Act on Special Measures Concerning Taxation

Where a corporation that files a blue return and that operates a medical and health care business acquires, during the period from April 1, 1979 to March 31, 2027, medical machinery and equipment and furniture and fixtures (limited to those of a scale specified by Cabinet Order) that are specified by Cabinet Order as contributing to the provision of advanced medical care or as being state-of-the-art (hereinafter referred to in this paragraph as "medical equipment") that have not been used for business since their manufacture, or manufactures medical equipment, and puts it to use for the medical and health care business operated by the corporation (excluding the case where the corporation puts to that use medical equipment acquired through a lease transaction without transfer of ownership), the depreciation limit for that medical equipment 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 medical equipment and the special depreciation limit (meaning the amount equivalent to 12 percent of the acquisition cost of that medical equipment).

Where a corporation that files a blue return and that operates a medical and health care business acquires, during the period from April 1, 2019 to March 31, 2027, furniture and fixtures (including medical machinery and equipment) and software (limited to those of a scale specified by Cabinet Order) that are specified by Cabinet Order as necessary for taking measures that contribute to securing medical professionals, such as shortening the working hours of physicians and other medical professionals necessary for securing the medical care provision system prescribed in Article 30-3, paragraph (1) of the Medical Care Act (excluding those subject to the provisions of the preceding paragraph; hereinafter referred to in this paragraph as "equipment for shortening working hours, etc.") that have not been used for business since their manufacture, or manufactures equipment for shortening working hours, etc., and puts it to use for the medical and health care business operated by the corporation (excluding the case where the corporation puts to that use equipment for shortening working hours, etc. acquired through a lease transaction without transfer of ownership), the depreciation limit for that equipment for shortening working hours, 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 equipment for shortening working hours, etc. and the special depreciation limit (meaning the amount equivalent to 15 percent of the acquisition cost of that equipment for shortening working hours, etc.).

Where a corporation that files a blue return and that operates a medical and health care business carries out, during the period from April 1, 2019 to March 31, 2027, within a regional vision area, etc. prescribed in Article 30-14, paragraph (1) of the Medical Care Act pertaining to the medical care plan prescribed in Article 30-4, paragraph (1) of that Act (hereinafter referred to in this paragraph as a "regional vision area, etc."), the acquisition, etc. (meaning acquisition or construction, and including acquisition or construction through work for renovation (meaning extension, reconstruction, repair or remodeling)) of buildings for hospitals or clinics and their associated facilities that are specified by Cabinet Order as pertaining to the promotion of the differentiation and coordination of the functions of hospital beds (meaning the functions of hospital beds prescribed in Article 30-3, paragraph (2), item (vi) of that Act) based on consultations at the forum for consultation referred to in Article 30-14, paragraph (1) of that Act pertaining to that regional vision area, etc. (hereinafter referred to in this paragraph as "hospital buildings, etc. conforming to the regional vision"), and puts them to use for the medical and health care business operated by the corporation (excluding the case where the corporation puts to that use hospital buildings, etc. conforming to the regional vision acquired through a lease transaction without transfer of ownership), the depreciation limit for those hospital buildings, etc. conforming to the regional vision 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 hospital buildings, etc. conforming to the regional vision and the special depreciation limit (meaning the amount equivalent to 8 percent of the acquisition cost of those hospital buildings, etc. conforming to the regional vision).

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

Where a corporation that files a blue return and that is a certified export business operator prescribed in Article 38, paragraph (1) of the Act on Facilitating the Export of Agricultural, Forestry, and Fishery Products and Food acquires, during the period from the date of enforcement of the Act Partially Amending the Act on Facilitating the Export of Agricultural, Forestry, and Fishery Products and Food, etc. (Act No. 49 of 2022) to March 31, 2028, machinery and equipment, buildings and their associated facilities, and structures that fall under the facilities prescribed in Article 37, paragraph (3) of the Act on Facilitating the Export of Agricultural, Forestry, and Fishery Products and Food stated in the corporation's certified export business plan (meaning the certified export business plan prescribed in paragraph (2) of that Article), which are specified by Cabinet Order as contributing to the rationalization, upgrading or other improvement of the production, manufacture, processing or distribution of agricultural, forestry and fishery products prescribed in Article 2, paragraph (1) of that Act or food prescribed in paragraph (2) of that Article (excluding those used for development research (meaning experimental research specified by Cabinet Order as pertaining to the manufacture of new products or the invention of new technology); hereinafter referred to in this paragraph and the following paragraph as "export business assets"), that have not been used for business since their manufacture or construction, or manufactures or constructs export business assets, and puts them to use for the corporation's export business (meaning the export business prescribed in Article 37, paragraph (1) of that Act; hereinafter the same applies in this paragraph and the following paragraph) (excluding the case where the corporation puts to that use export business assets acquired through a lease transaction without transfer of ownership), the depreciation limit for those export business assets for each business year that includes a day within five years from the day on which they were put to that use (hereinafter referred to in this paragraph as the "date of commencement of use") (limited to the business years for which it has been certified, as specified by Order of the Ministry of Finance, that those export business assets are being used for the export business) is, limited to the period within five years from the date of commencement of use (where the certification of that certified export business plan has been revoked pursuant to the provisions of Article 38, paragraph (2) of that Act, the period from the date of commencement of use to the day on which the certification was revoked; referred to in the following paragraph as the "period of use") during which they are in that use, notwithstanding the provisions of Article 31, paragraph (1) or paragraph (2) of the Corporation Tax Act (where the provisions of Article 52-2 are applied, including the provisions of that Article), the sum of the ordinary depreciation limit for those export business assets (where the provisions of Article 52-2 are applied, the amount specified by Cabinet Order prescribed in paragraph (1) or paragraph (4) of that Article) and the special depreciation limit (meaning the amount equivalent to 30 percent (for buildings and their associated facilities and structures, 35 percent) of that ordinary depreciation limit) (where the provisions of Article 52-2 are applied, the amount obtained by adding the amount equivalent to the special depreciation shortfall prescribed in paragraph (1) of that Article or the special depreciation shortfall in a merger, etc. prescribed in paragraph (4) of that Article).

