一if the ratio of increase or decrease in experimental research expenses exceeds 3 percent (excluding the case listed in item (iii)): the rate obtained by adding to 8.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 3 percent by 0.25;

二if the ratio of increase or decrease in experimental research expenses is 3 percent or less (excluding the case listed in the following item): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying 3 percent less the ratio of increase or decrease in experimental research expenses by 8.5/13 (or zero, if the rate so obtained is less than zero);

三if the business year is the business year of establishment, or if the amount of comparative experiment and research expenses is zero: 8.5 percent.

一a business year beginning before April 1, 2027 (excluding a business year listed in item (iii)): the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that business year by the rate specified in each of the following according to the category of case listed therein (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate specified below exceeds 14 percent, 14 percent);

イif the ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding the case listed in (d)): the rate obtained by adding to 11.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 12 percent by 0.375;

ロif the ratio of increase or decrease in experimental research expenses is zero or more and 12 percent or less (excluding the case listed in (d)): the rate obtained by subtracting from 11.5 percent the rate calculated by multiplying 12 percent less the ratio of increase or decrease in experimental research expenses by 0.25;

ハif the ratio of increase or decrease in experimental research expenses is less than zero (excluding the case listed in (d)): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying the percentage by which it falls short of zero by 8.5/30 (or zero, if the rate so obtained is less than zero);

ニif the business year is the business year of establishment, or if the amount of comparative experiment and research expenses is zero: 8.5 percent.

二a business year beginning on or after April 1, 2027 (excluding a business year listed in the following item): the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that business year by the rate specified in each of the following according to the category of case listed therein (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate specified below exceeds 14 percent, 14 percent);

イif the ratio of increase or decrease in experimental research expenses exceeds 15 percent (excluding the case listed in (d)): the rate obtained by adding to 11.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 15 percent by 0.375;

ロif the ratio of increase or decrease in experimental research expenses exceeds 3 percent and is 15 percent or less (excluding the case listed in (d)): the rate obtained by adding to 8.5 percent the rate calculated by multiplying the ratio of increase or decrease in experimental research expenses less 3 percent by 0.25;

ハif the ratio of increase or decrease in experimental research expenses is 3 percent or less (excluding the case listed in (d)): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying 3 percent less the ratio of increase or decrease in experimental research expenses by 8.5/13 (or zero, if the rate so obtained is less than zero);

ニif the business year is the business year of establishment, or if the amount of comparative experiment and research expenses is zero: 8.5 percent.

三a business year in which the ratio of experimental research expenses exceeds 10 percent: the amount calculated by multiplying the amount of credit-eligible experimental research expenses for that business year by the sum of the following rates (if that sum has a fraction beyond the third decimal place, the sum with that fraction discarded, and if that sum exceeds 14 percent, 14 percent).

イthe rate specified in (a) through (d) of the preceding item according to the category of case listed in (a) through (d) of that item (if that business year is a business year beginning before April 1, 2027, the rate specified in item (i), (a) through (d) according to the category of case listed in item (i), (a) through (d));

ロthe rate calculated by multiplying the rate listed in (a) by the additional credit rate (meaning the rate calculated by multiplying that ratio of experimental research expenses less 10 percent by 0.5 (or 10 percent, if the rate so calculated exceeds 10 percent)).

一a business year that satisfies the following requirements: the amount equivalent to 15 percent of that corporation tax before adjustment;

イthe business year for which the provisions of paragraph (1) are applied (hereinafter referred to as the "applicable business year" in this item) falls under a business year that includes a day within the period from the date specified by Cabinet Order as the date of incorporation of a domestic corporation prescribed in Article 57, paragraph (11), item (iii) of the Corporation Tax Act for the corporation (referred to as the "establishment date" in (a)) to the day on which 10 years have elapsed from that establishment date (excluding, if the corporation is a group tax sharing corporation, the case where the business year of any of the other group tax sharing corporations that includes the date of the end of the applicable business year does not fall under a business year that includes a day within the period from the date specified by Cabinet Order as the date of incorporation of the other group tax sharing corporation prescribed in that item (referred to as the "other incorporation date" in (a)) to the day on which 10 years have elapsed from that other incorporation date);

ロat the end of the applicable business year, the corporation falls under neither a corporation listed in Article 66, paragraph (5), item (ii) or (iii) of the Corporation Tax Act nor a wholly owning parent corporation in a share transfer prescribed in Article 2, item (xii)-6-6 of that Act;

ハat the end of the applicable business year, there is an amount of net loss, etc. prescribed in Article 2, item (vi), (c) of the Act on General Rules for National Taxes (limited to that listed in (c)(2) of that item, and, if the corporation is a group tax sharing corporation, excluding the specified deficit of the corporation prescribed in Article 64-7, paragraph (2) of the Corporation Tax Act; referred to as the "amount of net loss, etc." in (c)) (including, if the corporation is a group tax sharing corporation, the case where there is an amount of net loss, etc. at the end of the business year ending on the date of the end of the applicable business year (limited to one ending on the date of the end of the business year prescribed in paragraph (1) of the group tax sharing parent corporation pertaining to the corporation) of any of the other group tax sharing corporations).

二among the business years beginning during the period from April 1, 2023 to March 31, 2029, a business year listed in the following: the amount calculated by multiplying that corporation tax before adjustment by the rate specified in each of the following according to the category of business year listed therein (if a business year listed in (a) falls under both a business year listed in (a)(1) and a business year listed in (c), the higher of the rate specified in (a)(1) and the rate specified in (c), and if a business year listed in (b) falls under both a business year listed in (b)(1) and a business year listed in (c), the higher of the rate specified in (b)(1) and the rate specified in (c)).

イa business year beginning before April 1, 2027 (excluding the business year of establishment and a business year for which the amount of comparative experiment and research expenses is zero): the rate specified in each of the following according to the category of business year listed therein;

（１）a business year in which the ratio of increase or decrease in experimental research expenses exceeds 4 percent: the rate calculated by multiplying that ratio of increase or decrease in experimental research expenses less 4 percent by 0.625 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

（２）a business year in which the ratio of increase or decrease in experimental research expenses is less than zero and the percentage by which it falls short of zero exceeds 4 percent (excluding a business year listed in (c)): the rate obtained by subtracting from zero the rate calculated by multiplying that percentage by which it falls short less 4 percent by 0.625 (if the rate so calculated has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent).

