Act on Special Measures Concerning Taxation

Where a resident or a nonresident who has a permanent establishment who has opened a minor's account at a business office of a financial instruments business operator, etc. has transferred listed shares, etc. in a minor's account (meaning listed shares, etc. that have been entered or recorded in the transfer account book pertaining to the minor's account or deposited for custody in the minor's account under a contract for management of a minor's account; the same applies hereinafter in this Article) under the contract for management of a minor's account within the period specified in each of the following items according to the category of listed shares, etc. in a minor's account listed in that item, no income tax is imposed on business income, capital gains, and miscellaneous income from the transfer (excluding business income and miscellaneous income that fall under the provisions of Article 41-2 of the Income Tax Act and capital gains that fall under the provisions of Article 32, paragraph (2)).

listed shares, etc. in a minor's account pertaining to a tax-exempt management account: The period from the day on which the tax-exempt management account was established in the minor's account until the day on which five years have elapsed from January 1 of the year that includes that day;

listed shares, etc. in a minor's account pertaining to a continuing management account: The period from the day on which the continuing management account was established in the minor's account until December 31 of the year preceding the year in which the person who opened the minor's account is 18 years of age on January 1 of that year.

Where the revenue from the transfer of listed shares, etc. in a minor's account under a contract for management of a minor's account is less than the sum of the acquisition cost of the listed shares, etc. in a minor's account and the expenses required for the transfer thereof as prescribed in Article 33, paragraph (3) of the Income Tax Act, or is less than the necessary expenses for the transfer thereof, the amount of the shortfall is deemed not to exist for the purpose of applying the provisions of laws and regulations concerning income tax.

In the cases referred to in the preceding two paragraphs, when a resident or a nonresident who has a permanent establishment has transferred listed shares, etc. in a minor's account under a contract for management of a minor's account, the amount of business income, the amount of capital gains, or the amount of miscellaneous income from the transfer of the listed shares, etc. in a minor's account and the amount of business income, the amount of capital gains, or the amount of miscellaneous income from the transfer of listed shares, etc. (meaning listed shares, etc. prescribed in Article 37-11, paragraph (2); the same applies in paragraph (5), item (vi)) other than the listed shares, etc. in a minor's account are to be calculated separately, pursuant to the provisions of Cabinet Order.

Where all or part of the listed shares, etc. in a minor's account are withdrawn (including a withdrawal by book-entry transfer; the same applies hereinafter in this paragraph and in paragraph (6), item (iv)) from a tax-exempt management account or continuing management account due to any of the following events, the provisions of the preceding three paragraphs and paragraph (27) and other provisions of laws and regulations concerning income tax apply by deeming that the listed shares, etc. in a minor's account so withdrawn were transferred under a contract for management of a minor's account at the time the event occurred, for the amount specified by Cabinet Order as their value at that time (hereinafter referred to as the "amount at the time of withdrawal" in this Article), that the resident or the nonresident who has a permanent establishment who opens or opened the minor's account in which is established the tax-exempt management account or continuing management account from which listed shares, etc. in a minor's account were withdrawn due to a transfer of custody or return listed in item (i) or due to a closure listed in item (iii), (a) acquired, at the time of the withdrawal due to the transfer of custody, return, or closure, for the amount at the time of withdrawal, shares, etc. of the same class as the listed shares, etc. in a minor's account in a number equivalent to the number of the listed shares, etc. in a minor's account withdrawn due to the transfer of custody, return, or closure, and that a person who acquired listed shares, etc. in a minor's account withdrawn due to an inheritance or bequest listed in item (ii) or a gift listed in item (iii), (b) acquired, at the time of the inheritance, bequest, or gift, for the amount at the time of withdrawal, shares, etc. of the same class as the listed shares, etc. in a minor's account:

a transfer of custody, made in accordance with the contract for management of a minor's account, from the minor's account to another account for entries or records in the transfer account book or deposit for custody of shares, etc. (referred to as "other custody account" in the following paragraph and paragraph (6), item (ii)), a transfer of custody from a tax-exempt management account to a tax-exempt management account or continuing management account for another year pertaining to the minor's account in which the tax-exempt management account is established, or the return of securities pertaining to listed shares, etc. in a minor's account to the resident or the nonresident who has a permanent establishment;

inheritance or bequest;

any of the following events (limited to those that occurred on or after January 1 of the year in which the resident or the nonresident who has a permanent establishment is 18 years of age on March 31 of that year (hereinafter referred to as the "reference year" in this Article) or January 1, 2024, whichever is earlier):

closure of the minor's account;

gift;

a transfer other than a transfer made in accordance with the method specified in the contract for management of a minor's account.

