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Subsection 4 Special Deduction, etc. for Capital Gains in the Case of Expropriation, etc.第四款 収用等の場合の譲渡所得の特別控除等
Article 33第三十三条
Special Provisions on Taxation in the Case of Acquisition of Substitute Assets Due to Expropriation, etc.（収用等に伴い代替資産を取得した場合の課税の特例）
Article 33, paragraph (1)
Where an individual's assets (excluding inventory assets prescribed in Article 2, paragraph (1), item (xvi) of the Income Tax Act and other assets equivalent thereto specified by Cabinet Order; hereinafter the same applies in this Article, paragraph (2) of the following Article, and Article 33-4) prescribed in the following items have come to fall under the cases listed in those items (excluding where the provisions of paragraph (1) of the following Article apply), if the individual acquires, by December 31 of the year that includes the date of the expropriation, purchase, replotting disposition, rights conversion, acquisition or extinction prescribed in those items (hereinafter referred to as "expropriation, etc." up to Article 33-4), with an amount equivalent to all or part of the amount of the compensation, consideration or settlement money prescribed in those items (where there are expenses required for the transfer (including extinction and decrease in value; hereinafter the same applies in this Subsection) of the assets, the amount after deducting the amount specified by Cabinet Order as having been paid out of the amount of the compensation, consideration or settlement money; hereinafter the same applies in this Article), assets specified by Cabinet Order as assets of the same type as the assets transferred through the expropriation, etc. or other assets that are to replace them (hereinafter referred to as "substitute assets" in this Subsection) (such acquisition excludes acquisition through a lease transaction without transfer of ownership and includes manufacture and construction; hereinafter the same applies in this Subsection), the individual may, at the individual's option, apply the provisions of Article 31 (including where it is applied pursuant to the provisions of Article 31-2 or Article 31-3; except in Article 33-4, paragraph (1), item (i), Article 34, paragraph (1), item (i), Article 34-2, paragraph (1), item (i), Article 34-3, paragraph (1), item (i), Article 35, paragraph (1), item (i), Article 35-2, paragraph (1), and Article 35-3, paragraph (1), the same applies hereinafter up to Article 37-8) or the preceding Article, or Article 32 or Article 33 of that Act, by deeming, where the amount of the compensation, consideration or settlement money acquired through the expropriation, etc. is the amount required for the acquisition of the substitute assets (hereinafter referred to as the "acquisition price" up to Article 37-8) or less, that the transferred assets (where the settlement money referred to in item (iii) has been acquired together with the land, etc. referred to in that item, the part of the transferred assets specified by Cabinet Order as corresponding to the amount of the settlement money; hereinafter the same applies in this paragraph) have not been transferred, and, where the amount of the compensation, consideration or settlement money exceeds the acquisition price, that the part of the transferred assets specified by Cabinet Order as corresponding to the amount of the excess has been transferred.
