Supplementary Provisions, Article 8-2-2Specified Donation Tax Credit for Corporate Prefectural Inhabitant Tax and Municipal Inhabitant Tax

①If a corporation that has obtained the approval under Article 121, paragraph (1) of the Corporation Tax Act (including as applied mutatis mutandis pursuant to Article 146, paragraph (1) of that Act; the same applies in paragraph (4)) makes a donation (excluding a donation found to confer on the donor a special benefit, such as the donor's exclusive use of facilities established by means of the donation; hereinafter in this Article referred to as a "specified donation") related to a Town, People and Work Creation Donation Utilization Project carried out by a certified local government prescribed in Article 8, paragraph (1) of the Local Revitalization Act (Act No. 24 of 2005) (hereinafter in this Article referred to as a "certified local government") (meaning the Town, People and Work Creation Donation Utilization Project prescribed in Article 5, paragraph (4), item (ii) of that Act that is stated in the certified regional revitalization plan prepared by that certified local government as prescribed in Article 8, paragraph (1) of that Act) to that certified local government during the period from the effective date of the Act Partially Amending the Local Revitalization Act (Act No. 30 of 2016; referred to in paragraph (4) as the "2016 Local Revitalization Act Amendment Act") through March 31, 2028, a sum equal to 5.7/100 of the total amount of specified donations made in the donation business year (limited to the amounts that are included in deductible expenses in calculating the amount of income for corporation tax for that donation business year) (or, for a corporation that has offices or places of business in two or more prefectures, the amount calculated by apportioning that total amount in proportion to the number of workers that serves as the basis for dividing the corporation tax amount under Article 57, paragraph (1), which is the tax base of the corporation tax levy of prefectural inhabitant tax) (hereinafter in this paragraph referred to as the "amount of deduction") is to be deducted from the corporation tax levy amount of prefectural inhabitant tax payable by filing and payment under Article 53, paragraph (1) (excluding the portion pertaining to a corporation filing an interim return without provisional accounts prescribed in that paragraph), (34) or (35) for the business year that includes the day on which that specified donation was made (excluding the business year that includes the day of dissolution (excluding dissolution by merger) and each business year in liquidation; hereinafter in this paragraph and paragraph (4) referred to as the "donation business year") (the amount calculated without applying paragraph (43) of that Article (including as applied mutatis mutandis pursuant to paragraphs (47) and (48) of that Article; the same applies hereinafter in this paragraph)). In this case, if the amount of deduction for the donation business year of that corporation exceeds a sum equal to 20/100 of the corporation tax levy amount of prefectural inhabitant tax of that corporation for that donation business year calculated without applying this paragraph or Article 53, paragraphs (36) through (38), paragraph (42) (including as applied mutatis mutandis pursuant to paragraphs (47) and (48) of that Article), paragraph (43), paragraph (49) and paragraph (50) (including where applied by deeming under paragraph (51) of that Article (including as applied mutatis mutandis pursuant to paragraph (52) of that Article) and where applied mutatis mutandis pursuant to paragraph (52) of that Article) (where the corporation tax levy amount includes the corporation tax amount pertaining to a return under Article 89 of the Corporation Tax Act (including as applied mutatis mutandis pursuant to Article 145-13 of that Act), the corporation tax levy amount of prefectural inhabitant tax calculated as if that corporation tax amount did not exist), the amount to be deducted is that sum equal to 20/100.

②The provisions of the preceding paragraph apply only where, to the return under Article 53, paragraph (1) (including, where a return under paragraph (34) or (35) of that Article that increases the amount to be deducted under the preceding paragraph or a written request for correction under Article 20-9-3, paragraph (3) is submitted, that return or written request), there are attached a document specified by Order of the Ministry of Internal Affairs and Communications stating the amount of the specified donations that are subject to deduction under the preceding paragraph, the amount to be deducted, and the particulars regarding the calculation of that amount, and a document specified by Order of the Ministry of Internal Affairs and Communications as proving that the donations stated in that document fall under specified donations. In this case, the amount of specified donations that serves as the basis for calculating the amount to be deducted under that paragraph is limited to the amount of specified donations stated in those documents attached to the return under Article 53, paragraph (1) (limited to the portion pertaining to a corporation tax return under Article 71, paragraph (1) of the Corporation Tax Act (limited to one stating the matters set forth in the items of Article 72, paragraph (1) of that Act), a corporation tax return under Article 74, paragraph (1) of that Act, a corporation tax return under Article 144-3, paragraph (1) of that Act (limited to one stating the matters set forth in the items of Article 144-4, paragraph (1) of that Act), or a corporation tax return under Article 144-6, paragraph (1) of that Act).

③With regard to the application of Article 53, paragraph (53) in a case where paragraph (1) applies, in Article 53, paragraph (53), the phrase "the same applies hereinafter in this paragraph)" is deemed to be replaced with "the same applies hereinafter in this paragraph) and Article 8-2-2, paragraph (1) of the Supplementary Provisions", the phrase "paragraphs (36) and (37)" is deemed to be replaced with "that paragraph", and the phrase "next" is deemed to be replaced with "next the deduction under paragraphs (36) and (37),".

