Act on Special Measures Concerning Taxation

With regard to land, etc. (meaning land, etc. prescribed in Article 2, item (i) of the Land-holding Tax Act; the same applies hereinafter in this Chapter) held by an individual or a corporation (including an association or foundation without juridical personality prescribed in item (vii) of that Article) as of the taxation date (meaning the taxation date prescribed in item (iv) of that Article; the same applies hereinafter in this Chapter) of each year from 1998 onward, land value tax is not imposed for the time being, notwithstanding the provisions of that Act.

With regard to land, etc. (limited to land, etc. acquired from the former JNR Settlement Corporation or the Japan Railway Construction, Transport and Technology Agency) held by a corporation specified by Cabinet Order, being a corporation established by the JNR Settlement Corporation prior to its dissolution under the provisions of Article 2 of the Supplementary Provisions of the Act on Treatment of Debt, etc. of JNR Settlement Corporation (Act No. 136 of 1998) (referred to as the "former JNR Settlement Corporation" in this Article) in order to ensure the fair and appropriate implementation of the disposal of land that it carried out as its business under Article 26, paragraph (1), item (ii) of the JNR Settlement Corporation Act (Act No. 90 of 1986) prior to its repeal under the provisions of Article 9 of the Supplementary Provisions of that Act, or a corporation established by the Japan Railway Construction, Transport and Technology Agency in order to ensure the fair and appropriate implementation of the disposal of land that it carries out as its business under Article 13, paragraph (1), item (ii) of the Act on Treatment of Debt, etc. of JNR Settlement Corporation, the provisions of the Land-holding Tax Act apply by deeming that land, etc. to be held by the Japan Railway Construction, Transport and Technology Agency, for as long as the Japan Railway Construction, Transport and Technology Agency holds all of the total number of issued shares or the total amount of capital contributions of that corporation.

Land value tax is not imposed on land, etc. used for a building prescribed in Article 2, item (ix) of the Land-holding Tax Act that is used, as of the taxation date, as a national facility, etc. (meaning a facility specified by Order of the Ministry of Finance that the national government or a local government places with particular consideration for the convenience of the public) (or, in the case where part of that building is also used for purposes other than that national facility, etc., the part specified by Cabinet Order as the part corresponding to that national facility, etc.).

With regard to the application of the provisions of Chapter II of the Land-holding Tax Act in the case where the provisions of the preceding paragraph apply, the phrase "through Article 8" in Article 16 of that Act is deemed to be replaced with "through Article 8 and Article 71-3, paragraph (1) (Tax Exemption for Land, etc. Where a Building Is Used as a National Facility, etc.) of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957)".

Land value tax is not imposed on a business cooperative, a small business cooperative or a federation of cooperatives whose members are only those cooperatives (referred to as a "business cooperative, etc." in this paragraph) with regard to land, etc. that it holds as of the taxation date and that satisfies any of the following requirements (excluding land, etc. for which the repayment of the funds relating to the loan prescribed in item (i) or the installment payments prescribed in that item or item (ii) have been completed), and that is specified by Order of the Ministry of Finance as land, etc. scheduled to be transferred to the members or affiliated members of that business cooperative, etc. (referred to as "land for consolidation projects, etc." in the following paragraph):

that business cooperative, etc. has acquired that land, etc. by receiving, in relation to an advancement project (meaning a project specified by Cabinet Order that contributes to the advancement of the structure of small and medium-sized enterprises under Article 21, paragraph (1), item (ii), (a) or (b) of the Japan Small and Medium Enterprise Corporation Act (Act No. 19 of 1999; referred to as the "former Japan Small and Medium Enterprise Corporation Act" in this item) prior to its repeal under the provisions of Article 1 of the Act on the Abolition, etc. of the Japan Small and Medium Enterprise Corporation Act and the Machinery Credit Insurance Act (Act No. 146 of 2002; referred to as the "Abolition Act" in this item), or under Article 21, paragraph (1), item (ii), (a) or (b) of the Small and Medium Enterprise Corporation Act (Act No. 53 of 1980; referred to as the "former Small and Medium Enterprise Corporation Act" in this item) prior to its repeal under the provisions of Article 24 of the Supplementary Provisions of the former Japan Small and Medium Enterprise Corporation Act), an advancement fund loan (meaning a loan of funds relating to the services or business listed in Article 21, paragraph (1), item (ii), (a) of the former Japan Small and Medium Enterprise Corporation Act or Article 21, paragraph (1), item (ii), (a) of the former Small and Medium Enterprise Corporation Act, provided by the Japan Small and Medium Enterprise Corporation prior to its dissolution under the provisions of Article 2, paragraph (1) of the Supplementary Provisions of the Abolition Act (referred to as the "former Japan Small and Medium Enterprise Corporation" in this item), the Small and Medium Enterprise Corporation prior to its dissolution under the provisions of Article 7, paragraph (1) of the Supplementary Provisions of the former Japan Small and Medium Enterprise Corporation Act (referred to as the "former Small and Medium Enterprise Corporation" in this item), or a prefecture), or by agreeing to pay by installments the amount of consideration for an advancement sale (meaning a transfer through the services or business listed in Article 21, paragraph (1), item (ii), (b) of the former Japan Small and Medium Enterprise Corporation Act or Article 21, paragraph (1), item (ii), (b) of the former Small and Medium Enterprise Corporation Act, made by the former Japan Small and Medium Enterprise Corporation, the former Small and Medium Enterprise Corporation or a prefecture) relating to that advancement project;

