Act on Special Measures Concerning Taxation

The provisions of Article 30, paragraph (1) of the Consumption Tax Act do not apply to the amount of tax on taxable purchases, etc. (meaning the amount of tax on taxable purchases, etc. prescribed in Article 30, paragraph (2) of the Consumption Tax Act; the same applies in the following paragraph and paragraph (4)) pertaining to taxable purchases (meaning taxable purchases prescribed in Article 2, paragraph (1), item (xii) of that Act, excluding those falling under specified taxable purchases (meaning specified taxable purchases prescribed in Article 5, paragraph (1) of that Act; the same applies hereinafter in this paragraph, the following paragraph, and paragraph (4)); the same applies in the following paragraph and paragraph (4)) or specified taxable purchases made in Japan (meaning Japan as prescribed in Article 2, paragraph (1), item (i) of that Act; the same applies in the following paragraph and paragraph (4)) by a certified establishing and operating business operator (meaning a certified establishing and operating business operator prescribed in Article 2, paragraph (9) of the Act on Development of Specified Integrated Resort Districts, excluding a business operator exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1) of the Consumption Tax Act; the same applies in the following paragraph and paragraph (4)), or to taxable goods taken out of a bonded area by it (limited, out of these, to those that are to be accounted for as pertaining to casino business (meaning casino business prescribed in Article 2, paragraph (8) of the Act on Development of Specified Integrated Resort Districts; the same applies hereinafter in this Article) pursuant to the provisions of Article 28, paragraph (2) of that Act); provided, however, that this does not apply where the total amount of revenue in the taxable period other than consideration for transfers, etc. of assets (meaning transfers, etc. of assets prescribed in Article 2, paragraph (1), item (viii) of the Consumption Tax Act; the same applies hereinafter in this paragraph) that is to be accounted for as pertaining to casino business pursuant to the provisions of Article 28, paragraph (2) of the Act on Development of Specified Integrated Resort Districts (referred to as "casino business revenue" in this paragraph) falls under the case specified by Cabinet Order as a case where it is insignificant compared with the sum of the total amount of consideration for transfers, etc. of assets in that taxable period and the total amount of that casino business revenue.

Where a certified establishing and operating business operator has made taxable purchases or specified taxable purchases of an adjustment-target fixed asset (meaning an adjustment-target fixed asset prescribed in Article 2, paragraph (1), item (xvi) of the Consumption Tax Act; the same applies hereinafter in this paragraph and paragraph (4)) in Japan, or has taken taxable goods falling under an adjustment-target fixed asset out of a bonded area, and has been subject to the provisions of Article 30, paragraph (1) of that Act with regard to the amount of tax on taxable purchases, etc. pertaining to those taxable purchases or specified taxable purchases or to those taxable goods as being used for business other than casino business, if that certified establishing and operating business operator (including a merging corporation (meaning a merging corporation prescribed in Article 2, paragraph (1), item (v) of that Act; the same applies in paragraph (4)) that has succeeded to that business through a merger and a succeeding corporation in a company split (meaning a succeeding corporation in a company split prescribed in Article 2, paragraph (1), item (vi)-2 of that Act; the same applies in paragraph (4)) that has succeeded to the business pertaining to that adjustment-target fixed asset through a company split, and excluding, out of these persons, those exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1) of that Act) has come to use that adjustment-target fixed asset exclusively for casino business within three years from the date of those taxable purchases, the date of those specified taxable purchases, or the date of taking it out of that bonded area (where a special return (meaning a special return prescribed in Article 2, paragraph (1), item (xviii) of that Act; the same applies hereinafter in this paragraph) has been filed for taxable goods falling under that adjustment-target fixed asset, the day on which that special return was filed or the day on which notice of a determination concerning a special declaration prescribed in Article 30, paragraph (1), item (iv) of that Act was received; the same applies in item (i) and paragraph (4)), the amount of consumption tax specified in each of the following items in accordance with which of the periods listed in those items the day on which it came to use that asset exclusively for casino business falls within is deducted from the consumption tax on purchases (meaning the consumption tax on purchases prescribed in Article 32, paragraph (1), item (i) of that Act; the same applies hereinafter up to paragraph (4)) in the taxable period that includes that day, except where the taxable period that includes the day on which it came to use that asset exclusively for casino business is a taxable period to which the proviso to the preceding paragraph applies. In this case, the amount after that deduction is deemed to be the consumption tax on purchases in that taxable period.