In this Article, the meanings of the terms listed in the following items are as prescribed respectively in those items:

minor's account: An account for entries or records in the transfer account book or deposit for custody of listed shares, etc. (limited to an account in which no matters concerning transactions other than transactions under a contract for management of a minor's account are handled), which was opened during the period from April 1, 2016, to December 31, 2023, under a contract for management of a minor's account concluded with a financial instruments business operator, etc. by a resident or a nonresident who has a permanent establishment (limited to a person who is under 18 years of age on January 1 of the year or who was born during the year) who, in order to receive the application of the provisions of Article 9-9 and the preceding paragraphs, made a submission, pursuant to the provisions of Cabinet Order, to the head of the business office of the financial instruments business operator, etc. (such submission includes the provision, by a method using an electronic data processing system or any other method using information and communications technology in lieu of the submission of the written notification of opening of a minor's account, of the matters to be stated in the written notification of opening of a minor's account; the same applies in paragraphs (17) through (19) and paragraph (26)) of a written notification stating the name and location of the business office of the financial instruments business operator, etc. at which the person seeks to open the account, that the person is to receive the application of the provisions of Article 9-9 and the preceding paragraphs with regard to dividend income from dividends and similar income prescribed in Article 24, paragraph (1) of the Income Tax Act (referred to as "dividends and similar income" in (f) of the following item) on listed shares, etc. entered or recorded in the transfer account book pertaining to the account or deposited for custody in the account, and with regard to business income, capital gains, or miscellaneous income from the transfer of those listed shares, etc., and other matters specified by Order of the Ministry of Finance (hereinafter referred to as a "written notification of opening of a minor's account" in this Article), with a written confirmation of tax exemption for a minor or a written notice of closure of a minor's account attached thereto;

contract for management of a minor's account: A contract for entries or records in the transfer account book or deposit for custody of listed shares, etc. concluded with a financial instruments business operator, etc. by a resident or a nonresident who has a permanent establishment referred to in paragraph (1) in order to receive the application of the provisions of Article 9-9 and the preceding paragraphs, in which the contract document provides for the following matters:

entries or records in the transfer account book or deposits for custody of listed shares, etc. are to be made in the tax-exempt management account or continuing management account established in the account pertaining to those entries or records or deposits for custody;

only the following listed shares, etc. of the resident or the nonresident who has a permanent establishment (excluding listed shares, etc. acquired by receiving the application of the provisions of the main clause of Article 29-2, paragraph (1) and others specified by Cabinet Order) are to be accepted into the tax-exempt management account:

the following listed shares, etc., where the total amount of consideration for acquisition (meaning, for purchased listed shares, etc., the amount of their purchase price, for listed shares, etc. acquired through payment, the amount paid in, and for listed shares, etc. accepted through the transfer of custody referred to in (ii), the amount at the time of withdrawal pertaining to the transfer of custody; the same applies in paragraph (8), item (ii)) of the listed shares, etc. accepted during the period from the day on which the tax-exempt management account was established in the account until December 31 of the year that includes that day does not exceed 800,000 yen (or, where there are listed shares, etc. listed in (2), the amount obtained by deducting the amount at the time of withdrawal pertaining to the transfer of custody of those listed shares, etc.):

listed shares, etc. acquired during that period through an entrustment of a purchase to the financial instruments business operator, etc. (including intermediation, brokerage, or agency for an entrustment of a purchase), listed shares, etc. acquired from the financial instruments business operator, etc., or listed shares, etc. acquired through a public offering of listed shares, etc. conducted by the financial instruments business operator, etc. (limited to one that falls under the category of public offering of securities prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act), which are accepted into the account immediately after their acquisition;

listed shares, etc. whose custody is transferred, pursuant to the provisions of Cabinet Order, from a tax-exempt management account for another year pertaining to the account in which the tax-exempt management account is established (excluding those listed in (2));

listed shares, etc. whose custody is transferred, pursuant to the provisions of Cabinet Order, from a tax-exempt management account for another year pertaining to the account in which the tax-exempt management account is established, on the day following the day on which five years have elapsed from January 1 of the year that includes the day on which the tax-exempt management account for that other year was established;

listed shares, etc. specified by Cabinet Order other than those listed in (1) and (2);

only the following listed shares, etc. of the resident or the nonresident who has a permanent establishment are to be accepted into the continuing management account:

listed shares, etc. whose custody is transferred, pursuant to the provisions of Cabinet Order, from a tax-exempt management account pertaining to the account in which the continuing management account is established, during the period from the day on which the continuing management account was established in the account until December 31 of the year that includes that day (excluding those listed in (2)), where the total of the amounts at the time of withdrawal pertaining to the transfer of custody does not exceed 800,000 yen (or, where there are listed shares, etc. listed in (2), the amount obtained by deducting the amount at the time of withdrawal pertaining to the transfer of custody of those listed shares, etc.);

listed shares, etc. whose custody is transferred, pursuant to the provisions of Cabinet Order, from a tax-exempt management account for another year pertaining to the account in which the continuing management account is established, on the day following the day on which five years have elapsed from January 1 of the year that includes the day on which the tax-exempt management account for that other year was established;

listed shares, etc. specified by Cabinet Order other than those listed in (1) and (2);

the transfer of listed shares, etc. entered or recorded in the transfer account book or deposited for custody in the tax-exempt management account or continuing management account is to be made by the method of entrusting the sale to the financial instruments business operator, etc., the method of transferring them to the financial instruments business operator, etc., or any other method specified by Cabinet Order;

the following listed shares, etc. are to be subject to the transfer of custody specified respectively below:

listed shares, etc. pertaining to the tax-exempt management account that are held on the day on which five years have elapsed from January 1 of the year that includes the day on which the tax-exempt management account was established in the account (referred to as the "date five years have passed" in (1)) (excluding those subject to the transfer of custody referred to in (b), (1), (ii) or (2) or (c), (1) or (2)): The transfer of custody specified below according to the category of case listed below:

where the resident or the nonresident who has a permanent establishment is under 18 years of age on March 31 of the year following the year that includes the date five years have passed: A transfer of custody to the taxable minor's account established at the same time as the account, made pursuant to the provisions of Cabinet Order on the day following the date five years have passed;

cases other than the case listed in (i): A transfer of custody to any other custody account made pursuant to the provisions of Cabinet Order on the day following the date five years have passed;

listed shares, etc. pertaining to the continuing management account that are held by the resident or the nonresident who has a permanent establishment on December 31 of the year preceding the year in which the person is 18 years of age on January 1 of that year: A transfer of custody to any other custody account made pursuant to the provisions of Cabinet Order on the day following that December 31;

listed shares, etc. entered or recorded in, or deposited for custody in, the tax-exempt management account or continuing management account are to be handled as specified below until December 31 of the year preceding the reference year of the resident or the nonresident who has a permanent establishment:

no transfer of custody of the listed shares, etc. from the account to any other custody account other than the taxable minor's account established at the same time as the account, and no return of securities pertaining to the listed shares, etc. to the resident or the nonresident who has a permanent establishment, is to be made (excluding a transfer of custody or return due to a disaster, illness, or any other unavoidable cause specified by Cabinet Order (referred to as a "disaster or other unavoidable cause" in item (vi), (d)) that is made with regard to all of the listed shares, etc. and money or other assets entered or recorded in, deposited for custody in, or deposited or entrusted in the account and the taxable minor's account (hereinafter referred to as a "transfer or return due to a disaster, etc." in this item and the following paragraph), and a transfer of custody or return due to any other event specified by Cabinet Order);

no transfer of the listed shares, etc. by a method other than the methods prescribed in (d) that is specified by Cabinet Order, and no gift of the listed shares, etc., is to be made;

the consideration for the transfer of the listed shares, etc. (including money or other assets whose amount is deemed, pursuant to the provisions of Article 37-11, paragraph (3) or (4), to be revenue pertaining to capital gains, etc. on listed shares, etc. prescribed in those provisions; the same applies in paragraph (8)) or money or other assets delivered as dividends and similar income on the listed shares, etc. (excluding those specified by Cabinet Order; referred to as "monies or other assets received for a transfer" in item (vi), (c)) are to be deposited or entrusted in that taxable minor's account immediately after their receipt;

where, with respect to the account, an event occurs by which the account ceases to meet the requirements listed in (e) or (f), or a transfer or return due to a disaster, etc. occurs, the account and the taxable minor's account established at the same time as the account are to be closed at the time those events (referred to as "grounds for closure of a minor's account, etc." in paragraph (20), item (i)) occur;

other matters specified by Cabinet Order besides those listed in (a) through (g).

tax-exempt management account: An account for keeping records of entries or records in the transfer account book or deposits for custody, with respect to listed shares, etc. entered or recorded in the transfer account book or deposited for custody under a contract for management of a minor's account, separately from records of other transactions, which is established on January 1 of each year from 2016 through 2023 (limited to a year in which the resident or the nonresident who has a permanent establishment is under 18 years of age on January 1 of that year and the year that includes the person's date of birth) (or, for the year that includes the day on which a written confirmation of tax exemption for a minor was submitted, where it was submitted in the middle of a year, the day of the submission, and, where a written notice of closure of a minor's account was submitted, the day on which the matters specified in paragraph (24), item (i) were provided by the competent district director referred to in that paragraph pursuant to the provisions of that paragraph (or, where those matters were provided before January 1 of the year in which the tax-exempt management account is to be established, that January 1));

continuing management account: An account for keeping records of entries or records in the transfer account book or deposits for custody, with respect to listed shares, etc. entered or recorded in the transfer account book or deposited for custody under a contract for management of a minor's account, separately from records of other transactions, which is established on January 1 of each year from 2024 through 2028 (limited to a year in which the resident or the nonresident who has a permanent establishment is under 18 years of age on January 1 of that year);

taxable minor's account: An account opened by a resident or a nonresident who has a permanent establishment who has opened a minor's account, at the business office of the financial instruments business operator, etc. at which the minor's account is opened or at a business office of a corporation that has a relationship specified by Cabinet Order with the financial instruments business operator, etc., which consists of a specified account prescribed in Article 37-11-3, paragraph (3), item (i) (hereinafter referred to as a "specified account" in this item and the following item) or a deposit account, savings account, or account for the management of money or other assets entrusted by customers (limited to such accounts in which no matters concerning transactions other than transactions under a contract for managing a taxable minor's account are handled) (limited to one that does not include two or more specified accounts), and which is established at the same time as the minor's account;

contract for managing a taxable minor's account: A contract concluded by a resident or a nonresident who has a permanent establishment referred to in paragraph (1) who receives the application of the provisions of Article 9-9 and the preceding paragraphs, with the financial instruments business operator, etc. with which the person opens a minor's account, when opening an account consisting of the specified account referred to in the preceding item or a deposit account, savings account, or account for the management of money or other assets entrusted by customers (limited to a contract concluded at the same time as a contract for management of a minor's account), in which the contract document provides for the following matters:

entries or records in the transfer account book or deposits for custody of listed shares, etc., or deposits or entrustments of money or other assets, are, notwithstanding the provisions of Article 37-11-3, paragraph (3), item (ii), to be made in the taxable management account (meaning an account for keeping records of entries or records in the transfer account book, deposits for custody, deposits, or entrustments, with respect to listed shares, etc. entered or recorded in the transfer account book or deposited for custody, or money or other assets deposited or entrusted, under a contract for managing a taxable minor's account, separately from records of other transactions) established in the account pertaining to those entries or records, deposits for custody, deposits, or entrustments;

the transfer of listed shares, etc. entered or recorded in the transfer account book or deposited for custody in the taxable management account is, notwithstanding the provisions of Article 37-11-3, paragraph (3), item (ii), to be made by the method of entrusting the sale to the financial instruments business operator, etc., the method of transferring them to the financial instruments business operator, etc., or any other method specified by Cabinet Order;

monies or other assets received for a transfer pertaining to the listed shares, etc. are to be deposited or entrusted in the account immediately after their receipt;

listed shares, etc. entered or recorded in, or deposited for custody in, the account and money or other assets deposited or entrusted in the account are to be handled as specified below until December 31 of the year preceding the reference year of the resident or the nonresident who has a permanent establishment:

no transfer of custody of the listed shares, etc. from the account to any other custody account, and no return of securities pertaining to the listed shares, etc. to the resident or the nonresident who has a permanent establishment, is to be made (excluding a transfer of custody or return due to a disaster or other unavoidable cause that is made with regard to all of the listed shares, etc. and money or other assets entered or recorded in, deposited for custody in, or deposited or entrusted in the account and the minor's account established at the same time as the account (referred to as a "transfer or return due to a disaster or other unavoidable cause" in (3) and (e)), and a transfer of custody or return due to any other event specified by Cabinet Order);

no transfer of the listed shares, etc. by a method other than the methods prescribed in (b) that is specified by Cabinet Order, and no gift of the listed shares, etc., is to be made;

no withdrawal of the money or other assets from the account is to be made (excluding a withdrawal made for the acquisition of listed shares, etc. to be entered or recorded in, or deposited for custody in, the account or the minor's account, and a withdrawal of the money or other assets in the case where a transfer or return due to a disaster or other unavoidable cause is made with respect to the listed shares, etc. pertaining to the account);

where, with respect to the account, an event occurs by which the account ceases to meet the requirements listed in (c) or (d), or a transfer or return due to a disaster or other unavoidable cause occurs, the account and the minor's account established at the same time as the account are to be closed at the time those events (referred to as an "event for closing a taxable minor's account, etc." in paragraph (20), item (i)) occur;

where, on January 1 of the reference year of the resident or the nonresident who has a permanent establishment, there is a specified account, other than the specified account constituting the account, that has been opened in duplicate with the financial instruments business operator, etc. with which the account is opened, the specified account constituting the account is to be closed on that date;

other matters specified by Cabinet Order besides those listed in (a) through (f).

written confirmation of tax exemption for a minor: A document delivered to a resident or a nonresident who has a permanent establishment by the competent district director prescribed in paragraph (15) as provided for in paragraphs (12) through (16), which states that a tax-exempt management account may be established in a minor's account, the person's name and date of birth, and other matters specified by Order of the Ministry of Finance;

written notice of closure of a minor's account: A document delivered to a resident or a nonresident who has a permanent establishment by the head of the business office of the financial instruments business operator, etc. prescribed in paragraph (20) as provided for in paragraphs (20) through (22), which states the person's name and date of birth, the date on which the minor's account was closed, whether any listed shares, etc. were accepted into the tax-exempt management account for the year that includes the day of the closure, and other matters specified by Order of the Ministry of Finance.

Where an event of non-performance of contract, etc. (meaning the occurrence, with respect to a contract for management of a minor's account or a contract for managing a taxable minor's account or the performance thereof, of an event by which the requirements listed in paragraph (5), item (ii), (e) or (f) or item (vi), (c) or (d) are not met, or the closure of a minor's account or taxable minor's account (excluding a closure due to the occurrence of a transfer or return due to a disaster, etc.); the same applies hereinafter in this paragraph and in paragraphs (8) and (28)) occurs by December 31 of the year preceding the reference year of a resident or a nonresident who has a permanent establishment who opens a minor's account and a taxable minor's account or December 31, 2023, whichever is earlier, the provisions of this Act and the Income Tax Act apply as specified below. In this case, the amount of business income, the amount of capital gains, and the amount of miscellaneous income from the transfer of listed shares, etc. in a minor's account under the provisions of items (i) through (iii) and the amount of business income, the amount of capital gains, and the amount of miscellaneous income from the transfer of shares, etc. other than the listed shares, etc. in a minor's account are to be calculated separately, pursuant to the provisions of Cabinet Order:

with regard to business income, capital gains, or miscellaneous income from the transfer of listed shares, etc. in a minor's account made during the period from the time the minor's account was opened until the time the event of non-performance of contract, etc. occurred, the provisions of paragraphs (1) and (2) are deemed not to have applied, and the listed shares, etc. in a minor's account are deemed to have been transferred, at the time the event of non-performance of contract, etc. occurred, by a transfer other than a transfer made in accordance with the method specified in the contract for management of a minor's account;

