Act on Special Measures Concerning Taxation

In the case where a specified donee who has acquired funds for housing acquisition, etc. by gift from a lineal ascendant of the specified donee during the period from January 1, 2024 to December 31, 2026 (referred to as the "application period" in paragraphs (9), (11) and (12)) falls under any of the following cases, out of the funds for housing acquisition, etc. acquired by that gift, the amount up to the tax-exempt limit for housing funds (or, in the case where there is an amount that has already not been included in the taxable value for gift tax by the application of the provisions of this paragraph, the balance remaining after deducting the amount not so included) is not included in the taxable value for gift tax:

in the case where the specified donee has, by March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, appropriated the entire amount of those funds for housing acquisition, etc. to the consideration for the new construction of a dwelling house, the acquisition of a dwelling house that has not been used since its construction, or the acquisition of land or rights existing on land used as the site of such a dwelling house together with the new construction or acquisition of that dwelling house (referred to as "land, etc." in this paragraph and the following paragraph) (including the acquisition of land, etc. that is to be used as the site of the dwelling house prior to the new construction of the dwelling house; the same applies in item (v), (a) of that paragraph), and has newly constructed the dwelling house (including a state equivalent to new construction specified by Order of the Ministry of Finance; the same applies in this item and in paragraphs (8) through (12)) or acquired the dwelling house that has not been used since its construction, if the specified donee has used the dwelling house so newly constructed or acquired as the specified donee's residence by that day, or if it is expected with certainty that the specified donee will use the dwelling house so newly constructed or acquired as the specified donee's residence without delay after that day;

in the case where the specified donee has, by March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, appropriated the entire amount of those funds for housing acquisition, etc. to the consideration for the acquisition of an existing house for residential use or the acquisition of land, etc. used as the site of that existing house for residential use together with the acquisition of that existing house for residential use, and has acquired that existing house for residential use, if the specified donee has used that existing house for residential use as the specified donee's residence by that day, or if it is expected with certainty that the specified donee will use that existing house for residential use as the specified donee's residence without delay after that day;

in the case where the specified donee has, by March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, appropriated the entire amount of those funds for housing acquisition, etc. to the consideration for extension, rebuilding, etc. carried out on a house for residential use that the specified donee is using as a residence, or for the acquisition of land, etc. that is to be used as the site of that house together with that extension, rebuilding, etc. of that house, and has carried out that extension, rebuilding, etc. (including a state equivalent to the completion of extension, rebuilding, etc. specified by Order of the Ministry of Finance; the same applies in this item, paragraph (8), item (iii), paragraph (10), item (iii) and paragraph (12)) on that house for residential use, if the specified donee has used the house for residential use on which the extension, rebuilding, etc. has been carried out as the specified donee's residence by that day, or if it is expected with certainty that the specified donee will use the house for residential use on which the extension, rebuilding, etc. has been carried out as the specified donee's residence without delay after that day.

In this Article, the meanings of the terms listed in the following items are as prescribed respectively in those items:

specified donee: an individual who falls under Article 1-4, paragraph (1), item (i) or (ii) of the Inheritance Tax Act, who is 18 years of age or older as of January 1 of the year that includes the day on which the individual received the gift of funds for housing acquisition, etc., and whose total income amount prescribed in Article 2, paragraph (1), item (xxx) of the Income Tax Act for income tax for that year is 20,000,000 yen (or, in the case where the floor area of the house for residential use that has been newly constructed, acquired or subjected to extension, rebuilding, etc. (referred to as "new construction, etc." in items (v) and (vi)) with the funds for housing acquisition, etc. is less than the size specified by Cabinet Order, 10,000,000 yen) or less;

dwelling house: a house for residential use specified by Cabinet Order;

existing house for residential use: a dwelling house that has been used since its construction (limited to one that conforms to earthquake resistance standards (meaning provisions or standards concerning safety against earthquakes specified by Cabinet Order; the same applies in paragraph (7))) and that is specified by Cabinet Order;

extension, rebuilding, etc.: extension, rebuilding or any other work specified by Cabinet Order that is carried out on a house owned by the specified donee (including work relating to the replacement or installation of equipment that functions as an integral part of that house and that is carried out together with that work), which satisfies the following requirements:

the amount of expenses required for the work is 1,000,000 yen or more;

the house on which the work has been carried out is found to be one that the specified donee uses mainly as the specified donee's residence;

any other requirement specified by Cabinet Order.

