Act on Special Measures Concerning Taxation

Where property has been given as a gift or bequeathed to the State or a local government, for the purpose of applying the provisions of Article 59, paragraph (1), item (i) of the Income Tax Act, the gift or bequest of the property is deemed not to have been made. The same applies to a gift or bequest of property (excluding land located outside Japan and other property specified by Cabinet Order; the same applies hereinafter in this Article) to a public interest corporation, etc. (meaning any of the following persons; the same applies hereinafter in this Article) (including such a gift or bequest in the case where the property is deemed to have been transferred by gift or bequest to the trustee of a public interest trust prescribed in item (ii) pursuant to the provisions of Article 67-3, paragraph (10) of that Act, and the provision of property for establishing the public interest corporation, etc., and, where it is made to a person listed in that item (excluding a person who falls under the category of person listed in item (i)), limited to one made for the purpose of making the property trust property of the public interest trust prescribed in item (ii); the same applies hereinafter in this Article) for which the approval of the Commissioner of the National Tax Agency has been obtained as one that satisfies the requirements specified by Cabinet Order, such as that the gift or bequest will significantly contribute to the promotion of education or science, the improvement of culture, contribution to social welfare, or other enhancement of the public interest, and that the property pertaining to the gift or bequest (where the property has been transferred for a reason specified by Cabinet Order, such as the expropriation, etc. of the property prescribed in Article 33, paragraph (1), and an asset specified by Cabinet Order as an asset to replace the property has been acquired with an amount equivalent to the entire revenue from the transfer, that asset (referred to as a "substitute asset" in the following paragraph and paragraphs (3) and (18))) has been, or is expected to be, directly used for the public interest purpose business (meaning the business for public interest purposes prescribed in item (i) and the public interest trust affairs prescribed in Article 7, paragraph (3), item (iv) of the Act on Public Interest Trusts; the same applies hereinafter in this paragraph through paragraph (3) and in paragraph (5)) of the public interest corporation, etc. within the period ending on the day on which two years have elapsed from the day of the gift or bequest (where there are circumstances specified by Cabinet Order as constituting a case in which it is difficult to directly use the property for the public interest purpose business of the public interest corporation, etc. within that period, the period specified by Cabinet Order; the same applies in the following paragraph).

an incorporated public interest association, incorporated public interest foundation, specified general corporation (meaning a general incorporated association or general incorporated foundation listed in Appended Table 2 of the Corporation Tax Act that is listed in Article 2, item (ix)-2, (a) of that Act), or any other corporation that conducts business for public interest purposes (excluding one that falls under the category of foreign corporation);

the trustee of a public interest trust prescribed in Article 2, paragraph (1), item (i) of the Act on Public Interest Trusts (hereinafter referred to as a "public interest trust" in this Article) (excluding one that falls under the category of nonresident or foreign corporation).

Where a gift or bequest has been made with the application of the provisions of the second sentence of the preceding paragraph, and the property pertaining to the gift or bequest or the substitute asset (hereinafter referred to as "property, etc." in this paragraph) has not been directly used for the public interest purpose business of the public interest corporation, etc. within the period ending on the day on which two years have elapsed from the day of the gift or bequest, or any other fact specified by Cabinet Order has occurred before the property, etc. is directly used for the public interest purpose business of the public interest corporation, etc. (excluding the case where the public interest corporation, etc. has given the property, etc. (or, where the property, etc. has been transferred, money in an amount equivalent to the entire revenue from the transfer) to the State or a local government as a gift, and other cases specified by Cabinet Order), the Commissioner of the National Tax Agency may revoke the approval referred to in the second sentence of the preceding paragraph. In this case, the gift or bequest prescribed in that paragraph is deemed to have been made at the time the approval is revoked, pursuant to the provisions of Cabinet Order.

Where, after a gift or bequest made with the application of the provisions of the second sentence of paragraph (1), the public interest corporation, etc. that received the gift or bequest has ceased to directly use the property pertaining to the gift or bequest or the substitute asset (hereinafter referred to as "property, etc." in this paragraph) for its public interest purpose business, or any other fact specified by Cabinet Order with respect to the gift or bequest (excluding the facts prescribed in the preceding paragraph) has occurred (excluding the case where the public interest corporation, etc. has given the property, etc. (or, where the property, etc. has been transferred, money in an amount equivalent to the entire revenue from the transfer) to the State or a local government as a gift, and other cases specified by Cabinet Order), the Commissioner of the National Tax Agency may revoke the approval referred to in the second sentence of paragraph (1). In this case, income tax on the amount of timber income, the amount of capital gains, or the amount of miscellaneous income pertaining to the property is imposed on the public interest corporation, etc., pursuant to the provisions of Cabinet Order, by deeming the public interest corporation, etc. to be the individual who made the gift or bequest.