the period from the date of taxable purchases or the date of specified taxable purchases of that adjustment-target fixed asset, or the date of taking taxable goods falling under that adjustment-target fixed asset out of a bonded area, to the day on which one year has elapsed from that date: the amount of consumption tax equivalent to the amount of tax on taxable purchases, etc. pertaining to that adjustment-target fixed asset to which the provisions of Article 30, paragraph (1) of the Consumption Tax Act (including the provisions of paragraph (2) of that Article, where those provisions apply; the same applies in paragraph (4), item (i)) have been applied (referred to as the "tax amount for adjustment" in the following item and item (iii));

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to two-thirds of the tax amount for adjustment;

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to one-third of the tax amount for adjustment.

Where, in deducting the amount of consumption tax specified in each item of the preceding paragraph from the consumption tax on purchases in the taxable period that includes the day on which the asset came to be used exclusively for casino business pursuant to the provisions of that paragraph, there is an amount that cannot be fully deducted, that amount is deemed to be the amount of consumption tax on taxable transfers, etc. of assets and is added to the amount of consumption tax on the tax base amount prescribed in Article 30, paragraph (1) of the Consumption Tax Act for the taxable period that includes the day on which the asset came to be used exclusively for casino business.

Where a certified establishing and operating business operator has made taxable purchases or specified taxable purchases of an adjustment-target fixed asset in Japan, or has taken taxable goods falling under an adjustment-target fixed asset out of a bonded area, and has been subject to the provisions of the main clause of paragraph (1) with regard to the amount of tax on taxable purchases, etc. pertaining to those taxable purchases or specified taxable purchases or to those taxable goods as being used for casino business, if that certified establishing and operating business operator (including a merging corporation that has succeeded to that business through a merger and a succeeding corporation in a company split that has succeeded to the business pertaining to that adjustment-target fixed asset through a company split, and excluding, out of these persons, those exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1) of the Consumption Tax Act) has come to use that adjustment-target fixed asset exclusively for business other than casino business within three years from the date of those taxable purchases, the date of those specified taxable purchases, or the date of taking it out of that bonded area, the amount of consumption tax specified in each of the following items in accordance with which of the periods listed in those items the day on which it came to use that asset exclusively for business other than casino business falls within is added to the consumption tax on purchases in the taxable period that includes that day. In this case, the amount after that addition is deemed to be the consumption tax on purchases in that taxable period.

the period from the date of taxable purchases or the date of specified taxable purchases of that adjustment-target fixed asset, or the date of taking taxable goods falling under that adjustment-target fixed asset out of a bonded area, to the day on which one year has elapsed from that date: the amount of consumption tax equivalent to the amount of tax on taxable purchases, etc. pertaining to that adjustment-target fixed asset that would be deducted pursuant to the provisions of Article 30, paragraph (1) of the Consumption Tax Act if the taxable purchases or specified taxable purchases of that adjustment-target fixed asset, or the taking out of a bonded area of taxable goods falling under that adjustment-target fixed asset, had been made on the day on which it came to use that asset exclusively for business other than casino business (referred to as the "tax amount for adjustment" in the following item and item (iii));

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to two-thirds of the tax amount for adjustment;

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to one-third of the tax amount for adjustment.

Beyond what is prescribed in the preceding paragraphs, necessary matters concerning the application of the provisions of this Article are specified by Cabinet Order.

The trustee of a trust subject to corporate taxation, etc. prescribed in Article 15, paragraph (1) of the Consumption Tax Act (referred to as a "trust subject to corporate taxation, etc." in this paragraph) is deemed to be a separate person for the trust assets, etc. (meaning the assets belonging to the trust property and the transactions of assets, etc. prescribed in the main clause of Article 14, paragraph (1) of that Act pertaining to that trust property; the same applies hereinafter in this paragraph) of each trust subject to corporate taxation, etc. and for its own assets, etc. (meaning the assets other than the trust assets, etc. of trusts subject to corporate taxation, etc. and the transactions of assets, etc. prescribed in the main clause of Article 14, paragraph (1) of that Act), respectively, and the provisions of Article 85 through the preceding Article apply.

The provisions of Article 15, paragraphs (2) through (15) of the Consumption Tax Act apply mutatis mutandis where the provisions of the preceding paragraph are applied in Article 85 through the preceding Article.

Beyond what is prescribed in the preceding paragraph, Cabinet Order provides for the necessary particulars concerning the application of the provisions of paragraph (1).