funds for housing acquisition, etc.: money to be appropriated to the consideration for any of the following new construction, etc. (excluding the case of new construction or extension, rebuilding, etc. under a contract for work or any other contract with the spouse of the specified donee or any other person specified by Cabinet Order as a person having a special relationship with the specified donee, and the case of acquisition from the person specified by that Cabinet Order):

the new construction of a dwelling house, or the acquisition of a dwelling house that has not been used since its construction, by the specified donee (including the acquisition of land, etc. used as the site of that dwelling house together with the new construction or acquisition of that dwelling house);

the acquisition of an existing house for residential use by the specified donee (including the acquisition of land, etc. used as the site of that existing house for residential use together with the acquisition of that existing house for residential use);

extension, rebuilding, etc. carried out on a house owned by the specified donee (including the acquisition of land, etc. that is to be used as the site of that house together with that extension, rebuilding, etc. of that house);

tax-exempt limit for housing funds: the amount specified below for each specified donee according to the following categories of cases for the house for residential use for which the specified donee has carried out new construction, etc. with the funds for housing acquisition, etc. (or, in the case where both of the following cases apply, whichever is greater of the amounts specified below for each specified donee).

in the case where the house for residential use satisfies either of the following requirements: 10,000,000 yen;

the house for residential use (limited to a newly constructed house for residential use or an acquired house for residential use that has not been used since its construction) is specified by Cabinet Order as a house for residential use that contributes significantly to the rationalization of energy use;

the house for residential use is specified by Cabinet Order as a house for residential use that contributes to the rationalization of energy use (excluding a newly constructed house for residential use or an acquired house for residential use that has not been used since its construction), a house for residential use that conforms to standards concerning safety against earthquakes, or a house for residential use that conforms to the standards for structures and equipment necessary for elderly persons, etc. (meaning elderly persons, etc. prescribed in Article 41-19-3, paragraph (1)) to lead an independent daily life;

in the case where the house for residential use is a house for residential use other than the house for residential use prescribed in (a): 5,000,000 yen.

With regard to the application of the provisions of Article 19, paragraph (1) and Article 21-15, paragraph (1) of the Inheritance Tax Act in the case where a specified donee has received the application of the provisions of paragraph (1), the phrase "pursuant to the provisions" in those provisions is deemed to be replaced with "pursuant to the provisions and the provisions of Article 70-2 of the Act on Special Measures Concerning Taxation (Tax Exemption for Gift Tax Where a Gift of Funds for Housing Acquisition, etc. Is Received from a Lineal Ascendant)".

In the case where a specified donee who has received the application of the provisions of paragraph (1) with regard to funds for housing acquisition, etc. falls under a case listed in any of the following items after March 15 of the year following the year that includes the day on which the specified donee received the gift of those funds for housing acquisition, etc., the provisions of that paragraph do not apply. In this case, the specified donee must, within two months from the day on which the specified donee came to fall under the case listed in the relevant item, file an amended return form for gift tax for the year for which the specified donee received the application of the provisions of that paragraph, and pay, within that time limit, the amount of tax payable upon the filing of that amended return form:

in the case where the specified donee has received the application of the provisions of paragraph (1) on the grounds that it was expected with certainty that the specified donee would use the dwelling house newly constructed as referred to in item (i) of that paragraph, or the dwelling house that has not been used since its construction and has been acquired, as provided in that item, as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has not used that dwelling house as the specified donee's residence by December 31 of that following year;

in the case where the specified donee has received the application of the provisions of paragraph (1) on the grounds that it was expected with certainty that the specified donee would use the existing house for residential use referred to in item (ii) of that paragraph, as provided in that item, as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has not used that existing house for residential use as the specified donee's residence by December 31 of that following year;

in the case where the specified donee has received the application of the provisions of paragraph (1) on the grounds that it was expected with certainty that the specified donee would use the house for residential use on which the extension, rebuilding, etc. referred to in item (iii) of that paragraph has been carried out, as provided in that item, as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has not used that house for residential use as the specified donee's residence by December 31 of that following year.

In the case where a specified donee has come to fall under the provisions of the preceding paragraph, if no amended return form under the provisions of that paragraph has been filed, the district director with jurisdiction over the place for tax payment is to make a reassessment under the provisions of Article 24 or Article 26 of the Act on General Rules for National Taxes with regard to the amount of gift tax and other matters that should have been stated in that amended return form.

