Act on Special Measures Concerning Taxation

For an individual whose base income amount for the year exceeds 165,000,000 yen (referred to as a "special eligible person" in paragraph (4)), income tax is imposed in an amount equivalent to the amount obtained by deducting the base income tax amount for that year from the amount equivalent to 30 percent of the amount of that excess portion.

The base income amount prescribed in the preceding paragraph means the sum of the following amounts:

the amount of dividend income, etc. on listed shares, etc. prescribed in Article 8-4, paragraph (1), calculated as if the provisions of Article 8-5, paragraph (1) did not apply (limited to that to which the provisions of Article 8-4, paragraph (1) are applied);

the amount of business income, etc. relating to transfer, etc. of land prescribed in Article 28-4, paragraph (1) (limited to that to which the provisions of that paragraph are applied);

the amount of long-term capital gains prescribed in Article 31, paragraph (1) (where provisions on special deductions (meaning the provisions of Article 33-4, paragraph (1), Article 34, paragraph (1), Article 34-2, paragraph (1), Article 34-3, paragraph (1), Article 35, paragraph (1), Article 35-2, paragraph (1) or Article 35-3, paragraph (1), and other provisions specified by Cabinet Order; hereinafter the same applies in this item and the following item) apply, the amount after the deduction under the provisions on special deductions);

the amount of short-term capital gains prescribed in Article 32, paragraph (1) (where provisions on special deductions apply, the amount after the deduction under the provisions on special deductions);

the amount of capital gains, etc. on general shares, etc. prescribed in Article 37-10, paragraph (1);

the amount of capital gains, etc. on listed shares, etc. prescribed in Article 37-11, paragraph (1), calculated as if the provisions of Article 37-11-5, paragraph (1) and Article 37-14, paragraph (10) did not apply;

the amount of domestic source income from the transfer of general shares, etc. prescribed in Article 37-12, paragraph (1) and the amount of domestic source income from the transfer of listed shares, etc. prescribed in paragraph (3) of that Article;

The base income tax amount prescribed in paragraph (1) means the amount of income tax specified in the following items according to the category of person listed in each item (excluding the amount of incidental taxes prescribed in Article 2, item (iv) of the Act on General Rules for National Taxes):

a resident other than a non-permanent resident (meaning a non-permanent resident prescribed in Article 2, paragraph (1), item (iv) of the Income Tax Act; the same applies in the following item): the amount of income tax calculated with respect to the income specified in Article 7, paragraph (1), item (i) of that Act, as if the provisions of paragraph (1) did not apply, pursuant to the provisions of that Act and other laws and regulations concerning the calculation of the amount of income tax (excluding the provisions of Articles 93 and 95 of that Act; the same applies in the following item) (excluding the amount of income tax calculated pursuant to the provisions of Article 3, paragraph (1) and other provisions specified by Cabinet Order; the same applies in the following item);

a non-permanent resident: the amount of income tax calculated with respect to the income specified in Article 7, paragraph (1), item (ii) of the Income Tax Act, as if the provisions of paragraph (1) did not apply, pursuant to the provisions of that Act and other laws and regulations concerning the calculation of the amount of income tax;

a nonresident: the amount of income tax calculated with respect to the income specified in Article 7, paragraph (1), item (iii) of the Income Tax Act, as if the provisions of paragraph (1) did not apply, pursuant to the provisions of that Act and other laws and regulations concerning the calculation of the amount of income tax (excluding the provisions of Articles 165-5-3 and 165-6 of that Act) (excluding the amount of income tax calculated pursuant to the provisions of Articles 169 and 170 of that Act and other provisions specified by Cabinet Order).

With respect to the interest and similar income or dividends and similar income listed in the items of Article 8-5, paragraph (1), or the amounts listed in the items of Article 37-11-5, paragraph (1) or 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 tax-exempt account prescribed in Article 37-14, paragraph (10), for the year of a special eligible person for whom there is an amount of income tax imposed under the provisions of paragraph (1), the provisions of Article 8-5, paragraphs (1) and (2), Article 37-11-5, paragraphs (1) and (2) and Article 37-14, paragraphs (10) and (11) do not apply.

