Article 2Definitions

一In Japan:the place where this Act is enforced;

二Outside Japan:outside the place where this Act is enforced;

三Resident:an individual domiciled in Japan or residing continuously in Japan for one year or more;

四Non-Permanent Resident:a Resident who is without Japanese citizenship and who has been domiciled or resident in Japan for a total of no more than five of the past ten years;

五Nonresident:an individual other than a Resident;

六Domestic Corporation:a corporation with a head office or principal office in Japan;

七Foreign Corporation:a corporation other than a Domestic Corporation;

八Association or Foundation without Legal Personality:an association or foundation that is not a corporation and that provides for a representative or administrator;

八の二Shareholder, Member, or Other Investor:a shareholder, the member of a general partnership company, limited partnership company, or limited liability company, or any other investor in a corporation;

八の三Trust Subject to Corporate Taxation:a trust subject to corporation taxation as prescribed in Article 2, item (xxix)-2 (Definitions) of the Corporation Tax Act (Act No. 34 of 1965);

八の四Permanent establishment: any of the following; provided, however, that if a convention for the avoidance of double taxation or the prevention of tax evasion with respect to taxes on income concluded by Japan contains provisions different from the following, for a Nonresident or Foreign Corporation to which that convention applies, it is to be what is specified as a permanent establishment in that convention (limited to one in Japan):

イa branch, a factory, or any other fixed place in Japan at which a Nonresident or Foreign Corporation conducts business, that Cabinet Order specifies;

ロa place in Japan at which a Nonresident or Foreign Corporation conducts construction or installation work or provides services supervising such work, or anything else that Cabinet Order specifies as equivalent thereto;

ハa person that a Nonresident or Foreign Corporation places in Japan who has the authority to conclude contracts on its behalf, or any other equivalent person, that Cabinet Order specifies.

九Public and Corporate Bond:a public bond or a corporate bond (including bonds that a corporation other than a company issues pursuant to a special law);

十Deposits and Savings:monetary deposits and savings (including anything that Cabinet Order specifies as equivalent thereto);

十一Jointly Managed Trust: a cash trust undertaken by a trust company (including a financial institution as prescribed in Article 1, paragraph (1) (Approval for Additional Business) of the Act on Engagement in Trust Business by Financial Institutions (Act No. 43 of 1943) which is engaged in trust business as prescribed in that paragraph pursuant to that Act), with trust property from multiple settlors not acting in concert which the trust company manages jointly (other than an Investment Trust managed without instructions from the settlor prescribed in Article 2, paragraph (2) (Definitions) of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951), a foreign Investment Trust equivalent thereto (meaning a foreign Investment Trust as prescribed in paragraph (24) of that Article; the same applies in item (xii)-2 and item (xiii)), and other trusts that Cabinet Order prescribes as not having multiple settlors, in actuality);

十二Loan Trust:a loan trust as prescribed in Article 2, paragraph (1) (Definitions) of the Loan Trust Act (Act No. 195 of 1952);

十二の二Investment Trust:an investment trust or a foreign investment trust as prescribed in Article 2, paragraph (3) of the Act on Investment Trusts and Investment Corporations;

十三Securities Investment Trust:a Securities Investment Trust as prescribed in Article 2, paragraph (4) of the Act on Investment Trusts and Investment Corporations, or a foreign investment trust equivalent thereto;

十四Open-Ended Securities Investment Trust:a Securities Investment Trust that allows a person to place additional principal in trust;

十五Bond Investment Trust:a Securities Investment Trust whose trust property is used to invest in Public and Corporate Bonds but is not used to invest in shares (including units of investment prescribed in Article 2, paragraph (14) of the Act on Investment Trusts and Investment Corporations; the same applies in Article 24 (Dividend Income), Article 25 (Amounts Deemed to Constitute Dividends), Article 57-4, paragraph (3) (Special Provisions on Capital Gains Due to Share Exchange), Article 176, paragraph (1) and paragraph (2) (Special Provisions on Taxation of Interest and Similar Income from Trust Property), Article 224-3, paragraph (2), item (i) (Notice by Persons Receiving Consideration for a Share Transfer), and Article 225, paragraph (1), item (ii) (Payment Reports and Notice of Payment)) and is not used to invest in capital contributions;

十五の二Bond-Based Investment Trust: an Investment Trust other than a Securities Investment Trust, which Cabinet Order prescribes as one with monies taken in as trust property which are used to invest in public and corporate bonds or similar interests (meaning public and corporate bonds, negotiable instruments, or other assets prescribed by Cabinet Order);

十五の三Bond-Based Investment Trust Under Public Offering:a Bond-Based Investment Trust (but only one falling under the category of an Investment Trust as set forth in Article 2, item (xxix), (b)2. of the Corporation Tax Act) in whose establishment persons are solicited to subscribe for a beneficial interest through a public offering (meaning through a solicitation of offers to acquire as prescribed in Article 2, paragraph (3) (Definitions) of the Financial Instruments and Exchange Act (Act No. 25 of 1948) which is prescribed by Cabinet Order as falling under the case set forth in item (i) of that paragraph);