Where the provisions of the second sentence of the preceding paragraph apply, the following provisions apply:

With regard to the application of the provisions of the Corporation Tax Act to a public interest corporation, etc. (limited to a person listed in paragraph (1), item (i)) to which the provisions of the second sentence of the preceding paragraph have been applied, the phrase "the following" in Article 38, paragraph (2) of that Act is deemed to be replaced with "the following, and income tax under the provisions of the second sentence of Article 40, paragraph (3) of the Act on Special Measures Concerning Taxation (Tax Exemption for Capital Gains, etc. in the Case of Donation of Property to the State, etc.) (excluding that income tax in the case where the value of the property under that paragraph pertaining to that income tax has been included in gross profit in calculating the amount of income for each business year of the public interest corporation, etc. prescribed in paragraph (1) of that Article that received the gift or bequest of that property prescribed in that paragraph)".

With regard to the application of the provisions of the Act on General Rules for National Taxes to a public interest corporation, etc. (limited to a person listed in paragraph (1), item (ii)) to which the provisions of the second sentence of the preceding paragraph have been applied, the phrase "the event" in Article 7-2, paragraphs (1) and (2) of that Act is deemed to be replaced with "the event or the specified termination event prescribed in Article 56, paragraph (1) of the Trust Act as applied with the terms replaced pursuant to the provisions of Article 33, paragraph (3) of the Act on Public Interest Trusts (Act No. 30 of 2024) (Application of the Trust Act)".

Where income tax prescribed in the second sentence of the preceding paragraph is imposed on the trustee of a public interest trust prescribed in paragraph (1), item (ii) pursuant to the provisions of the second sentence of the preceding paragraph, the trustee of that public interest trust is deemed to be a separate person for each of the trust assets, etc. of each public interest trust (meaning the assets and liabilities belonging to the trust property and the revenue and expenses attributed to that trust property; the same applies hereinafter in this item) and the personal assets and other holdings (meaning assets and liabilities, and revenue and expenses, other than the trust assets, etc. of each public interest trust; the same applies hereinafter in this item), and the provisions of the Income Tax Act (excluding Part I, Chapters II and V, and Part VI), this Act (excluding Article 42-3), and other laws and regulations concerning income tax apply. In this case, the trust assets, etc. of each public interest trust and the personal assets and other holdings are to belong respectively to each separate person deemed under the provisions of this item, and the provisions of Articles 79 through 85 of the Income Tax Act do not apply to the income tax prescribed in the second sentence of that paragraph pertaining to the separate person to whom the trust assets, etc. of each public interest trust are deemed to belong under the provisions of this item with respect to the trustee of that public interest trust (limited to a resident).

Where a public interest corporation, etc. to which the provisions of the second sentence of the preceding paragraph apply is the trustee of a public interest trust prescribed in paragraph (1), item (ii), if there are two or more trustees of that public interest trust, the provisions of the second sentence of the preceding paragraph apply by deeming the trustee who presides over the trust affairs of that public interest trust (referred to as the "presiding trustee" in this Article) to be the individual prescribed in the second sentence of that paragraph. In this case, with regard to the income tax prescribed in the second sentence of that paragraph imposed on that presiding trustee, the trustees other than that presiding trustee are jointly and severally liable for the payment of that income tax.

With regard to the application of the provisions of Article 43, paragraph (1) of the Act on General Rules for National Taxes in the case where the income tax prescribed in the preceding item is collected from a trustee other than the presiding trustee, the phrase "collection of national tax" in that paragraph is deemed to be replaced with "collection of income tax pertaining to the joint and several liability for payment, prescribed in that item, of a trustee (referred to as a "jointly liable trustee" in this paragraph) other than the presiding trustee (referred to as the "presiding trustee" in this paragraph) prescribed in Article 40, paragraph (4), item (iv) of the Act on Special Measures Concerning Taxation (Tax Exemption for Capital Gains, etc. in the Case of Donation of Property to the State, etc.) of a public interest trust prescribed in Article 2, paragraph (1), item (i) of the Act on Public Interest Trusts (Definitions)", and the phrase "the place for tax payment of that national tax" is deemed to be replaced with "the place for tax payment of that income tax or the place for tax payment of that income tax if that jointly liable trustee had been the presiding trustee of that public interest trust".

