①With respect to the specified donations prescribed in Article 78, paragraph (2) of the Income Tax Act expended by an individual that are listed below (excluding those to which the provisions of paragraph (1) of that Article are applied; hereinafter referred to in this paragraph as "donations eligible for tax credit"), where the total amount of donations eligible for tax credit expended during the year (where the amount of specified donations, etc. expended during the year (meaning the sum of the amount of specified donations prescribed in paragraph (2) of that Article, the amount of those deemed to be specified donations pursuant to the provisions of Article 41-18, paragraph (1) or paragraph (1) of the preceding Article, and the amount specified by Cabinet Order prescribed in paragraph (1) of the following Article 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 donations eligible for income deduction (meaning the balance after deducting the total amount of donations eligible for tax credit from the amount of the specified donations, etc.; hereinafter the same applies in this paragraph) from that amount equivalent to 40 percent) exceeds 2,000 yen (where there is an amount of donations eligible for income deduction expended during the year, the balance after deducting the amount of donations eligible for income deduction from 2,000 yen), the amount equivalent to 40 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).

②The 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.

③The 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 (1). 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 41-18-3, paragraph (1) (Special Income Tax Credit Where a Donation Is Made to an Incorporated Public Interest Association, etc.) 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".

④With 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 (1) 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 41-18-3, paragraph (1) (Special Income Tax Credit Where a Donation Is Made to an Incorporated Public Interest Association, etc.) of the Act on Special Measures Concerning Taxation".

⑤Beyond what is prescribed in the preceding three paragraphs, Cabinet Order provides for the necessary particulars concerning the application of the provisions of paragraph (1).