The application of the provisions of the Act on General Rules for National Taxes and Article 37 of the Inheritance Tax Act to an amended return form under the provisions of paragraph (4) and a reassessment referred to in the preceding paragraph is as follows:

such an amended return form that has been filed within the filing deadline prescribed in paragraph (4) is deemed to be a return filed by the due date, except in the case where the provisions of Article 20 of the Act on General Rules for National Taxes are applied;

with regard to such an amended return form that has been filed after the filing deadline prescribed in paragraph (4) and that 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 "due date for filing an amended return form prescribed in Article 70-2, paragraph (4) 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 "return under the provisions of Article 28 of the Inheritance Tax Act", 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 the provisions of Article 70-2, paragraph (4) 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 "return under the provisions of Article 28 of the Inheritance Tax Act";

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 Article 2, item (vi), (c) of the Act on General Rules for National Taxes, the phrase "Inheritance Tax Act" in (c), (3) of that item is deemed to be replaced with "the balance remaining after deducting, in the case where there is an amount not included in the taxable value for gift tax by the application of the provisions of Article 70-2 of the Act on Special Measures Concerning Taxation (Tax Exemption for Gift Tax Where a Gift of Funds for Housing Acquisition, etc. Is Received from a Lineal Ascendant), that amount from the tax-exempt limit for housing funds prescribed in paragraph (2), item (vi) of that Article, or the Inheritance Tax Act";

the phrase "due date for filing a return under the provisions of Article 28, paragraph (1) or (2)" in Article 37, paragraphs (1), (4) and (5) of the Inheritance Tax Act is deemed to be replaced with "due date for filing an amended return form prescribed in Article 70-2, paragraph (4) of the Act on Special Measures Concerning Taxation (Tax Exemption for Gift Tax Where a Gift of Funds for Housing Acquisition, etc. Is Received from a Lineal Ascendant)".

In the case where a specified donee who has acquired funds for housing acquisition, etc. by gift from a lineal ascendant has, by March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by that gift (referred to as the "acquisition deadline" in this paragraph), appropriated the entire amount of those funds for housing acquisition, etc. to the consideration for the acquisition of a dwelling house that has been used since its construction (limited to one other than one that conforms to the earthquake resistance standards) and that is specified by Cabinet Order (referred to as a "residential building requiring seismic retrofitting" in this paragraph), and has acquired that residential building requiring seismic retrofitting, if, by the date of the acquisition of the residential building requiring seismic retrofitting, the specified donee has made the application under Article 17, paragraph (1) of the Act on Promotion of Seismic Retrofitting of Buildings or followed any other procedure specified by Order of the Ministry of Finance for carrying out, on or after that date, a seismic retrofit (meaning extension, rebuilding, repair or remodeling for the purpose of improving safety against earthquakes; the same applies hereinafter in this paragraph) of the residential building requiring seismic retrofitting, and it has been certified, pursuant to the provisions of Order of the Ministry of Finance, that the residential building requiring seismic retrofitting has come to conform to the earthquake resistance standards by the acquisition deadline as a result of that seismic retrofit, the provisions of paragraph (1) may be applied by deeming the acquisition of the residential building requiring seismic retrofitting to be the acquisition of an existing house for residential use, and the residential building requiring seismic retrofitting to be an existing house for residential use, respectively.

In the case where a specified donee who has received the application of the provisions of paragraph (1) with regard to funds for housing acquisition, etc. falls under any of the following cases, the provisions of paragraphs (4) through (6) do not apply:

in the case where the specified donee has newly constructed a dwelling house or acquired a dwelling house that has not been used since its construction as provided in paragraph (1), item (i), and has received the application of the provisions of that paragraph on the grounds that it was expected with certainty that the specified donee would use that dwelling house as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has become unable to use that dwelling house as the specified donee's residence because it has been lost (including damage that makes restoration to its original state difficult through ordinary repairs; the same applies in this paragraph, the following paragraph and paragraph (12)) due to a disaster (meaning an earthquake disaster, a storm and flood disaster, a fire or any other disaster specified by Cabinet Order; the same applies hereinafter in this paragraph through paragraph (11) and in Article 70-3, paragraphs (8) through (11));

in the case where the specified donee has received the application of the provisions of paragraph (1) on the grounds that it was expected with certainty that the specified donee would use the existing house for residential use, as provided in item (ii) of that paragraph, as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has become unable to use that existing house for residential use as the specified donee's residence because it has been lost due to a disaster;

in the case where the specified donee has received the application of the provisions of paragraph (1) on the grounds that it was expected with certainty that the specified donee would use the house for residential use on which the extension, rebuilding, etc. has been carried out as provided in item (iii) of that paragraph as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has become unable to use that house for residential use as the specified donee's residence because it has been lost due to a disaster.

In the case where an individual who has acquired money by gift from a lineal ascendant of the individual within the application period has appropriated that money to the consideration for the new construction or acquisition of a house for residential use (including a residential building requiring seismic retrofitting prescribed in paragraph (7); the same applies hereinafter in this paragraph and in paragraph (11)) or for an extension (including rebuilding and other work) carried out on a house for residential use owned by the individual, and has carried out that new construction, acquisition or extension by March 15 of the year following the year that includes the day on which the individual acquired the money by that gift, the individual may receive the application of the provisions of this Article (excluding paragraphs (4) through (6)) even if the individual has become unable to use the house for residential use so newly constructed, acquired or extended as the individual's residence by that day because it has been lost due to a disaster.