ロa business year beginning on or after April 1, 2027 (excluding the business year of establishment and a business year for which the amount of comparative experiment and research expenses is zero): the rate specified in each of the following according to the category of business year listed therein;

（１）a business year in which the ratio of increase or decrease in experimental research expenses exceeds 7 percent: the rate calculated by multiplying that ratio of increase or decrease in experimental research expenses less 7 percent by 0.625 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

（２）a business year in which the ratio of increase or decrease in experimental research expenses is less than zero and the percentage by which it falls short of zero exceeds 1 percent (excluding a business year listed in (c)): the rate obtained by subtracting from zero the rate calculated by multiplying that percentage by which it falls short less 1 percent by 0.625 (if the rate so calculated has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent).

ハa business year in which the ratio of experimental research expenses exceeds 10 percent: the rate calculated by multiplying that ratio of experimental research expenses less 10 percent by 2 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 10 percent, 10 percent).

一a business year in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding the business year of establishment, a business year for which the amount of comparative experiment and research expenses is zero, and a business year in which the ratio of experimental research expenses exceeds 10 percent): the rate calculated by multiplying that ratio of increase or decrease in experimental research expenses less 12 percent by 0.375;

二a business year in which the ratio of experimental research expenses exceeds 10 percent (excluding a business year that is neither the business year of establishment nor a business year for which the amount of comparative experiment and research expenses is zero and in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent): the rate calculated by multiplying 12 percent by the additional credit rate (meaning the rate calculated by multiplying that ratio of experimental research expenses less 10 percent by 0.5 (or 10 percent, if the rate so calculated exceeds 10 percent));

三a business year in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent and the ratio of experimental research expenses exceeds 10 percent (excluding the business year of establishment and a business year for which the amount of comparative experiment and research expenses is zero): the sum of the following rates.

イthe rate specified in item (i);

ロthe rate calculated by multiplying the rate listed in (a) by the additional credit rate prescribed in the preceding item;

ハthe rate specified in the preceding item.

一a business year in which the ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding the business year of establishment and a business year for which the amount of comparative experiment and research expenses is zero): the amount equivalent to 10 percent of that corporation tax before adjustment;

二a business year in which the ratio of experimental research expenses exceeds 10 percent (excluding a business year listed in the preceding item): the amount calculated by multiplying that corporation tax before adjustment by the rate calculated by multiplying that ratio of experimental research expenses less 10 percent by 2 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 10 percent, 10 percent).

一for a group tax sharing subsidiary corporation (limited to one that has a group tax sharing full controlling interest with the group tax sharing parent corporation pertaining to the group tax sharing subsidiary corporation on the date of the end of the business year of that group tax sharing parent corporation prescribed in paragraph (1), paragraph (4) or the preceding paragraph), the phrase "business year (excluding a business year that includes the date of dissolution (excluding dissolution due to a merger) and each business year during liquidation)" in paragraph (1) is deemed to be replaced with "business year", and the phrase "a business year for which the provisions of paragraph (1) are applied, a business year that includes the date of dissolution (excluding dissolution due to a merger), and each business year during liquidation" in paragraph (4) and the preceding paragraph is deemed to be replaced with "a business year for which the provisions of paragraph (1) are applied";

二if there is an amount of experimental research expenses for the business year (hereinafter referred to as the "other business year" in this Article) ending on the date of the end of the eligible business year of a group tax sharing corporation (meaning the business year of the group tax sharing corporation prescribed in paragraph (1) (limited to a business year ending on the date of the end of the business year prescribed in that paragraph of the group tax sharing parent corporation pertaining to the group tax sharing corporation) or the business year of the group tax sharing corporation prescribed in paragraph (4) (limited to a business year ending on the date of the end of the business year prescribed in that paragraph of the group tax sharing parent corporation pertaining to the group tax sharing corporation); the same applies hereinafter in this Article) of another group tax sharing corporation that has a group tax sharing full controlling interest with the group tax sharing corporation on the date of the end of that eligible business year (referred to as an "other group tax sharing corporation" hereinafter up to paragraph (11), except in items (xii) and (xvi)), the amount of experimental research expenses under paragraph (1) or (4) for the eligible business year of the group tax sharing corporation is deemed to exist;

三the maximum tax credit under paragraph (1) or the maximum credit for small and medium sized enterprises, etc. under paragraph (4) for the eligible business year of a group tax sharing corporation referred to in the preceding item is the amount calculated by multiplying the creditable tax amount (meaning the lesser of the amount listed in (a) and the amount listed in (b); the same applies hereinafter in this paragraph and the following paragraph) by the ratio that the corporation tax before adjustment on the income of the group tax sharing corporation for that eligible business year bears to the amount listed in (c) (hereinafter referred to as the "credit allocation ratio" in this Article) (hereinafter referred to as the "allocated creditable tax amount" in this paragraph and the following paragraph);

イthe amount calculated by multiplying the sum of the amounts of credit-eligible experimental research expenses for that eligible business year and for the other business years of the other group tax sharing corporations by the rate specified in each of the following according to the category of case listed therein (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate specified below exceeds 10 percent, 10 percent) (if the provisions of paragraph (4) are applied, the amount equivalent to 12 percent of that sum);

（１）if the combined ratio of increase or decrease in experimental research expenses exceeds 3 percent (excluding the case listed in (3)): the rate obtained by adding to 8.5 percent the rate calculated by multiplying the combined ratio of increase or decrease in experimental research expenses less 3 percent by 0.25;

（２）if the combined ratio of increase or decrease in experimental research expenses is 3 percent or less (excluding the case listed in (3)): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying 3 percent less the combined ratio of increase or decrease in experimental research expenses by 8.5/13 (or zero, if the rate so obtained is less than zero);

（３）if the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero: 8.5 percent.

ロthe amount equivalent to 25 percent of the amount listed in (c);

ハthe sum of the amounts of corporation tax before adjustment on income for that eligible business year and for the other business years of the other group tax sharing corporations.

