Article 3Useful Life, etc. of Used Assets

①The useful life of an asset listed in the items of Article 6 (Scope of Depreciable Assets) of the Order for Enforcement of the Income Tax Act or the items of Article 13 (Scope of Depreciable Assets) of the Order for the Enforcement of the Corporation Tax Act that has been used by an individual or put to use in the business of a corporation (excluding extraction rights, etc. among these assets; the same applies hereinafter in this paragraph), in the case where it has been acquired (including succession through a qualified merger prescribed in Article 2, item (xii)-8 (Definitions) of the Corporation Tax Act or a qualified company split by split-off prescribed in item (xii)-12 of that Article (hereinafter in this paragraph referred to as a "qualified company split by split-off") from an acquired corporation prescribed in item (xi) of that Article or a splitting corporation prescribed in item (xii)-2 of that Article (hereinafter in this paragraph referred to as "succession through a qualified merger, etc.")) and put to use in the business of an individual or the business of a corporation, may, notwithstanding the provisions of the preceding two Articles, be the number of years listed below. However, where the amount prescribed in Article 181 (Capital Expenditures) of the Order for Enforcement of the Income Tax Act or Article 132 (Capital Expenditures) of the Order for the Enforcement of the Corporation Tax Act that was expended for that asset in order to put it to use in the business of an individual or the business of a corporation exceeds an amount equivalent to 50/100 of the acquisition cost of that asset (in the case of succession through a qualified merger, etc., the book value at the time prescribed in Article 62-2, paragraph (1) (Succession of Assets, etc. at Book Value upon a Qualified Merger or Qualified Company Split by Split-Off) of that Act or immediately before the qualified company split by split-off), this does not apply to the number of years listed in item (ii).

②In the case where a corporation has received a transfer of an asset prescribed in the main clause of the preceding paragraph, through a qualified merger, qualified company split, qualified capital contribution in kind or qualified in-kind distribution prescribed in Article 2, items (xii)-8, (xii)-11, (xii)-14 or (xii)-15 of the Corporation Tax Act (referred to as a "qualified reorganization" in the following paragraph), from an acquired corporation, splitting corporation, corporation making a capital contribution in kind or corporation making a distribution in kind prescribed in items (xi), (xii)-2, (xii)-4 or (xii)-5-2 of that Article (hereinafter in this paragraph and the following paragraph referred to as an "acquired corporation, etc.") (excluding the case where that corporation is subject to the application of the provisions of the preceding paragraph with respect to that asset), if that acquired corporation, etc. had been subject to the application of the provisions of the preceding paragraph or paragraph (4) with respect to that asset, the useful life of that asset for that corporation may, notwithstanding the preceding two Articles, be the number of years that was the useful life of that asset for that acquired corporation, etc.

③In the case where a corporation has received a transfer of an asset prescribed in the main clause of paragraph (1) from an acquired corporation, etc. through a qualified reorganization, and is subject to the application of the provisions of that paragraph with respect to that asset, the acquisition cost prescribed in Article 48, paragraph (1), item (i), (a)(1) or item (iii), (c), or Article 48-2, paragraph (1), item (i), (a)(1) or item (iii), (a)(2), or paragraph (5), item (i) (Depreciation Methods for Depreciable Assets) of the Order for the Enforcement of the Corporation Tax Act is not to include the amount of depreciation made by that acquired corporation, etc. (where the book value of that asset was reduced as a result of the revaluation, etc. prescribed in Article 48, paragraph (5), item (iii) of that Order being made with respect to that asset, including the amount by which that book value was reduced) that was included in deductible expenses in calculating the amount of income for each business year of that acquired corporation, etc. (where that asset is a depreciable asset listed in the items of Article 48-3, paragraph (2) (Depreciation Methods for Depreciable Assets in the Case of a Qualified Company Split by Spin-Off, etc.) of that Order and there is an amount of depreciation specified in those items with respect to that asset, including the amount equivalent to that amount of depreciation).

④The useful life of cattle, horses, sheep and goats that have been converted from one use listed in the "Details" column of Appended Table 4 (Table of Useful Lives of Living Things) to another use listed in that column is, notwithstanding Article 1, paragraph (1), item (iv) and paragraphs (1) and (2) of this Article, the number of years of the period of possible use on or after the time of that conversion.

⑤The number of years listed in the items of paragraph (1) and the number of years under the preceding paragraph are calculated according to the calendar, and if a fraction of less than one year arises, it is rounded down.