Act on Special Measures Concerning Taxation

In the case where a manufacturer of gasoline ships out, out of gasoline-like products deemed to be gasoline pursuant to the provisions of Article 88-6 (referred to as "deemed gasoline" in this Article), those that are to be used for the manufacture of paint or other uses specified by Cabinet Order and that meet the standards specified by Cabinet Order according to that use, from its manufacturing site to a place where they are used for that use, the gasoline tax and local gasoline tax on that shipment out are exempted.

The provisions of the preceding paragraph do not apply in the case where the manufacturer of gasoline that has made the shipment out referred to in that paragraph does not attach, to the return under the provisions of Article 10, paragraph (1) of the Gasoline Tax Act for the month that includes the day on which it made that shipment out, a written statement concerning the shipment out of that deemed gasoline and the documents specified by Cabinet Order as documents proving that the deemed gasoline meets the standards prescribed in the preceding paragraph and that the deemed gasoline has been brought into a place where it is used for the use prescribed in that paragraph.

The provisions of Article 14, paragraphs (3) and (4) of the Gasoline Tax Act apply mutatis mutandis to the case referred to in the preceding paragraph.

The provisions of Article 14, paragraph (7) and Article 24 of the Gasoline Tax Act and Article 74-5, item (ii) (excluding (d)), Articles 74-8 through 74-11 and Article 74-13 of the Act on General Rules for National Taxes apply mutatis mutandis to a person who has brought in deemed gasoline to which the provisions of paragraph (1) have been applied, and the provisions of Article 74-5, item (ii), (d), Article 74-8 and Article 74-13 of that Act apply mutatis mutandis to a person found to be obliged to transfer deemed gasoline to a person who has brought in deemed gasoline to which the provisions of that paragraph have been applied or any other person found to have transactions with a person who has brought in deemed gasoline to which the provisions of that paragraph have been applied in connection with that person's business, respectively.

A person who has brought in the deemed gasoline referred to in the preceding paragraph, to whom the provisions of Article 14, paragraph (7) and Article 24 of the Gasoline Tax Act and Article 74-5, item (ii) (excluding (d)) of the Act on General Rules for National Taxes apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be the person prescribed in Article 14, paragraph (7) and Article 24 of the Gasoline Tax Act and the provisions of Article 28, items (iii) and (vi) and Article 29 of that Act and Article 128 (limited to the part of item (ii) relating to Article 74-5, item (ii), (a) through (c) of that Act and the part of item (iii) relating to item (ii), (a) of that Article) and Article 130 of the Act on General Rules for National Taxes apply to that person, and a person found to be obliged to transfer deemed gasoline to a person who has brought in the deemed gasoline referred to in that paragraph or any other person found to have transactions with a person who has brought in the deemed gasoline referred to in that paragraph in connection with that person's business, to whom the provisions of Article 74-5, item (ii), (d) of that Act apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be the person prescribed in (d) of that item and the provisions of Article 128 (limited to the part of items (ii) and (iii) relating to Article 74-5, item (ii), (d) of that Act) and Article 130 of that Act apply to that person, respectively.

In the case where the place prescribed in paragraph (1) into which deemed gasoline falling under the provisions of that paragraph has been brought falls under any of the following places, if the manufacturer of gasoline that has made the shipment out referred to in that paragraph has, with regard to that deemed gasoline, attached a written statement concerning the shipment out of that deemed gasoline to the return under the provisions of Article 10, paragraph (1) of the Gasoline Tax Act for the month that includes the day on which it made that shipment out, and has, pursuant to the provisions of Cabinet Order, clarified the details showing that the deemed gasoline meets the standards prescribed in paragraph (1) and that the deemed gasoline has been brought into that place, the provisions of paragraph (1) apply notwithstanding the provisions of paragraph (2):

the place into which the deemed gasoline has been brought, in the case where the person who shipped out that deemed gasoline and the person who brought that deemed gasoline into that place are the same;

beyond what falls under the provisions of the preceding item, a place into which the deemed gasoline shipped out by the manufacturer of that gasoline is continuously brought, for which that manufacturer has obtained, pursuant to the provisions of Cabinet Order, the approval of the district director with jurisdiction over the location of the manufacturing site from which it makes that shipment out.