with regard to listed shares, etc. in a minor's account that were subject to a transfer of custody to any other custody account or to a tax-exempt management account or continuing management account (excluding a transfer of custody due to an event specified by Cabinet Order prescribed in item (ii), (f), (1) of the preceding paragraph; the same applies hereinafter in this item and in item (iv)) during the period from the time the minor's account was opened until the time the event of non-performance of contract, etc. occurred, the provisions of paragraph (4) are deemed not to have applied, and those listed shares, etc. in a minor's account are deemed to have been transferred, at the time the event of non-performance of contract, etc. occurred, by a transfer other than a transfer made in accordance with the method specified in the contract for management of a minor's account, for the amount at the time of withdrawal as of the time of the transfer of custody;

the listed shares, etc. in a minor's account that gave rise to an event of non-performance of contract, etc. and the listed shares, etc. in a minor's account pertaining to the minor's account at the time the event of non-performance of contract, etc. occurred are deemed to have been transferred, at the time the event of non-performance of contract, etc. occurred, by a transfer other than a transfer made in accordance with the method specified in the contract for management of a minor's account, for the amount at the time of withdrawal as of that time;

a resident or a nonresident who has a permanent establishment who had opened the minor's account and to whom the provisions of item (ii) apply is deemed to have acquired, at the time of the transfer of custody referred to in that item, for the amount at the time of withdrawal as of that time, shares, etc. of the same class as the listed shares, etc. in a minor's account in a number equivalent to the number of the listed shares, etc. in a minor's account withdrawn due to the transfer of custody;

a resident or a nonresident who has a permanent establishment who had opened the minor's account and to whom the provisions of item (iii) apply is deemed to have acquired, at the time the event of non-performance of contract, etc. occurred, for the amount at the time of withdrawal as of that time, shares, etc. of the same class as the listed shares, etc. in a minor's account referred to in that item (excluding those that were transferred or given as a gift as prescribed in item (ii), (f), (2) of the preceding paragraph) in a number equivalent to the number of those listed shares, etc. in a minor's account, and a person who acquired the listed shares, etc. in a minor's account referred to in item (iii) by gift is deemed to have acquired, at the time the event of non-performance of contract, etc. occurred, for the amount at the time of withdrawal as of that time, shares, etc. of the same class as those listed shares, etc. in a minor's account.

In the case referred to in the preceding paragraph, where the revenue pertaining to listed shares, etc. in a minor's account deemed to have been transferred under the provisions of items (i) through (iii) of that paragraph is less than the sum of the acquisition cost of the listed shares, etc. in a minor's account and the expenses required for the transfer thereof as prescribed in Article 33, paragraph (3) of the Income Tax Act, or is less than the necessary expenses for the transfer thereof, the amount of the shortfall is deemed not to exist for the purpose of applying the provisions of laws and regulations concerning income tax.

Where an event of non-performance of contract, etc. occurs with respect to a minor's account or taxable minor's account by December 31 of the year preceding the reference year of the resident or the nonresident who has a permanent establishment who opens the minor's account and taxable minor's account or December 31, 2023, whichever is earlier, the financial instruments business operator, etc. with which the minor's account is opened must, upon the closure of the minor's account due to the occurrence of the event of non-performance of contract, etc., collect income tax in the amount calculated by multiplying the amount obtained by deducting the amount listed in item (ii) from the amount listed in item (i) by a tax rate of 15 percent, and must pay it to the State no later than the 10th day of the month following the month that includes the day of the collection:

the total of the following amounts:

the total amount of consideration for the transfer of listed shares, etc. in a minor's account pertaining to the minor's account paid during the period from the day on which the minor's account was opened until the day of the closure (excluding the amount of that part of the consideration for the transfer whose money or other assets were not deposited or entrusted in the taxable minor's account established at the same time as the minor's account);

the total of the amounts at the time of withdrawal, as of the time of the transfer of custody, of listed shares, etc. whose custody was transferred from the minor's account to a taxable minor's account during the period from the day on which the minor's account was opened until the day of the closure;

the total of the amounts at the time of withdrawal, as of the day on which the minor's account was closed, of the listed shares, etc. entered or recorded in the transfer account book pertaining to the minor's account or deposited for custody in the minor's account on that day;

the total of the amount of consideration for acquisition and the amount of expenses required for the acquisition, and the amount of expenses required for the transfer, of the listed shares, etc. listed in paragraph (5), item (ii), (b), (1), (i) that were entered or recorded in, or deposited for custody in, the minor's account during the period from the day on which the minor's account was opened until the day on which the minor's account was closed (excluding the amount of consideration for acquisition and the amount of expenses required for the acquisition, and the amount of expenses required for the transfer, of listed shares, etc. in a minor's account whose money or other assets pertaining to the consideration for the transfer were not deposited or entrusted in the taxable minor's account established at the same time as the minor's account, and other amounts specified by Cabinet Order).

Income tax to be collected and paid pursuant to the provisions of the preceding paragraph is deemed to be income tax pertaining to withholding at the source as prescribed in Article 2, paragraph (1), item (xlv) of the Income Tax Act, and the provisions of that Act, the Act on General Rules for National Taxes, and the National Tax Collection Act apply.

