Act on Special Measures Concerning Taxation

With regard to an application under Article 111, paragraph (1) or paragraph (2) of the Income Tax Act as applied with the replacement of terms under Article 41-3-4, item (ii), where a resident (limited to a person whose special tax credit amount for 2024 prescribed in Article 41-3-3, paragraph (2) is expected to exceed 30,000 yen and whose total income for 2024 relating to income tax for that year is expected to be 18,050,000 yen or less) seeks to receive a deduction of the special deduction from tax prepayment subject to approval for a reduction from the tax prepayment for the income tax for 2024, the resident may apply the provisions of that Article, deeming the phrase "the estimated tax due on filing is expected to be less than the tax prepayment calculation base" in paragraph (1) of that Article to be replaced with "the amount after deducting the special deduction from tax prepayment subject to approval for a reduction prescribed in Article 41-3-6, paragraph (6) of the Act on Special Measures Concerning Taxation (Special Provisions on Application for Approval for a Reduction of Tax Prepayment of Income Tax for 2024) from the estimated tax due on filing is expected to be less than the amount after deducting the special deduction from tax prepayment prescribed in Article 41-3-5, paragraph (3) of that Act (Deduction of the Amount of Special Deduction for Tax Prepayment Relating to Income Tax for 2024) from the tax prepayment calculation base", the phrase "the first period and the second period" to be replaced with "the first period or the second period", the phrase "the estimated tax due on filing is" in paragraph (2) of that Article to be replaced with "the amount after deducting the special deduction from tax prepayment subject to approval for a reduction prescribed in Article 41-3-6, paragraph (6) of the Act on Special Measures Concerning Taxation from the estimated tax due on filing is", the phrase "the tax prepayment calculation base (or" in item (i) of that paragraph to be replaced with "the amount after deducting the special deduction from tax prepayment prescribed in Article 41-3-5, paragraph (3) of the Act on Special Measures Concerning Taxation from the tax prepayment calculation base (or", the phrase "the estimated tax due on filing" in that item to be replaced with "the amount after deducting the special deduction from tax prepayment subject to approval for a reduction prescribed in Article 41-3-6, paragraph (6) of that Act from the estimated tax due on filing", and the phrase "the tax prepayment calculation base" in item (ii) of that paragraph to be replaced with "the amount after deducting the special deduction from tax prepayment prescribed in Article 41-3-5, paragraph (3) of the Act on Special Measures Concerning Taxation from the tax prepayment calculation base".

With regard to the application of the provisions of Article 113 of the Income Tax Act where the provisions of the preceding paragraph apply, the phrase "referred to as the estimated tax due on filing)" in paragraph (1) of that Article is deemed to be replaced with "referred to as the estimated tax due on filing) and the special deduction from tax prepayment subject to approval for a reduction (meaning the special deduction from tax prepayment subject to approval for a reduction prescribed in Article 41-3-6, paragraph (6) of the Act on Special Measures Concerning Taxation (Special Provisions on Application for Approval for a Reduction of Tax Prepayment of Income Tax for 2024); the same applies hereinafter in this Article)", the phrase "or the estimated tax due on filing" with "or the estimated tax due on filing and the special deduction from tax prepayment subject to approval for a reduction", the phrase "the estimated tax due on filing is" in each item of paragraph (2) of that Article with "the amount after deducting the special deduction from tax prepayment subject to approval for a reduction from the estimated tax due on filing is", the phrase "the tax prepayment calculation base or the estimated tax due on filing" with "the amount after deducting the special deduction from tax prepayment prescribed in Article 41-3-5, paragraph (3) of the Act on Special Measures Concerning Taxation (Deduction of the Amount of Special Deduction for Tax Prepayment Relating to Income Tax for 2024) from the tax prepayment calculation base or the amount after deducting the special deduction from tax prepayment subject to approval for a reduction from the estimated tax due on filing", the phrase "the estimated tax due on filing so verified and that estimated tax due on filing" in paragraph (3) of that Article with "the estimated tax due on filing and the special deduction from tax prepayment subject to approval for a reduction so verified and those amounts", the phrase "the estimated tax due on filing so established and that estimated tax due on filing" with "the estimated tax due on filing and the special deduction from tax prepayment subject to approval for a reduction so established and those amounts", the phrase "the estimated tax due on filing" in paragraph (4) of that Article with "the amount after deducting the special deduction from tax prepayment subject to approval for a reduction from the estimated tax due on filing", and the phrase "the tax prepayment calculation base" with "the amount after deducting the special deduction from tax prepayment prescribed in Article 41-3-5, paragraph (3) of the Act on Special Measures Concerning Taxation from the tax prepayment calculation base".

