①Where a domestic corporation that is a specially-related shareholder, etc. is subject to the provisions of paragraph (1), paragraph (8) or paragraph (10) of the preceding Article, out of the amount of foreign country's corporate tax (meaning foreign country's corporate tax prescribed in Article 69, paragraph (1) of the Corporation Tax Act; hereinafter the same applies in this paragraph) imposed on the income of a foreign affiliated corporation (meaning a foreign affiliated corporation prescribed in paragraph (1) of that Article; hereinafter the same applies in this Article) of the domestic corporation (for foreign country's corporate tax specified by Cabinet Order, the amount specified by Cabinet Order), the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the taxable amount of the foreign affiliated corporation (if that amount exceeds the taxable amount, the amount equivalent to the taxable amount), the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the partially taxable amount of the foreign affiliated corporation (if that amount exceeds the partially taxable amount, the amount equivalent to the partially taxable amount) or the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the partially taxable amount for a financial affiliated corporation of the foreign affiliated corporation (if that amount exceeds the partially taxable amount for a financial affiliated corporation, the amount equivalent to the partially taxable amount for a financial affiliated corporation) is deemed, pursuant to the provisions of Cabinet Order, to be the amount of credit-eligible foreign country's corporate tax paid by the domestic corporation (meaning the amount of credit-eligible foreign country's corporate tax prescribed in Article 69, paragraph (1) of that Act; the same applies in the following paragraph), and the provisions of Article 69 of that Act and Article 12 of the Local Corporation Tax Act apply. In this case, the phrase "with regard to the amount of foreign country's corporate tax" in Article 69, paragraph (12) of the Corporation Tax Act is deemed to be replaced with "with regard to the amount of foreign country's corporate tax (including the portion of the amount of foreign country's corporate tax imposed on the income of a foreign affiliated corporation prescribed in Article 66-9-3, paragraph (1) (Special Provisions on Taxation of the Income of the Foreign Affiliated Corporations of a Domestic Corporation That Is a Specially-Related Shareholder, etc.) of the Act on Special Measures Concerning Taxation that is deemed to be paid by the domestic corporation pursuant to the provisions of that paragraph; hereinafter the same applies in this paragraph)".

②Where a domestic corporation that is a specially-related shareholder, etc. is subject to the provisions of paragraph (1) of the preceding Article with respect to the amount equivalent to the taxable amount of a foreign affiliated corporation that is subject to the provisions of that paragraph, is subject to the provisions of paragraph (8) of that Article with respect to the amount equivalent to the partially taxable amount of a foreign affiliated corporation that is subject to the provisions of that paragraph, or is subject to the provisions of paragraph (10) of that Article with respect to the amount equivalent to the partially taxable amount for a financial affiliated corporation of a foreign affiliated corporation that is subject to the provisions of that paragraph, and the domestic corporation is also subject to the provisions of Article 69, paragraphs (1) through (3) or paragraph (18) of the Corporation Tax Act (including as applied mutatis mutandis pursuant to paragraph (23) or paragraph (24) of that Article; the same applies in the following paragraph) pursuant to the provisions of the preceding paragraph, the amount that is deemed to be the amount of credit-eligible foreign country's corporate tax pursuant to the provisions of the preceding paragraph is included in gross profit in calculating the amount of income of the domestic corporation for the business year specified by Cabinet Order.

③Where a domestic corporation that is a specially-related shareholder, etc. is subject to the provisions of paragraph (1), paragraph (8) or paragraph (10) of the preceding Article, out of the sum of the following amounts (referred to as the "amount of income tax, etc." in the following paragraph and paragraph (10)), the amount equivalent to the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the taxable amount of a foreign affiliated corporation of the domestic corporation, the amount equivalent to the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the partially taxable amount of the foreign affiliated corporation, or the amount equivalent to the amount calculated pursuant to the provisions of Cabinet Order as corresponding to the partially taxable amount for a financial affiliated corporation of the foreign affiliated corporation (referred to as the "credit-eligible amount equivalent to income tax, etc." in paragraph (5) and paragraph (9)) is deducted from the amount of corporation tax on the income of the domestic corporation for the business year specified by Cabinet Order (which is to be the amount of corporation tax calculated without applying the provisions of this paragraph and Article 68, Article 69, paragraphs (1) through (3) and paragraph (18), and Article 70 of the Corporation Tax Act, and excludes the amount of accessory tax (meaning accessory tax prescribed in Article 2, item (iv) of the Act on General Rules for National Taxes; the same applies in item (i)); the same applies in paragraph (9)):

④The provisions of the preceding paragraph apply only if a document stating the amount of income tax, etc. subject to the deduction under that paragraph, the amount to be deducted, and the details of the calculation of that amount is attached to the final return, etc., amended return or written request for reassessment. In this case, the amount of income tax, etc. that forms the basis for calculating the amount to be deducted pursuant to the provisions of that paragraph is limited to the amount stated in the document as the amount of income tax, etc.

