Act on Special Measures Concerning Taxation

With regard to the asset-building benefits prescribed in Article 6-2, paragraph (2) of the Workers' Property Accumulation Promotion Act, or the type 1 asset-building fund benefits prescribed in Article 6-4, paragraph (2) of that Act or the type 2 asset-building fund benefits prescribed in paragraph (3) of that Article (referred to in this Article as "asset-building benefits, etc."), that a worker prescribed in Article 2, item (i) of that Act receives as a lump sum under a workers' asset-building benefit contract prescribed in Article 6-2, paragraph (1) of that Act, or a type 1 workers' asset-building fund contract prescribed in Article 6-3, paragraph (2) of that Act or a type 2 workers' asset-building fund contract prescribed in paragraph (3) of that Article, the amount of asset-building benefits, etc. received for a reason other than a reason for interim payment prescribed in Article 6-2, paragraph (1), item (vi) of that Act, or Article 6-3, paragraph (2), item (vi) or paragraph (3), item (v) of that Act that is specified by Cabinet Order as unavoidable is deemed to be the amount of salary, etc. prescribed in Article 28, paragraph (1) of the Income Tax Act paid respectively by the trust company, etc. prescribed in Article 6-2, paragraph (1) of the Workers' Property Accumulation Promotion Act, or the trust company, etc. prescribed in Article 6-3, paragraph (2) of that Act or the bank, etc. prescribed in paragraph (3) of that Article, and the amount of other asset-building benefits, etc. is deemed to be revenue pertaining to occasional income paid respectively by those persons, and the provisions of the Income Tax Act apply.

Where, in 2026 or 2027, the revenue from salary or other wage prescribed in Article 28, paragraph (1) of the Income Tax Act (hereinafter referred to as "salary or other wage" in this paragraph and the following paragraph) for that year is 2,200,000 yen or less, the amount of the employment income deduction prescribed in paragraph (3) of that Article pertaining to that salary or other wage is, notwithstanding the provisions of item (i) of that paragraph, 740,000 yen (or, where that revenue is less than 740,000 yen, the amount equivalent to that revenue).

Where, in 2026 or 2027, the revenue from salary or other wage for that year is 691,000 yen or more and less than 2,200,000 yen, the amount of employment income pertaining to that salary or other wage is as specified below, notwithstanding the provisions of the preceding paragraph and Article 28, paragraphs (2) through (4) of the Income Tax Act:

where the revenue from salary or other wage for that year is 691,000 yen or more and less than 741,000 yen, the amount of employment income pertaining to that salary or other wage is to be nil;

where the revenue from salary or other wage for that year is 741,000 yen or more and less than 2,191,000 yen, the amount of employment income pertaining to that salary or other wage is the amount remaining after deducting 740,000 yen from that revenue;

where the revenue from salary or other wage for that year is 2,191,000 yen or more and less than 2,193,000 yen, the amount of employment income pertaining to that salary or other wage is 1,451,000 yen;

where the revenue from salary or other wage for that year is 2,193,000 yen or more and less than 2,196,000 yen, the amount of employment income pertaining to that salary or other wage is 1,453,000 yen;

where the revenue from salary or other wage for that year is 2,196,000 yen or more and less than 2,200,000 yen, the amount of employment income pertaining to that salary or other wage is 1,456,000 yen.

With regard to the application of the provisions of Article 57-2, paragraph (1) of the Income Tax Act in the case where the provisions of the preceding paragraph apply, the phrase "paragraph (4) of that Article" in that paragraph is deemed to be replaced with "paragraph (4) of that Article and Article 29-4, paragraph (2) (Special Provisions on the Minimum Amount of the Employment Income Deduction, etc.) of the Act on Special Measures Concerning Taxation", and the phrase "the remaining amount under paragraph (2) of that Article" is deemed to be replaced with "the amount equivalent to the amount of employment income prescribed in that paragraph when the provisions of that paragraph are applied".

Where, in 2026 or 2027, the amount of salary or other wage (meaning salary or other wage prescribed in item (i) of Article 190 of the Income Tax Act) that has become due for payment during that year to a resident prescribed in that Article is 691,000 yen or more and less than 2,200,000 yen, the amount of salary or other wage after deduction of the employment income deduction prescribed in item (ii) of that Article pertaining to that salary or other wage is, notwithstanding the provisions of that item (including Appended Table 5 of that Act), the amount equivalent to the amount of employment income prescribed in paragraph (2) when the provisions of that paragraph are applied by deeming the amount of salary or other wage that has become due for payment to be the revenue from salary or other wage referred to in that paragraph.

Beyond what is provided for in the preceding two paragraphs, necessary matters concerning the application of the provisions of paragraph (1) or paragraph (2) are specified by Cabinet Order.

The amount for which a worker who has retired from a business pertaining to an employer prescribed in Article 7 of the Act on Ensuring Wage Payment (Act No. 34 of 1976) (including as applied with the replacement of terms pursuant to the provisions of Article 16 of that Act; the same applies hereinafter in this Article) has received payment, pursuant to the provisions of Article 7 of that Act, of the debt pertaining to the unpaid wages referred to in that Article that pertains to salary, etc. prescribed in Article 28, paragraph (1) of the Income Tax Act is deemed to be the amount of severance pay or other such compensation prescribed in Article 30, paragraph (1) of the Income Tax Act to be received from that employer on the day of that retirement, and the provisions of the Income Tax Act apply.