Article 37-8Special Provisions on Taxation of Capital Gains in the Case of Exchange of Specified Ordinary Property for Its Adjacent Land, etc.
第三十七条の八（特定普通財産とその隣接する土地等の交換の場合の譲渡所得の課税の特例）
Where an individual, with respect to land held by the individual that is adjacent to ordinary property under Article 9, paragraph (2) of the Act on Special Measures concerning National Property (Act No. 219 of 1952) which has been certified, pursuant to the provisions of Order of the Ministry of Finance, as land, etc. prescribed in that paragraph (hereinafter referred to as "specified ordinary property" in this paragraph and paragraph (3)) (the land includes a right existing on the specified ordinary property, and excludes that which falls under inventory assets prescribed in Article 2, paragraph (1), item (xvi) of the Income Tax Act or other assets equivalent thereto specified by Cabinet Order; hereinafter referred to as "owned adjacent land, etc." in this paragraph and paragraph (4)), exchanges, pursuant to Article 9, paragraph (2) of the Act on Special Measures concerning National Property, the owned adjacent land, etc. for the specified ordinary property (excluding an exchange specified by Cabinet Order; hereinafter the same applies in this paragraph) (including the case where the individual receives or pays an exchange balancing payment), the provisions of Article 31 or Article 32 apply by deeming that the owned adjacent land, etc. (where the individual has received an exchange balancing payment together with the specified ordinary property, excluding the portion of the owned adjacent land, etc. specified by Cabinet Order as corresponding to the exchange balancing payment) was not exchanged.
個人が、その有する国有財産特別措置法（昭和二十七年法律第二百十九号）第九条第二項の普通財産のうち同項に規定する土地等として財務省令で定めるところにより証明がされたもの（以下この項及び第三項において「特定普通財産」という。）に隣接する土地（当該特定普通財産の上に存する権利を含むものとし、所得税法第二条第一項第十六号に規定する棚卸資産その他これに準ずる資産で政令で定めるものに該当するものを除く。以下この項及び第四項において「所有隣接土地等」という。）につき、国有財産特別措置法第九条第二項の規定により当該所有隣接土地等と当該特定普通財産との交換（政令で定める交換を除く。以下この項において同じ。）をしたとき（交換差金を取得し、又は支払つた場合を含む。）は、当該所有隣接土地等（当該特定普通財産とともに交換差金を取得した場合には、当該所有隣接土地等のうち当該交換差金に相当するものとして政令で定める部分を除く。）の交換がなかつたものとして、第三十一条又は第三十二条の規定を適用する。
The provisions of Article 37, paragraphs (6) and (7) apply mutatis mutandis where the provisions of the preceding paragraph apply. In this case, the terms and phrases listed in the middle column of the following table that appear in the provisions listed in the left-hand column of that table are deemed to be replaced with the terms and phrases listed in the right-hand column of that table.
| Article 37, paragraph (6) | paragraph (1) | Article 37-8, paragraph (1) |
| the transfer referred to in that paragraph | the exchange prescribed in that paragraph of the owned adjacent land, etc. prescribed in that paragraph (hereinafter referred to as "owned adjacent land, etc.") | |
| the transfer price of the asset so transferred, the acquisition price of the replacement asset or its estimated amount | the value, as of the date of the exchange, of the owned adjacent land, etc. transferred through the exchange and of the specified ordinary property prescribed in that paragraph acquired through the exchange (hereinafter referred to as "specified ordinary property") (where the exchange balancing payment prescribed in that paragraph was received or paid, the value of the owned adjacent land, etc. and of the specified ordinary property and the amount of the exchange balancing payment) | |
| Article 37, paragraph (7) | paragraph (1) | Article 37-8, paragraph (1) |
A person who files the final return prescribed in Article 37, paragraph (6) as applied mutatis mutandis pursuant to the preceding paragraph must, pursuant to the provisions of Cabinet Order, submit to the district director with jurisdiction over the place for tax payment a document specified by Order of the Ministry of Finance concerning the details of the specified ordinary property acquired through the exchange prescribed in paragraph (1) (referred to as an "asset acquired by exchange" in the following paragraph and paragraph (5)).
Where, with respect to the asset acquired by exchange of a person who has received the application of the provisions of paragraph (1), there is a transfer (including lending of real property, etc. giving rise to capital gains; the same applies in the following paragraph), inheritance, bequest or gift of the asset acquired by exchange on or after the date of its acquisition, and the amount of business income, the amount of capital gains or the amount of miscellaneous income is calculated, the acquisition price of the asset acquired by exchange is, pursuant to the provisions of Cabinet Order, the amount specified in the following items according to the category of cases listed in those items (where there are expenses incurred for the exchange referred to in paragraph (1) of the owned adjacent land, etc., the amount obtained by adding the amount of those expenses calculated pursuant to the provisions of Cabinet Order):
where an exchange balancing payment was received together with the asset acquired by exchange through the exchange referred to in paragraph (1): the amount calculated pursuant to the provisions of Cabinet Order as the amount of the portion of the acquisition price of the owned adjacent land, etc. transferred through the exchange other than the portion corresponding to the exchange balancing payment;
where, on the date of the exchange referred to in paragraph (1), the value of the owned adjacent land, etc. transferred through the exchange is equal to the value of the asset acquired by exchange: the amount equivalent to the acquisition price of the owned adjacent land, etc. transferred through the exchange;
where the asset acquired by exchange was acquired through the exchange referred to in paragraph (1) (limited to the case where an exchange balancing payment was paid): the amount equivalent to the amount obtained by adding the amount of the exchange balancing payment to the acquisition price of the owned adjacent land, etc. transferred through the exchange.
When the amount of business income, the amount of capital gains or the amount of miscellaneous income pertaining to the transfer of an asset acquired by exchange is calculated, a statement to the effect that the acquisition price of the asset acquired by exchange has been calculated pursuant to the provisions of the preceding paragraph and the details of the calculation are to be stated in the final return.
Beyond what is specified in paragraph (2) through the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.