⑤Where a domestic corporation that is a specially-related shareholder, etc. is subject to the provisions of paragraph (1) of the preceding Article with respect to the amount equivalent to the taxable amount of a foreign affiliated corporation that is subject to the provisions of that paragraph, is subject to the provisions of paragraph (8) of that Article with respect to the amount equivalent to the partially taxable amount of a foreign affiliated corporation that is subject to the provisions of that paragraph, or is subject to the provisions of paragraph (10) of that Article with respect to the amount equivalent to the partially taxable amount for a financial affiliated corporation of a foreign affiliated corporation that is subject to the provisions of that paragraph, and the domestic corporation is subject to the provisions of paragraph (3), the credit-eligible amount equivalent to income tax, etc. pertaining to the foreign affiliated corporation of the domestic corporation is included in gross profit in calculating the amount of income of the domestic corporation for the business year specified by Cabinet Order.

⑥Where the provisions of paragraph (3) apply, with regard to the deduction from the amount of corporation tax under the provisions of Part II, Chapter I, Section 2, Subsection 2 of the Corporation Tax Act and the deduction from the amount of corporation tax under the provisions of paragraph (3), the deduction under the provisions of that paragraph is to be made after the deduction under the provisions of Article 69-2 of that Act and before the deduction under the provisions of Article 70 of that Act.

⑦With regard to the application of the provisions of Part II, Chapter I of the Corporation Tax Act (excluding Section 2, Subsection 2) in the case where the provisions of paragraph (3) apply, the following provisions apply:

⑧With regard to the application of the provisions of Article 42-4, paragraph (23) (including as applied mutatis mutandis pursuant to Article 42-4-2, paragraph (5), Article 42-5, paragraph (8), Article 42-6, paragraph (9), Article 42-9, paragraph (6), Article 42-10, paragraph (6), Article 42-11, paragraph (7), Article 42-11-2, paragraph (6), Article 42-12, paragraph (7), Article 42-12-2, paragraph (3), Article 42-12-4, paragraph (9), Article 42-12-5, paragraph (9), Article 42-12-6, paragraph (17) or Article 42-12-7, paragraph (11); hereinafter the same applies in this paragraph) and the Local Corporation Tax Act in the case where the provisions of paragraph (3) apply, the phrase "Part II, Chapter I, Section 2, Subsection 2 or Part III, Chapter II, Section 2 (excluding Article 143) of the Corporation Tax Act" in Article 42-4, paragraph (23) is deemed to be replaced with "Part II, Chapter I, Section 2, Subsection 2 of the Corporation Tax Act", the phrase "in this paragraph) and the deduction" with "in this paragraph), the deduction", the phrase "and the following paragraph)," with "and the following paragraph) and the deduction from the amount of corporation tax under the provisions of Article 66-9-3, paragraph (3),", the phrase "Article 70-2 or 144-2-3 of that Act" with "paragraph (6) of that Article and Article 70-2 of that Act", and the phrase "under the Corporation Tax Act tax credit provisions" with "under the provisions of Article 66-9-3, paragraph (3) and the Corporation Tax Act tax credit provisions"; and the phrase "Articles 68 through 70-2 of that Act" in Article 6, paragraph (1), item (i) of that Act is deemed to be replaced with "Articles 68 through 70-2 of that Act and Article 66-9-3, paragraph (3) of the Act on Special Measures Concerning Taxation".

⑨Where a domestic corporation is subject to the provisions of paragraph (3) in each taxable business year (meaning a taxable business year prescribed in Article 7, paragraph (1) of the Local Corporation Tax Act; hereinafter the same applies in this paragraph), if the credit-eligible amount equivalent to income tax, etc. for that taxable business year exceeds the amount of corporation tax on the income for the business year specified by Cabinet Order prescribed in that paragraph, the excess amount is deducted from the amount of local corporation tax on income for that taxable business year (meaning the amount of local corporation tax on income prescribed in Article 11 of that Act; the same applies in paragraph (11)).

⑩The provisions of the preceding paragraph apply only if a document stating the amount of income tax, etc. subject to the deduction under the preceding paragraph, the amount to be deducted, and the details of the calculation of that amount is attached to an interim return for local corporation tax prescribed in Article 2, item (xiv) of the Local Corporation Tax Act that states the matters listed in the items of Article 17, paragraph (1) of that Act, a final return for local corporation tax prescribed in Article 2, item (xv) of that Act, an amended return or a written request for reassessment. In this case, the amount of income tax, etc. that forms the basis for calculating the amount to be deducted pursuant to the provisions of that paragraph is limited to the amount stated in the document as the amount of income tax, etc.

⑪Where the provisions of paragraph (9) apply, with regard to the deduction from the amount of local corporation tax on income under the provisions of Articles 12 through 14 of the Local Corporation Tax Act and the deduction from the amount of local corporation tax on income under the provisions of paragraph (9), the deduction under the provisions of that paragraph is to be made after the deduction under the provisions of Article 12-2 of that Act and before the deduction under the provisions of Article 13 of that Act.

⑫With regard to the application of the provisions of the Local Corporation Tax Act in the case where the provisions of paragraph (9) apply, the following provisions apply: