Act on Special Measures Concerning Taxation

An individual who seeks to apply the provisions of Article 41, paragraph (1) or paragraph (1) of the preceding Article with regard to a house to be used as a residence on or after January 1, 2023 must submit (including by providing the matters to be stated in the written application for the credit by electronic or magnetic means (meaning a method using an electronic data processing system or any other method using information and communications technology) in lieu of submitting the written application for the credit), to the creditor (meaning the creditor of the housing loans, etc. or any other person specified by Cabinet Order; the same applies in the following paragraph) relating to housing loans, etc. (meaning housing loans, etc. prescribed in Article 41, paragraph (1); the same applies hereinafter through paragraph (3)), a document stating the name and address, individual number and other matters specified by Order of the Ministry of Finance of the individual (referred to as "application particulars" in the following paragraph) (hereinafter referred to as a "written application for the credit" in this paragraph and the following paragraph).

A creditor that has received the submission prescribed in the preceding paragraph of a written application for the credit (hereinafter referred to as the "submission of the written application for the credit" in this paragraph) must, by October 31 of each year within the 10 years from the year that includes the date on which it received the submission of the written application for the credit (or, if the year that includes the date on which the individual referred to in the preceding paragraph used the house referred to in that paragraph as a residence is 2023 and the housing acquisition, etc. prescribed in Article 41, paragraph (1) relating to the residence falls under new construction, etc. of a residential house or acquisition of a renovated resale house prescribed in that paragraph, or in any other case specified by Cabinet Order, within the period specified by Cabinet Order) (or, for the year that includes the date on which it received the submission of the written application for the credit, by January 31 of the following year), prepare a report stating the application particulars, the amount of housing loans, etc. of the individual who made the submission of the written application for the credit as of December 31 of that year (or, for the year that includes the date of the individual's death, as of that date) and other matters specified by Order of the Ministry of Finance, and submit it to the district director having jurisdiction over the creditor's domicile or residence, or the location of its head office or principal office. In this case, the creditor must keep a book for the written applications for the credit, and enter or record the application particulars for each individual who made the submission of the written application for the credit.

The relevant officials of the National Tax Agency, a Regional Taxation Bureau or a tax office may, when necessary for an investigation concerning the submission of the report referred to in the preceding paragraph, ask questions of the person obliged to submit the report, inspect that person's books and documents concerning housing loans, etc. or other articles, or request the presentation or submission of those articles (including copies thereof).

The relevant officials of the National Tax Agency, a Regional Taxation Bureau or a tax office may, when necessary for an investigation concerning the submission of the report referred to in paragraph (2), retain articles submitted in the investigation.

When asking questions, carrying out inspections, or requesting presentation or submission under paragraph (3), the relevant officials of the National Tax Agency, a Regional Taxation Bureau or a tax office must carry a certificate showing their identity and present it if requested by any person concerned.

The authority of the relevant officials under paragraph (3) and paragraph (4) must not be construed as being granted for the purpose of criminal investigation.

Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (4) are specified by Cabinet Order.

If an individual who has transferred an asset prescribed in Article 41, paragraph (22) and has thereby come to fall under the provisions of that paragraph has applied the provisions of paragraph (1) of that Article or Article 41-2-2, paragraph (1) with regard to the income tax for any year within three years before the year that includes the date of the transfer, the individual must, by the due date for filing a tax return for the income tax for the year that includes the date of the transfer, file an amended return form (or, for a person who has not filed a tax return pursuant to the provisions of Article 41-2-2, paragraph (6), item (ii) of this Act or Article 121 of the Income Tax Act, a tax return form filed after the due date) for the income tax for each of the years within those three years, and pay, within that time limit, the amount of tax to be paid through the filing of those returns.

If a person who is required to file those returns pursuant to the provisions of the preceding paragraph has not filed them, the district director having jurisdiction over the place for tax payment is to make a reassessment under Article 24 or Article 26 of the Act on General Rules for National Taxes, or a determination under Article 25 of that Act, with regard to the amount of income, the amount of income tax and other matters that should have been stated in those returns.

With regard to the application of the provisions of the Act on General Rules for National Taxes to an amended return form under paragraph (1) and to the reassessment referred to in the preceding paragraph (limited to one relating to a person who is required to file that return), the following applies:

an amended return form that has been filed within the filing time limit prescribed in paragraph (1) is deemed to be a return filed by the due date prescribed in Article 17, paragraph (2) of the Act on General Rules for National Taxes, except where the provisions of Article 20 of that Act are applied;

with regard to an amended return form that has been filed after the filing time limit prescribed in paragraph (1) and to the reassessment, the phrases "statutory due date for filing a return" and "statutory due date for payment" in the provisions of Chapters II through VII of the Act on General Rules for National Taxes are deemed to be replaced with "the time limit for filing an amended return form prescribed in Article 41-3, paragraph (1) of the Act on Special Measures Concerning Taxation", the phrase "return filed by the due date" in Article 61, paragraph (1), item (i) of that Act with "tax return prescribed in Article 2, paragraph (1), item (x) of the Act on Special Measures Concerning Taxation", the phrase "return filed by the due date or return filed after the due date" in paragraph (2) of that Article with "amended return form under Article 41-3, paragraph (1) of the Act on Special Measures Concerning Taxation", and the phrase "return filed by the due date" in Article 65, paragraph (1), paragraph (3), item (ii) and paragraph (5), item (ii) of that Act with "tax return prescribed in Article 2, paragraph (1), item (x) of the Act on Special Measures Concerning Taxation";

the provisions of Article 61, paragraph (1), item (ii) and Article 66 of the Act on General Rules for National Taxes do not apply to the amended return form and the reassessment prescribed in the preceding item.

With regard to the application of the provisions of the Act on General Rules for National Taxes to a tax return form filed after the due date under paragraph (1) and to the reassessment (limited to one relating to a person who is required to file that return) or the determination referred to in paragraph (2), the following applies:

a tax return form filed after the due date that has been filed within the filing time limit prescribed in paragraph (1) is deemed to be a return filed by the due date prescribed in Article 17, paragraph (2) of the Act on General Rules for National Taxes;

with regard to a tax return form filed after the due date that has been filed after the filing time limit prescribed in paragraph (1) and to the reassessment or determination, the phrases "statutory due date for filing a return" and "statutory due date for payment" in the provisions of Chapters II through VII of the Act on General Rules for National Taxes are deemed to be replaced with "the time limit for filing a tax return form filed after the due date prescribed in Article 41-3, paragraph (1) of the Act on Special Measures Concerning Taxation".