四in the case referred to in the preceding item, if the amount of experimental research expenses for each business year of an other group tax sharing corporation, or the amount of credit-eligible experimental research expenses or the corporation tax before adjustment on income for the other business year of that other group tax sharing corporation, differs from the initially reported amount of experimental research expenses, or the initially reported amount of credit-eligible experimental research expenses or the initially reported pre-adjustment corporation tax amount (meaning, respectively, the amount stated in the document attached to the final return, etc. for that other business year as the amount of experimental research expenses for the respective business years, or as the amount of credit-eligible experimental research expenses or the corporation tax before adjustment on income for that other business year; the same applies hereinafter in this item), the initially reported amount of experimental research expenses, or the initially reported amount of credit-eligible experimental research expenses or the initially reported pre-adjustment corporation tax amount, is deemed to be the amount of experimental research expenses for the respective business years, or the amount of credit-eligible experimental research expenses or the corporation tax before adjustment on income for that other business year;

五in the case referred to in item (iii), if the creditable tax amount is equal to or more than the initially reported amount eligible for tax credit (meaning the amount stated in the document attached to the final return, etc. for the eligible business year of a group tax sharing corporation as the creditable tax amount for that eligible business year; the same applies in the following item and item (vii)) (limited to the case where the allocated creditable tax amount differs from the initially reported allocated amount eligible for tax credit (meaning the amount stated in the document attached to the final return, etc. for that eligible business year as the allocated creditable tax amount for that eligible business year; the same applies hereinafter in this item and in the following item)), the initially reported allocated amount eligible for tax credit is deemed to be the allocated creditable tax amount for that eligible business year;

六in the case referred to in item (iii), if the creditable tax amount is less than the initially reported amount eligible for tax credit, the treatment is as specified in each of the following according to the category of case listed therein;

イif the initially reported allocated amount eligible for tax credit exceeds zero: the amount obtained by deducting, from the initially reported allocated amount eligible for tax credit, the amount obtained by subtracting that creditable tax amount from the initially reported amount eligible for tax credit (referred to as the "excess creditable tax amount" in (b)) is deemed to be the allocated creditable tax amount for the eligible business year of the group tax sharing corporation;

ロif the excess creditable tax amount exceeds the initially reported allocated amount eligible for tax credit: the amount of corporation tax on the income for the eligible business year of the group tax sharing corporation is, notwithstanding the provisions of Article 66, paragraphs (1), (3) and (6) and Article 69, paragraph (19) of the Corporation Tax Act (including as applied mutatis mutandis pursuant to paragraph (23) or (24) of that Article), the provisions of the following item (including as applied mutatis mutandis pursuant to paragraph (2) of the following Article or Article 42-5, paragraph (3), item (ii)), Article 42-14, paragraph (1), Article 67-2, paragraph (1) and Article 68, paragraph (1), and the provisions of other laws and regulations concerning corporation tax, the amount obtained by adding, to the amount of corporation tax calculated pursuant to these provisions, the amount equivalent to the amount obtained by deducting the initially reported allocated amount eligible for tax credit from that excess creditable tax amount.

七if the amount of loss incurred in the eligible business year of a group tax sharing corporation referred to in item (iii), other than the specified deficit prescribed in Article 64-7, paragraph (2) of the Corporation Tax Act (hereinafter referred to as the "non-specified deficit" in this item and paragraph (12)), exceeds the amount stated in the document attached to the final return, etc. for that eligible business year as the non-specified deficit incurred in that eligible business year (including the case where there is an amount stated, in the document attached to the final return, etc. for that eligible business year (limited to a return filed after the due date; referred to as a "final return filed after the due date" in paragraph (12)), as the deficit before group tax sharing prescribed in Article 64-5, paragraph (1) of that Act (excluding that deemed not to exist pursuant to the provisions of Article 64-6 of that Act; hereinafter referred to as the "deficit before group tax sharing" in this item and paragraph (12))), and the lesser of the amount listed in item (iii), (a) for that eligible business year and the amount obtained by deducting, from the amount listed in (b) of that item for that eligible business year, the amount equivalent to 25 percent of the amount of corporation tax that would be calculated if the amount of that excess in that case (if there is an amount stated as that deficit before group tax sharing, including that stated amount) were deemed to be the amount of income of the group tax sharing corporation for that eligible business year and the provisions of Article 66 of that Act and Articles 67-2 and 68 were to be applied to that amount of income (if the provisions of the preceding item apply in the eligible business year of the group tax sharing corporation, the amount obtained by adding the excess creditable tax amount prescribed in (a) of that item; hereinafter referred to as the "creditable amount after adjustment" in this item) is less than the initially reported amount eligible for tax credit, the amount of corporation tax on the income of the group tax sharing corporation for the eligible business year is, notwithstanding the provisions of Article 66, paragraphs (1), (3) and (6) and Article 69, paragraph (19) of that Act (including as applied mutatis mutandis pursuant to paragraph (23) or (24) of that Article), (b) of the preceding item (including as applied mutatis mutandis pursuant to paragraph (2) of the following Article or Article 42-5, paragraph (3), item (ii)), Article 42-14, paragraph (1), Article 67-2, paragraph (1) and Article 68, paragraph (1), and the provisions of other laws and regulations concerning corporation tax, the amount obtained by adding, to the amount of corporation tax calculated pursuant to these provisions, the amount equivalent to the amount obtained by deducting the creditable amount after adjustment from the initially reported amount eligible for tax credit;

八with regard to the application of the provisions of item (iii) in the following cases of a group tax sharing corporation referred to in that item, the amount listed in (a) of that item is, notwithstanding the provisions of that item, the amount calculated by multiplying the sum prescribed in (a) of that item by the rate specified in each of the following;

イif the provisions of paragraph (1) are applied for each business year prescribed in paragraph (2) (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of each business year prescribed in that paragraph of the group tax sharing parent corporation pertaining to the group tax sharing corporation): the rate specified in each of the following according to the category of business year listed therein (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate specified below exceeds 14 percent, 14 percent);

（１）a business year beginning before April 1, 2027 (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning before that date, and excluding a business year listed in (3)): the rate specified in each of the following according to the category of case listed therein;

（ｉ）if the combined ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding the case listed in (iv)): the rate obtained by adding to 11.5 percent the rate calculated by multiplying the combined ratio of increase or decrease in experimental research expenses less 12 percent by 0.375;

（ｉｉ）if the combined ratio of increase or decrease in experimental research expenses is zero or more and 12 percent or less (excluding the case listed in (iv)): the rate obtained by subtracting from 11.5 percent the rate calculated by multiplying 12 percent less the combined ratio of increase or decrease in experimental research expenses by 0.25;

（ｉｉｉ）if the combined ratio of increase or decrease in experimental research expenses is less than zero (excluding the case listed in (iv)): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying the percentage by which it falls short of zero by 8.5/30 (or zero, if the rate so obtained is less than zero);

（ｉｖ）if the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero: 8.5 percent.