A resident or a nonresident who has a permanent establishment who held a minor's account with respect to income tax for a year and who has the amount of business income, the amount of capital gains, and the amount of miscellaneous income from the transfer of listed shares, etc. in a minor's account pertaining to the minor's account, as calculated under the provisions of paragraph (6) (limited to the part pertaining to items (i) through (iii)) for the transfer of those listed shares, etc. in a minor's account, may, with respect to income tax for that year, apply the provisions of Articles 120 through 127 of the Income Tax Act (including the cases where those provisions are applied mutatis mutandis pursuant to Article 166 of that Act) and the provisions of Article 123, paragraph (1) of that Act (including the cases where it is applied mutatis mutandis pursuant to Article 166 of that Act) as applied mutatis mutandis pursuant to Article 37-12-2, paragraph (9) (including the cases where it is applied mutatis mutandis pursuant to Article 37-13-3, paragraph (10)), by excluding the amount of business income, the amount of capital gains, or the amount of miscellaneous income from the transfer of the listed shares, etc. in a minor's account in calculating the amount of capital gains, etc. on listed shares, etc. prescribed in Article 37-11, paragraph (1), the amount of losses from the transfer of listed shares, etc. prescribed in Article 37-12-2, paragraph (2) or (6), the amount of income other than employment income and retirement income prescribed in Article 121, paragraph (1) of the Income Tax Act (including the cases where it is applied mutatis mutandis pursuant to Article 166 of that Act), or the amount of income other than miscellaneous income from public pensions, etc. prescribed in Article 121, paragraph (3) of that Act (including the cases where it is applied mutatis mutandis pursuant to Article 166 of that Act).

For the purpose of applying those provisions in the case where a determination under Article 25 of the Act on General Rules for National Taxes (including a reassessment under Article 24 or 26 of that Act pertaining to the determination) is made with respect to income tax for a year of a resident or a nonresident who has a permanent establishment prescribed in the preceding paragraph, the amount of business income, the amount of capital gains, or the amount of miscellaneous income from the transfer of listed shares, etc. in a minor's account that falls under the provisions of that paragraph is not to be included in the tax base, etc. prescribed in those Articles.

A resident or a nonresident who has a permanent establishment who seeks to be issued a written confirmation of tax exemption for a minor must submit a written application stating the person's name, date of birth, address (for a person who has no address in Japan, the place specified by Order of the Ministry of Finance; the same applies hereinafter in this Article), and individual number (for a person specified by Cabinet Order as a person who has already notified their individual number (referred to as a "person who has already notified the individual number" in paragraph (15)), the name, date of birth, and address; the same applies in the following paragraph and paragraph (14)), and other matters specified by Order of the Ministry of Finance, to the head of the business office of a financial instruments business operator, etc. during the period from January 1, 2016, to September 30, 2023 (such submission includes the provision, by a method using an electronic data processing system or any other method using information and communications technology in lieu of the submission of the written application, of the matters to be stated in the written application; the same applies in the following paragraph and paragraphs (15) and (16)).

A resident or a nonresident who has a permanent establishment who seeks to submit the written application referred to in the preceding paragraph must, pursuant to the provisions of Cabinet Order, at the time of the submission, notify the head of the business office of the financial instruments business operator, etc. referred to in that paragraph of the person's name, date of birth, address, and individual number, by presenting a copy of the person's certificate of residence or any other document specified by Cabinet Order or by transmitting an electronic certificate for signature, etc. prescribed in Article 37-11-3, paragraph (4), and must have the notified matters confirmed.

The head of the business office of a financial instruments business operator, etc. may not accept a written application referred to in the preceding paragraph in which a name, date of birth, address, and individual number different from those notified under that paragraph are stated.

The head of the business office of the financial instruments business operator, etc. referred to in paragraph (12) that has received the written application referred to in that paragraph must, promptly after receiving it, provide the matters stated in the written application (for a written application received from a person who has already notified the individual number, those matters and the person's individual number; hereinafter referred to as "application particulars" in this paragraph and the following paragraph) to the competent district director with jurisdiction over the location of the business office of the financial instruments business operator, etc. (referred to as the "competent district director" in the following paragraph), by a method using a specified electronic data processing system. In this case, the head of the business office of the financial instruments business operator, etc. must keep books regarding the written application, and must enter or record the application particulars for each person who submitted the written application.

The competent district director who has received the application particulars referred to in the preceding paragraph is to confirm whether application particulars under the provisions of the preceding paragraph had been provided to that competent district director or to any other district director, before the time of receiving those application particulars, with respect to the resident or the nonresident who has a permanent establishment who submitted the written application to which the application particulars pertain (hereinafter referred to as the "applicant" in this paragraph), and the competent district director who has made the confirmation must deliver to the applicant, via the head of the business office of the financial instruments business operator, etc. that received the written application to which the application particulars pertain, the document or written statement specified in each of the following items according to the case listed in that item:

where no application particulars had been provided to the competent district director or any other district director before the time of receiving the application particulars: A written confirmation of tax exemption for a minor;

cases other than the case listed in the preceding item: A written statement stating that a written confirmation of tax exemption for a minor will not be delivered and other matters specified by Order of the Ministry of Finance.

The provisions of paragraphs (13) and (14) apply mutatis mutandis to a resident or a nonresident who has a permanent establishment who submits a written notification of opening of a minor's account and to the head of the business office of the financial instruments business operator, etc. that has received the written notification of opening of a minor's account.

