①Where a corporation that files a blue return and that falls under a ship operator, etc. prescribed in Article 34, paragraph (2), item (iii) of the Marine Transportation Act (limited to one that engages in international shipping business (meaning the international shipping business prescribed in Article 35, paragraph (3), item (v) of that Act) using Japanese ships (meaning the Japanese ships prescribed in Article 37-2 of that Act; the same applies hereinafter in this paragraph)) which, during the period from the date of enforcement of the Act Partially Amending the Marine Transportation Act and the Mariners Act (Act No. 53 of 2008) to March 31, 2025, has received the certification under Article 35, paragraph (3) or paragraph (4) of the Marine Transportation Act (for the certification under paragraph (4) of that Article, limited to a certification by which the plan has come to conform to that standard) for a plan for securing Japanese ships and seafarers prescribed in paragraph (1) of that Article (hereinafter referred to in this paragraph as a "plan for securing Japanese ships and seafarers") as conforming to the standard listed in paragraph (3), item (v) of that Article (including as applied mutatis mutandis pursuant to paragraph (5) of that Article), is, at the end of each business year that includes a day within the plan period (meaning the plan period listed in Article 35, paragraph (2), item (iii) of that Act; the same applies in paragraph (4)) stated in the plan for securing Japanese ships and seafarers that has received the certification under Article 35, paragraph (3) of that Act (where a certification of a change under paragraph (4) of that Article has been made, the plan as changed; hereinafter referred to in this Article as a "certified plan"), implementing the securing of Japanese ships and seafarers prescribed in Article 34, paragraph (1) of that Act in accordance with that certified plan, if the amount listed in item (i) for that business year exceeds the amount listed in item (ii), the amount of the excess is included in deductible expenses in calculating the amount of income for that business year, and if the amount listed in item (i) for that business year is less than the amount listed in item (ii), the amount of the shortfall is included in gross profit in calculating the amount of income for that business year.

②The provisions of the preceding paragraph apply only where the corporation prescribed in that paragraph has submitted, by the day before the first day of the first business year for which it seeks the application of those provisions, a written notification stating the matters specified by Order of the Ministry of Finance, with a copy of the plan for securing Japanese ships and seafarers prescribed in that paragraph and other documents specified by Order of the Ministry of Finance attached, to the district director having jurisdiction over the place for tax payment.

③A corporation to which the provisions of paragraph (1) apply must attach to the final return, etc. for each business year for which those provisions apply a written statement concerning the calculation of the amount to be included in deductible expenses or gross profit pursuant to the provisions of that paragraph.

④Where a corporation to which the provisions of paragraph (1) have been applied in each business year that includes a day within the plan period stated in the certified plan (hereinafter referred to in this paragraph as an "eligible year") has had that certification revoked pursuant to the provisions of Article 37-4, paragraph (2) of the Marine Transportation Act, the total of the amounts included in deductible expenses pursuant to the provisions of paragraph (1) in those eligible years is included in gross profit in calculating the amount of income for the business year that includes the day on which that certification was revoked.

⑤With regard to the application of the provisions of Article 67, paragraph (3) and paragraph (5) of the Corporation Tax Act, any amount included, pursuant to the provisions of paragraph (1), in the amount of deductible expenses of a corporation subject to the provisions of that paragraph is to be included in the amount of income, etc. prescribed in these provisions, and, with regard to the application of the provisions of paragraph (3) and paragraph (5) of that Article, any amount included in gross profit pursuant to the provisions of paragraph (1) or the preceding paragraph is not to be included in the amount of income, etc. prescribed in these provisions.

⑥With regard to the ocean-going ships (meaning ships that travel between Japan and a foreign state or between foreign states; the same applies hereinafter in this paragraph) held by a corporation to which the provisions of paragraph (1) apply that fall under Japanese ships (meaning Japanese ships prescribed in Article 1 of the Ship Act; the same applies hereinafter in this paragraph), and the ocean-going ships held by a corporation that falls under a subsidiary company (meaning a subsidiary company prescribed in Article 38, paragraph (1) of the Marine Transportation Act) of that corporation that do not fall under Japanese ships, the provisions of Article 43, Article 57-8 (limited to the part pertaining to paragraph (1) and paragraph (9)), Article 65-7 (limited to the part pertaining to paragraph (1) and paragraph (9)) and Article 65-8 (limited to the part pertaining to paragraph (1), paragraph (2), paragraph (7) and paragraph (8)) and other provisions specified by Cabinet Order do not apply in the business year of the corporation to which the provisions of paragraph (1) apply for which the provisions of that paragraph apply (for the corporation that falls under that subsidiary company, the business year that includes a day within that business year).

⑦Beyond what is provided for in paragraph (2), paragraph (3) and the preceding two paragraphs, the calculation of the amount of revenue reserves of a corporation to which the provisions of paragraph (1) or paragraph (4) have been applied, and other necessary matters concerning the application of those provisions are specified by Cabinet Order.