With regard to the application of the provisions of paragraph (4) in the case where a specified donee who has received the application of the provisions of paragraph (1) with regard to funds for housing acquisition, etc. falls under any of the following cases after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, the phrase "December 31 of that following year" in each item of that paragraph is deemed to be replaced with "December 31 of the second year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by that gift":

in the case where the specified donee has newly constructed a dwelling house or acquired a dwelling house that has not been used since its construction as provided in paragraph (1), item (i), and has received the application of the provisions of that paragraph on the grounds that it was expected with certainty that the specified donee would use that dwelling house as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has been unable to use that dwelling house as the specified donee's residence by December 31 of that following year due to unavoidable circumstances attributable to a disaster;

in the case where the specified donee has received the application of the provisions of paragraph (1) on the grounds that it was expected with certainty that the specified donee would use the existing house for residential use, as provided in item (ii) of that paragraph, as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has been unable to use that existing house for residential use as the specified donee's residence by December 31 of that following year due to unavoidable circumstances attributable to a disaster;

in the case where the specified donee has received the application of the provisions of paragraph (1) on the grounds that it was expected with certainty that the specified donee would use the house for residential use on which the extension, rebuilding, etc. has been carried out as provided in item (iii) of that paragraph as the specified donee's residence without delay after March 15 of the year following the year that includes the day on which the specified donee acquired the funds for housing acquisition, etc. by gift, if the specified donee has been unable to use that house for residential use as the specified donee's residence by December 31 of that following year due to unavoidable circumstances attributable to a disaster.

In the case where an individual who has acquired money by gift from a lineal ascendant of the individual within the application period appropriates that money to the consideration for the new construction or acquisition of a house for residential use or for an extension (including rebuilding and other work) carried out on a house for residential use owned by the individual, and carries out that new construction, acquisition or extension, the individual may receive the application of the provisions of this Article even if the individual has been unable to carry out that new construction, acquisition or extension by March 15 of the year following the year that includes the day on which the individual acquired the money by that gift due to unavoidable circumstances attributable to a disaster. In this case, the phrase "March 15 of the year following" in each item of paragraph (1), paragraph (4) and paragraph (7) is deemed to be replaced with "March 15 of the second year following".

In the case where a dwelling house newly constructed or acquired, an existing house for residential use acquired, or a house for residential use on which extension, rebuilding, etc. has been carried out, by a specified donee who has received the application of the provisions of paragraph (1), has been lost due to a natural disaster specified by Cabinet Order prescribed in Article 2, item (ii) of the Act on Support for Reconstructing Livelihoods of Disaster Victims, if that specified donee acquires money by gift from a lineal ascendant of the specified donee within the application period, appropriates that money to the consideration for the new construction or acquisition of a house for residential use or for an extension (including rebuilding and other work) carried out on a house for residential use owned by the specified donee, and carries out that new construction, acquisition or extension, then, with regard to the application of the provisions of this Article, the phrase "up to the tax-exempt limit for housing funds (or, in the case where there is an amount that has already not been included in the taxable value for gift tax by the application of the provisions of this paragraph, the balance remaining after deducting the amount not so included)" in paragraph (1) is deemed to be replaced with "up to the tax-exempt limit for housing funds".

With regard to the application of the provisions of Article 54, paragraph (6) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2024) in the case where a person listed in any of the items of paragraph (6) of that Article falls under the case prescribed in the preceding paragraph, the phrase "do not apply" in that paragraph is deemed to be replaced with "do not apply; provided, however, that this does not apply in the case falling under the case prescribed in paragraph (12) of that Article".

The provisions of paragraph (1) apply only if a person seeking the application of the provisions of that paragraph states in the return under the provisions of Article 28 of the Inheritance Tax Act that the person seeks the application of the provisions of that paragraph, and attaches to it a written statement of the calculation under the provisions of that paragraph and other documents specified by Order of the Ministry of Finance.

In the case where a return under the provisions of Article 28 of the Inheritance Tax Act without the statement or attachment referred to in the preceding paragraph has been filed, if the district director finds that there were unavoidable circumstances for the failure to make the statement or attachment, the district director may apply the provisions of paragraph (1), but only in the case where there has been a submission of a document containing that statement and of the documents specified by Order of the Ministry of Finance referred to in that paragraph.

Beyond what is provided for in paragraph (3), paragraph (4), paragraph (7) or the preceding two paragraphs, necessary matters concerning the application of the provisions of paragraph (1) and paragraphs (8) through (13) are specified by Cabinet Order.