②Where a domestic corporation that files a blue return and that, at the end of each business year, falls under a certified corporation prescribed in Article 56, paragraph (2) of the Act on Special Measures for the Promotion and Development of Okinawa (limited to one that has received the certification under paragraph (1) of that Article during the period from the date of designation under Article 55, paragraph (1) of that Act to March 31, 2027) (limited to a corporation incorporated on or after the date of that designation that has its head office or principal office within the area of the district designated as a special zone for economic and financial revitalization pursuant to the provisions of Article 55, paragraph (1) of that Act (where it has been changed pursuant to the provisions of paragraph (4) or paragraph (5) of that Article, the district as changed); hereinafter referred to in this paragraph and paragraph (4) as a "special eligible domestic corporation") has, in that business year (limited to a business year ending within the period from the date of incorporation of that special eligible domestic corporation to the day on which 10 years have elapsed from that date (where that special eligible domestic corporation is a corporation incorporated through a merger or in any other case specified by Cabinet Order, the period specified by Cabinet Order within that period), and excluding a business year for which the provisions of the preceding paragraph apply; hereinafter referred to in this Article as a "special eligible business year"), the amount specified by Cabinet Order as the amount of income for that special eligible business year, the amount calculated by multiplying the amount equivalent to 40 percent of that amount by the ratio calculated, as specified by Cabinet Order, as the ratio of the number of persons engaged in the business of that special eligible domestic corporation at its business offices within that area to the total number of persons engaged in the business of that special eligible domestic corporation as of the end of that special eligible business year is included in deductible expenses in calculating the amount of income for that special eligible business year.

③The provisions of the preceding two paragraphs do not apply to a business year for which the following provisions apply:

④The application of the provisions of paragraph (1) or paragraph (2) to a group tax sharing corporation is as prescribed in the following items:

⑤In the case referred to in the preceding paragraph, where the amount specified by Cabinet Order as the income before group tax sharing or the deficit before group tax sharing for the business year ending on the day of the end of the specified covered business year or special eligible business year of the group tax sharing corporation referred to in that paragraph (hereinafter referred to in this paragraph as the "other business year") on the assumption that corporation tax is imposed only on the income arising from the specified business, etc. of an other covered group tax sharing corporation (meaning an other covered group tax sharing corporation prescribed in the items of that paragraph; the same applies hereinafter in this paragraph), or the income before group tax sharing or the deficit before group tax sharing for the other business year of an other group tax sharing corporation (limited to one that has a group tax sharing full controlling interest with that group tax sharing corporation on that day; the same applies hereinafter in this paragraph), differs from the initially reported pre-aggregation income from specified business, etc. or the initially reported pre-aggregation loss from specified business, etc., or from the initially reported pre-aggregation income amount or the initially reported pre-aggregation loss amount (meaning, respectively, the amount stated, in the document attached to the final return, etc. (excluding a return filed after the due date; the same applies hereinafter in this paragraph) for the other business year of the other covered group tax sharing corporation, as the amount specified by Cabinet Order as the income before group tax sharing or the deficit before group tax sharing for that other business year on the assumption that corporation tax is imposed only on the income arising from the specified business, etc. of that other covered group tax sharing corporation, or the amount stated, in the document attached to the final return, etc. for the other business year of the other group tax sharing corporation, as the income before group tax sharing or the deficit before group tax sharing for that other business year of that other group tax sharing corporation; the same applies hereinafter in this paragraph), the initially reported pre-aggregation income from specified business, etc. or the initially reported pre-aggregation loss from specified business, etc., or the initially reported pre-aggregation income amount or the initially reported pre-aggregation loss amount, is deemed to be the amount specified by Cabinet Order as the income before group tax sharing or the deficit before group tax sharing for the other business year on the assumption that corporation tax is imposed only on the income arising from the specified business, etc. of that other covered group tax sharing corporation, or the income before group tax sharing or the deficit before group tax sharing for the other business year of the other group tax sharing corporation.