（２）a business year beginning on or after April 1, 2027 (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning on or after that date, and excluding a business year listed in (3)): the rate specified in each of the following according to the category of case listed therein;

（ｉ）if the combined ratio of increase or decrease in experimental research expenses exceeds 15 percent (excluding the case listed in (iv)): the rate obtained by adding to 11.5 percent the rate calculated by multiplying the combined ratio of increase or decrease in experimental research expenses less 15 percent by 0.375;

（ｉｉ）if the combined ratio of increase or decrease in experimental research expenses exceeds 3 percent and is 15 percent or less (excluding the case listed in (iv)): the rate obtained by adding to 8.5 percent the rate calculated by multiplying the combined ratio of increase or decrease in experimental research expenses less 3 percent by 0.25;

（ｉｉｉ）if the combined ratio of increase or decrease in experimental research expenses is 3 percent or less (excluding the case listed in (iv)): the rate obtained by subtracting from 8.5 percent the rate calculated by multiplying 3 percent less the combined ratio of increase or decrease in experimental research expenses by 8.5/13 (or zero, if the rate so obtained is less than zero);

（ｉｖ）if the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero: 8.5 percent.

（３）a business year in which the combined ratio of experimental research expenses exceeds 10 percent: the sum of the following rates.

（ｉ）the rate specified in (2)(i) through (iv) according to the category of case listed in (2)(i) through (iv) (if that business year is a business year beginning before April 1, 2027 (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning before that date), the rate specified in (1)(i) through (iv) according to the category of case listed in (1)(i) through (iv));

（ｉｉ）the rate calculated by multiplying the rate listed in (i) by the additional credit rate (meaning the rate calculated by multiplying that combined ratio of experimental research expenses less 10 percent by 0.5 (or 10 percent, if the rate so calculated exceeds 10 percent)).

ロif the provisions of paragraph (4) are applied for any of the following business years among each business year prescribed in paragraph (5) (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of each business year prescribed in that paragraph of the group tax sharing parent corporation pertaining to the group tax sharing corporation): the rate obtained by adding to 12 percent the rate specified in each of the following according to the category of business year listed therein (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so obtained exceeds 17 percent, 17 percent).

（１）a business year in which the combined ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero and a business year in which the combined ratio of experimental research expenses exceeds 10 percent): the rate calculated by multiplying that combined ratio of increase or decrease in experimental research expenses less 12 percent by 0.375;

（２）a business year in which the combined ratio of experimental research expenses exceeds 10 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations exceeds zero and in which the combined ratio of increase or decrease in experimental research expenses exceeds 12 percent): the rate calculated by multiplying 12 percent by the additional credit rate (meaning the rate calculated by multiplying that combined ratio of experimental research expenses less 10 percent by 0.5 (or 10 percent, if the rate so calculated exceeds 10 percent));

（３）a business year in which the combined ratio of increase or decrease in experimental research expenses exceeds 12 percent and the combined ratio of experimental research expenses exceeds 10 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero): the sum of the following rates.

（ｉ）the rate specified in (1);

（ｉｉ）the rate calculated by multiplying the rate listed in (i) by the additional credit rate prescribed in (2);

（ｉｉｉ）the rate specified in (2).

九with regard to the application of the provisions of item (iii) and item (vii) in the following cases of a group tax sharing corporation referred to in item (iii), the amount listed in item (iii), (b) and the amount equivalent to 25 percent prescribed in item (vii) are, notwithstanding those provisions, the amounts obtained by adding the amount specified in each of the following to the amount listed in item (iii), (b) and to the amount equivalent to 25 percent prescribed in item (vii), respectively;

イif the provisions of paragraph (1) are applied for any of the following business years: the amount calculated by multiplying the amount listed in item (iii), (c) or the amount of corporation tax to be calculated prescribed in item (vii) by the rate specified in each of the following according to the category of business year listed therein (for a business year that falls under each of the following business years, the sum of the rates specified below);

（１）a business year that satisfies the requirements listed in paragraph (3), item (i), (a) through (c) (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation that satisfies the requirements listed in (a) through (c) of that item): 15 percent;

（２）any of the following business years among each business year prescribed in paragraph (3), item (ii) (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of each business year prescribed in that item of the group tax sharing parent corporation pertaining to the group tax sharing corporation): the rate specified in each of the following according to the category of business year listed therein (for a business year that falls under both a business year listed in (i) and a business year listed in (v), the higher of the rate specified in (i) and the rate specified in (v), and for a business year that falls under both a business year listed in (iii) and a business year listed in (v), the higher of the rate specified in (iii) and the rate specified in (v)).

（ｉ）among business years beginning before April 1, 2027 (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning before that date), a business year in which the combined ratio of increase or decrease in experimental research expenses exceeds 4 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero): the rate calculated by multiplying that combined ratio of increase or decrease in experimental research expenses less 4 percent by 0.625 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

（ｉｉ）among business years beginning before April 1, 2027 (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning before that date), a business year in which the combined ratio of increase or decrease in experimental research expenses is less than zero and the percentage by which it falls short of zero exceeds 4 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero and a business year listed in (v)): the rate obtained by subtracting from zero the rate calculated by multiplying that percentage by which it falls short less 4 percent by 0.625 (if the rate so calculated has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

（ｉｉｉ）among business years beginning on or after April 1, 2027 (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning on or after that date), a business year in which the combined ratio of increase or decrease in experimental research expenses exceeds 7 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero): the rate calculated by multiplying that combined ratio of increase or decrease in experimental research expenses less 7 percent by 0.625 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

（ｉｖ）among business years beginning on or after April 1, 2027 (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning on or after that date), a business year in which the combined ratio of increase or decrease in experimental research expenses is less than zero and the percentage by which it falls short of zero exceeds 1 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero and a business year listed in (v)): the rate obtained by subtracting from zero the rate calculated by multiplying that percentage by which it falls short less 1 percent by 0.625 (if the rate so calculated has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 5 percent, 5 percent);

（ｖ）a business year in which the combined ratio of experimental research expenses exceeds 10 percent: the special rate for that business year (meaning the rate calculated by multiplying the combined ratio of experimental research expenses less 10 percent by 2 (if the rate has a fraction beyond the third decimal place, the rate with that fraction discarded, and if the rate so calculated exceeds 10 percent, 10 percent); the same applies in (b)(2)).

ロif the provisions of paragraph (4) are applied for any of the following business years among each business year prescribed in paragraph (6) (if the group tax sharing corporation is a group tax sharing subsidiary corporation, a business year ending on the date of the end of each business year prescribed in that paragraph of the group tax sharing parent corporation pertaining to the group tax sharing corporation): the amount calculated by multiplying the amount listed in item (iii), (c) or the amount of corporation tax to be calculated prescribed in item (vii) by the rate specified in each of the following according to the category of business year listed therein.

（１）a business year in which the combined ratio of increase or decrease in experimental research expenses exceeds 12 percent (excluding a business year in which the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations is zero): 10 percent;

（２）a business year in which the combined ratio of experimental research expenses exceeds 10 percent (excluding a business year listed in (1)): the special rate for that business year.

