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 person who is less than 60 years of age as of January 1 of that year during the period from January 1, 2003 to December 31, 2026 (referred to as the "application period" in paragraphs (9) and (11)) falls under any of the following cases, the provisions of Article 21-9 of the Inheritance Tax Act apply mutatis mutandis to that specified donee:

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." hereinafter through paragraph (3)) (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 (11)) or acquired the dwelling house that has not been used since its construction, when the specified donee has used the dwelling house so newly constructed or acquired as the specified donee's residence by that day, or when 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, when the specified donee has used that existing house for residential use as the specified donee's residence by that day, or when 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) and paragraph (10), item (iii)) on that house for residential use, when 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 when 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.

The provisions of the Inheritance Tax Act and other laws and regulations concerning inheritance tax or gift tax apply by deeming a person who has submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to the preceding paragraph to be a person electing settlement taxation at inheritance prescribed in paragraph (5) of that Article who has acquired property to which the provisions of paragraph (3) of that Article apply, and the person who made the gift of the funds for housing acquisition, etc. to be the specified donor prescribed in paragraph (5) of that Article who has made a gift of property to which the provisions of paragraph (3) of that Article apply, respectively.

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 satisfies the following requirements:

the individual falls under Article 1-4, paragraph (1), item (i) or (ii) of the Inheritance Tax Act;

the individual is a presumptive heir (including a grandchild) who is a lineal descendant of the person who made the gift of the funds for housing acquisition, etc.;

the individual 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 the funds for housing acquisition, etc.

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, acquisition or extension, rebuilding, 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).

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 specified donee is deemed not to have submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to that paragraph, even if the specified donee had submitted it. 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 pertaining to the property to which the provisions of paragraph (1) of that Article were applied, 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 submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to 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, when 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 submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to 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, when 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 submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to 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, when 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 the provisions of the preceding paragraph have come to apply, if the amended return form under the provisions of that paragraph is not filed, the district director with jurisdiction over the place for tax payment makes 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.

With regard to the application of the provisions of the Act on General Rules for National Taxes and Article 37 of the Inheritance Tax Act to the amended return form under the provisions of paragraph (4) and the reassessment referred to in the preceding paragraph, the following provisions apply:

that amended return form, if 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 apply;

with regard to that amended return form, if filed after the filing deadline prescribed in paragraph (4), and that reassessment, the phrases "statutory tax return due date" and "statutory payment due date" in the provisions of Chapter II through Chapter VII of the Act on General Rules for National Taxes are deemed to be replaced with "the filing deadline for the amended return form prescribed in Article 70-3, paragraph (4) of the Act on Special Measures Concerning Taxation", the term "return filed by the due date" in Article 61, paragraph (1), item (i) of that Act is deemed to be replaced 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 is deemed to be replaced with "amended return form under the provisions of Article 70-3, paragraph (4) of the Act on Special Measures Concerning Taxation", and the term "return filed by the due date" in Article 65, paragraph (1), paragraph (3), item (ii) and paragraph (5), item (ii) of that Act is deemed to be replaced 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;

the phrase "the deadline 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 "the filing deadline for the amended return form prescribed in Article 70-3, paragraph (4) of the Act on Special Measures Concerning Taxation (Special Provisions on Settlement Taxation at Inheritance Where a Gift of Funds for Housing Acquisition, etc. Is Received from a Specified Donor)".

In the case where a specified donee who has acquired funds for housing acquisition, etc. by gift from a person who is less than 60 years of age 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 that does not conform to 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 day of the acquisition of that residential building requiring seismic retrofitting, the specified donee has made an 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 with regard to carrying out, on or after that day, 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 that residential building requiring seismic retrofitting, and it has been certified, as specified by Order of the Ministry of Finance, that the residential building requiring seismic retrofitting has come to conform to earthquake resistance standards by that seismic retrofit by the acquisition deadline, the provisions of paragraph (1) may be applied by deeming the acquisition of that residential building requiring seismic retrofitting to be the acquisition of an existing house for residential use and that 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, as provided in paragraph (1), item (i), newly constructed a dwelling house or acquired a dwelling house that has not been used since its construction 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, when the specified donee has become unable to use that dwelling house as a residence because that dwelling house has been lost (including damage that makes restoration to its original state difficult by ordinary repair; the same applies hereinafter in this paragraph and in the following paragraph) 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 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, when the specified donee has become unable to use that existing house for residential use as a residence because that existing house for residential use 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 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, when the specified donee has become unable to use that house for residential use as a residence because that house for residential use has been lost due to a disaster.

In the case where an individual who has acquired money within the application period by gift from a person who is less than 60 years of age as of January 1 of that year 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 any 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, that individual may receive the application of the provisions of this Article (excluding paragraphs (4) through (6)) even when the individual has become unable to use, by that day, the house for residential use so newly constructed, acquired or extended as a residence 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 the items 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, as provided in paragraph (1), item (i), newly constructed a dwelling house or acquired a dwelling house that has not been used since its construction 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, when, due to unavoidable circumstances attributable to a disaster, the specified donee was unable to use 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, 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, when, due to unavoidable circumstances attributable to a disaster, the specified donee was unable to use 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 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, when, due to unavoidable circumstances attributable to a disaster, the specified donee was unable to use that house for residential use as the specified donee's residence by December 31 of that following year.

In the case where an individual who has acquired money within the application period by gift from a person who is less than 60 years of age as of January 1 of that year carries out the new construction or acquisition of a house for residential use, or an extension (including rebuilding and any other work) on a house for residential use owned by the individual, by appropriating that money to the consideration therefor, that individual may receive the application of the provisions of this Article even when, due to unavoidable circumstances attributable to a disaster, the individual was 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. In this case, the phrase "March 15 of the year following" in the items of paragraph (1), paragraph (4) and paragraph (7) is deemed to be replaced with "March 15 of the second year following".

The provisions of paragraph (1) apply only in the case where the person who seeks the application of the provisions of that paragraph has stated, 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 has attached a written statement of the calculation under the provisions of that paragraph and other documents specified by Order of the Ministry of Finance.

Beyond what is provided for in paragraph (4), paragraph (7) or the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (1) and paragraphs (8) through (11) are specified by Cabinet Order.