①Where an individual has made a donation related to political activities prescribed in Article 4, paragraph (4) of the Political Funds Control Act (Act No. 194 of 1948) (excluding a donation that would violate the provisions of that Act, a donation that is found to confer a special benefit on the person who made it, and a donation made by a candidate for public office (meaning a candidate for public office prescribed in Article 3, paragraph (4) of that Act) to a specified political party branch (meaning, among the branches of political parties prescribed in paragraph (2) of that Article that are established for each electoral district prescribed in Article 12 of the Public Offices Election Act (Act No. 100 of 1950) or for each area in which an election is held, a branch whose representative is that candidate for public office); referred to as a "donation related to political activities" in the following paragraph) within the period from the effective date of the Act Partially Amending the Political Funds Control Act (Act No. 4 of 1994) to December 31, 2029 (referred to as the "designated period" in the following paragraph), out of the expenditures pertaining to the donation, those made to the following organizations (for expenditures pertaining to donations to an organization listed in item (i) or item (ii), excluding those expenditures where the provisions of the following paragraph are applied to income tax for the year in which they were expended, and for expenditures pertaining to donations to an organization listed in item (iv), (b), limited to those made during the year that includes the day on which a notification was filed, pursuant to the provisions of Articles 86 through 86-4 of the Public Offices Election Act, for the person recommended or supported by that organization as a candidate referred to in (b) of that item, and during the preceding year) which have been reported in a report under the provisions of Article 12 or Article 17 of the Political Funds Control Act, and those made in connection with the election campaign for public office to a person for whom a notification was filed, pursuant to the provisions of Article 86, Article 86-3 or Article 86-4 of the Public Offices Election Act, as a candidate for that public office prescribed in item (iv), (a), which have been reported in a report under the provisions of Article 189 of that Act, are deemed to be specified donations prescribed in Article 78, paragraph (2) of the Income Tax Act, and the provisions of that Act apply.

②With respect to expenditures pertaining to donations related to political activities to an organization listed in item (i) or item (ii) of the preceding paragraph, expended by an individual within the designated period, which have been reported in a report under the provisions of Article 12 or Article 17 of the Political Funds Control Act (hereinafter referred to in this paragraph as "donations to political parties, etc."), where the total amount of donations to political parties, etc. expended during the year (where the amount obtained by adding to that total amount the amount of specified donations, etc. expended during the year (meaning the sum of the amount of specified donations prescribed in Article 78, paragraph (2) of the Income Tax Act, the amount of those deemed to be specified donations pursuant to the provisions of the preceding paragraph, the amount of donations for specified non-profit activities prescribed in paragraph (2) of the following Article, and the amount specified by Cabinet Order prescribed in Article 41-18-4, paragraph (1) as the amount required for the acquisition of deductible specified new shares prescribed in that paragraph; hereinafter the same applies in this paragraph) exceeds the amount equivalent to 40 percent of the sum of the amount of gross income, the amount of retirement income and the amount of timber income of the individual for that year, the balance after deducting the amount of the specified donations, etc. from that amount equivalent to 40 percent) exceeds 2,000 yen (where there is an amount of specified donations, etc. expended during the year, the balance after deducting the amount of the specified donations, etc. from 2,000 yen), the amount equivalent to 30 percent of the excess amount (if that amount includes a fraction of less than 100 yen, the fraction is to be rounded down) is deducted from the amount of income tax for that year. In this case, if the amount to be deducted exceeds the amount equivalent to 25 percent of the amount of income tax of the individual for that year, the amount to be deducted is limited to that amount equivalent to 25 percent (if that amount includes a fraction of less than 100 yen, the fraction is to be rounded down).

③The provisions of the preceding paragraph apply only where the final return contains a statement concerning the deduction with regard to the amount to be deducted under the provisions of that paragraph and, pursuant to the provisions of Order of the Ministry of Finance, has attached to it a written statement concerning the calculation of that amount and documents evidencing the amounts forming the basis of that calculation and other matters.

④The provisions of Article 92, paragraph (2) of the Income Tax Act apply mutatis mutandis to the amount to be deducted under the provisions of paragraph (2). In this case, the phrase "credit under the preceding paragraph" in paragraph (2) of that Article is deemed to be replaced with "credit under the preceding paragraph and Article 41-18, paragraph (2) (Special Income Tax Credit Where a Donation Related to Political Activities Is Made) of the Act on Special Measures Concerning Taxation", and the phrase "the amount allowed as a credit" is deemed to be replaced with "the total of the amounts allowed as these credits".

⑤With regard to the calculation of the amount of income tax listed in Article 120, paragraph (1), item (iii) of the Income Tax Act in the case where the provisions of paragraph (2) are applied to income tax for the year, the phrase "Chapter III (Calculating the Amount of Taxes)" in that item is deemed to be replaced with "Chapter III (Calculating the Amount of Taxes) and Article 41-18, paragraph (2) (Special Income Tax Credit Where a Donation Related to Political Activities Is Made) of the Act on Special Measures Concerning Taxation".

⑥Beyond what is prescribed in the preceding three paragraphs, Cabinet Order provides for the necessary particulars concerning the application of the provisions of paragraph (2).