Article 65-10Special Provisions on Taxation in the Case of Acquisition of Land, etc. through Specified Exchange and Consolidation
第六十五条の十（特定の交換分合により土地等を取得した場合の課税の特例）
If land or a right existing on land held by a corporation (excluding inventory assets; hereinafter referred to in this paragraph as "land, etc.") has come to fall under any of the cases listed in the following items, and the corporation has, with regard to the land, etc. that it acquired through the exchange and consolidation prescribed in the relevant item (hereinafter referred to in this Article as an "asset acquired by exchange"), reduced the book value of the asset acquired by exchange through accounting as an expense or loss within the limit of the amount remaining after deducting, from the value of the asset acquired by exchange, the book value immediately before the transfer of the land, etc. that it transferred (the transfer including, in the case that falls under the case specified by Cabinet Order as a case where the value of land, etc. is significantly reduced by having another person use the land, etc., the act of having it so used; hereinafter the same applies in this paragraph and the following paragraph) through that exchange and consolidation (referred to in the following paragraph as an "asset transferred by exchange") (referred to in paragraph (4) as the "reduction entry limit"), the amount equivalent to the amount so reduced is included in deductible expenses in calculating the amount of income for that business year:
法人の有する土地又は土地の上に存する権利（棚卸資産を除く。以下この項において「土地等」という。）が次の各号に掲げる場合に該当することとなつた場合において、当該法人が当該各号に規定する交換分合により取得した土地等（以下この条において「交換取得資産」という。）につき、当該交換取得資産の価額から当該交換分合により譲渡（土地等を使用させることにより当該土地等の価値が著しく減少する場合として政令で定める場合に該当する場合におけるその使用させる行為を含む。以下この項及び次項において同じ。）をした土地等（次項において「交換譲渡資産」という。）の譲渡直前の帳簿価額を控除した残額（第四項において「圧縮限度額」という。）の範囲内で当該交換取得資産の帳簿価額を損金経理により減額したときは、その減額した金額に相当する金額は、当該事業年度の所得の金額の計算上、損金の額に算入する。
where the corporation has transferred land, etc. through an exchange and consolidation under the provisions of Article 13-2, paragraph (2) of the Act on Establishment of Agricultural Promotion Regions (excluding a transfer to which the provisions of Articles 65-3 through 65-5-2 or the preceding three Articles apply), and has acquired land, etc. through that exchange and consolidation (including the case where it has acquired, together with that land, etc., settlement money under the provisions of Article 102, paragraph (4) of the Land Improvement Act as applied mutatis mutandis pursuant to Article 13-5 of the Act on Establishment of Agricultural Promotion Regions);
農業振興地域の整備に関する法律第十三条の二第二項の規定による交換分合により土地等の譲渡（第六十五条の三から第六十五条の五の二まで又は前三条の規定の適用を受けるものを除く。）をし、かつ、当該交換分合により土地等の取得をした場合（当該土地等とともに同法第十三条の五において準用する土地改良法第百二条第四項の規定による清算金の取得をした場合を含む。）
where the corporation has transferred land, etc. (limited to land, etc. held by a corporation that is a member of an agricultural and residential land cooperative or any other corporation specified by Cabinet Order) through an exchange and consolidation under the provisions of Article 7, paragraph (2), item (iii) of the Farming and Residence Association Act (limited to one carried out within an area specified by Cabinet Order in accordance with the provisions of Chapter II, Section 3 of that Act) (excluding a transfer to which the provisions of Article 64, Article 64-2, Articles 65-2 through 65-5-2 or the preceding three Articles apply), and has acquired land, etc. through that exchange and consolidation (including the case where it has acquired, together with that land, etc., settlement money under the provisions of Article 102, paragraph (4) of the Land Improvement Act as applied mutatis mutandis pursuant to Article 11 of the Farming and Residence Association Act).
農住組合法第七条第二項第三号の規定による交換分合（政令で定める区域内において同法第二章第三節に定めるところにより行われたものに限る。）により土地等（農住組合の組合員である法人その他政令で定める法人の有する土地等に限る。）の譲渡（第六十四条、第六十四条の二、第六十五条の二から第六十五条の五の二まで又は前三条の規定の適用を受けるものを除く。）をし、かつ、当該交換分合により土地等の取得をした場合（当該土地等とともに同法第十一条において準用する土地改良法第百二条第四項の規定による清算金の取得をした場合を含む。）
The book value immediately before the transfer prescribed in the preceding paragraph is, in the cases listed in the following items, to be the amount specified in the relevant item:
前項に規定する譲渡直前の帳簿価額は、次の各号に掲げる場合に該当する場合には、当該各号に定める金額とする。
where the corporation has acquired the settlement money prescribed in the items of the preceding paragraph together with the asset acquired by exchange: the amount remaining after deducting, from the book value, the amount calculated pursuant to the provisions of Cabinet Order as the portion of the book value corresponding to the amount of that settlement money;
where the corporation has paid the settlement money prescribed in the items of the preceding paragraph together with the transfer of the asset transferred by exchange: the amount obtained by adding the amount of that settlement money to the book value;
where there is an amount calculated pursuant to the provisions of Cabinet Order as expenses required for the transfer of the asset transferred by exchange that pertain to the asset acquired by exchange: the amount obtained by adding that calculated amount to the book value.
The provisions of Article 65-7, paragraphs (5) and (6) apply mutatis mutandis where the provisions of paragraph (1) are applied, and the provisions of paragraph (8) of that Article apply mutatis mutandis to an asset acquired by exchange to which the provisions of paragraph (1) have been applied.
If a corporation carries out, in the business year that includes the day on which the exchange and consolidation prescribed in paragraph (1) was carried out, a qualified company split, a qualified capital contribution in kind or a qualified in-kind distribution (limited to one carried out on or after that day; hereinafter referred to in this paragraph and paragraph (6) as a "qualified company split, etc."), and transfers an asset acquired by exchange that it acquired through that exchange and consolidation during the period from the beginning of that business year until immediately before the qualified company split, etc. to a successor corporation in a company split, a corporation receiving a capital contribution in kind or a corporation receiving a distribution in kind through the qualified company split, etc., then, only if, with regard to that asset acquired by exchange, the corporation has reduced its book value within the limit of the amount equivalent to the reduction entry limit pertaining to that asset acquired by exchange, the amount equivalent to the amount so reduced is included in deductible expenses in calculating the amount of income for that business year.
The provisions of Article 65-7, paragraph (8) apply mutatis mutandis to an asset acquired by exchange to which the provisions of the preceding paragraph have been applied.
第六十五条の七第八項の規定は、前項の規定の適用を受けた交換取得資産について準用する。
The provisions of paragraph (4) apply only if the corporation seeking the application of the provisions of that paragraph has submitted to the district director with jurisdiction over the place for tax payment, within two months after the day of the qualified company split, etc., a document stating the reduced amount prescribed in that paragraph and other matters specified by Order of the Ministry of Finance.
The provisions of Article 65-7, paragraph (13) apply mutatis mutandis to an asset acquired by exchange to which the provisions of paragraph (1) or (4) have been applied.
第六十五条の七第十三項の規定は、第一項又は第四項の規定の適用を受けた交換取得資産について準用する。
Beyond what is specified in the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraphs (1) and (4) are specified by Cabinet Order.