Substitute assets under paragraph (3) are to include the following assets. In this case, where the public interest corporation, etc. referred to in each of the following items is the trustee of a public interest trust prescribed in paragraph (1), item (ii) (limited to the case where there are two or more trustees of that public interest trust), its presiding trustee must submit the document referred to in each of those items; a public interest corporation, etc. that has submitted the document referred to in item (i) must directly use the replacement asset referred to in that item for that public interest purpose business within the period from the date of the transfer referred to in that item until the day on which one year has elapsed from the following day (if there are circumstances specified by Cabinet Order as those in which it is difficult to directly use the asset for the public interest purpose business referred to in that item within that period, within the period specified by Cabinet Order); and a public interest corporation, etc. that has submitted the document referred to in item (ii) must manage the specified replacement asset referred to in that item by the method referred to in that item.

the replacement asset in the case where the public interest corporation, etc. referred to in paragraph (3) transfers property received by gift or bequest referred to in that paragraph (limited to property that it has directly used for its public interest purpose business for two years or more) and acquires, with an amount equivalent to the whole of the revenue from that transfer, an asset (limited to an asset of the same type as that property that can be directly used for the public interest purpose business pertaining to that property (including an asset specified by Order of the Ministry of Finance), land, and rights existing on land; referred to as a "replacement asset" in this item and paragraph (18)), if, by the day before the date of that transfer, it has submitted a document stating the date of that transfer and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment;

the specified replacement asset in the case where the public interest corporation, etc. referred to in paragraph (3) transfers property received by gift or bequest referred to in that paragraph (excluding property specified by Cabinet Order) that it manages by a method specified by Cabinet Order, and acquires, with an amount equivalent to the whole of the revenue from that transfer, an asset (referred to as a "specified replacement asset" in this item and paragraph (18)), if, by the day before the date of that transfer, it has submitted a document stating the method of that management and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment.

Where a public interest corporation, etc. that has received a gift or bequest made by applying the provisions of the second sentence of paragraph (1) (referred to as a "specified gift, etc." in this Article) intends to transfer, through a merger (excluding a merger under the provisions of Article 56, paragraph (2) of the Trust Act), the property, etc. prescribed in paragraph (3) pertaining to that public interest corporation, etc. to the corporation surviving the merger or the corporation incorporated through the merger (limited to one that falls under the category of public interest corporation, etc.; referred to as a "public interest merger corporation" in this paragraph), and has submitted, by the day before the date of the merger, pursuant to the provisions of Cabinet Order, a document stating the date of the merger and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, on and after the date of the merger, the provisions of this Article apply by deeming that public interest merger corporation to be the public interest corporation, etc. pertaining to that specified gift, etc., and the assets transferred to that public interest merger corporation to be the property pertaining to that specified gift, etc.

Where a public interest corporation, etc. that has received a specified gift, etc. intends, through the distribution or delivery of residual assets upon dissolution (excluding dissolution by merger and dissolution due to the event listed in Article 56, paragraph (1), item (iv) of the Trust Act), to transfer the property, etc. prescribed in paragraph (3) pertaining to that public interest corporation, etc. to another public interest corporation, etc. (limited to a person listed in paragraph (1), item (i)), or to make it the trust property of a public interest trust (limited to one whose trustee is a person who falls under the category of person listed in paragraph (1), item (ii)) whose purpose is similar public interest work prescribed in Article 2, paragraph (1), item (ii) of the Act on Public Interest Trusts (referred to as "public interest work" in the following paragraph and paragraphs (9) and (12)), and has submitted, by the day before the date of the dissolution, pursuant to the provisions of Cabinet Order, a document stating the date of the dissolution and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, on and after the date of the dissolution, the provisions of this Article apply by deeming that other public interest corporation, etc. or the trustee of that public interest trust (referred to as a "successor on dissolution, etc." in this paragraph) to be the public interest corporation, etc. pertaining to that specified gift, etc., and the assets transferred to that successor on dissolution, etc. or accepted by it as the trust property of that public interest trust to be the property pertaining to that specified gift, etc.