In the case referred to in Article 14, paragraph (7) of the Gasoline Tax Act as applied mutatis mutandis pursuant to paragraph (4), if the place prescribed in that paragraph is a place into which the deemed gasoline prescribed in that paragraph is continuously brought, and the person bringing in that deemed gasoline has obtained, pursuant to the provisions of Cabinet Order, the approval of the district director with jurisdiction over the location of that place, the submission of the documents prescribed in that paragraph is not required, notwithstanding the provisions of that paragraph.

In the case where an application for the approval referred to in paragraph (6), item (ii) or the preceding paragraph has been filed, when it is found that the facts prescribed in those provisions do not exist, or when there are circumstances in which the person who filed the application or the place to which the application relates is found to be inappropriate for securing gasoline tax and local gasoline tax, the district director may refuse to grant the approval.

When it is found, with regard to a person who has obtained the approval referred to in paragraph (6), item (ii) or paragraph (7), that the facts prescribed in those provisions have ceased to exist, or when circumstances have arisen in which that person is found to be inappropriate for securing gasoline tax and local gasoline tax, the district director may revoke the approval.

When a person who has obtained the approval referred to in paragraph (6), item (ii) or paragraph (7) no longer needs to receive the application of those provisions, the person must, pursuant to the provisions of Cabinet Order, submit a written notification stating that fact to the district director who granted that approval. In this case, when the written notification has been submitted, the approval ceases to be effective.

Beyond what is provided for in paragraph (6) through the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (6) or (7) are specified by Cabinet Order.

When a person who has brought in deemed gasoline to which the provisions of paragraph (1) have been applied consumes that deemed gasoline for a use other than the use relating to the application of the provisions of that paragraph, or transfers it, the Gasoline Tax Act and the Local Gasoline Tax Act apply by deeming the place into which it was brought to be a manufacturing site of gasoline, that consumption or transfer to be a shipment out, and that person to be a manufacturer of gasoline. In this case, the tax base is, notwithstanding the provisions of Article 8, paragraph (1) of the Gasoline Tax Act, the quantity of that deemed gasoline, and the return prescribed in Article 10, paragraph (1) of that Act (including a return under the provisions of Article 7, paragraph (1) of the Local Gasoline Tax Act) must be filed, notwithstanding the provisions of Article 10, paragraph (1) of the Gasoline Tax Act, within 10 days from the day on which the person consumed or transferred it, and that gasoline tax and local gasoline tax must be paid to the national government within the time limit for filing that return.

When a transfer under the provisions of the preceding paragraph is made, with the approval of the district director with jurisdiction over the location of the place into which the deemed gasoline was brought obtained pursuant to the provisions of Cabinet Order, for the purpose of using it for the same use as the use of the deemed gasoline relating to that bringing in, the provisions of paragraphs (1) through (3) apply to the deemed gasoline relating to that transfer, notwithstanding the provisions of the second sentence of that paragraph, by deeming the place into which it was brought to be a manufacturing site of gasoline, that transfer to be a shipment out, and the person who brought it in to be a manufacturer of gasoline.

In the case where a person intends to take out of a bonded area, out of gasoline-like products deemed to be gasoline pursuant to the provisions of Article 88-6, paragraph (2) (referred to as "deemed gasoline" in this Article), those that are to be used for the use prescribed in paragraph (1) of the preceding Article and that meet the standards specified by Cabinet Order according to that use, when the person intending to take them out takes out that deemed gasoline with the approval of the director-general of the customs house with jurisdiction over the place for tax payment, obtained pursuant to the provisions of Cabinet Order, the gasoline tax and local gasoline tax on that taking out are exempted.

The provisions of Article 14, paragraph (7) and Article 24 of the Gasoline Tax Act and Article 74-5, item (ii) (excluding (d)), Articles 74-8 through 74-11 and Article 74-13 of the Act on General Rules for National Taxes apply mutatis mutandis to a person who has brought deemed gasoline to which the provisions of the preceding paragraph have been applied into a place where it is to be used for the use prescribed in paragraph (1) of the preceding Article, and the provisions of Article 74-5, item (ii), (d), Article 74-8 and Article 74-13 of that Act apply mutatis mutandis to a person found to be obliged to transfer deemed gasoline to a person who has brought deemed gasoline to which the provisions of the preceding paragraph have been applied into a place where it is to be used for the use prescribed in paragraph (1) of the preceding Article or any other person found to have transactions, in connection with that person's business, with a person who has brought deemed gasoline to which the provisions of the preceding paragraph have been applied into a place where it is to be used for the use prescribed in paragraph (1) of that Article, respectively.