A resident or a nonresident who has a permanent establishment who currently has a minor's account opened may not submit a written notification of opening of a minor's account to the head of the business office of the financial instruments business operator, etc. at which the minor's account is opened or to the head of a business office of a financial instruments business operator, etc. other than that head.

The head of the business office of a financial instruments business operator, etc. that has received a written notification of opening of a minor's account with a written confirmation of tax exemption for a minor attached must, promptly after receiving it, provide the name, date of birth, and individual number of the resident or the nonresident who has a permanent establishment who submitted the written notification of opening of a minor's account, and other matters specified by Order of the Ministry of Finance, to the competent district director with jurisdiction over the location of the business office of the financial instruments business operator, etc., by a method using a specified electronic data processing system.

Where a resident or a nonresident who has a permanent establishment who has opened a minor's account seeks to cease receiving the application of the provisions of Article 9-9 and paragraphs (1) through (4) with regard to the minor's account, the person must submit, to the head of the business office of the financial instruments business operator, etc. at which the minor's account is opened, a written notification stating that the minor's account is to be closed and other matters specified by Order of the Ministry of Finance (hereinafter referred to as a "written notification of closure of a minor's account" through paragraph (22)) (such submission includes the provision, by a method using an electronic data processing system or any other method using information and communications technology in lieu of the submission of the written notification of closure of a minor's account, of the matters to be stated in the written notification of closure of a minor's account; the same applies hereinafter through paragraph (22)), and in the cases listed in the following items, the resident or the nonresident who has a permanent establishment who has opened the minor's account referred to in each of those items is deemed to have submitted a written notification of closure of a minor's account to the head of the business office of the financial instruments business operator, etc. at which the minor's account is opened, at the time or on the day specified in that item:

where a minor's account has been closed due to the occurrence of grounds for closure of a minor's account, etc. or an event for closing a taxable minor's account, etc. with respect to a contract for management of a minor's account or contract for managing a taxable minor's account or the performance thereof: The time those events occurred;

where a resident or a nonresident who has a permanent establishment has a minor's account opened on the later of the following days: That day.

the day following the day on which five years have elapsed from January 1 of the year that includes the day on which the tax-exempt management account for the most recent year, among the years for which tax-exempt management accounts are established in the minor's account, was established, or January 1 of the target year (meaning the year in which the resident or the nonresident who has a permanent establishment is 18 years of age on January 1 of that year), whichever is later;

January 1, 2026.

Where a written notification of closure of a minor's account has been submitted, the minor's account to which the written notification of closure of a minor's account pertains is to be closed at the time of the submission, and the provisions of Article 9-9, paragraph (1) and paragraphs (1) through (3) do not apply to dividends and similar income prescribed in that paragraph that are to be received after the time of the submission with respect to listed shares, etc. that had been accepted into the minor's account, or to income from the transfer of those listed shares, etc. made after the time of the submission.

The head of the business office of a financial instruments business operator, etc. that has received a written notification of closure of a minor's account must, promptly after receiving it, provide the name and individual number of the person who submitted the written notification of closure of a minor's account, the fact that the written notification of closure of a minor's account has been received, the date on which the minor's account was closed, and other matters specified by Order of the Ministry of Finance (hereinafter referred to as "closure notification particulars" in this paragraph and paragraph (24)) to the competent district director with jurisdiction over the location of the business office of the financial instruments business operator, etc., by a method using a specified electronic data processing system, and the head of the business office of the financial instruments business operator, etc. that has provided the closure notification particulars must deliver a written notice of closure of a minor's account to the resident or the nonresident who has a permanent establishment who submitted the written notification of closure of a minor's account (limited to one submitted by September 30 of the year in which the resident or the nonresident who has a permanent establishment is 17 years of age on January 1 of that year or September 30, 2023, whichever is earlier, and excluding a written notification of closure of a minor's account pertaining to a minor's account opened by a resident or a nonresident who has a permanent establishment who is 17 years of age on January 1 of the year that includes the day of the submission, in which listed shares, etc. had been accepted into the tax-exempt management account for the year that includes that January 1).

The head of the business office of a financial instruments business operator, etc. that has received a written notice of closure of a minor's account submitted as an attachment to a written notification of opening of a minor's account must, promptly after receiving it, provide the name and individual number of the resident or the nonresident who has a permanent establishment who made the submission, the fact that the written notice of closure of a minor's account has been received, the date on which the minor's account stated in the written notice of closure of a minor's account was closed (referred to as the "date of closure" in the following paragraph), and other matters specified by Order of the Ministry of Finance (hereinafter referred to as "matters submitted" in this paragraph and the following paragraph) to the competent district director with jurisdiction over the location of the business office of the financial instruments business operator, etc. (referred to as the "competent district director" in that paragraph), by a method using a specified electronic data processing system. In this case, the head of the business office of the financial instruments business operator, etc. must keep books regarding the written notice of closure of a minor's account, and must enter or record the matters submitted for each person who submitted the written notice of closure of a minor's account.