where assets are expropriated pursuant to the provisions of the Expropriation of Land Act (Act No. 219 of 1951), the River Act (Act No. 167 of 1964), the City Planning Act, the Act on Arrangement of Suburban Development and Redevelopment Areas and Urban Development Areas in Metropolitan Area (Act No. 98 of 1958), the Act on Arrangement and Development of Suburban Development and Redevelopment Areas and Urban Development Areas in Kinki Area (Act No. 145 of 1964), the New Housing and Urban Development Act (Act No. 134 of 1963), the Urban Renewal Act, the Act on Development of Infrastructures for New Cities (Act No. 86 of 1972), the Act on the Improvement of Urban Distribution Centers (Act No. 110 of 1966), the Flood Control Act (Act No. 193 of 1949), the Land Improvement Act (Act No. 195 of 1949), the Forest Act, the Road Act (Act No. 180 of 1952), the Residential Areas Improvement Act (Act No. 84 of 1960), the Act on Special Measures for Facilitating the Use of Land With an Unknown Owner, and other laws and regulations specified by Cabinet Order (hereinafter referred to as the "Expropriation of Land Act, etc." up to the following Article), and compensation is acquired (excluding cases that fall under the cases specified by Cabinet Order);
where, in the case where assets would be expropriated pursuant to the provisions of the Expropriation of Land Act, etc. if an offer to purchase them were refused, the assets are purchased and consideration is acquired (excluding cases that fall under the cases specified by Cabinet Order);
where a land readjustment project under the Land Readjustment Act, a residential block improvement project under the Act on Special Measures concerning Promotion of Supply of Houses and Housing Lands in Urban Districts (Act No. 67 of 1975; hereinafter referred to as the "Urban Housing Supply Promotion Act" up to Article 34-2), land consolidation under the Act on Development of Infrastructures for New Cities, or a land improvement project under the Land Improvement Act has been implemented with regard to land or a right existing on land (hereinafter referred to as "land, etc." up to Article 33-3), and settlement money under the provisions of Article 94 of the Land Readjustment Act (including as applied mutatis mutandis pursuant to Article 82, paragraph (1) of the Urban Housing Supply Promotion Act and Article 37 of the Act on Development of Infrastructures for New Cities) (excluding settlement money paid because replotted land, or residential land or a part thereof that is to be the subject of the right, was not designated pursuant to the provisions of Article 90 of the Land Readjustment Act (including as applied mutatis mutandis pursuant to Article 82, paragraph (1) of the Urban Housing Supply Promotion Act and Article 36 of the Act on Development of Infrastructures for New Cities), and settlement money paid because a part, etc. of the facility housing prescribed in Article 74, paragraph (4) of the Urban Housing Supply Promotion Act, or rights concerning the facility housing or the site of the facility housing prescribed in Article 90, paragraph (2) of the Urban Housing Supply Promotion Act, were not designated pursuant to the provisions of Article 74, paragraph (4) or Article 90, paragraph (1) of the Urban Housing Supply Promotion Act) or settlement money prescribed in Article 54-2, paragraph (4) of the Land Improvement Act (including as applied mutatis mutandis pursuant to Article 89-2, paragraph (10), Article 96, and Article 96-4, paragraph (1) of that Act) (excluding settlement money paid because replotted land, or land or a part thereof that is to be the subject of the right, was designated with its area especially reduced, or because replotted land, or land or a part thereof that is to be the subject of the right, was not designated, pursuant to the provisions of Article 53-2-2, paragraph (1) of that Act (including as applied mutatis mutandis pursuant to Article 89-2, paragraph (3), Article 96, and Article 96-4, paragraph (1) of that Act)) is acquired through a replotting disposition pertaining to the land, etc. (excluding cases that fall under the cases specified by Cabinet Order);
where a type 1 urban redevelopment project under the Urban Renewal Act has been implemented with regard to assets, and compensation under the provisions of Article 91 of that Act (limited to compensation paid because it was determined, pursuant to the provisions of Article 79, paragraph (3) of that Act, that a part, etc. of a facility building or a building lease right for a part of a facility building would not be granted, or because it was determined, pursuant to the provisions of Article 79, paragraph (3) of that Act as applied with the deemed replacement of terms pursuant to Article 111, paragraph (3) of that Act, that a portion of a building facility or a building lease right for a part of a facility building would not be granted, and compensation paid based on an offer under Article 71, paragraph (1) or paragraph (3) of that Act in a case specified by Cabinet Order as a case where the offer is found to have been made due to unavoidable circumstances) is acquired through a rights conversion pertaining to the assets (excluding cases that fall under the cases specified by Cabinet Order);
where a disaster prevention block improvement project under the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts has been implemented with regard to assets, and compensation under the provisions of Article 226 of that Act (limited to compensation paid because it was determined, pursuant to the provisions of Article 212, paragraph (3) of that Act, that a part, etc. of a disaster prevention facility building or a building lease right for a part of a disaster prevention facility building would not be granted, or because it was determined, pursuant to provisions specified by Cabinet Order, that a portion of a disaster prevention building facility or a building lease right for a part of a disaster prevention facility building would not be granted, and compensation paid based on an offer under Article 203, paragraph (1) or paragraph (3) of that Act in a case specified by Cabinet Order as a case where the offer is found to have been made due to unavoidable circumstances) is acquired through a rights conversion pertaining to the assets (excluding cases that fall under the cases specified by Cabinet Order);