With regard to the application of the provisions of Article 114, paragraph (1) of the Income Tax Act where a resident who has made an application under Article 111, paragraph (1) of that Act as applied with the replacement of terms under Article 41-3-4, item (ii) with regard to the income tax for 2024 has received the approval referred to in that paragraph, the following applies:

the tax prepayment to be paid during the first period is the amount equivalent to the amount after deducting the special deduction from tax prepayment (meaning the special deduction from tax prepayment prescribed in paragraph (3) of the preceding Article; the same applies in paragraph (5)) (or, where the provisions of paragraph (1) apply, the special deduction from tax prepayment subject to approval for a reduction) from the amount equivalent to one-third prescribed in Article 114, paragraph (1) of the Income Tax Act (or, if the total income prescribed in paragraph (1) is expected to exceed 18,050,000 yen, the amount equivalent to that one-third). In this case, if the special deduction from tax prepayment subject to approval for a reduction exceeds the amount equivalent to that one-third, the amount to be deducted is the amount equivalent to that one-third;

in the case referred to in the preceding item, if there is any amount of the special deduction from tax prepayment subject to approval for a reduction that could not be fully deducted even after deducting it from the amount equivalent to one-third referred to in that item (hereinafter referred to as the "undeducted special deduction amount for tax prepayment" in this item), the tax prepayment to be paid during the second period is the amount equivalent to the amount after deducting the undeducted special deduction amount for tax prepayment from the amount equivalent to one-third prescribed in Article 114, paragraph (1) of the Income Tax Act. In this case, if the undeducted special deduction amount for tax prepayment exceeds the amount equivalent to that one-third, the amount to be deducted is the amount equivalent to that one-third.

With regard to the application of the provisions of Article 114, paragraph (2) of the Income Tax Act where a resident listed in item (i) of Article 111, paragraph (2) of that Act who has made an application under that paragraph with regard to the income tax for 2024 has received the approval referred to in that paragraph, the tax prepayment to be paid during the second period is the amount specified in each of the following items for the category of cases listed therein:

where there is an amount that could not be fully deducted even after deducting, pursuant to the provisions of paragraph (1), the special deduction from tax prepayment subject to approval for a reduction from the amount equivalent to the amount of income tax to be paid during the first period under Article 104, paragraph (1) of the Income Tax Act as applied with the replacement of terms under Article 41-3-4, item (i) (hereinafter referred to as the "first-period tax prepayment before the deduction" in this item), or any other amount specified by Order of the Ministry of Finance (hereinafter referred to as the "undeducted special deduction amount for tax prepayment, etc." in this item): the amount equivalent to the amount after deducting the undeducted special deduction amount for tax prepayment, etc. (or, if the undeducted special deduction amount for tax prepayment, etc. exceeds the amount equivalent to the one-half, the amount equivalent to that one-half) from the amount equivalent to one-half of the amount after deducting the first-period tax prepayment before the deduction from the estimated tax due on filing referred to in Article 114, paragraph (2) of that Act;

cases other than that listed in the preceding item: the amount equivalent to one-half referred to in that item.

With regard to the application of the provisions of Article 114, paragraph (3) of the Income Tax Act where a resident listed in item (ii) of Article 111, paragraph (2) of that Act who has made an application under that paragraph with regard to the income tax for 2024 has received the approval referred to in that paragraph, the tax prepayment to be paid during the second period is the amount equivalent to the amount after deducting the special deduction from tax prepayment (or, where the provisions of paragraph (1) apply, the special deduction from tax prepayment subject to approval for a reduction) (or, if the special deduction from tax prepayment subject to approval for a reduction exceeds the amount equivalent to one-half, the amount equivalent to that one-half) from the amount equivalent to one-half prescribed in Article 114, paragraph (3) of that Act (or, if the total income prescribed in paragraph (1) is expected to exceed 18,050,000 yen, the amount equivalent to that one-half).

The special deduction from tax prepayment subject to approval for a reduction prescribed in paragraph (1) and the preceding three paragraphs means the estimated amount of the special tax credit amount for 2024 prescribed in Article 41-3-3, paragraph (2), based on the circumstances as of the date that serves as the basis for calculating the estimated tax due on filing prescribed in Article 111, paragraph (4) of the Income Tax Act relating to the application under paragraph (1) or paragraph (2) of that Article as applied with the replacement of terms under Article 41-3-4, item (ii).