The competent district director who has received the matters submitted is to confirm whether closure notification particulars under the provisions of paragraph (22) (limited to those stating the same date as the date of closure pertaining to the matters submitted) have been provided with respect to the resident or the nonresident who has a permanent establishment who submitted the written notice of closure of a minor's account (hereinafter referred to as the "submitter" in this paragraph), and the competent district director who has made the confirmation must provide the matters specified in each of the following items according to the case listed in that item to the head of the business office of the financial instruments business operator, etc. that provided the matters submitted, by a method using an electronic data processing system (meaning an electronic data processing system connecting, through a telecommunications line, a computer used by the National Tax Agency and a computer used by the head of the business office of the financial instruments business operator, etc.):

where closure notification particulars pertaining to the submitter have been provided (excluding cases that fall under the case listed in the following item): The fact that the submitter may open a minor's account at the business office of the financial instruments business operator, etc. and other matters specified by Order of the Ministry of Finance;

where no closure notification particulars pertaining to the submitter have been provided, or where matters submitted pertaining to the same submitter (limited to those stating the same date of closure) had already been provided to the competent district director or any other district director before the time of receiving the matters submitted: The fact that the submitter may not open a minor's account at the business office of the financial instruments business operator, etc., the reason therefor, and other matters specified by Order of the Ministry of Finance.

Where the head of the business office of a financial instruments business operator, etc. has obtained, pursuant to the provisions of Cabinet Order, the approval of the competent district director prescribed in paragraph (15), (19), (22), or (23) or any other provision specified by Cabinet Order (hereinafter referred to as the "competent district director" in this paragraph), the head of the business office of the financial instruments business operator, etc. may, notwithstanding those provisions, provide the matters required to be provided under those provisions (hereinafter referred to as the "matters to be provided" in this paragraph) to the district director specified by Order of the Ministry of Finance, by a method using a specified electronic data processing system. In this case, the provisions of Article 9-9 and this Article apply by deeming that the head of the business office of the financial instruments business operator, etc. has provided the matters to be provided to the competent district director.

In addition to what is provided for in paragraph (17) through the preceding paragraph, matters concerning the information to be provided by the competent district director referred to in paragraph (16) to the head of the business office of the financial instruments business operator, etc. referred to in that paragraph when the competent district director delivers the document or written statement specified in the items of that paragraph via that head of the business office, matters concerning books to be kept by a financial instruments business operator, etc. with regard to minor's accounts, matters concerning the notification in the case where an individual who has submitted a written notification of opening of a minor's account has changed or is to change any matter stated in the written notification of opening of a minor's account after its submission or in the case of the individual's absence from Japan, and other necessary matters concerning the application of the provisions of paragraphs (1) through (16) are specified by Cabinet Order.

Where, in a year, there was a minor's account opened at a business office of a financial instruments business operator, etc., the financial instruments business operator, etc. must, pursuant to the provisions of Order of the Ministry of Finance, prepare a report stating the name, address, and individual number of the resident or the nonresident who has a permanent establishment who opened the minor's account, the amount of consideration for the transfer of listed shares, etc. processed in the minor's account during that year, the amount of dividends, etc. on listed shares, etc. in a minor's account pertaining to the minor's account, and other matters specified by Order of the Ministry of Finance, and must submit it, no later than January 31 of the year following that year, to the competent district director with jurisdiction over the location of the business office of the financial instruments business operator, etc. at which the minor's account is opened.

In the case referred to in paragraph (8), the financial instruments business operator, etc. referred to in that paragraph must deliver the report prescribed in the preceding paragraph to the resident or the nonresident who has a permanent establishment referred to in paragraph (8) no later than the last day of the month following the month that includes the day on which the event of non-performance of contract, etc. referred to in that paragraph occurred.

In lieu of delivering the report under the preceding paragraph, a financial instruments business operator, etc. may, with the consent of the resident or the nonresident who has a permanent establishment prescribed in that paragraph, provide the matters to be stated in the report by electronic or magnetic means prescribed in Article 37-11-3, paragraph (9); provided, however, that when requested by the resident or the nonresident who has a permanent establishment, the financial instruments business operator, etc. must deliver the report to that person.

In the case referred to in the main clause of the preceding paragraph, the financial instruments business operator, etc. referred to in that paragraph is deemed to have delivered the report referred to in paragraph (28).

Special provisions of Articles 224, 224-3, and 225 of the Income Tax Act concerning the transfer of listed shares, etc. processed in a minor's account or dividends, etc. on listed shares, etc. in a minor's account, and other necessary matters concerning the application of the provisions of paragraphs (27) and (28) are specified by Cabinet Order.

When it is necessary for an investigation concerning the submission of the report referred to in paragraph (27), the relevant officials of the National Tax Agency, a Regional Taxation Bureau, or a tax office may ask questions of a person obligated to submit the report, inspect the person's minor's account and the books and documents or other articles concerning the handling of listed shares, etc. in the minor's account, or request the presentation or submission of those articles (including copies thereof).

When it is necessary for an investigation concerning the submission of the report referred to in paragraph (27), the relevant officials of the National Tax Agency, a Regional Taxation Bureau, or a tax office may retain articles submitted in the investigation.

When asking questions, conducting an inspection, or requesting presentation or submission under paragraph (32), the relevant officials of the National Tax Agency, a Regional Taxation Bureau, or a tax office must carry a certificate showing their identification and must present it if requested by a person concerned.

The authority of the relevant officials under paragraphs (32) and (33) must not be construed as being granted for the purpose of criminal investigation.

In addition to what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (33) are specified by Cabinet Order.