where land, etc. is purchased pursuant to the provisions of Article 52-4, paragraph (1) of the City Planning Act (including as applied mutatis mutandis pursuant to Article 57-5 of that Act and Article 285 of the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts) or Article 56, paragraph (1) of the City Planning Act, and consideration is acquired (excluding cases that fall under the cases listed in Article 34, paragraph (2), item (ii) and item (ii)-2);
where a land readjustment project under the Land Readjustment Act for which compensation for decrease in value prescribed in Article 109, paragraph (1) of that Act (referred to as "compensation for decrease in value" in the following item) is to be granted is implemented, and land, etc. within the project area of that project (meaning the project area prescribed in Article 2, paragraph (8) of that Act; the same applies in that item) is purchased as land to be appropriated for the site of public facilities, and consideration is acquired;
where land, etc. located within the project area of a land readjustment project for reconstruction of a disaster-damaged urban district that is implemented by a local government or the Urban Renaissance Agency in a promotion area for reconstruction of a disaster-damaged urban district and for which compensation for decrease in value is to be granted is purchased by such a person (including a Land Development Public Corporation) to be used for a project concerning the development and improvement of public facilities carried out by such a person as the land readjustment project for reconstruction of a disaster-damaged urban district, and consideration is acquired (excluding cases that fall under the cases listed in the preceding two items);
where land, etc. located within the project area (meaning the project area specified in a city plan for a type 2 urban redevelopment project pursuant to the provisions of Article 12, paragraph (2) of the City Planning Act) of a type 2 urban redevelopment project under the Urban Renewal Act that is implemented by a local government or the Urban Renaissance Agency in the area of a housing-damaged municipality prescribed in Article 21 of the Act on Special Measures concerning Reconstruction of Urban Districts Damaged by Disaster is purchased by such a person (including a Land Development Public Corporation) to be used for that type 2 urban redevelopment project, and consideration is acquired (excluding cases that fall under the cases listed in item (ii) or in paragraph (1), item (i) of the following Article);
where land, etc. is purchased to be used for a project concerning the management of housing on a single housing estate of 50 or more dwelling units that the State, a local government, the Urban Renaissance Agency or a Local Housing Corporation carries out for the purpose of leasing or transferring housing to persons who need housing to live in themselves, and consideration is acquired;
where assets have been expropriated pursuant to the provisions of the Expropriation of Land Act, etc. (including where there has been a purchase that falls under the provisions of item (ii)), and rights other than ownership held with respect to the assets are extinguished and compensation or consideration is acquired (excluding cases that fall under the cases specified by Cabinet Order);
where rights held with respect to assets that are not to be converted into new rights through a rights conversion prescribed in the Urban Renewal Act are extinguished pursuant to the provisions of Article 87 of that Act, and compensation under the provisions of Article 91 of that Act is acquired (excluding cases that fall under the cases specified by Cabinet Order);
where rights held with respect to assets that are not to be converted into new rights through a rights conversion prescribed in the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts are extinguished pursuant to the provisions of Article 221 of that Act, and compensation under the provisions of Article 226 of that Act is acquired (excluding cases that fall under the cases specified by Cabinet Order);
where compensation or consideration is acquired due to the reclamation of publicly-owned water surface under the provisions of the Act on Reclamation of Publicly-owned Water Surface (Act No. 57 of 1921) carried out by the State or a local government (including an organization established by it that is specified by Cabinet Order), or carried out by the project implementer of a project prescribed in Article 3 of the Expropriation of Land Act for use in that project, or due to the extinction (including a decrease in value of those rights) of a fishery right, a fishing entry right, a right to operate fishing port water surface facilities or any other right concerning the use of water, or of a mining right (including a mining lease right, a quarrying right and any other right to mine or extract earth and stone), in connection with the implementation of that project by the project implementer;
beyond the cases listed in the preceding items, where compensation or consideration is acquired through the purchase or extinction (including a decrease in value) of assets in connection with a disposition made by the State or a local government pursuant to the provisions of Article 11, paragraph (1) of the Building Standards Act, Article 93, paragraph (1) of the Fishery Act (Act No. 267 of 1949), or other laws and regulations specified by Cabinet Order, or through a disposition of acquisition made pursuant to those provisions.