十with regard to the application of the provisions of item (iv) where the provisions of the preceding two items apply, the phrase "the amount of experimental research expenses for each business year of an other group tax sharing corporation" in that item is deemed to be replaced with "the amount of experimental research expenses for each business year of an other group tax sharing corporation, the average sales amount of that other group tax sharing corporation", the phrase "the initially reported amount of experimental research expenses" with "the initially reported amount of experimental research expenses, the initially reported average sales amount", and the phrase "the amount of experimental research expenses for the respective business years" with "the amount of experimental research expenses for the respective business years, the average sales amount of that other group tax sharing corporation";

十一in the case referred to in item (iii), the provisions of the second sentence of paragraph (1) and the second sentence of paragraph (4) do not apply;

十二the case where the amount of experimental research expenses for each business year prescribed in the preceding paragraph exceeds the amount of comparative experiment and research expenses is the case where the sum of the amount of experimental research expenses for the business year subject to the carried-over application of a group tax sharing corporation (meaning each business year of the group tax sharing corporation prescribed in that paragraph (limited to a business year ending on the date of the end of each business year prescribed in that paragraph of the group tax sharing parent corporation pertaining to the group tax sharing corporation); the same applies hereinafter in this paragraph and in paragraph (10)) and the amounts of experimental research expenses for the business years (referred to as the "other carry-forward applicable business year" in paragraph (10)) ending on the date of the end of that business year subject to the carried-over application of the other group tax sharing corporations that have a group tax sharing full controlling interest with the group tax sharing corporation on that date (hereinafter referred to as an "other carry-forward group tax sharing corporation" in this item and paragraph (10)) exceeds the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other carry-forward group tax sharing corporations;

十三the carried-over excess of the tax credit limit under the preceding paragraph for the business year subject to the carried-over application of a group tax sharing corporation referred to in the preceding item is the sum of the amount listed in (a) (if there is an amount already deducted from the corporation tax before adjustment, pursuant to the provisions of that paragraph, in each business year before that business year subject to the carried-over application, the remaining amount after deducting that amount) and the amount listed in (b);

イthe amount calculated by multiplying the amount obtained by deducting the amount listed in (2) from the amount listed in (1) for each business year of the group tax sharing corporation that began within three years before the first day of that business year subject to the carried-over application (limited to a business year that falls under an eligible business year pertaining to the application of the provisions of paragraph (4); hereinafter referred to as the "business year in which an excess arose" in this paragraph) (hereinafter referred to as the "group tax sharing carryforward credit excess amount" in this paragraph and paragraph (10)) by the credit allocation ratio pertaining to that business year in which an excess arose;

（１）the amount listed in item (iii), (a) pertaining to the application of the provisions of paragraph (4);

（２）the amount listed in item (iii), (b) pertaining to the application of the provisions of paragraph (4).

ロthe sum prescribed in paragraph (19), item (x) of the group tax sharing corporation.

十四in the case referred to in the preceding item, if the group tax sharing carryforward credit excess amount for the business year in which an excess arose of the group tax sharing corporation referred to in that item is equal to or more than the initially reported group tax sharing carryforward credit excess amount (meaning the amount stated in the document attached to the final return, etc. for that business year in which an excess arose as the group tax sharing carryforward credit excess amount for that business year in which an excess arose) (limited to the case where the amount listed in (a) of that item for that business year in which an excess arose (hereinafter referred to as the "attributed group tax sharing carryforward credit excess amount" in this paragraph and paragraph (10)) differs from the initially reported attributed group carryover credit limit excess (meaning the amount stated in the document attached to that final return, etc. as the attributed group tax sharing carryforward credit excess amount for that business year in which an excess arose; the same applies hereinafter in this item)), the initially reported attributed group carryover credit limit excess is deemed to be the attributed group tax sharing carryforward credit excess amount for that business year in which an excess arose;

十五in the case referred to in item (xiii), if the group tax sharing carryforward credit excess amount for the business year in which an excess arose of the group tax sharing corporation referred to in that item is less than the initially reported group tax sharing carryforward credit excess amount (meaning the amount stated in the document attached to the final return, etc. for that business year in which an excess arose as the group tax sharing carryforward credit excess amount for that business year in which an excess arose) (limited to the case where the amount of the shortfall is equal to or less than the initially reported attributed group carryover credit limit excess (meaning the amount stated in the document attached to that final return, etc. as the attributed group tax sharing carryforward credit excess amount for that business year in which an excess arose; the same applies hereinafter in this item)), the amount obtained by deducting the amount of the shortfall from the initially reported attributed group carryover credit limit excess is deemed to be the attributed group tax sharing carryforward credit excess amount for that business year in which an excess arose;

十六in the case referred to in item (xiii), if the initially reported group tax sharing carryforward credit excess amount (meaning the amount stated in the document attached to the tax return, etc. for the business year in which an excess arose as the group tax sharing carryforward credit excess amount for that business year in which an excess arose) for the business year in which an excess arose of the group tax sharing corporation referred to in that item (if there is an amount deemed, pursuant to the provisions of the preceding item, to be the attributed group tax sharing carryforward credit excess amount for that business year in which an excess arose or for the business year, ending on the date of the end of that business year in which an excess arose, of any other group tax sharing corporation that has a group tax sharing full controlling interest with the group tax sharing corporation on that date (hereinafter referred to as the "business year in which an excess arose, etc." in this item), the amount obtained by deducting the sum of the amounts of the shortfall referred to in the preceding item) exceeds the group tax sharing carryforward credit excess amount for that business year in which an excess arose as calculated without applying the provisions of items (iv) through (vi) and the preceding two items, the provisions of items (iv) through (vi) and the preceding two items do not apply to the calculation of the attributed group tax sharing carryforward credit excess amount pertaining to the application of the provisions of item (xiii). In this case, with regard to the application of the provisions of the preceding two items pertaining to the calculation of the attributed group tax sharing carryforward credit excess amount pertaining to the application of the provisions of item (xiii) after an amended return has been filed or a reassessment under the provisions of Article 24 or 26 of the Act on General Rules for National Taxes has been made by applying the provisions of this item with respect to the business year in which an excess arose, etc., the amount stated in the document attached to that amended return or to the written notice of reassessment prescribed in Article 28, paragraph (2) of that Act pertaining to that reassessment is deemed to be the amount stated in the document attached to the tax return, etc.;

十七the amount equivalent to 25 percent prescribed in the preceding paragraph for the business year subject to the carried-over application of a group tax sharing corporation referred to in item (xii) is the group tax sharing carryforward credit upper limit (meaning the remaining amount obtained by deducting the amount listed in (b) from the amount listed in (a)).

