Act on Special Measures Concerning Taxation

The amount of foreign country's corporate tax paid by the Trust Corporation (meaning a Trust Corporation prescribed in Article 6-3 of the Income Tax Act (limited to one to which the provisions of this Act apply as a domestic corporation pursuant to the provisions of Article 6-3, item (i) of that Act as applied mutatis mutandis pursuant to Article 2-2, paragraph (2)); hereinafter the same applies in this Article) of a specified investment trust (meaning an investment trust as prescribed in Article 2, paragraph (3) of the Act on Investment Trusts and Investment Corporations which falls under a trust subject to corporate taxation; hereinafter the same applies in this Article) is, as specified by Cabinet Order, deducted from the amount of income tax on dividends of surplus of the specified investment trust, up to the amount of that income tax.

The provisions of Article 9-6, paragraph (2) apply mutatis mutandis where the provisions of the preceding paragraph are applied.

Where a resident or a nonresident who has a permanent establishment receives payment of dividends of surplus on beneficial interests in a specified investment trust (for the nonresident, limited to cases where it receives payment of those falling under the domestic source income listed in Article 164, paragraph (1), item (i), (a) of the Income Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a specified investment trust pertaining to the dividends of surplus (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of surplus received by the resident or the nonresident who has a permanent establishment, out of the amount of foreign country's corporate tax paid by the Trust Corporation of the specified investment trust which has been deducted from the amount of income tax on the dividends of surplus pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act to the resident or the nonresident who has a permanent establishment, the phrase "distribution of proceeds" in Article 93, paragraph (1) and Article 165-5-3, paragraph (1) of that Act is deemed to be replaced with "distribution of proceeds or a dividend of surplus on beneficial interests in a specified investment trust prescribed in Article 9-6-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Specified Investment Trusts)", the phrase "that paragraph" is deemed to be replaced with "Article 176, paragraph (3)", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a specified investment trust prescribed in Article 9-6-4, paragraph (3) of that Act (".

Where a domestic corporation or a foreign corporation that has a permanent establishment receives payment of dividends of surplus on beneficial interests in a specified investment trust (for the foreign corporation, limited to cases where it receives payment of those falling under the domestic source income listed in Article 141, item (i), (a) of the Corporation Tax Act), and there is an amount equivalent to the foreign tax adjusted at distribution by a specified investment trust pertaining to the dividends of surplus (meaning an amount equivalent to the amount specified by Cabinet Order as the amount of the portion corresponding to the dividends of surplus received by the domestic corporation or the foreign corporation that has a permanent establishment, out of the amount of foreign country's corporate tax paid by the Trust Corporation of the specified investment trust which has been deducted from the amount of income tax on the dividends of surplus pursuant to the provisions of paragraph (1)), with regard to the application of the provisions of that Act and the Local Corporation Tax Act to the domestic corporation or the foreign corporation that has a permanent establishment, the phrase "distribution of proceeds" in Article 69-2, paragraph (1) and Article 144-2-2, paragraph (1) of the Corporation Tax Act is deemed to be replaced with "distribution of proceeds or a dividend of surplus on beneficial interests in a specified investment trust prescribed in Article 9-6-4, paragraph (1) of the Act on Special Measures Concerning Taxation (Special Provisions on Withholding at the Source, etc. for Dividends of Surplus of Specified Investment Trusts)", the phrase "that paragraph or that Act" is deemed to be replaced with "Article 176, paragraph (3) of the Income Tax Act or", and the phrase "amount (" is deemed to be replaced with "amount and the amount equivalent to the foreign tax adjusted at distribution by a specified investment trust prescribed in Article 9-6-4, paragraph (4) of the Act on Special Measures Concerning Taxation (".

Matters concerning the notice to be given by the Trust Corporation referred to in paragraph (1) to persons receiving payment of dividends of surplus of the specified investment trust and other necessary matters concerning the application of the provisions of the preceding paragraphs are specified by Cabinet Order.

Where an individual who has acquired property by inheritance or bequest (including a gift that takes effect upon the death of the donor; hereinafter the same applies in this paragraph) (including an acquisition deemed to be an acquisition of property by inheritance or bequest pursuant to the provisions of the Inheritance Tax Act or Article 70-7-3 or Article 70-7-7) and who has an amount of inheritance tax payable under the provisions of that Act with respect to the inheritance or bequest transfers, during the period from the day following the date of the commencement of the succession until the day on which three years have elapsed from the day following the due date for filing the return under the provisions of Article 27, paragraph (1) or Article 29, paragraph (1) of that Act pertaining to the inheritance (for assets acquired due to the occurrence of a cause prescribed in Article 4, paragraph (1) of that Act after the filing of those returns, the return under the provisions of Article 31, paragraph (2) of that Act pertaining to that acquisition), shares issued by a stock company other than a stock company that has issued shares listed on a financial instruments exchange as prescribed in Article 2, paragraph (16) of the Financial Instruments and Exchange Act or other shares specified by Cabinet Order as being similar thereto (hereinafter referred to in this paragraph as an "unlisted company"), which were included in the basis for calculating the taxable value pertaining to the amount of inheritance tax (where the provisions of Article 19 or Articles 21-14 through 21-18 of that Act apply, the amount deemed to be the taxable value pursuant to those provisions), to the unlisted company that issued them, and the amount of money that the individual who made the transfer received from the unlisted company as consideration for the transfer exceeds the amount of the portion, out of the amount of stated capital, etc. of the unlisted company as prescribed in Article 2, item (xvi) of the Corporation Tax Act, that corresponds to the shares prescribed in Article 25, paragraph (1) of the Income Tax Act pertaining to the shares that gave rise to the delivery of the money, the provisions of that paragraph do not apply to the amount of the excess.

Where the provisions of the preceding paragraph apply, with regard to the application of the provisions of Article 37-10, paragraph (3) and Article 37-12, paragraph (2), the phrase "amount" in those provisions is deemed to be replaced with "amount (excluding the amount to which the provisions of Article 9-7, paragraph (1) apply)".

Necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.