④If a corporation that has obtained the approval under Article 121, paragraph (1) of the Corporation Tax Act makes a specified donation to a certified local government during the period from the effective date of the 2016 Local Revitalization Act Amendment Act through March 31, 2028, a sum equal to 34.3/100 of the total amount of specified donations made in the donation business year (limited to the amounts that are included in deductible expenses in calculating the amount of income for corporation tax for that donation business year) (or, for a corporation that has offices or places of business in two or more municipalities, the amount calculated by apportioning that total amount in proportion to the number of workers that serves as the basis for dividing the corporation tax amount under Article 321-13, paragraph (1), which is the tax base of the corporation tax levy of municipal inhabitant tax) (hereinafter in this paragraph referred to as the "amount of deduction") is to be deducted from the corporation tax levy amount of municipal inhabitant tax payable by filing and payment under Article 321-8, paragraph (1) (excluding the portion pertaining to a corporation filing an interim return without provisional accounts prescribed in that paragraph), (34) or (35) for the donation business year (the amount calculated without applying paragraph (43) of that Article (including as applied mutatis mutandis pursuant to paragraphs (47) and (48) of that Article; the same applies hereinafter in this paragraph)). In this case, if the amount of deduction for the donation business year of that corporation exceeds a sum equal to 20/100 of the corporation tax levy amount of municipal inhabitant tax of that corporation for that donation business year calculated without applying this paragraph or Article 321-8, paragraphs (36) through (38), paragraph (42) (including as applied mutatis mutandis pursuant to paragraphs (47) and (48) of that Article), paragraph (43), paragraph (49) and paragraph (50) (including where applied by deeming under paragraph (51) of that Article (including as applied mutatis mutandis pursuant to paragraph (52) of that Article) and where applied mutatis mutandis pursuant to paragraph (52) of that Article) (where the corporation tax levy amount includes the corporation tax amount pertaining to a return under Article 89 of the Corporation Tax Act (including as applied mutatis mutandis pursuant to Article 145-13 of that Act), the corporation tax levy amount of municipal inhabitant tax calculated as if that corporation tax amount did not exist), the amount to be deducted is that sum equal to 20/100.

⑤The provisions of the preceding paragraph apply only where, to the return under Article 321-8, paragraph (1) (including, where a return under paragraph (34) or (35) of that Article that increases the amount to be deducted under the preceding paragraph or a written request for correction under Article 20-9-3, paragraph (3) is submitted, that return or written request), there are attached a document specified by Order of the Ministry of Internal Affairs and Communications stating the amount of the specified donations that are subject to deduction under the preceding paragraph, the amount to be deducted, and the particulars regarding the calculation of that amount, and a document specified by Order of the Ministry of Internal Affairs and Communications as proving that the donations stated in that document fall under specified donations. In this case, the amount of specified donations that serves as the basis for calculating the amount to be deducted under that paragraph is limited to the amount of specified donations stated in those documents attached to the return under Article 321-8, paragraph (1) (limited to the portion pertaining to a corporation tax return under Article 71, paragraph (1) of the Corporation Tax Act (limited to one stating the matters set forth in the items of Article 72, paragraph (1) of that Act), a corporation tax return under Article 74, paragraph (1) of that Act, a corporation tax return under Article 144-3, paragraph (1) of that Act (limited to one stating the matters set forth in the items of Article 144-4, paragraph (1) of that Act), or a corporation tax return under Article 144-6, paragraph (1) of that Act).

⑥With regard to the application of Article 321-8, paragraph (53) in a case where paragraph (4) applies, in Article 321-8, paragraph (53), the phrase "the same applies hereinafter in this paragraph)" is deemed to be replaced with "the same applies hereinafter in this paragraph) and Article 8-2-2, paragraph (4) of the Supplementary Provisions", the phrase "paragraphs (36) and (37)" is deemed to be replaced with "that paragraph", and the phrase "next" is deemed to be replaced with "next the deduction under paragraphs (36) and (37),".

⑦In a case under Article 734, paragraph (2), with regard to the application of paragraph (3) of that Article when a corporation that has an office or place of business within the area in which the special wards exist makes a specified donation to a certified local government, in that paragraph, the phrase ")" is deemed to be replaced with ") and Article 8-2-2, paragraphs (4) through (6) of the Supplementary Provisions", and in the table in that paragraph, the phrase "the total of the total amounts of those specified by Cabinet Order of the limits of deduction under Article 321-8, paragraph (38) and Article 53, paragraph (38)" is deemed to be replaced with "the total of the total amounts of those specified by Cabinet Order of the limits of deduction under Article 321-8, paragraph (38) and Article 53, paragraph (38) Article 8-2-2, paragraph (4) of the Supplementary Provisions municipal inhabitant tax Tokyo inhabitant tax two or more municipalities special ward area and area other than special ward area 34.3/100 40/100".

⑧Beyond what is provided for in the preceding paragraphs, necessary matters concerning the application of those provisions are specified by Cabinet Order.