Article 39Procedures for Deferment of Payment

①A person who intends to apply for permission to defer payment under paragraph (1) of the preceding Article must attach, to a written application stating the amount that it is difficult to pay in money by the due date for payment of the inheritance tax for which deferment is sought or on the day on which payment is due, the reasons for that difficulty, the amount of tax and the period for which deferment is sought, the installment payments and their due dates, and other matters specified by Ministry of Finance Order, documents relating to the provision of security specified by Ministry of Finance Order (referred to as "documents for provision of security" in this Article and Article 47, paragraph (2)), and must submit them to the competent district director with jurisdiction over the place for tax payment by that due date or on that day.

②Where a written application under the preceding paragraph is submitted, the district director is to investigate whether the applicant and the matters relating to the application fall under paragraphs (1) and (2) of the preceding Article, and, based on that investigation, within three months counting from the day following the deadline for filing that written application, either grant permission to defer payment for all or part of the amount of tax relating to the application under the conditions relating to the application or conditions modified from them, or dismiss the application; provided, however, that where the district director grants permission to defer payment and finds that the security the applicant intends to provide is not appropriate, the district director may request a change to it.

③Where the district director has granted permission or dismissed an application pursuant to the preceding paragraph, the district director is to notify the applicant of this by a document stating the amount subject to deferment and the conditions of deferment relating to the permission, or the fact of the dismissal and the reasons for it.

④Where the district director requests a change of security pursuant to the proviso to paragraph (2), the district director is to notify the applicant of this by a document stating that fact and the reasons for it.

⑤Where the district director has requested a change of security pursuant to the proviso to paragraph (2), if the applicant has not, within 20 days counting from the day following the day on which the applicant received the notice under the preceding paragraph, submitted the documents for provision of security relating to the change to the competent district director with jurisdiction over the place for tax payment, the district director may dismiss the application pursuant to paragraph (2).

⑥A person who intends to apply for permission to defer payment under paragraph (1) of the preceding Article may, where the person cannot submit, by the deadline for filing the written application referred to in paragraph (1), all or part of the documents for provision of security attached to that written application, as provided by Cabinet Order, submit to the competent district director with jurisdiction over the place for tax payment a written notification stating that fact, the day on which the person is to submit those documents for provision of security and other matters specified by Ministry of Finance Order (referred to as "written notification of extension of the deadline for submitting documents for provision of security" in the following paragraph and paragraph (27)). In this case, where the day on which the person is to submit them is not stated, the day on which three months have passed counting from the day following that deadline for filing is deemed to be stated.

⑦Where the applicant has submitted a written notification of extension of the deadline for submitting documents for provision of security pursuant to the preceding paragraph, the deadline for filing the documents for provision of security (limited to those relating to that written notification; the same applies in the following paragraph) is the day, stated in that written notification, on which those documents for provision of security are to be submitted (where that day is after the day on which three months have passed counting from the day following the deadline for filing in the preceding paragraph, the day on which those three months have passed).

⑧With regard to the application of paragraph (6) where a person to whom the preceding two paragraphs (including the case where they apply with terms replaced pursuant to this paragraph) have applied cannot submit the documents for provision of security by the day on which they are to be submitted as prescribed in the preceding paragraph, the phrase "where the person cannot submit, by the deadline for filing the written application referred to in paragraph (1), all or part of the documents for provision of security attached to that written application" in paragraph (6) is deemed to be replaced with "where the person cannot submit the documents for provision of security referred to in the following paragraph by the day on which they are to be submitted as prescribed in that paragraph"; provided, however, that the deadline for filing those documents for provision of security cannot be after the day on which six months have passed counting from the day following the deadline for filing the written application referred to in paragraph (1).

⑨With regard to the application of paragraph (2) in the case where the preceding three paragraphs apply, the phrase "that written application" in paragraph (2) is deemed to be replaced with "documents for provision of security (limited to those relating to the written notification of extension of the deadline for submitting documents for provision of security referred to in paragraph (6))".

⑩Where a written application under paragraph (1) has been submitted, if there are grounds specified by Cabinet Order, such as a deficiency in the statements in that written application, or a deficiency in the statements in the documents for provision of security or their non-submission, the district director may request the applicant to correct that written application or to correct or submit those documents for provision of security.

⑪Where the district director requests the correction of a written application or the correction or submission of documents for provision of security pursuant to the preceding paragraph, the district director is to notify the applicant of this by a document stating that fact and the reasons for it.

⑫An applicant who has been requested under paragraph (10) to correct the written application or to correct or submit the documents for provision of security must correct that written application or correct or submit those documents for provision of security within 20 days counting from the day following the day on which the applicant received the notice under the preceding paragraph. In this case, if the applicant has not corrected that written application or corrected or submitted those documents for provision of security within that period, the applicant is deemed to have withdrawn the application to defer payment on the day on which that period has passed.