The provisions of the preceding paragraph apply mutatis mutandis where an individual has come to fall under a case listed in any of the items of that paragraph, and the individual has acquired assets that are to become substitute assets during the year preceding the year that includes the date of the expropriation, etc. (limited to the period on or after the day on which it became clear that the individual would transfer assets the individual owns through the expropriation, etc.) (or, where the assets that are to become substitute assets are land, etc. and there are unavoidable circumstances specified by Cabinet Order, such as that the period required for the construction of a factory, etc. normally exceeds one year, has acquired them within the period specified by Cabinet Order). In this case, the phrase "at the individual's option" in that paragraph is deemed to be replaced with "at the individual's option, pursuant to the provisions of Cabinet Order".
The provisions of paragraph (1) apply mutatis mutandis where an individual has fallen under a case listed in any of the items of that paragraph, and the individual is expected to acquire substitute assets, with an amount equivalent to all or part of the amount of the compensation, consideration or settlement money prescribed in those items, within the designated acquisition period (meaning the period from January 1 of the year following the year that includes the date of the expropriation, etc. until the day on which two years have elapsed from the date of the expropriation, etc. (in a case specified by Cabinet Order where it is difficult to acquire substitute assets within that period because all or part of the project pertaining to the expropriation, etc. has not been completed, the period required for the construction of a factory, etc. normally exceeds two years, or there are other unavoidable circumstances, with regard to those substitute assets, the period from January 1 of that following year until the date specified by Cabinet Order)). In this case, in that paragraph, the phrase "the amount of the compensation, consideration or settlement money prescribed in those items (" is deemed to be replaced with "the amount of the compensation, consideration or settlement money prescribed in those items (where, in the year that includes the date of the expropriation, etc. prescribed in paragraph (3), substitute assets prescribed in that paragraph have been acquired with an amount equivalent to part of the amount of the compensation, consideration or settlement money, or where assets that are to become substitute assets prescribed in that paragraph have been acquired during the preceding year prescribed in the following paragraph pertaining to the expropriation, etc. prescribed in that paragraph, the amount after deducting the acquisition price of those assets; hereinafter the same applies in this paragraph) (", and the phrase "acquisition price" is deemed to be replaced with "estimated amount of the acquisition price".
Where an individual's assets have come to fall under a case listed in any of the following items, with regard to the application of the provisions of paragraph (1) (including where it is applied mutatis mutandis pursuant to the preceding two paragraphs), a transfer through expropriation, etc. is deemed to have been made with regard to: in the case of item (i), the land, etc. prescribed in that item; in the case of item (ii) or item (iii), the assets on the land prescribed in those items or the spouse's right of residence pertaining to a building on that land; and in the case of item (iv), the right prescribed in that item (where the compensation prescribed in items (ii) through (iv) compensates for part of the value of those assets, the part of those assets specified by Cabinet Order as corresponding to the compensation). In this case, the amount of the compensation or consideration prescribed in item (i), item (ii) or item (iv) or the amount of the compensation prescribed in item (iii) is deemed to be the amount of the compensation, consideration or settlement money prescribed in paragraph (1).
