than that use, the district director is to immediately collect from the person who has come to fall under any of these cases petroleum and coal tax equivalent to the amount refunded under the provisions of paragraph (1) with regard to that heavy oil.

No interest on refund under the provisions of the Act on General Rules for National Taxes is added to a refund under the provisions of paragraph (1).