⑬An applicant who has been requested under paragraph (10) to correct or submit documents for provision of security may, where the applicant cannot correct or submit those documents for provision of security by the day before the day on which the period has passed as referred to in the preceding paragraph, as provided by Cabinet Order, submit to the competent district director with jurisdiction over the place for tax payment a written notification stating that fact, the day on which the applicant is to correct or submit those documents for provision of security and other matters specified by Ministry of Finance Order (referred to as "written notification of extension of the deadline for completing documents for provision of security" in the following paragraph). In this case, where the day on which the applicant is to make the correction or submission is not stated, the day on which three months have passed counting from the day on which that period has passed is deemed to be stated.

⑭Where the applicant has submitted a written notification of extension of the deadline for completing documents for provision of security pursuant to the preceding paragraph, the deadline for correcting or submitting the documents for provision of security (limited to those relating to that written notification; the same applies in the following paragraph) is the day, stated in that written notification, on which those documents for provision of security are to be corrected or submitted (where that day is after the day on which three months have passed counting from the day on which the period has passed as referred to in the preceding paragraph, the day on which those three months have passed).

⑮With regard to the application of paragraph (13) where a person to whom the preceding two paragraphs (including the case where they apply with terms replaced pursuant to this paragraph) have applied cannot correct or submit the documents for provision of security by the day on which they are to be corrected or submitted as prescribed in the preceding paragraph, the phrase "the day before the day on which the period has passed as referred to in the preceding paragraph" in paragraph (13) is deemed to be replaced with "the day on which they are to be corrected or submitted as prescribed in the following paragraph"; provided, however, that the deadline for correcting or submitting those documents for provision of security cannot be after the day on which six months have passed counting from the day following the day on which the person received the notice under paragraph (11).

⑯With regard to the application of paragraph (2) in the case where paragraph (10) or the preceding three paragraphs apply, the phrase "within three months" in paragraph (2) is deemed to be replaced with "within the period obtained by adding to three months the period from the day following the day on which the applicant received the notice under paragraph (11) until the deadline for correcting the written application (limited to that relating to paragraph (10)) or the deadline for correcting or submitting the documents for provision of security (limited to those relating to paragraph (10)) or the documents for provision of security (limited to those relating to the written notification of extension of the deadline for completing documents for provision of security referred to in paragraph (13)) (referred to as the "deadline for submitting the application, etc." in this paragraph) (where there are multiple notices under paragraph (11), the period obtained by totaling the periods from the day following the day on which each notice was received until the deadline for submitting the application, etc. relating to each notice (where any of those periods overlap, the period excluding the period obtained by totaling the overlapping periods))".

⑰With regard to the application of the main clause of paragraph (2) in the case where a change of security has been requested pursuant to the proviso to paragraph (2), the phrase "the deadline for filing that written application" in the main clause of paragraph (2) is deemed to be replaced with "the deadline prescribed in paragraph (5)".

⑱A person who has been requested to change security pursuant to the proviso to paragraph (2) may, where the person cannot submit all or part of the documents for provision of security by the deadline prescribed in paragraph (5), as provided by Cabinet Order, submit to the competent district director with jurisdiction over the place for tax payment a written notification stating that fact, the day on which the person is to submit those documents for provision of security and other matters specified by Ministry of Finance Order (referred to as "written notification of extension of the deadline for submitting documents for provision of changed security" in the following paragraph and paragraph (27)). In this case, where the day on which the person is to submit them is not stated, the day on which three months have passed counting from the day following that deadline is deemed to be stated.

⑲Where the applicant has submitted a written notification of extension of the deadline for submitting documents for provision of changed security pursuant to the preceding paragraph, the deadline for filing the documents for provision of security (limited to those relating to that written notification; the same applies in the following paragraph) is the day, stated in that written notification, on which those documents for provision of security are to be submitted (where that day is after the day on which three months have passed counting from the day following the deadline in the preceding paragraph, the day on which those three months have passed).

⑳With regard to the application of paragraph (18) where a person to whom the preceding two paragraphs (including the case where they apply with terms replaced pursuant to this paragraph) have applied cannot submit the documents for provision of security by the day on which they are to be submitted as prescribed in the preceding paragraph, the phrase "the deadline prescribed in paragraph (5)" in paragraph (18) is deemed to be replaced with "the day on which they are to be submitted as prescribed in the following paragraph"; provided, however, that the deadline for filing those documents for provision of security cannot be after the day on which six months have passed counting from the day following the day on which the person received the notice under paragraph (4).

（二十二）With regard to the application of this Article to a person who is unable to carry out by the deadline the procedures relating to an application for permission to defer payment in the cases listed in the following items, the provisions of each of those items apply according to the category of cases listed in that item.

（二十三）In the case where, under paragraph (2), the district director conducts the investigation referred to in paragraph (2) and finds that the investigation requires a period exceeding three months, with regard to the application of paragraph (2), the phrase "three months" in paragraph (2) is deemed to be replaced with "six months".

（二十四）In the case where a district director conducts the investigation referred to in paragraph (2) pursuant to that paragraph, with regard to the application of paragraph (2) when a disaster or other unavoidable reason prescribed in Article 11 of the Act on General Rules for National Taxes has arisen, or when an unavoidable reason specified by Cabinet Order prescribed in paragraph (22), item (ii) has arisen, the phrase "within three months" in that paragraph is deemed to be replaced with "within the period obtained by adding to three months (six months, if paragraph (23) applies) the period of extension for a disaster or other unavoidable reason prescribed in the proviso to paragraph (8) as applied with the replacement of terms pursuant to paragraph (22), item (i), or the period specified by Cabinet Order prescribed in paragraph (22), item (ii)".

（二十五）In the case where paragraph (22) applies, when applying paragraph (2) as read with the replacement of terms pursuant to paragraph (9), (17) or (21), the provisions of the preceding paragraph do not apply.

（二十六）In the case where paragraph (23) or (24) applies, the district director notifies the applicant of that fact by a document stating that fact.

（二十七）In the case where correction or submission of documents for provision of security has been requested pursuant to paragraph (10), if a written notification of extension of the deadline for submitting documents for provision of security or a written notification of extension of the deadline for submitting documents for provision of changed security has been submitted with regard to the deferment of payment relating to those documents for provision of security, with regard to the application of paragraph (14) and the proviso to paragraph (15), the phrase "if that day is after the day on which three months have passed from the day that has passed referred to in the preceding paragraph, the day on which they have passed" in paragraph (14) is deemed to be replaced with "if that day is after the deadline under the written notification of extension of the deadline for submitting documents for provision of security referred to in paragraph (6) or the written notification of extension of the deadline for submitting documents for provision of changed security referred to in paragraph (18) with regard to the deferment of payment relating to the documents for provision of security for which that correction or submission is requested, that deadline", and the phrase "the day on which six months have passed from the day following the day on which notice was received pursuant to paragraph (11)" in the proviso to paragraph (15) with "the deadline under the written notification of extension of the deadline for submitting documents for provision of security referred to in paragraph (6) or the written notification of extension of the deadline for submitting documents for provision of changed security referred to in paragraph (18) with regard to the deferment of payment relating to the documents for provision of security for which that correction or submission is requested".

（二十八）If the district director does not grant permission to defer payment or reject the application to defer payment within the period prescribed in the main clause of paragraph (2) (where paragraph (9), (16), (17), (21), (23) or (24) applies, within the period prescribed in the main clause of paragraph (2) as applied with the replacement of terms pursuant to those provisions), permission to defer payment is deemed to have been granted under the conditions relating to that application.

（二十九）The provisions of the preceding paragraphs apply mutatis mutandis where a person liable for tax referred to in paragraph (3) of the preceding Article applies for permission to defer payment pursuant to that paragraph and where the district director grants or rejects permission relating to deferment of payment under that paragraph. In this case, the phrase "inheritance tax" in paragraph (1) is deemed to be replaced with "gift tax", and the phrase "paragraphs (1) and (2) of the preceding Article" in paragraph (2) with "paragraph (3) of the preceding Article".

（三十）A person who has received permission to defer payment may, where the person wishes to request a change to the conditions of deferment due to a subsequent change in financial circumstances or otherwise, submit to the district director who granted that permission a written application stating the conditions for which the change is requested and other matters specified by Ministry of Finance Order.

（三十一）The provisions of paragraphs (2) and (3) apply mutatis mutandis where a person who has received permission to defer payment pursuant to the preceding paragraph submits the written application referred to in that paragraph. In this case, the phrase "deadline for filing" in paragraph (2) is deemed to be replaced with "day of submitting", and the phrase "three months" with "one month".

（三十二）If the district director finds that it is not appropriate to permit deferment of payment under the conditions relating to the permission, due to a subsequent change in the financial circumstances of a person who has received permission to defer payment or otherwise, the district director may, after hearing that person's explanation, rescind that permission or shorten the deferment period or otherwise change the conditions of deferment.

（三十三）If the district director has rescinded permission to defer payment or changed the conditions of deferment pursuant to the preceding paragraph, the district director notifies the person liable for tax of that fact and the reasons by a document stating them.