A person who has brought the deemed gasoline referred to in the preceding paragraph into the place referred to in that paragraph, to whom the provisions of Article 14, paragraph (7) and Article 24 of the Gasoline Tax Act and Article 74-5, item (ii) (excluding (d)) of the Act on General Rules for National Taxes apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be the person prescribed in Article 14, paragraph (7) and Article 24 of the Gasoline Tax Act and the provisions of Article 28, items (iii) and (vi) and Article 29 of that Act and Article 128 (limited to the part of item (ii) relating to Article 74-5, item (ii), (a) through (c) of that Act and the part of item (iii) relating to item (ii), (a) of that Article) and Article 130 of the Act on General Rules for National Taxes apply to that person, and a person found to be obliged to transfer deemed gasoline to a person who has brought the deemed gasoline referred to in that paragraph into the place referred to in that paragraph or any other person found to have transactions, in connection with that person's business, with a person who has brought the deemed gasoline referred to in that paragraph into the place referred to in that paragraph, to whom the provisions of Article 74-5, item (ii), (d) of that Act apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be the person prescribed in (d) of that item and the provisions of Article 128 (limited to the part of items (ii) and (iii) relating to Article 74-5, item (ii), (d) of that Act) and Article 130 of that Act apply to that person, respectively.

The provisions of Article 14-3, paragraphs (2) and (4) of the Gasoline Tax Act apply mutatis mutandis to the approval referred to in paragraph (1), and the provisions of paragraphs (7) and (8) of that Article apply mutatis mutandis to deemed gasoline taken out with the approval referred to in paragraph (1) for which no certificate that it has been brought into a place where it is to be used for the use prescribed in paragraph (1) of the preceding Article has been submitted within the time limit designated by the director-general of the customs house, respectively. In this case, the term "gasoline tax" in Article 14-3, paragraph (7) of that Act is deemed to be replaced with "gasoline tax and local gasoline tax".

The provisions of paragraphs (12) and (13) of the preceding Article apply mutatis mutandis to a person who has brought deemed gasoline to which the provisions of paragraph (1) have been applied into a place where it is to be used for the use prescribed in paragraph (1) of that Article.

In the case where a manufacturer of gasoline ships out from its manufacturing site, to a person listed in any of the following items or to a filling station, the gasoline specified in that item, with the approval of the district director with jurisdiction over the location of that manufacturing site obtained pursuant to the provisions of Cabinet Order, the gasoline tax and local gasoline tax on that shipment out are exempted:

an embassy, legation or consulate of a foreign country in Japan or any other institution equivalent to them (referred to as an "embassy, etc." in this paragraph through paragraph (3)): gasoline purchased pursuant to the provisions of Cabinet Order for use as fuel for motor vehicles that are articles for official use of the embassy, etc. of the foreign country in Japan;

an ambassador, minister or consul of a foreign country dispatched to Japan or any other person equivalent to them (referred to as an "ambassador, etc." in this paragraph through paragraph (3)): gasoline purchased pursuant to the provisions of Cabinet Order for use as fuel for motor vehicles that are articles for personal use of the ambassador, etc. of the foreign country dispatched to Japan;

a designated filling station: gasoline in a quantity equivalent to the quantity of gasoline purchased at the designated filling station by the persons listed in the preceding two items, pursuant to the provisions of Cabinet Order, for use as fuel for the motor vehicles specified in those items.

The provisions of the preceding paragraph do not apply to an embassy, etc. or ambassador, etc. of a country that does not grant an exemption from taxes similar to gasoline tax and local gasoline tax for gasoline used as fuel for motor vehicles that are articles for official use or articles for personal use of an embassy, etc. of Japan in a foreign country or an ambassador, etc. of Japan dispatched to a foreign country.

The embassy, etc. or ambassador, etc. of a foreign country referred to in paragraph (1) must not use gasoline purchased through the application of the provisions of that paragraph for any use other than the use prescribed in that paragraph.

The term "designated filling station" listed in paragraph (1), item (iii) means a filling station that has been designated, pursuant to the provisions of Cabinet Order, by the district director with jurisdiction over its location as a filling station that may sell gasoline purchased under the provisions of item (iii) of that paragraph to the persons listed in items (i) and (ii) of that paragraph.

In the case where the operator of a designated filling station that has received the designation referred to in the preceding paragraph has violated the provisions of laws and regulations concerning gasoline tax and local gasoline tax, or in any other case where the station is found to be particularly inappropriate for control purposes, the district director may revoke the designation.