⑥Where, at the end of each business year (hereinafter referred to in this paragraph as an "adjustment business year") after a business year of a domestic corporation for which the provisions of paragraph (1) or paragraph (2) were applied (limited to a business year ending on the day of the end of the business year of the group tax sharing parent corporation pertaining to that domestic corporation; hereinafter referred to in this paragraph as a "business year of application"), the deficit before group tax sharing (meaning the deficit before group tax sharing prescribed in Article 64-5, paragraph (1) of the Corporation Tax Act, excluding that deemed not to exist pursuant to the provisions of Article 64-6 of that Act; the same applies hereinafter in this paragraph and the following paragraph) incurred in the business year ending on the base date (hereinafter referred to in this paragraph as an "other applicable business year") of any of the other group tax sharing corporations (meaning other domestic corporations that have a group tax sharing full controlling interest with that domestic corporation on the day of the end of that business year of application of that domestic corporation (hereinafter referred to in this paragraph as the "base date"); the same applies hereinafter in this paragraph) exceeds the amount stated as the deficit before group tax sharing in the document attached to the final return, etc. for that other applicable business year of that other group tax sharing corporation (limited to where the amount of the excess (hereinafter referred to in this paragraph as the "group tax sharing deficit shortfall amount") includes an amount based on accounting made by disguising facts; hereinafter referred to in this paragraph as a "case of an excessive return"), or where there is an amount stated as the deficit before group tax sharing in the document attached to the final return, etc. (limited to a return filed after the due date) for the other applicable business year of any of the other group tax sharing corporations (hereinafter referred to in this paragraph as the "amount of loss stated in a late return") (hereinafter referred to in this paragraph as a "case of a loss stated in a late return"), if there is the amount specified in each of the following items according to the category of cases listed in that item (where there is an amount that has been included in gross profit pursuant to the provisions of this paragraph in any business year before that adjustment business year with regard to the amount specified in each of the following items, the amount obtained by deducting the total of the amounts so included; hereinafter referred to in this paragraph as the "amount to be added as an adjustment"), that amount to be added as an adjustment is included in gross profit in calculating the amount of income for that adjustment business year.

⑦In the application of the provisions of the preceding paragraph for the adjustment business year prescribed in that paragraph of the domestic corporation referred to in that paragraph, where the deficit before group tax sharing incurred in the other applicable business year prescribed in that paragraph of a group tax sharing corporation with a triggering event prescribed in item (i) of that paragraph differs from the finalized amount of deficit before group tax sharing (meaning the amount stated as the deficit before group tax sharing in the most recent of the documents attached to the final return, etc. or amended return for that other applicable business year filed on or before the end of that adjustment business year, or the documents attached to the written notice of reassessment prescribed in Article 28, paragraph (2) of the Act on General Rules for National Taxes pertaining to a reassessment under the provisions of Article 24 or Article 26 of that Act made on or before that day; the same applies hereinafter in this paragraph), that finalized amount of deficit before group tax sharing is deemed to be the deficit before group tax sharing incurred in that other applicable business year.

⑧Where the provisions of Article 64-5, paragraph (8) of the Corporation Tax Act apply in the specified covered business year or special eligible business year of a group tax sharing corporation referred to in paragraph (4), the provisions of paragraph (5) do not apply to that specified covered business year or special eligible business year. In this case, the provisions of the preceding two paragraphs are not to apply to the adjustment business year prescribed in paragraph (6) of a domestic corporation referred to in that paragraph whose business year of application prescribed in that paragraph is that specified covered business year or special eligible business year.

⑨The provisions of paragraph (1) or paragraph (2) apply only where the final return, etc. for the business year for which the corporation seeks the application of those provisions contains a statement of the inclusion in deductible expenses of the amount to be included in deductible expenses pursuant to those provisions, and a written statement concerning the calculation of the amount to be included in deductible expenses is attached to that final return, etc. In this case, the amount to be included in deductible expenses pursuant to those provisions is limited to the amount to be included in deductible expenses pertaining to that statement.

⑩Even where a final return, etc. without the statement or attachment referred to in the preceding paragraph has been filed, if the district director finds that there were unavoidable circumstances for the absence of the statement or attachment, the district director may apply the provisions of paragraph (1) or paragraph (2), but only if a document containing that statement and the written statement referred to in that paragraph are submitted.

⑪With regard to the application of the provisions of Article 67, paragraphs (3) and (5) of the Corporation Tax Act, the amount included in deductible expenses pursuant to the provisions of paragraph (1) or paragraph (2) of a corporation to which those provisions have been applied is to be included in the amount of income, etc. prescribed in those provisions, and, with regard to the application of the provisions of paragraphs (3) and (5) of that Article, the amount included in gross profit pursuant to the provisions of paragraph (6) is not to be included in the amount of income, etc. prescribed in those provisions.

⑫The date of submission prescribed in paragraph (1) or the date of designation prescribed in paragraph (2) in the case where there has been a change to an area listed in the middle column of any item of the table in paragraph (1) or to the area of a district designated as the special zone for economic and financial revitalization prescribed in paragraph (2), the calculation of the amount of revenue reserves of a corporation to which those provisions or the provisions of paragraph (6) have been applied, and other necessary matters concerning the application of the provisions of paragraph (1), paragraph (2), or paragraphs (4) through (8) are specified by Cabinet Order.