①With regard to gift tax on a person who has acquired property by gift on or after January 1, 2001, notwithstanding the provisions of Article 21-5 of the Inheritance Tax Act, 1,100,000 yen is deducted from the taxable value. In this case, with regard to the application of the provisions of Article 21-11 of that Act, the phrase "through Article 21-7" in that Article is deemed to be replaced with "through Article 21-7 and Article 70-2-4 of the Act on Special Measures Concerning Taxation (Special Provisions on Basic Exemption for Gift Tax)".

②The amount deducted pursuant to the provisions of the preceding paragraph is deemed to have been deducted pursuant to the provisions of Article 21-5 of the Inheritance Tax Act with regard to the application of the provisions of the Inheritance Tax Act and other laws and regulations concerning gift tax.

②In the case where a person who is 18 years of age or older as of January 1 of a year has acquired property by gift and, during that year, becomes a lineal descendant of the person who made that gift, the provisions of the preceding paragraph are not to apply to property acquired by gift from the person who made that gift before the time of becoming a lineal descendant.

③The amount of gift tax in the case where a person who has acquired by gift property to which the provisions of paragraph (1) apply (referred to as "special gifted property" in item (i)) acquires by gift, during that year, property to which the provisions of that paragraph do not apply (referred to as "general gift property" in item (ii)) is, notwithstanding the provisions of that paragraph and Article 21-7 of the Inheritance Tax Act, the sum of the following amounts:

④A person who receives the application of the provisions of paragraph (1) or the preceding paragraph must state, in the return under the provisions of Article 28 of the Inheritance Tax Act (including a tax return form filed after the due date pertaining to that return and an amended return form pertaining to those returns) or in the written request for reassessment prescribed in Article 23, paragraph (3) of the Act on General Rules for National Taxes, that the person receives the application of the provisions of paragraph (1) or the preceding paragraph, and attach a written statement of the calculation under those provisions and other documents specified by Order of the Ministry of Finance. In this case, the phrase "Article 21-8" in Article 28, paragraph (1) and paragraph (2), item (i) of the Inheritance Tax Act is deemed to be replaced with "Article 21-8 and Article 70-2-5 of the Act on Special Measures Concerning Taxation (Special Provisions on Gift Tax Rates Where a Gift Is Received from a Lineal Ascendant)".

⑤With regard to property acquired by a person electing settlement taxation at inheritance prescribed in Article 21-9, paragraph (5) of the Inheritance Tax Act by a gift from the specified donor prescribed in that paragraph, the phrase "through Article 21-7" in Article 21-11 of that Act is deemed to be replaced with "through Article 21-7 and Article 70-2-5 of the Act on Special Measures Concerning Taxation (Special Provisions on Gift Tax Rates Where a Gift Is Received from a Lineal Ascendant)".

⑥Beyond what is provided for in paragraph (2) and the preceding two paragraphs, necessary matters concerning the application of the provisions of paragraph (1) or paragraph (3) are specified by Cabinet Order.

①In the case where a person who has acquired property by gift on or after January 1, 2015 is a grandchild of the person who made that gift (limited to a person who is 18 years of age or older as of January 1 of that year), and the person who made that gift is 60 years of age or older as of January 1 of that year, the provisions of Article 21-9 of the Inheritance Tax Act apply mutatis mutandis to the person who has acquired property by that gift.

②In the case where a person who is 18 years of age or older as of January 1 of a year has acquired property by gift from a person who is 60 years of age or older as of that day, and the person who has acquired property by that gift becomes a grandchild of the person who made that gift during that year, the provisions of the preceding paragraph are not to apply to property acquired by gift from the person who made that gift before the time of becoming a grandchild.

③Even in the case where a person who has submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to paragraph (1) ceases to be a grandchild of the person who made the gift referred to in paragraph (1) pertaining to that written notification, the provisions of paragraph (3) of that Article as applied mutatis mutandis pursuant to that paragraph are to apply to property acquired by gift from the person who made that gift.

④The provisions of the Inheritance Tax Act and other laws and regulations concerning inheritance tax or gift tax apply by deeming a person who has submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to paragraph (1) to be a person electing settlement taxation at inheritance prescribed in paragraph (5) of that Article who has acquired property to which the provisions of paragraph (3) of that Article apply, and the person who made the gift referred to in paragraph (1) to be the specified donor prescribed in paragraph (5) of that Article who has made a gift of property to which the provisions of paragraph (3) of that Article apply, respectively.

⑤Beyond what is provided for in the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

①In the case where a special business donee (meaning a special business donee prescribed in Article 70-6-8, paragraph (2), item (ii); the same applies hereinafter in this Article) who receives the application of the provisions of paragraph (1) of that Article and who has acquired by gift special gifted business assets (meaning special gifted business assets prescribed in paragraph (1) of that Article; the same applies hereinafter in this paragraph and the following paragraph) to which the provisions of Article 70-6-8, paragraph (1) apply is a person other than a presumptive heir who is a lineal descendant of the donor (meaning the donor prescribed in Article 70-6-8, paragraph (1) who made that gift; the same applies hereinafter in this Article) (excluding a grandchild of that donor, and limited to a person who is 18 years of age or older as of January 1 of that year), and that donor is 60 years of age or older as of that day, the provisions of Article 21-9 of the Inheritance Tax Act apply mutatis mutandis to the special business donee who has acquired those special gifted business assets by that gift.

②In the case where a special business donee has acquired special gifted business assets by gift from a donor (limited to a person who is 60 years of age or older as of January 1 of that year), the provisions of the preceding paragraph are not to apply to property acquired by gift from that donor before the time of the acquisition of those special gifted business assets.

③Even in the case where, for a special business donee who has submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to paragraph (1), the deadline for the tax payment grace period has become fixed with regard to the whole of the gift tax equivalent to the amount of gift tax under a grace period prescribed in Article 70-6-8, paragraph (4), or the whole of that gift tax has been exempted, the provisions of Article 21-9, paragraph (3) of that Act as applied mutatis mutandis pursuant to paragraph (1) are to apply to property acquired by gift from the donor.

④The provisions of the Inheritance Tax Act and other laws and regulations concerning inheritance tax or gift tax apply by deeming a special business donee who has submitted the written notification referred to in Article 21-9, paragraph (2) of the Inheritance Tax Act as applied mutatis mutandis pursuant to paragraph (1) to be a person electing settlement taxation at inheritance prescribed in paragraph (5) of that Article who has acquired property to which the provisions of paragraph (3) of that Article apply, and the donor to be the specified donor prescribed in paragraph (5) of that Article who has made a gift of property to which the provisions of paragraph (3) of that Article apply, respectively.

⑤Beyond what is provided for in the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

The provisions of the preceding Article apply mutatis mutandis to the case where a special business successor donee prescribed in Article 70-7-5, paragraph (2), item (vi) who receives the application of the provisions of paragraph (1) of that Article and who has acquired by gift special eligible gifted unlisted shares or similar interests prescribed in paragraph (1) of that Article is a person other than a presumptive heir who is a lineal descendant of the special donor (meaning the special donor prescribed in paragraph (1) of that Article who made that gift; the same applies hereinafter in this Article) (excluding a grandchild of that special donor, and limited to a person who is 18 years of age or older as of January 1 of that year), and that special donor is 60 years of age or older as of that day.