イthe amount equivalent to 25 percent of the corporation tax before adjustment on the income of the group tax sharing corporation for that business year subject to the carried-over application (if the case falls under the case listed in item (ix), (b), the amount obtained by adding the amount calculated by multiplying that corporation tax before adjustment by the rate specified in item (ix), (b)(1) or (2) according to the category of business year listed in (b)(1) or (2) of that item);

ロthe amount to be deducted from the corporation tax before adjustment on income for that business year subject to the carried-over application pursuant to the provisions of paragraph (4) in that business year subject to the carried-over application of the group tax sharing corporation.

一a group tax sharing corporation referred to in paragraph (8), item (iii): in the calculation of the creditable tax amount prescribed in that item or the group tax sharing carryforward credit upper limit prescribed in item (xvii) of that paragraph for that covered business year, the amount equivalent to 25 percent of the amount specified by Cabinet Order as the amount of corporation tax that would be calculated pursuant to the provisions of Article 66 of the Corporation Tax Act and Articles 67-2 and 68 if the total loss increase (in the calculation of the group tax sharing carryforward credit upper limit prescribed in that item, the amount calculated pursuant to the provisions of Cabinet Order as the loss increase amount of each corporation attributable to the group tax sharing corporation, etc. out of that total loss increase) were deemed to be the amount of income of the group tax sharing corporation, etc. for that covered business year and those provisions were applied to that amount of income (if the case falls under any of the following cases, the amount obtained by adding the amount specified in each of the following) is added to the amount listed in item (iii), (b) of that paragraph or the amount listed in item (xvii), (a) of that paragraph;

イthe case listed in paragraph (8), item (ix), (a): the amount calculated by multiplying the amount specified by that Cabinet Order by the rate specified in (a)(1) or (2) of that item according to the category of business year listed in (a)(1) or (2) of that item (for a business year that falls under both a business year listed in (a)(1) and a business year listed in (a)(2) of that item, the sum of the rates specified in (a)(1) and (2) of that item);

ロthe case listed in paragraph (8), item (ix), (b): the amount calculated by multiplying the amount specified by that Cabinet Order by the rate specified in (b)(1) or (2) of that item according to the category of business year listed in (b)(1) or (2) of that item.

二a corporation other than the corporation listed in the preceding item: in the calculation of the upper limit of the credit under paragraph (1) or the upper limit of the credit for small and medium sized enterprises, etc. under paragraph (4) or (7) for that covered business year, the amount equivalent to the amount of corporation tax that would be calculated if the loss increase amount of each corporation pertaining to the group tax sharing corporation, etc. out of the total loss increase were deemed to be the amount of income of the group tax sharing corporation, etc. for that covered business year and the provisions of Article 66 of the Corporation Tax Act and Articles 67-2 and 68 were to be applied to that amount of income is added to the corporation tax before adjustment on income for that covered business year.

一amount of experimental research expenses: The sum of the following amounts (if there is an amount received from another person (including, where the corporation is a foreign corporation, the head office, etc. prescribed in Article 138, paragraph (1), item (i) of the Corporation Tax Act; the same applies in item (xiv)) to cover the expenses pertaining to those amounts, the amount obtained by deducting the amount so received, and excluding, where the corporation is a domestic corporation, the amount of expenses pertaining to the business that the corporation conducts through a foreign office or similar establishment prescribed in Article 69, paragraph (4), item (i) of that Act);

イthe amount of the following expenses (excluding any amount that falls under the amount listed in Article 22, paragraph (3), item (i) of the Corporation Tax Act) that is included in deductible expenses in calculating the amount of income for each business year;

（１）expenses required for experimental research relating to the manufacture of products or to the improvement, devising or invention of technology (limited to experimental research conducted to obtain new knowledge or to devise a new application of available knowledge) (excluding, where, of the amount for which accounting as an expense or loss has been made as research and development expenses, there is an amount of expenses that should be treated as an amount required for the acquisition of fixed assets prescribed in (b) or an amount of expenses that become deferred assets prescribed in (b), the depreciation allowance for those fixed assets or deferred assets, and losses from their retirement and losses from their transfer; the same applies in (2)), which are specified by Cabinet Order;

（２）expenses required for experimental research specified by Cabinet Order as experimental research relating to the development of new services to be provided for consideration, which are specified by Cabinet Order.

ロof the amount of expenses listed in (a)(1) or (2) for which accounting as an expense or loss has been made as research and development expenses in each business year, the amount of expenses that should be treated as an amount required for the acquisition of inventory or fixed assets (excluding fixed assets that, at the time they are put to use for business, are put to use for the experimental research prescribed in (a)(1) or the experimental research specified by Cabinet Order prescribed in (a)(2)), or the amount of expenses that become deferred assets (excluding deferred assets pertaining to expenses paid for the experimental research prescribed in (a)(1) or the experimental research specified by Cabinet Order prescribed in (a)(2)).

二corporation tax before adjustment: The amount of corporation tax calculated without applying the following provisions (excluding the amount of incidental taxes prescribed in Article 2, item (iv) of the Act on General Rules for National Taxes);

イthe provisions of this Article through Article 42-5, Article 42-6, paragraphs (2) and (3), Article 42-9, Article 42-10, paragraph (2), Article 42-11, paragraph (2), Article 42-11-2, paragraph (2), Article 42-12, paragraph (2), Article 42-12-2, Article 42-12-4, paragraphs (2) and (3), Article 42-12-5, Article 42-12-6, paragraphs (2) through (4), (6) and (7), Article 42-12-7, paragraphs (2) and (3), and Article 42-14, paragraph (1);

ロbeyond what is listed in (a), the provisions specified by Cabinet Order as provisions that provide for special provisions on the calculation of the amount of corporation tax;

ハthe provisions of Article 62, paragraph (1), Article 62-3, paragraphs (1) and (9), and Article 63, paragraph (1);

ニthe provisions of Articles 67 through 70-2 and Articles 144 through 144-2-3 of the Corporation Tax Act.

二の二amount of credit-eligible experimental research expenses: The sum of the following amounts out of the amount of experimental research expenses;

イthe amount equivalent to 50 percent (70 percent for a business year beginning before April 1, 2027 (for the eligible business year of a group tax sharing corporation referred to in paragraph (8), item (iii), the eligible business year of the group tax sharing corporation ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning before that date), and 60 percent for a business year beginning within the period from April 1, 2027 to March 31, 2028 (for the eligible business year of a group tax sharing corporation referred to in that item, the eligible business year of the group tax sharing corporation ending on the date of the end of a business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation beginning within that period)) of the amount of experimental research expenses pertaining to experimental research outsourced abroad;

ロthe amount of experimental research expenses pertaining to experimental research other than experimental research outsourced abroad.