Where a public interest corporation, etc. that has received a specified gift, etc. and has received a disposition revoking the public interest authorization prescribed in Article 5 of the Public Interest Authorization Act under the provisions of Article 29, paragraph (1) or (2) of the Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 49 of 2006; referred to as the "Public Interest Authorization Act" in this paragraph and paragraph (16)) (excluding such a disposition in the case where the approval under the second sentence of paragraph (1) may be revoked on the grounds pertaining to that revocation; referred to as a "specified disposition" in this paragraph) (limited to one that falls under the category of specified general corporation prescribed in paragraph (1), item (i) after that specified disposition; referred to as the "original corporation" in this paragraph) intends, in accordance with the provisions of its articles of incorporation prescribed in item (xx) of that Article, to give property in an amount equivalent to the remaining balance of property acquired for public interest purposes prescribed in Article 30, paragraph (2) of the Public Interest Authorization Act that it holds (referred to as the "property passed on" in this paragraph) to another public interest corporation, etc. (limited to a person listed in paragraph (1), item (i)), or to make it the trust property of a public interest trust (limited to one whose trustee is a person who falls under the category of person listed in paragraph (1), item (ii)) whose purpose is similar public interest work, and has submitted, by the day before the date of that gift or the date on which it is made trust property (referred to as the "date of the gift or similar transfer" in this paragraph), pursuant to the provisions of Cabinet Order, a document stating the date of the gift or similar transfer and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, on and after the date of the gift or similar transfer, the provisions of this Article apply by deeming that other public interest corporation, etc. or the trustee of that public interest trust (referred to as the "successor corporation, etc." in this paragraph) to be the public interest corporation, etc. pertaining to that specified gift, etc., and the public interest assets passed on (meaning the part of that property passed on specified by Cabinet Order as corresponding to the property, etc. prescribed in paragraph (3) pertaining to the public interest corporation, etc. that received that specified disposition) that that successor corporation, etc. has received by gift or accepted as the trust property of that public interest trust to be the property pertaining to that specified gift, etc. In this case, on and after the date of the gift or similar transfer, the provisions of paragraph (3) do not apply to that original corporation.

Where a specified general corporation prescribed in paragraph (1), item (i) that has received a specified gift, etc. intends to give the property, etc. prescribed in paragraph (3) to another public interest corporation, etc. (limited to a person listed in that item), or to make it the trust property of a public interest trust (limited to one whose trustee is a person who falls under the category of person listed in paragraph (1), item (ii)) whose purpose is similar public interest work (limited to the case where this falls under a donation or expenditure listed in Article 119, paragraph (2), item (i), (b) of the Act on the Arrangement of Related Acts upon the Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 50 of 2006)), and has submitted, by the day before the date of that gift or the date on which it is made trust property (referred to as the "date of the gift or similar transfer" in this paragraph), pursuant to the provisions of Cabinet Order, a document stating the date of the gift or similar transfer and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, on and after the date of the gift or similar transfer, the provisions of this Article apply by deeming that other public interest corporation, etc. or the trustee of that public interest trust (referred to as the "public interest corporation, etc. receiving the gift" in this paragraph) to be the public interest corporation, etc. pertaining to that specified gift, etc., and the assets that that public interest corporation, etc. receiving the gift has received by gift or accepted as the trust property of that public interest trust to be the property pertaining to that specified gift, etc.

Where a public interest corporation, etc. that has received a specified gift, etc. (limited to a person listed in paragraph (1), item (i) that establishes a kindergarten (meaning a kindergarten prescribed in Article 2, paragraph (2) of the Act on Advancement of Comprehensive Service Related to Education, Child Care, etc. of Preschool Children (Act No. 77 of 2006); the same applies hereinafter in this paragraph) or a nursery center, etc. (meaning a nursery center, etc. prescribed in paragraph (5) of that Article; the same applies hereinafter in this paragraph) and that satisfies the requirements specified by Cabinet Order; referred to as the "transferor corporation" in this paragraph) intends to give the property, etc. prescribed in paragraph (3) pertaining to that transferor corporation (limited to property, etc. directly used for the business pertaining to that kindergarten or nursery center, etc.) to another public interest corporation, etc. (limited to a person listed in paragraph (1), item (i) that intends to establish an integrated center for early childhood education and care prescribed in paragraph (7) of that Article, a kindergarten, or a nursery center, etc. and that satisfies the requirements specified by Cabinet Order; referred to as the "transferee corporation" in this paragraph), and has submitted, by the day before the date of the gift, pursuant to the provisions of Cabinet Order, a document stating the date of the gift and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, on and after the date of the gift, the provisions of this Article apply by deeming that transferee corporation to be the public interest corporation, etc. pertaining to that specified gift, etc., and the assets that that transferee corporation has received by gift to be the property pertaining to that specified gift, etc.

