Article 66Special Provisions on Taxation in the Case of Exchange of Specified Ordinary Property for Adjacent Land, etc.
第六十六条（特定普通財産とその隣接する土地等の交換の場合の課税の特例）
If a corporation has, with regard to land held by it that is adjacent to ordinary property under Article 9, paragraph (2) of the Act on Special Measures concerning National Property that has been certified, pursuant to the provisions of Order of the Ministry of Finance, as land, etc. prescribed in that paragraph (hereinafter referred to in this paragraph as "specified ordinary property") (including a right existing on the specified ordinary property, and excluding inventory assets; hereinafter referred to in this paragraph as "owned adjacent land, etc."), exchanged the owned adjacent land, etc. for the specified ordinary property pursuant to the provisions of paragraph (2) of that Article (excluding an exchange specified by Cabinet Order; hereinafter the same applies in this paragraph and the following paragraph) (including the case where it has acquired or paid an exchange balancing payment prescribed in Article 65-9 (referred to in the following paragraph as an "exchange balancing payment")), then, only if, with regard to the specified ordinary property acquired through the exchange (hereinafter referred to in this Article as an "asset acquired by exchange"), the corporation has 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 acquisition price of the asset acquired by exchange, the book value immediately before the transfer of the owned adjacent land, etc. transferred through the exchange (referred to in the following paragraph as an "asset transferred by exchange") (hereinafter referred to in this paragraph and paragraph (4) as the "reduction entry limit"), or has, instead of reducing its book value, accounted for an amount not exceeding the reduction entry limit by the method of setting it aside as a reserve in the finalized settlement of accounts for that business year (including the method of setting it aside as a reserve through the appropriation of surplus by the day on which the settlement of accounts for that business year is finalized), the amount equivalent to the amount so reduced or accounted for is included in deductible expenses in calculating the amount of income for that business year.
法人が、その有する国有財産特別措置法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、棚卸資産を除く。以下この項において「所有隣接土地等」という。）につき、同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。以下この項及び次項において同じ。）をしたとき（第六十五条の九に規定する交換差金（次項において「交換差金」という。）を取得し、又は支払つた場合を含む。）は、当該交換により取得した特定普通財産（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取得価額から当該交換により譲渡をした所有隣接土地等（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（以下この項及び第四項において「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、又はその帳簿価額を減額することに代えてその圧縮限度額以下の金額を当該事業年度の確定した決算において積立金として積み立てる方法（当該事業年度の決算の確定の日までに剰余金の処分により積立金として積み立てる方法を含む。）により経理したときに限り、その減額し、又は経理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。
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 an exchange balancing payment 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 exchange balancing payment;
where the corporation has paid an exchange balancing payment together with the exchange: the amount obtained by adding the amount of that exchange balancing payment to the book value;
当該交換とともに交換差金を支出した場合 帳簿価額に当該交換差金の額を加算した金額
where there is an amount calculated pursuant to the provisions of Cabinet Order as expenses required for the exchange 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 it made the exchange prescribed in paragraph (1), 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 pertaining to that exchange that it acquired 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 paragraphs (2) and (3) and the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraph (1) or (4) are specified by Cabinet Order.