where land, etc. is used pursuant to the provisions of the Expropriation of Land Act, etc. and compensation is acquired (including where, in the case where land, etc. would be used pursuant to the provisions of the Expropriation of Land Act, etc. if an offer for its use were refused, the land, etc. is used under a contract and consideration is acquired), if allowing the use of the land, etc. falls under lending of real property, etc. giving rise to capital gains (excluding cases that fall under the cases specified by Cabinet Order);
where, as a result of land, etc. coming to fall under the provisions of paragraph (1), items (i) through (iii)-3, the provisions of the preceding item, or the provisions of paragraph (1), item (ii) of the following Article or Article 33-3, paragraph (1), it has become necessary to expropriate, demolish or remove assets on that land pursuant to the provisions of the Expropriation of Land Act, etc., or where it has become necessary to demolish or remove assets on that land in connection with a disposition by the State or a local government made pursuant to the provisions of the laws and regulations prescribed in paragraph (1), item (viii) or Article 11 of the Act on Special Measures concerning Public Use of Deep Underground (Act No. 87 of 2000), if consideration for those assets or for the spouse's right of residence pertaining to a building on that land (including the right to use, based on the spouse's right of residence, the land, etc. used as the site of the building that is subject to the spouse's right of residence; hereinafter the same applies in this item, the following item, and paragraph (1), item (i) of the following Article), or compensation specified by Cabinet Order for the loss of those assets or of the spouse's right of residence pertaining to a building on that land, is acquired (excluding cases that fall under the cases specified by Cabinet Order);
where, as a result of land, etc. coming to fall under the provisions of Article 33-3, paragraph (9), assets on that land are removed pursuant to the provisions of Article 77 of the Land Readjustment Act, if compensation under the provisions of Article 78, paragraph (1) of that Act is acquired for the loss of those assets or of the spouse's right of residence pertaining to a building on that land;
where the value of the right to use, based on a spouse's right of residence, land, etc. used as the site of a building that is subject to the spouse's right of residence has decreased as a result of that land, etc. coming to fall under the provisions of paragraph (1), item (i), item (ii), item (iii)-2 or item (iii)-3 or the provisions of item (i) of this paragraph, or where the right to use, based on a spouse's right of residence, land, etc. used as the site of a building that is subject to the spouse's right of residence has been extinguished as a result of that building coming to fall under the provisions of paragraph (1), item (i), item (ii) or item (v), if consideration for those rights or compensation specified by Cabinet Order for the loss of those rights is acquired (excluding cases that fall under the case listed in item (ii) or the cases specified by Cabinet Order).
The amount of compensation prescribed in paragraph (1), item (i), item (v), item (vii) or item (viii) means, regardless of its nominal designation, the amount that constitutes consideration for the expropriation, etc. of the assets, and does not include relocation expenses received upon the expropriation, etc. or any other amount other than the amount that constitutes consideration for the expropriation, etc. of the assets.
The provisions of paragraphs (1) through (3) do not apply unless the tax return for the year for which the individual seeks the application of those provisions contains a statement to the effect that the individual seeks the application of those provisions, and has attached to it a written statement concerning the calculation of the amount of timber income or the amount of capital gains under those provisions and other documents specified by Order of the Ministry of Finance; provided, however, that this does not apply where the district director finds that there were unavoidable circumstances for the failure to file the return or to include the statement or attachment, and a document containing the statement, and the written statement and the documents specified by Order of the Ministry of Finance, are submitted.
A person who files the tax return prescribed in the preceding paragraph must submit documents specified by Order of the Ministry of Finance concerning the details of the substitute assets to the district director having jurisdiction over the place for tax payment, pursuant to the provisions of Cabinet Order.
Where it has become difficult for an individual to acquire substitute assets within the designated acquisition period prescribed in paragraph (3) due to unavoidable circumstances arising from an emergency disaster designated as a specified emergency disaster pursuant to the provisions of Article 2, paragraph (1) of the Act on Special Measures concerning Preservation of Rights and Interests of Victims of Specified Disaster, if the individual is expected to acquire substitute assets during the period from the first day of the designated acquisition period until the date specified by Cabinet Order that falls within two years after the last day of the designated acquisition period, and has obtained the approval of the district director having jurisdiction over the place for tax payment pursuant to the provisions of Order of the Ministry of Finance, then with regard to the application of the provisions of that paragraph and Article 33-5, the designated acquisition period prescribed in that paragraph is the period from that first day until that date specified by Cabinet Order.