三ratio of increase or decrease in experimental research expenses: The ratio of the amount of increase or decrease in experimental research expenses (meaning the amount obtained by subtracting the amount of comparative experiment and research expenses from the amount of experimental research expenses for the business year prescribed in paragraph (1) or (4) (hereinafter referred to as the "applicable business year" in this paragraph)) to that amount of comparative experiment and research expenses;

四business year of establishment: The business year that includes the date of incorporation (for the corporations listed below, the date specified for each of them below) (excluding the business year that includes the date of merger of a merging corporation and other business years specified by Cabinet Order);

イa foreign corporation prescribed in Article 2, item (iv) of the Corporation Tax Act: the date on which it came to have a permanent establishment;

ロa public interest corporation, etc. or an association or foundation without juridical personality that has newly started a profit-making business: the date on which it started that business;

ハa public interest corporation, etc. conducting a profit-making business that had fallen under a public corporation: the date on which it came to fall under a public interest corporation, etc.;

ニan ordinary corporation or a cooperative, etc. that had fallen under a public corporation or a public interest corporation, etc. not conducting a profit-making business: the date on which it came to fall under an ordinary corporation or a cooperative, etc.

五amount of comparative experiment and research expenses: The amount calculated by dividing the sum of the amounts of experimental research expenses for each business year that began within the period from the day three years before the first day of the covered business year (meaning the business year prescribed in paragraph (1), (4) or (7) (for the eligible business year of a group tax sharing corporation referred to in paragraph (8), item (iii), the business year prescribed in paragraph (1), (4) or (7) of the group tax sharing parent corporation pertaining to the group tax sharing corporation); the same applies hereinafter in this item) to the day before the first day of the covered business year (if the number of months in that business year differs from the number of months in the covered business year, the amount calculated by multiplying that amount of experimental research expenses by the number of months in the covered business year and dividing the result by the number of months in that business year) by the number of business years that began within that period (zero, in the case specified by Cabinet Order among the cases where the first day of the eligible business year of a group tax sharing corporation referred to in paragraph (8), item (iii) is the date of incorporation of the group tax sharing corporation);

六ratio of experimental research expenses: The ratio of the amount of experimental research expenses for the applicable business year to the average sales amount;

七small and medium sized enterprise: A corporation specified by Cabinet Order as a corporation falling under the category of small and medium sized enterprises;

八excluded business operator: A corporation for which the amount calculated by dividing the sum of the amounts of income for each business year that ended within three years before the first day of that business year (hereinafter referred to as the "reference business year" in this item) by the total number of months in each reference business year and multiplying the result by 12 (if there is a circumstance specified by Cabinet Order, such as that three years have not elapsed since its incorporation, that the provisions of Article 80 of the Corporation Tax Act have already been applied to the corporation tax on income for a reference business year, that a merger, company split or capital contribution in kind was carried out in a reference business year, or that the corporation fell under a group tax sharing corporation in a reference business year, the amount calculated pursuant to the provisions of Cabinet Order as the amount obtained by making adjustments to the calculated amount according to the details of that circumstance) exceeds 1.5 billion yen;

八の二group tax sharing excluded business operator: A corporation that is a group tax sharing corporation, in the case where, on the date of the end of each business year of that corporation, any of the other group tax sharing corporations that have a group tax sharing full controlling interest with that corporation falls under an excluded business operator (excluding one specified by Cabinet Order as an excluded business operator that came to have a group tax sharing full controlling interest with the group tax sharing parent corporation pertaining to that corporation on or after the first day of the business year of that group tax sharing parent corporation that includes that date);

九agricultural cooperative, etc.: An agricultural cooperative, a federation of agricultural cooperatives, a small and medium sized enterprise cooperative, a commercial and industrial association and a federation of commercial and industrial associations that are associations with capital contributions, a coastal shipping association, a federation of coastal shipping associations, an environmental health business association that is an association with capital contributions, a fishery cooperative, a federation of fishery cooperatives, a fishery processing cooperative, a federation of fishery processing cooperatives, a forestry cooperative, and a federation of forestry cooperatives;

十carried-over excess of the tax credit limit: The sum of the amounts, out of the maximum credit for small and medium sized enterprises, etc. prescribed in paragraph (4) of a corporation for each business year that began within three years before the first day of the business year in question (limited to each business year in which the corporation has filed blue returns continuously up to that business year), that could not be fully deducted even after the deduction under that paragraph (if there is an amount already deducted from the corporation tax before adjustment, pursuant to the provisions of paragraph (7), in those business years, the remaining amount after deducting that amount);

十一combined ratio of increase or decrease in experimental research expenses: The ratio of the amount obtained by subtracting the total comparative experiment and research expenses (meaning the sum of the amounts of comparative experiment and research expenses of the group tax sharing corporation and the other group tax sharing corporations; the same applies hereinafter in this item) from the sum of the amounts of experimental research expenses for the eligible business year of a group tax sharing corporation referred to in paragraph (8), item (iii) and for the other business years of the other group tax sharing corporations referred to in (a) of that item, to that total comparative experiment and research expenses;

十二combined ratio of experimental research expenses: The ratio of the sum of the amounts of experimental research expenses for the eligible business year of a group tax sharing corporation referred to in paragraph (8), item (iii) and for the other business years of the other group tax sharing corporations referred to in (a) of that item, to the sum of the average sales amounts of the group tax sharing corporation and the other group tax sharing corporations;

十三average sales amount: The amount calculated pursuant to the provisions of Cabinet Order as the average amount of the sales amounts (meaning revenue from the sale of inventory or other amounts specified by Cabinet Order) for the applicable business year and each business year that began within the period from the day three years before the first day of the applicable business year (for the eligible business year of a group tax sharing corporation referred to in paragraph (8), item (iii), the applicable business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation) to the day before the first day of the applicable business year;

十四experimental research outsourced abroad: Experimental research specified by Cabinet Order as experimental research conducted outside Japan, among the experimental research outsourced to another person.