Where the trustee of a public interest trust prescribed in paragraph (1), item (ii) that has received a specified gift, etc. (referred to as the "original trustee" in this paragraph) intends, due to an event listed in any of the following items (excluding such an event in the case where the approval under the second sentence of paragraph (1) may be revoked on the grounds of that event (limited to the case specified by Cabinet Order as a case where that approval may be revoked on the grounds that it is found that it would result in an unjust reduction of the burden of income tax on the income of the person who made that specified gift, etc., or on other grounds); referred to as "events ending the trustee's duties, etc." in paragraph (14)), to transfer the property, etc. prescribed in paragraph (3) pertaining to that original trustee to the person specified in each of those items according to the category of event listed therein (limited to a person who falls under the category of the trustee (limited to one who falls under the category of person listed in paragraph (1), item (ii)) of that public interest trust for which authorization under Article 12, paragraph (1) of the Act on Public Interest Trusts has been obtained for the appointment of a new trustee prescribed in that paragraph (referred to as a "new trustee" in item (i)) or for a change in the matters listed in the items of Article 7, paragraph (2) of that Act, or for which notification under the provisions of Article 14, paragraph (1) of that Act has been made for the appointment of a new trustee prescribed in the proviso to Article 12, paragraph (1) of that Act; referred to as the "successor trustee" in this paragraph), and has submitted, by the day before the date of that authorization or notification, pursuant to the provisions of Cabinet Order, a document stating the date of that authorization or notification and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, on and after the date of that authorization or notification, the provisions of this Article apply by deeming that successor trustee to be the public interest corporation, etc. pertaining to that specified gift, etc., and the assets transferred to that successor trustee to be the property pertaining to that specified gift, etc. In this case, if there are two or more original trustees, their presiding trustee must submit that document to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment.

termination of the duties of that original trustee: the new trustee;

merger of a corporation that is that original trustee: the corporation surviving the merger or the corporation incorporated through the merger;

split of a corporation that is that original trustee: the corporation that succeeds to the rights and obligations as trustee through the split.

Where the trustee of a public interest trust prescribed in paragraph (1), item (ii) that has received a specified gift, etc. (referred to as the "original public interest trust" in this paragraph) intends, upon the termination of the public interest trust (excluding the termination of that public interest trust in the case where the approval under the second sentence of paragraph (1) may be revoked on the grounds of the event pertaining to that termination (limited to the case specified by Cabinet Order as a case where that approval may be revoked on the grounds that it is found that it would result in an unjust reduction of the burden of income tax on the income of the person who made that specified gift, etc., or on other grounds)), to transfer the property, etc. prescribed in paragraph (3) pertaining to the trustee of that original public interest trust to another public interest corporation, etc. (limited to a person listed in paragraph (1), item (i) who falls under the category of person who is to be the vested right holder prescribed in Article 4, paragraph (2), item (iii) of the Act on Public Interest Trusts pertaining to that original public interest trust), or to make it the trust property of another public interest trust whose purpose is similar public interest work (limited to one whose trustee is a person listed in paragraph (1), item (ii) who falls under the category of person who is to be the vested right holder prescribed in paragraph (2), item (iii) of that Article pertaining to that original public interest trust), and has submitted, by the day before the date of termination of the public interest trust, pursuant to the provisions of Cabinet Order, a document stating the date of termination of the public interest trust and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, on and after the date of termination of the public interest trust, the provisions of this Article apply by deeming that other public interest corporation, etc. or the trustee of that other public interest trust (referred to as the "vested right holder" in this paragraph) to be the public interest corporation, etc. pertaining to that specified gift, etc., and the assets transferred to that vested right holder or accepted by it as the trust property of that other public interest trust to be the property pertaining to that specified gift, etc. In this case, if there are two or more trustees of that original public interest trust, their presiding trustee must submit that document to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment.

