Act on Special Measures Concerning Taxation

Notwithstanding the provisions listed in the following items, if the special base rate for interest tax for each year is less than 7.3 percent per annum, the rate of 7.3 percent per annum of interest tax prescribed in those provisions is to be that special base rate for interest tax during that year:

Article 131, paragraph (3), each item of Article 136, paragraph (1), Article 137-2, paragraph (12) and Article 137-3, paragraph (14) of the Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 of that Act);

Article 75, paragraph (7) of the Corporation Tax Act (including as applied mutatis mutandis pursuant to Article 75-2, paragraphs (8) and (10) of that Act (including as applied mutatis mutandis pursuant to Article 144-8 of that Act) and as applied mutatis mutandis pursuant to Article 144-7 of that Act; the same applies hereinafter in this item), and Article 75, paragraph (7) of the Corporation Tax Act as applied mutatis mutandis pursuant to Article 19, paragraph (4) of the Local Corporation Tax Act;

Article 51-2, paragraph (1), item (ii), Article 52, paragraph (4), and Article 53, paragraph (1), paragraph (4), item (i) and item (ii), (a), paragraph (6) and paragraph (7) of the Inheritance Tax Act;

Article 45-2, paragraph (4) of the Consumption Tax Act;

Article 70-7-2, paragraph (14), item (x), (b) (including as applied mutatis mutandis pursuant to Article 70-7-4, paragraph (11)).

The special base rate for interest tax prescribed in the preceding paragraph means the rate obtained by adding 0.5 percent per annum to the average lending rate (meaning the rate publicly notified by the Minister of Finance by November 30 of the year preceding each year as the rate calculated by dividing by 12 the sum of the average interest rates on short-term loans (meaning the average of the interest rates on loans (limited to those with a loan period of less than one year) newly made by banks in that month) in each month from September of the second year preceding each year to August of the year preceding it; the same applies hereinafter).

Notwithstanding the provisions listed in the following items, if the special base rate for deferred payment for each instalment period is less than 7.3 percent per annum, the rate of interest tax prescribed in those provisions is to be, for that instalment period, the rate calculated by multiplying that rate of interest tax by the ratio that the special base rate for deferred payment bears to 7.3 percent per annum:

Article 52, paragraph (1), item (i) of the Inheritance Tax Act;

Article 70-6, paragraph (38), item (iii);

the first sentence of Article 70-7-2, paragraph (14), item (x) (including as applied mutatis mutandis pursuant to Article 70-7-4, paragraph (11));

Article 70-8-2, paragraph (3) (including as applied mutatis mutandis pursuant to paragraph (9) of that Article);

Article 70-9, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (4) of that Article);

Article 70-10, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (5) of that Article);

Article 70-11.

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

instalment period: This means the period serving as the basis for calculating the amount of interest tax that must be paid together with the installment payment prescribed in Article 52, paragraph (1), item (i) or item (ii) of the Inheritance Tax Act;

special base rate for deferred payment: This means the special base rate for interest tax (meaning the special base rate for interest tax prescribed in paragraph (2); the same applies in the following paragraph) for the year that includes the first day of each instalment period.

Notwithstanding the provisions of Article 70-4, paragraph (35), Article 70-6, paragraph (40), Article 70-6-6, paragraph (19), Article 70-6-7, paragraph (16), Article 70-6-8, paragraph (25), Article 70-6-10, paragraph (26), Article 70-7, paragraph (13), item (xii) and paragraph (27), Article 70-7-2, paragraph (14), item (x), (a) (including as applied mutatis mutandis pursuant to Article 70-7-4, paragraph (11)) and paragraph (28) (including as applied mutatis mutandis pursuant to Article 70-7-4, paragraph (15)), Article 70-7-5, paragraph (22), Article 70-7-6, paragraph (23) (including as applied mutatis mutandis pursuant to Article 70-7-8, paragraph (18)), and Article 70-7-9, paragraph (12) (including as applied mutatis mutandis pursuant to Article 70-7-12, paragraph (12)), if the special base rate for interest tax for each year is less than 7.3 percent per annum, the rate of interest tax prescribed in those provisions is to be, during that year, the rate calculated by multiplying that rate of interest tax by the ratio that the special base rate for interest tax bears to 7.3 percent per annum.

Where the provisions of paragraph (3) apply, the interest tax prescribed in Article 53, paragraph (3) of the Inheritance Tax Act that is payable for the period listed in item (ii), (b) of that paragraph is, notwithstanding the provisions of paragraph (4), item (ii), (b) of that Article, to be the amount calculated in accordance with the provisions of Article 52 of that Act and the provisions of paragraph (3).

Notwithstanding the provisions of Article 60, paragraph (2) of the Act on General Rules for National Taxes and Article 51-2, paragraph (1), item (iii) of the Inheritance Tax Act, if the special base rate for delinquent tax for each year (meaning the rate obtained by adding 1 percent per annum to the average lending rate; the same applies hereinafter in this paragraph and in Article 96, paragraph (1)) is less than 7.3 percent per annum, the rate of 14.6 percent per annum and the rate of 7.3 percent per annum of delinquent tax prescribed in those provisions are to be, during that year, in the case of the rate of 14.6 percent per annum, the rate obtained by adding 7.3 percent per annum to that special base rate for delinquent tax, and in the case of the rate of 7.3 percent per annum, the rate obtained by adding 1 percent per annum to that special base rate for delinquent tax (or 7.3 percent per annum, if the rate so obtained exceeds 7.3 percent per annum).

If the special base rate for grace periods (meaning the rate obtained by adding 0.5 percent per annum to the average lending rate) for a year that includes a period serving as the basis for calculating the amount which is exempted, or which may be exempted, pursuant to the provisions of Article 63, paragraphs (1), (4) and (5) of the Act on General Rules for National Taxes with regard to the delinquent tax prescribed in those provisions (hereinafter referred to as "delinquent tax on national tax granted a tax payment grace period, etc." in this paragraph) is less than 7.3 percent per annum, for the purpose of applying those provisions to the delinquent tax on national tax granted a tax payment grace period, etc. corresponding to the part of that period that falls within that year, the phrase "period (limited to the period after the day on which two months have elapsed from the day following the due date for payment of the national tax)" in paragraph (1) of that Article is deemed to be replaced with "period", the phrase "one half of" with "the portion exceeding the amount of the delinquent tax computed as if its rate were the special base rate for grace periods (meaning the special base rate for grace periods prescribed in Article 94, paragraph (2) (Special Provisions on the Rate of Delinquent Tax) of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957)) (referred to as the 'special delinquent tax amount' in paragraphs (4) and (5)), out of", and the phrase "Article 152, paragraph (3) of that Act" with "Article 152, paragraph (3) of the National Tax Collection Act"; the phrase "the period after the day on which two months have elapsed from the day following the due date for payment of the national tax, out of the period" in paragraph (4) of that Article is deemed to be replaced with "period", and the phrase "one half of" with "the portion exceeding the special delinquent tax amount, out of"; and the phrase "the period after the day on which two months have elapsed from the day following the due date for payment of the national tax, out of the period," in paragraph (5) of that Article is deemed to be replaced with "period", and the phrase "one half of" with "the portion exceeding the special delinquent tax amount, out of".

The particulars to be stated in documents concerning a demand letter prescribed in Article 37, paragraph (1) of the Act on General Rules for National Taxes or a written request for accelerated payment prescribed in Article 38, paragraph (2) of that Act (including a tax payment notice bearing a note to the effect that a request under paragraph (1) of that Article is being made) where the provisions of paragraph (1) apply are specified by Order of the Ministry of Finance.

If the special base rate for interest on refund for each year (meaning the rate obtained by adding 0.5 percent per annum to the average lending rate) is less than 7.3 percent per annum, for the purpose of applying the provisions of Article 58, paragraph (1) of the Act on General Rules for National Taxes to the interest on refund (meaning the interest on refund prescribed in Article 58, paragraph (1) of that Act; hereinafter referred to as "interest on refund" in this Article and in paragraph (1) of the following Article) corresponding to the part of the period serving as the basis for calculating the interest on refund that falls within that year, the phrase "7.3 percent per annum" in that paragraph is deemed to be replaced with "the special base rate for interest on refund prescribed in Article 95 (Special Provisions on the Rate of Interest on Refund) of the Act on Special Measures Concerning Taxation".

In calculating the amount of interest tax, etc. (meaning interest tax, delinquent tax and interest on refund; the same applies in the following paragraph) where any of the provisions of the preceding three Articles apply, if the rate calculated as prescribed in Article 93 includes a fraction of less than 0.1 percent, the fraction is to be rounded down, and if the calculated rate or the added rate prescribed in the preceding three Articles (excluding the average lending rate and the special base rate for delinquent tax) is less than 0.1 percent per annum, the rate is to be 0.1 percent per annum.

In calculating the amount of interest tax, etc. where any of the provisions of the preceding three Articles apply, if an amount in the course of the calculation includes a fraction of less than one yen, the fraction is rounded down.