一the amount of corporation tax prescribed in Article 67, paragraph (3) of the Corporation Tax Act is the amount obtained by deducting, from that amount of corporation tax, the amount to be deducted pursuant to the special tax credit provisions;

二the amount listed in Article 72, paragraph (1), item (ii) of the Corporation Tax Act is the amount of corporation tax that would be calculated if the period prescribed in that paragraph (for a group tax sharing subsidiary corporation, the period prescribed in paragraph (5), item (i) of that Article) were deemed to be one business year and the provisions of Part II, Chapter I, Section 2 of that Act (excluding Article 67, Article 68, paragraph (3) and Article 70) and the special tax credit provisions were to be applied to the amount of income listed in paragraph (1), item (i) of that Article;

三the amount listed in Article 74, paragraph (1), item (ii) of the Corporation Tax Act is the amount of corporation tax calculated by applying the provisions of Part II, Chapter I, Section 2 of that Act and the special tax credit provisions to the amount of income listed in item (i) of that paragraph;

四the amount listed in Article 144-4, paragraph (1), item (iii) or (iv) or paragraph (2), item (ii) of the Corporation Tax Act is the amount of corporation tax that would be calculated if the period prescribed in paragraph (1) or (2) of that Article were deemed to be one business year and the provisions of Part III, Chapter II, Section 2 of that Act (excluding Article 144 (limited to the part that applies mutatis mutandis the provisions of Article 68, paragraph (3) of that Act)) and the special tax credit provisions were to be applied to the amount of income pertaining to domestic source income listed in paragraph (1), item (i) or (ii) or paragraph (2), item (i) of that Article;

五the amount listed in Article 144-6, paragraph (1), item (iii) or (iv) or paragraph (2), item (ii) of the Corporation Tax Act is the amount of corporation tax calculated by applying the provisions of Part III, Chapter II, Section 2 of that Act and the special tax credit provisions to the amount of income pertaining to domestic source income listed in paragraph (1), item (i) or (ii) or paragraph (2), item (i) of that Article.

一the amount equivalent to 30 percent of the amount specified by Cabinet Order as the amount of experimental research expenses pertaining to experimental research conducted jointly with national experimental research institutions, universities, or other persons equivalent to them (hereinafter referred to as a "special experimental research institution, etc." in this item) or experimental research outsourced to a special experimental research institution, etc., out of the amount of credit-eligible special experimental research expenses for that business year (if the provisions of paragraph (1) or (4) of the preceding Article are applied in that business year, excluding the amount of credit-eligible special experimental research expenses that served as the basis for the calculation of the amount to be deducted from the corporation tax before adjustment on income for that business year pursuant to those provisions; the same applies in the following item and item (iii));

二the amount equivalent to 25 percent of the amount specified by Cabinet Order as the amount of experimental research expenses pertaining to experimental research conducted jointly with another person or experimental research outsourced to another person that is innovative or is conducted to put to practical use the results of research and development at a national research and development agency or another person equivalent thereto, out of the amount of credit-eligible special experimental research expenses for that business year;

三the amount equivalent to 20 percent of the amount, out of the amount of credit-eligible special experimental research expenses for that business year, other than the amounts specified by Cabinet Order prescribed in the preceding two items.

一amount of special experimental research expenses: The amount specified by Cabinet Order as the amount of experimental research expenses pertaining to experimental research conducted jointly with national experimental research institutions, universities or other persons, experimental research outsourced to national experimental research institutions, universities or other persons, experimental research conducted by receiving from a small and medium sized enterprise the establishment or licensing of intellectual property rights held by it (meaning intellectual property rights prescribed in Article 2, paragraph (2) of the Intellectual Property Basic Act and those equivalent thereto in foreign states), experimental research on pharmaceuticals for which the number of persons targeted by their use is small, experimental research conducted by paying personnel expenses to persons who have advanced expert knowledge, etc. (meaning expert knowledge, skills or experience at an advanced level), or other experimental research specified by Cabinet Order, out of the amount of experimental research expenses;

二amount of credit-eligible special experimental research expenses: The sum of the following amounts out of the amount of special experimental research expenses;

イthe amount equivalent to 50 percent of the amount of special experimental research expenses pertaining to overseas commissioned experimental research (70 percent for a business year that begins before April 1, 2027 (for a business year subject to application prescribed in paragraph (8), item (ii) of the preceding Article as applied mutatis mutandis pursuant to the preceding paragraph of a group tax sharing corporation referred to in paragraph (8), item (iii) of that Article as applied mutatis mutandis pursuant to the preceding paragraph, the business year subject to application prescribed in that item of that group tax sharing corporation which ends at the end of a business year of the group tax sharing parent corporation pertaining to that group tax sharing corporation that begins before that date), and 60 percent for a business year that begins within the period from April 1, 2027 to March 31, 2028 (for a business year subject to application prescribed in paragraph (8), item (ii) of that Article as applied mutatis mutandis pursuant to the preceding paragraph of a group tax sharing corporation referred to in paragraph (8), item (iii) of that Article as applied mutatis mutandis pursuant to the preceding paragraph, the business year subject to application prescribed in that item of that group tax sharing corporation which ends at the end of a business year of the group tax sharing parent corporation pertaining to that group tax sharing corporation that begins within that period));

ロthe amount of special experimental research expenses pertaining to experimental research other than overseas commissioned experimental research.

一machinery and equipment (excluding those that meet the requirements specified by Cabinet Order, such as that substantially all of their management is outsourced to another person);

二tools (limited to those specified by Order of the Ministry of Finance as contributing to the improvement of product quality control, etc.);

三software (limited to that specified by Cabinet Order);

四vehicles and transport equipment (limited to motor vehicles used for the transport of cargo that are specified by Order of the Ministry of Finance as contributing to more efficient transport, etc.);

五ships used for a marine transportation business specified by Cabinet Order (for ships specified by Cabinet Order as contributing to more efficient transport, etc., limited to those specified by Cabinet Order as ships whose environmental impact has been made clear).

一specified machinery and equipment, etc. acquired, manufactured or constructed during the period from April 1, 2026 to March 31, 2028 (excluding specified machinery and equipment, etc. stated, as of March 31, 2026, in a business implementation plan pertaining to a confirmation received on or before that date that is specified by Order of the Ministry of Finance as a confirmation concerning the appropriate and reliable implementation of a specified business): the amount equivalent to 40 percent (20 percent for buildings and their associated facilities, and structures) of its acquisition cost;

二specified machinery and equipment, etc. other than those listed in the preceding item: the amount equivalent to 45 percent (23 percent for buildings and their associated facilities, and structures) of its acquisition cost.

一specified machinery and equipment, etc. listed in item (i) of the preceding paragraph: 12 percent (6 percent for buildings and their associated facilities, and structures);

二specified machinery and equipment, etc. listed in item (ii) of the preceding paragraph: 14 percent (7 percent for buildings and their associated facilities, and structures).