that business cooperative, etc. has acquired that land, etc. by agreeing to pay by installments the amount of consideration for a transfer through the services prescribed in Article 18, paragraph (1), item (i) or Article 18 of the Supplementary Provisions of the Japan Environment Corporation Act (Act No. 95 of 1965) prior to its repeal under the provisions of Article 20 of the Supplementary Provisions of the Act on the Environmental Restoration and Conservation Agency, Independent Administrative Agency (Act No. 43 of 2003).

Land value tax is not imposed on land, etc. on which a land lease right, etc. prescribed in Article 2, item (ii) of the Land-holding Tax Act (excluding a superficies right under Article 269-2, paragraph (1) of the Civil Code and other rights specified by Cabinet Order; referred to as a "land lease right, etc." hereinafter in this Chapter) has been created as of the taxation date in order to make it land for consolidation projects, etc. to which the provisions of the preceding paragraph apply.

With regard to the application of the provisions of Chapter II of the Land-holding Tax Act in the case where the provisions of the preceding two paragraphs apply, the phrase "through Article 8" in Article 16 of that Act is deemed to be replaced with "through Article 8, and Article 71-4, paragraphs (1) and (2) (Tax Exemption for Land, etc. Held by Business Cooperatives, etc. for the Consolidation, etc. of Small and Medium-Sized Enterprises) of the Act on Special Measures Concerning Taxation".

Land value tax is not imposed on land, etc. used, as of the taxation date, for an urban planning parking lot (meaning a parking lot listed in Article 11, paragraph (1), item (i) of the City Planning Act that is specified in a city plan prescribed in Article 4, paragraph (1) of that Act) that falls under an off-street parking lot prescribed in Article 2, item (ii) of the Parking Lot Act (limited to one specified by Cabinet Order; referred to as a "specified urban planning parking lot" hereinafter in this Article) (excluding, in the case where that land, etc. is also used for purposes other than the specified urban planning parking lot, the part of that land, etc. specified by Cabinet Order as the part used for purposes other than that specified urban planning parking lot, and limited, in the case where the building used as that specified urban planning parking lot is leased, to land, etc. used for a building specified by Cabinet Order that is used exclusively as that specified urban planning parking lot).

With regard to the application of the provisions of Chapter II of the Land-holding Tax Act in the case where the provisions of the preceding paragraph apply, the phrase "through Article 8" in Article 16 of that Act is deemed to be replaced with "through Article 8 and Article 71-5, paragraph (1) (Tax Exemption for Land, etc. Used for Specified Urban Planning Parking Lots) of the Act on Special Measures Concerning Taxation".

Land value tax is not imposed on the Organization for Promoting Urban Development prescribed in Article 3, paragraph (1) of the Act on Special Measures Concerning the Promotion of Urban Development by Private Sectors (limited to one that is an incorporated public interest association or an incorporated public interest foundation) with regard to land, etc. that it holds as of the taxation date (limited to land, etc. that the Organization for Promoting Urban Development acquired during the period from January 1, 1996 to March 31, 1999 as prospective project land prescribed in Article 14, paragraph (2), item (i) of the Supplementary Provisions of that Act and for which the period from the day of its acquisition to that taxation date does not exceed 10 years, and other land, etc. specified by Cabinet Order).

With regard to the application of the provisions of Chapter II of the Land-holding Tax Act in the case where the provisions of the preceding paragraph apply, the phrase "through Article 8" in Article 16 of that Act is deemed to be replaced with "through Article 8 and Article 71-6, paragraph (1) (Tax Exemption for Land, etc. Held by the Organization for Promoting Urban Development) of the Act on Special Measures Concerning Taxation".