①Where an individual transfers land, etc. or buildings, etc. that the individual owns and whose holding period prescribed in Article 31, paragraph (2) is five years or less as of January 1 of the year of the transfer (including land, etc. or buildings, etc. acquired during that year that are specified by Cabinet Order), with regard to the capital gains from that transfer, notwithstanding the provisions of Article 22, Article 89, and Article 165 of the Income Tax Act, income tax is imposed, separately from other income, on the amount of capital gains pertaining to the transfer during that year (meaning the amount calculated without deducting the special capital gain deduction prescribed in Article 33, paragraph (3) of that Act, and, where there is an amount of losses arising in the calculation of the amount of long-term capital gains prescribed in Article 31, paragraph (1), notwithstanding the provisions of the second sentence of that paragraph, the amount after deducting the amount of losses up to the calculated amount; hereinafter referred to as the "amount of short-term capital gains" in this paragraph), in an amount equivalent to 30 percent of the taxable short-term capital gains (meaning the amount of short-term capital gains (where the provisions of Articles 72 through 87 of that Act as applied with the deemed replacement of terms pursuant to the provisions of Article 31, paragraph (3), item (iii) as applied mutatis mutandis pursuant to paragraph (4) apply, the amount after that application)). In this case, where there is an amount of losses arising in the calculation of the amount of short-term capital gains, with regard to the application of the provisions of that Act and other laws and regulations concerning income tax, the amount of losses is deemed not to have arisen.

②The provisions of the preceding paragraph apply mutatis mutandis where an individual makes a transfer of shares or capital contributions issued by a corporation whose assets consist mainly of land, etc. (excluding those shares or capital contributions that fall under the following capital contributions, investment units or beneficial rights; hereinafter referred to as "shares, etc." in this paragraph), which is specified by Cabinet Order as being similar to a transfer of land, etc. whose holding period prescribed in the preceding paragraph is five years or less as of January 1 of the year of the transfer, if the income from the transfer falls under income from a transfer of shares, etc. specified by Cabinet Order as being similar to a transfer of a business or of assets used for the business:

③With regard to the application of the provisions of paragraph (1) to a transfer that has been certified, pursuant to the provisions of Order of the Ministry of Finance, as falling under a transfer of land, etc. listed in Article 28-4, paragraph (3), items (i) through (iii), the phrase "30 percent" in that paragraph is deemed to be replaced with "15 percent".

④The provisions of Article 31, paragraph (3) apply mutatis mutandis where the provisions of paragraph (1) or paragraph (2) apply. In this case, in paragraph (3), item (i) of that Article, the phrase "Article 31, paragraph (1) (Special Provisions on Taxation on Long-Term Capital Gains) (including where it is applied pursuant to the provisions of Article 31-2 (Special Provisions on Taxation on Long-Term Capital Gains in the Case of Transfer of Land, etc. for Development, etc. of Superior Residential Areas) or Article 31-3 (Special Provisions on Taxation on Long-Term Capital Gains in the Case of Transfer of Residential Property) of that Act; the same applies hereinafter)" is deemed to be replaced with "Article 32, paragraph (1) or paragraph (2) (Special Provisions on Taxation on Short-Term Capital Gains)", and the phrase "amount of long-term capital gains" is deemed to be replaced with "amount of short-term capital gains"; in item (ii) of that paragraph, the phrase "capital gains from the transfer prescribed in Article 31, paragraph (1) (Special Provisions on Taxation on Long-Term Capital Gains)" is deemed to be replaced with "capital gains from the transfer prescribed in Article 32, paragraph (1) (Special Provisions on Taxation on Short-Term Capital Gains) or income from the transfer prescribed in paragraph (2) of that Article", and the phrase "amount of long-term capital gains" is deemed to be replaced with "amount of short-term capital gains"; in item (iii) of that paragraph, the phrase "amount of long-term capital gains" is deemed to be replaced with "amount of short-term capital gains"; and in item (iv) of that paragraph, the phrase "Article 31, paragraph (1)" is deemed to be replaced with "Article 32, paragraph (1) or paragraph (2)", the phrase "Special Provisions on Taxation on Long-Term Capital Gains" is deemed to be replaced with "Special Provisions on Taxation on Short-Term Capital Gains", and the phrase "taxable long-term capital gains" is deemed to be replaced with "taxable short-term capital gains".