Where a public interest merger corporation prescribed in paragraph (6) has received a transfer of assets through a merger prescribed in that paragraph from a public interest corporation, etc. that has received a specified gift, etc. (limited to the case where that public interest corporation, etc. did not submit the document prescribed in that paragraph with regard to that transfer by the day before the date of the merger), if that public interest merger corporation has submitted, pursuant to the provisions of Cabinet Order, by the day before the day on which two months have elapsed from the day following the day on which it learned that those assets are property, etc. prescribed in paragraph (3) pertaining to that specified gift, etc., a document stating the date of the merger and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment, notwithstanding the provisions of paragraph (6), on and after the date of the merger, the provisions of this Article apply by deeming that public interest merger corporation to be the public interest corporation, etc. pertaining to that specified gift, etc., and the assets transferred to that public interest merger corporation to be the property pertaining to that specified gift, etc.

The provisions of the preceding paragraph apply mutatis mutandis to the case where a successor corporation, etc. prescribed in paragraph (8) has received the property passed on prescribed in that paragraph by gift from the original corporation prescribed in that paragraph, or has accepted the property passed on prescribed in that paragraph as the trust property of the public interest trust prescribed in that paragraph (limited to the case where that original corporation did not submit the document prescribed in that paragraph with regard to that gift or to making it trust property by the day before the date of the gift or similar transfer prescribed in that paragraph); the case where a public interest corporation, etc. receiving the gift prescribed in paragraph (9) has received the property, etc. prescribed in that paragraph by gift from the specified general corporation prescribed in that paragraph, or has accepted the property, etc. prescribed in that paragraph as the trust property of the public interest trust prescribed in that paragraph (limited to the case where that specified general corporation did not submit the document prescribed in that paragraph with regard to that gift or to making it trust property by the day before the date of the gift or similar transfer prescribed in that paragraph); the case where a transferee corporation prescribed in paragraph (10) has received the property, etc. prescribed in that paragraph by gift from the transferor corporation prescribed in that paragraph (limited to the case where that transferor corporation did not submit the document prescribed in that paragraph with regard to that gift by the day before the date of the gift); and the case where a successor trustee prescribed in paragraph (11) has received a transfer of the property, etc. prescribed in that paragraph from the original trustee prescribed in that paragraph due to events ending the trustee's duties, etc. (limited to the case where that original trustee did not submit the document prescribed in that paragraph with regard to that transfer by the day before the date of the authorization or notification prescribed in that paragraph). In this case, when the provisions of the preceding paragraph apply mutatis mutandis to the case where that successor corporation, etc. has received that property passed on by gift from that original corporation or has accepted that property passed on as the trust property of that public interest trust, the phrase "the assets" in the preceding paragraph is deemed to be replaced with "the public interest assets passed on prescribed in paragraph (8)".

The provisions of the second sentence of paragraph (5) apply mutatis mutandis to the case where the provisions of paragraphs (6) through (13) (including as applied mutatis mutandis pursuant to the preceding paragraph; the same applies hereinafter in this paragraph) apply, and the provisions of the second sentence of paragraph (8) apply mutatis mutandis to the specified general corporation referred to in paragraph (9), the transferor corporation referred to in paragraph (10), and the original corporation, specified general corporation, and transferor corporation referred to in the preceding paragraph in the case where the provisions of that paragraph apply. In this case, in the second sentence of paragraph (5) as applied mutatis mutandis to the case where the provisions of paragraph (10) or (13) apply to the transferee corporation referred to in paragraph (10) or the transferee corporation referred to in the preceding paragraph, the phrase "for that public interest purpose business" is deemed to be replaced with "for that public interest purpose business (limited to the business specified by Cabinet Order)", and the phrase "; and a public interest corporation, etc. that has submitted the document referred to in item (ii) must manage the specified replacement asset referred to in that item by the method referred to in that item" is deemed to be omitted.

Where a specified general corporation prescribed in paragraph (9) has received the authorization under Article 4 of the Public Interest Authorization Act, it must, within one month from the date on which it received that authorization, pursuant to the provisions of Cabinet Order, submit a document stating the name and location of that specified general corporation, its corporate number prescribed in Article 2, paragraph (16) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures, and other matters specified by Order of the Ministry of Finance to the Commissioner of the National Tax Agency via the district director with jurisdiction over the place for tax payment.