Where a corporation that files a blue return receives, through a qualified merger (excluding one that establishes a corporation), a transfer of export business assets to which the provisions of the preceding paragraph are being applied, and puts them to use for the corporation's export business, the provisions of that paragraph apply by deeming that the corporation that received the transfer acquired, manufactured or constructed those export business assets on the date of commencement of use referred to in that paragraph and put them to use for the corporation's export business on that date of commencement of use. In this case, the period during which they are in that use prescribed in that paragraph is the period, within the period from the day of that transfer to the last day of the period of use, during which that corporation itself has them in that use.

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

Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraphs (1) and (2) are specified by Cabinet Order.

Where a corporation that files a blue return acquires, during the period from April 1, 1985 to March 31, 2029, a newly built specified urban renaissance building, or newly builds a specified urban renaissance building, and puts it to use for the corporation's business (excluding the case where the corporation puts to that use the specified urban renaissance building acquired through a lease transaction without transfer of ownership), the depreciation limit for that specified urban renaissance building for each business year that includes a day within five years from the day on which it was put to that use (hereinafter referred to in this paragraph as the "date of commencement of use") is, limited to the period within five years from the date of commencement of use (referred to in the following paragraph as the "period of use") during which it is in that use, notwithstanding the provisions of Article 31, paragraph (1) or paragraph (2) of the Corporation Tax Act (where the provisions of Article 52-2 are applied, including the provisions of that Article), the sum of the ordinary depreciation limit for that specified urban renaissance building (where the provisions of Article 52-2 are applied, the amount specified by Cabinet Order prescribed in paragraph (1) or paragraph (4) of that Article) and the special depreciation limit (meaning the amount equivalent to 25 percent (for that pertaining to buildings developed within the area listed in paragraph (3), item (i), 50 percent) of that ordinary depreciation limit) (where the provisions of Article 52-2 are applied, the amount obtained by adding the amount equivalent to the special depreciation shortfall prescribed in paragraph (1) of that Article or the special depreciation shortfall in a merger, etc. prescribed in paragraph (4) of that Article).

Where a corporation that files a blue return receives, through a qualified merger, qualified company split, qualified capital contribution in kind or qualified in-kind distribution (hereinafter referred to in this paragraph as a "qualified merger, etc."), a transfer of a specified urban renaissance building to which the provisions of the preceding paragraph are being applied, and puts it to use for the corporation's business (limited to the same business as the business for which the merged corporation, splitting corporation, corporation making a capital contribution in kind or corporation making a distribution in kind pertaining to that qualified merger, etc. had put that specified urban renaissance building to use), the provisions of that paragraph apply by deeming that the corporation that received the transfer acquired or newly built that specified urban renaissance building on the date of commencement of use referred to in that paragraph and put it to use for the corporation's business on that date of commencement of use. In this case, the period during which it is in that use prescribed in that paragraph is the period, within the period from the day of that transfer to the last day of the period of use, during which that corporation itself has it in that use.

The specified urban renaissance building prescribed in the preceding two paragraphs means a building and its associated facilities pertaining to buildings specified by Cabinet Order that are developed, within any of the following areas, through an urban reconstruction project prescribed in Article 20, paragraph (1) of the Act on Special Measures concerning Urban Reconstruction (limited to one that meets the requirements specified by Cabinet Order) carried out based on a certified plan prescribed in Article 25 of the Act on Special Measures concerning Urban Reconstruction (including, for the area listed in item (i), the development plan prescribed in Article 19-10, paragraph (2) of that Act published pursuant to the provisions of Article 19-2, paragraph (11) of that Act and the area plan prescribed in Article 25, paragraph (1) of the National Strategic Special Zones Act that specifies a national strategic private urban renaissance project prescribed in that paragraph for which the certification under that paragraph has been obtained, and, for the area listed in item (ii), that area plan).

the specified urgent urban renewal area prescribed in Article 2, paragraph (5) of the Act on Special Measures concerning Urban Reconstruction;

the urgent urban renewal area prescribed in Article 2, paragraph (3) of the Act on Special Measures concerning Urban Reconstruction (excluding that which falls under the area listed in the preceding item).

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

Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraphs (1) and (2) are specified by Cabinet Order.