Act on Special Measures Concerning Taxation

Where a corporation that files a blue return and that operates a marine transportation business specified by Cabinet Order (hereinafter referred to in this paragraph as a "specified marine transportation business") acquires, during the period from April 1, 2021 to March 31, 2029, a ship listed in any of the following items among the ships specified by Cabinet Order as contributing to the rationalization of the management of the specified marine transportation business and to the reduction of environmental load (hereinafter referred to in this Article as a "specified ship") that has not been used for business since its manufacture, or manufactures a specified ship, and puts it to use for the corporation's specified marine transportation business (excluding the case where the corporation puts to that use the specified ship acquired through a lease transaction without transfer of ownership and the case where a person other than a corporation specified by Cabinet Order puts it to use for leasing), the depreciation limit for that specified ship for the business year that includes the day on which it was put to that use is, notwithstanding the provisions of Article 31, paragraph (1) or paragraph (2) of the Corporation Tax Act, the sum of the ordinary depreciation limit for that specified ship and the special depreciation limit (meaning the amount calculated by multiplying the acquisition cost of that specified ship by the percentage specified in each of those items according to the category of ships listed in that item).

an ocean-going ship (meaning a ship that travels between Japan and a foreign country or between foreign countries; hereinafter the same applies in this paragraph) that falls under a ship which, among the specified oceangoing ships prescribed in Article 39-2, paragraph (2), item (ii) of the Marine Transportation Act (hereinafter referred to in this item and the following item as "specified oceangoing ships") stated in the corporation's certified plan for securing ocean-going ships, etc. prescribed in Article 39-5 of that Act (hereinafter referred to in this item and the following item as a "certified plan for securing ocean-going ships, etc."), has been certified, as specified by Order of the Ministry of Finance, to be a ship for Japanese external ship operation business (meaning a specified oceangoing ship to be used for the external ship operation business prescribed in Article 35, paragraph (3), item (v) of that Act operated by a Japanese external ship operator, etc. prescribed in Article 39, paragraph (2), item (iii) of that Act) acquired or manufactured in accordance with that certified plan for securing ocean-going ships, etc.: the percentage specified in each of the following sub-items according to which of the ships listed therein that ocean-going ship falls under:

an advanced vessel (limited to a ship specified by Cabinet Order as that which contributes remarkably to reducing environmental load; referred to in (a) of the following item and (a) of item (iii) as a "specified advanced vessel") stated in the corporation's certified advanced vessel introduction plan, etc. prescribed in Article 39-14 of the Marine Transportation Act (limited to one concerning the introduction of advanced vessels (meaning the advanced vessels prescribed in Article 39-10, paragraph (1) of that Act; the same applies in (a))): 30 percent (for a ship that falls under a Japanese ship (meaning a Japanese ship prescribed in Article 1 of the Ship Act; hereinafter the same applies in this paragraph), 32 percent);

a ship other than the ship listed in (a): 27 percent (for a ship that falls under a Japanese ship, 29 percent);

an ocean-going ship (excluding the ships listed in the preceding item) that falls under a specified oceangoing ship for which it has been certified, as specified by Order of the Ministry of Finance, that it was acquired or manufactured in accordance with the certified plan for securing ocean-going ships, etc. pertaining to that specified oceangoing ship: the percentage specified in each of the following sub-items according to which of the ships listed therein that ocean-going ship falls under:

a specified advanced vessel: 28 percent (for a ship that falls under a Japanese ship, 30 percent);

a ship other than the ship listed in (a): 25 percent (for a ship that falls under a Japanese ship, 27 percent);

an ocean-going ship other than the ships listed in the preceding two items: the percentage specified in each of the following sub-items according to which of the ships listed therein that ocean-going ship falls under:

a specified advanced vessel: 18 percent (for a ship that falls under a Japanese ship, 20 percent);

a ship other than the ship listed in (a): 15 percent (for a ship that falls under a Japanese ship, 17 percent);

a ship other than an ocean-going ship: 16 percent (for a ship specified by Cabinet Order as that which contributes remarkably to reducing environmental load, 18 percent).

The provisions of the preceding paragraph do not apply where the final return, etc. does not have attached to it a written statement concerning the calculation of the depreciation limit for the specified ship.

The small and medium sized enterprise, etc. prescribed in the preceding paragraph means a small and medium sized enterprise prescribed in Article 42-4, paragraph (19), item (vii) (excluding one that falls under an excluded business operator prescribed in item (viii) of that paragraph (hereinafter referred to in this paragraph as an "excluded business operator") (where any of the other group tax sharing corporations having a group tax sharing full controlling interest with a corporation that is a group tax sharing corporation as of the day of the end of each business year of that corporation falls under an excluded business operator, including that corporation that is a group tax sharing corporation)) or an agricultural cooperative, etc. prescribed in paragraph (19), item (ix) of that Article.