When the Commissioner of the National Tax Agency has granted the approval under the second sentence of paragraph (1), the Commissioner must notify the person who applied for that approval and the public interest corporation, etc. pertaining to that application to that effect; when the Commissioner has decided not to grant that approval or has revoked that approval pursuant to the provisions of paragraph (2), the Commissioner must notify the person who applied for that approval or the person who had received that approval to that effect; and when the Commissioner has revoked that approval pursuant to the provisions of paragraph (3), the Commissioner must notify the public interest corporation, etc. pertaining to that approval to that effect.

Where a public interest corporation, etc. that holds assets received by gift or bequest from an individual (including assets that fall under the category of substitute assets, replacement assets or specified replacement assets pertaining to those assets; referred to as "donated assets" in this paragraph) intends to receive the application of the provisions of paragraphs (5) through (12) with regard to the transfer of those donated assets, that public interest corporation, etc. may, pursuant to the provisions of Cabinet Order, request the Commissioner of the National Tax Agency to confirm that those donated assets are property, etc. prescribed in paragraph (3) pertaining to a specified gift, etc. pertaining to that public interest corporation, etc. In this case, that public interest corporation, etc. may request that confirmation with regard to those of the donated assets that pertain to a gift or bequest made on or after December 1, 2008 only where there is a disaster or other unavoidable reason for requesting that confirmation.

When the Commissioner of the National Tax Agency has been requested to give confirmation pursuant to the provisions of the preceding paragraph, the Commissioner must promptly respond to the public interest corporation, etc. pertaining to that confirmation.

With regard to the application of the provisions of Article 60, paragraph (2) of the Act on General Rules for National Taxes to the amount calculated pursuant to the provisions of Cabinet Order as the part of the amount of income tax payable by the person who applied for the approval under the second sentence of paragraph (1) or the person who had received that approval that pertains to the gift or bequest of the property pertaining to the relevant disposition, in the case where a decision not to grant that approval or a revocation under paragraph (2) has been made (where a revocation has been made, limited to the cases specified by Cabinet Order), or to the amount of income tax payable by the public interest corporation, etc. pertaining to that approval in the case where a revocation under paragraph (3) has been made (limited to the cases specified by Cabinet Order), the period prescribed in the main clause of that paragraph is, notwithstanding the provisions of that paragraph, the period from the day following the date on which notice of that decision or revocation was given until the date on which that amount is paid in full.

With regard to the application of the provisions of Article 78, paragraph (1) of the Income Tax Act or the provisions of Article 41-18-2 or Article 41-18-3 in the case where those provisions apply to a gift or bequest of property to which the provisions of paragraph (1) apply, the phrase "donations (excluding those made in connection with admission to a school)" in Article 78, paragraph (2) of that Act is deemed to be replaced with "donations (excluding, of those to which the provisions of Article 40, paragraph (1) of the Act on Special Measures Concerning Taxation (Tax Exemption for Capital Gains, etc. in the Case of Donation of Property to the State, etc.) apply, the part equivalent to the amount of timber income or the amount of capital gains calculated without deducting the special timber income deduction prescribed in Article 32, paragraph (3) or the special capital gain deduction prescribed in Article 33, paragraph (3), or to the amount of miscellaneous income, pertaining to the gift or bequest of the property prescribed in that paragraph, and those made in connection with admission to a school)"; the phrase "the person who made the donation" in Article 41-18-2, paragraph (1) is deemed to be replaced with "the part equivalent to the amount of timber income or the amount of capital gains calculated without deducting the special timber income deduction prescribed in Article 32, paragraph (3) of the Income Tax Act or the special capital gain deduction prescribed in Article 33, paragraph (3) of that Act, or to the amount of miscellaneous income, pertaining to the gift or bequest of the property prescribed in Article 40, paragraph (1), of those to which the provisions of that paragraph apply, and the person who made the donation"; and the phrase "the Income Tax Act" is deemed to be replaced with "that Act".

Beyond what is provided for in paragraph (20), the procedures for the approval under the second sentence of paragraph (1), special provisions of Article 78 of the Income Tax Act concerning a gift or bequest deemed to have been made pursuant to the provisions of the second sentence of paragraph (2), special provisions concerning the application of the provisions of laws and regulations concerning income tax to a public interest corporation, etc. deemed to be the individual who made a gift or bequest pursuant to the provisions of the second sentence of paragraph (3), special provisions concerning the time of establishment of the tax liability for income tax of that public interest corporation, etc. (limited to one that undergoes a merger or dissolution (excluding dissolution by merger)), and other necessary matters concerning the application of the provisions of paragraphs (1) through (19) are specified by Cabinet Order.