Where the provisions of paragraph (1) apply, the following applies:

with regard to the application of the provisions of Article 93, Article 95, Article 165-5-3 and Article 165-6 of the Income Tax Act: in Article 93, paragraph (1) of that Act, the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 41-19, paragraph (1) (Special Provisions on Taxation on Specified Base Income Amounts) of the Act on Special Measures Concerning Taxation"; in paragraph (3) of that Article, the phrase "apply mutatis mutandis" is deemed to be replaced with "apply mutatis mutandis. In this case, the phrase 'amount of income tax on taxable gross income' in paragraph (2) of that Article is deemed to be replaced with 'amount of income tax on taxable gross income, the amount of income tax under the provisions of Article 41-19, paragraph (1) (Special Provisions on Taxation on Specified Base Income Amounts) of the Act on Special Measures Concerning Taxation', and the phrase 'amount of income tax' is deemed to be replaced with 'amount of income tax (including that amount of income tax; the same applies hereinafter in this paragraph)'"; in Article 95, paragraphs (1) through (3) of that Act, the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 41-19, paragraph (1) (Special Provisions on Taxation on Specified Base Income Amounts) of the Act on Special Measures Concerning Taxation"; in paragraph (14) of that Article, the phrase "apply mutatis mutandis" is deemed to be replaced with "apply mutatis mutandis. In this case, the phrase 'amount of income tax on taxable gross income' in the first sentence of paragraph (2) of that Article is deemed to be replaced with 'amount of income tax on taxable gross income, the amount of income tax under the provisions of Article 41-19, paragraph (1) (Special Provisions on Taxation on Specified Base Income Amounts) of the Act on Special Measures Concerning Taxation'"; in Article 165-5-3, paragraph (1) of that Act, the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 41-19, paragraph (1) (Special Provisions on Taxation on Specified Base Income Amounts) of the Act on Special Measures Concerning Taxation"; in paragraph (3) of that Article, the phrase "amount of income tax on taxable gross income," is deemed to be replaced with "amount of income tax on taxable gross income, the amount of income tax under the provisions of Article 41-19, paragraph (1) of the Act on Special Measures Concerning Taxation, calculated in accordance with the provisions of Article 165, paragraph (1),", and the phrase "or" is deemed to be replaced with "or calculated in accordance with the provisions of that paragraph"; in Article 165-6, paragraphs (1) through (3) of that Act, the phrase "amount of income tax for that year" is deemed to be replaced with "amount of income tax for that year and the amount of income tax under the provisions of Article 41-19, paragraph (1) (Special Provisions on Taxation on Specified Base Income Amounts) of the Act on Special Measures Concerning Taxation"; and in paragraph (8) of that Article, the phrase "amount of income tax on taxable gross income," is deemed to be replaced with "amount of income tax on taxable gross income, the amount of income tax under the provisions of Article 41-19, paragraph (1) of the Act on Special Measures Concerning Taxation, calculated in accordance with the provisions of Article 165, paragraph (1),", and the phrase "or" is deemed to be replaced with "or calculated in accordance with the provisions of that paragraph";

with regard to the application of the provisions of Article 19, paragraph (1) or paragraph (2) of the Act on General Rules for National Taxes in the case where an amended return form is filed with respect to income tax for the year of the individual referred to in paragraph (1) (limited to that to which the provisions of the preceding paragraph apply), notwithstanding the provisions of Article 22 and Article 89 and Article 165 of the Income Tax Act, in calculating the tax base, etc. and the amount of tax, etc. prescribed in Article 19, paragraph (1) or paragraph (2) of the Act on General Rules for National Taxes, the provisions of Article 8-4, paragraph (1) are deemed to apply to the dividend income pertaining to dividends and similar income on specified listed shares, etc. (meaning dividends and similar income on specified listed shares, etc. prescribed in Article 8-4, paragraph (2); hereinafter the same applies in this item and the following item) that the individual is to receive during that year; provided, however, that this does not apply to the dividend income pertaining to dividends and similar income on specified listed shares, etc. that the individual is to receive during that year, where the provisions of Article 22 and Article 89 or Article 165 of the Income Tax Act have been applied to that dividend income.

with regard to the application of the provisions of Articles 24 through 26 of the Act on General Rules for National Taxes in the case where a reassessment under the provisions of Article 24 or Article 26 of that Act or a determination under the provisions of Article 25 of that Act is made with respect to income tax for the year of the individual referred to in paragraph (1) (limited to that to which the provisions of the preceding paragraph apply), the tax base, etc. and the amount of tax, etc. prescribed in Articles 24 through 26 of that Act are calculated on the basis that the provisions of Article 8-4, paragraph (1) apply to the dividend income pertaining to dividends and similar income on specified listed shares, etc. that the individual is to receive during that year; provided, however, that this does not apply to the dividend income pertaining to dividends and similar income on specified listed shares, etc. that the individual is to receive during that year, where the provisions of Article 22 and Article 89 or Article 165 of the Income Tax Act have been applied to that dividend income.

beyond what is specified in the preceding three items, special provisions concerning applications or returns under the provisions of Part II, Chapter V of the Income Tax Act and other necessary matters concerning the application of the provisions of laws and regulations concerning income tax in the case where the provisions of paragraph (1) apply are specified by Cabinet Order.