The provisions of paragraph (1) do not apply where the final return, etc. does not have attached to it a written statement concerning the calculation of the depreciation limit for the substitute assets for disaster-damaged assets, etc.; provided, however, that this does not apply where, even if a final return, etc. without that attachment has been filed, the district director finds that there are unavoidable circumstances for the failure to attach it and that written statement has been submitted.

Where a corporation that files a blue return newly establishes or expands, during the period from the date of consent to the construction plan prescribed in Article 5, paragraph (2) of the Act on Advancement of Construction of Cultural and Academic Cities in Kansai Area (Act No. 72 of 1987) to March 31, 2027, facilities for research institutes that meet the requirements specified by Cabinet Order among the cultural and academic research facilities prescribed in Article 2, paragraph (4) of that Act, if the corporation acquires research institute buildings and their associated facilities and machinery and equipment pertaining to that new establishment or expansion (for machinery and equipment, limited to those of a scale specified by Cabinet Order; hereinafter referred to in this paragraph as "research facilities") that have not been used for business since their manufacture or construction, or manufactures or constructs research facilities, and puts them to use for the corporation's business (excluding the case where the corporation puts to that use research facilities acquired through a lease transaction without transfer of ownership), the depreciation limit for those research facilities for the business year that includes the day on which they were put to that use is, notwithstanding the provisions of Article 31, paragraph (1) or paragraph (2) of the Corporation Tax Act, the sum of the ordinary depreciation limit for those research facilities and the special depreciation limit (meaning the amount equivalent to 12 percent (for buildings and their associated facilities, 6 percent) of the acquisition cost of those research facilities).

The provisions of Article 43, paragraph (2) apply mutatis mutandis where the provisions of the preceding paragraph are applied.

Where a corporation that files a blue return and that is a small and medium sized enterprise prescribed in Article 42-4, paragraph (19), item (vii) (excluding one that falls under an excluded business operator prescribed in item (viii) of that paragraph or a group tax sharing excluded business operator prescribed in item (viii)-2 of that paragraph) or a corporation specified by Cabinet Order as equivalent thereto, and that falls under a small and medium-sized enterprise prescribed in Article 2, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. that has obtained the certification under Article 56, paragraph (1) or Article 58, paragraph (1) of that Act (hereinafter referred to in this paragraph as "certification") during the period from the date of enforcement of the Act Partially Amending the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. to Contribute to the Continuation of Business Activities of Small and Medium-Sized Enterprises (Act No. 21 of 2019) to March 31, 2027 (hereinafter referred to in this paragraph as a "specified small and medium sized enterprise, etc."), acquires, during the period from the day on which it obtained the certification to the day on which one year has elapsed from that day, machinery and equipment, furniture and fixtures, and building fixtures stated in the certified business continuity strengthening plan, etc. as business continuity enhancement equipment, etc. (meaning business continuity enhancement equipment, etc. prescribed in Article 56, paragraph (2), item (ii), (b) of that Act) pertaining to the business continuity strengthening plan prescribed in Article 56, paragraph (1) of that Act or the collaborative business continuity strengthening plan prescribed in Article 58, paragraph (1) of that Act pertaining to that certification (where a certification of a change under Article 57, paragraph (1) of that Act or a certification of a change under Article 59, paragraph (1) of that Act has been granted, the plan after the change; hereinafter referred to in this paragraph as a "certified business continuity strengthening plan, etc.") (including those acquired or manufactured in connection with improvements made to parts of machinery and equipment or furniture and fixtures or with the execution of work for relocating machinery and equipment or furniture and fixtures, and limited to those of a scale specified by Cabinet Order; hereinafter referred to in this paragraph and the following paragraph as "specified business continuity enhancement equipment, etc.") that have not been used for business since their manufacture or construction, or manufactures or constructs specified business continuity enhancement equipment, etc., and puts it to use for the business of the specified small and medium sized enterprise, etc. (excluding the case where it puts to that use specified business continuity enhancement equipment, etc. acquired through a lease transaction without transfer of ownership), the depreciation limit for that specified business continuity enhancement equipment, etc. for the business year that includes the day on which it was put to that use is, notwithstanding the provisions of Article 31, paragraph (1) or paragraph (2) of the Corporation Tax Act, the sum of the ordinary depreciation limit for that specified business continuity enhancement equipment, etc. and the special depreciation limit (meaning the amount equivalent to 16 percent of the acquisition cost of that specified business continuity enhancement equipment, etc.).

The provisions of the preceding paragraph do not apply to specified business continuity enhancement equipment, etc. that a corporation which has received a grant of a subsidy or benefit from the State or a local government, or anything equivalent thereto (hereinafter referred to in this paragraph as a "subsidy, etc."), to be appropriated for the acquisition or manufacture or construction of specified business continuity enhancement equipment, etc. has acquired, manufactured or constructed with that subsidy, etc., and that conforms to the purpose of the grant of that subsidy, etc.

The provisions of Article 43, paragraph (2) apply mutatis mutandis where the provisions of paragraph (1) are applied.