十五の四Specified-Purpose Trust:a specified-purpose trust as prescribed in Article 2, paragraph (13) (Definitions) of the Act on Securitization of Assets (Act No. 105 of 1998);

十五の五Specified Trust That Issues Beneficiary Certificates:a specified trust that issues beneficiary certificates as prescribed in Article 2, item (xxix), (c) of the Corporation Tax Act;

十六Inventory: the commodities, finished products, half-finished products, products in progress, and raw materials of a business undertaking that is meant to generate business income, and any other asset (excluding Securities, cryptoassets as prescribed in Article 48-2, paragraph (1) (Calculation of the Cost of Transfer of Cryptoassets and Method of Valuation), and forested land) that Cabinet Order prescribes should be considered Inventory;

十七Securities:securities as prescribed in Article 2, paragraph (1) of the Financial Instruments and Exchange Act and anything equivalent thereto that is prescribed by Cabinet Order;

十八Fixed Asset:a piece of land (including any right on land), Depreciable Asset, telephone subscription right, or other asset (but not forested land) that is prescribed by Cabinet Order;

十九Depreciable Asset:a building, structure, piece of machinery, device, ship, vehicle or equipment, tool, apparatus or appliance, mining right, or anything else prescribed by Cabinet Order as an asset that should be depreciated, which generates real property income or miscellaneous income or which is used in business operations that are meant to generate real property income, business income, timber income, or miscellaneous income ;

二十Deferred Asset:an expenditure as prescribed by Cabinet Order which an individual makes in connection with business operations that are meant to generate real property income, business income, timber income, or miscellaneous income, and which will continue to have an effect one year or more after the day of the expenditure;

二十一Each Class of Income:interest income, dividend income, real property income, business income, salary income, retirement income, timber income, capital gains, occasional income, and miscellaneous income, as prescribed in Part II, Chapter II, Section 2, Subsection 1 (Classes of Income and Income in Each Class);

二十二Income in Each Class:the amounts of interest income, dividend income, real property income, business income, salary income, retirement income, timber income, capital gains, occasional income, and miscellaneous income, as prescribed in Part II, Chapter II, Section 2, Subsection 1;

二十三Fluctuating Income: income arising from catching fish, income from royalties for a copyright, or any other income whose amount varies significantly from year to year which is prescribed by Cabinet Order;

二十四Ad Hoc Income:income from a signing bonus that the taxpayer obtains on a one-time basis based on an agreement to provide services or any other income arising on an occasional or temporary basis which is prescribed by Cabinet Order;

二十五Net Loss:any part of the loss prescribed in Article 69, paragraph (1) (Aggregation of Profits and Losses) that is not fully offset when the provisions of that Article are applied;

二十六Casualty Loss:any amount by which the total loss provided for in Article 72, paragraph (1) (Casualty Loss Deduction) exceeds the amount that is set forth in any of the items of that paragraph for the category of case set forth in the item;

二十七Disaster:an earthquake, storm, flood, or fire, or a disaster provided for by Cabinet Order;

二十八Person with a Disability:a person that, at all times, lacks the ability to function on a rational basis due to a mental disability; a person who is blind; or any other person with a mental or physical disability for whom Cabinet Order provides;

二十九Person with a Particular Disability:a Person with a Disability who is mentally or physically disabled to a significant extent, and for whom Cabinet Order provides;

三十Widow: a person as follows who does not fall under the category of a single parent:

イa person who has not remarried following a divorce from the husband, and who satisfies the following requirements:

（１）the person has a dependent;

（２）the person's gross income, retirement income, and timber income as prescribed in Article 22 (Tax Base) add up to a total (hereinafter referred to as the "total income" in this Article) of five million yen or less when calculated without applying the provisions of Article 70 (Deduction for Carryover of Net Loss) and Article 71 (Deduction for Carryover of Casualty Loss);

（３）there is no person specified by Ministry of Finance Order as a person who is found to be in circumstances equivalent to a de facto marital relationship with the person.

ロa person who has not remarried following the death of the husband, or a person whose husband's whereabouts are unknown and who is provided for by Cabinet Order, who satisfies the requirements set forth in (a)(2) and (3).

三十一Single parent: a person who is not currently married, or a person whose spouse's whereabouts are unknown and who is provided for by Cabinet Order, who satisfies the following requirements:

イthe person has a child provided for by Cabinet Order whose living expenses are paid from the same resources as the person;

ロthe person's total income is five million yen or less;

ハthere is no person specified by Ministry of Finance Order as a person who is found to be in circumstances equivalent to a de facto marital relationship with the person.

三十三Spouse in the same household: the spouse of a Resident whose living expenses are paid from the same resources as the Resident (other than a spouse falling under the category of a relative employed only by a blue-return filer as prescribed in Article 57, paragraph (1) (Special Provisions on Necessary Expenses If Relatives Work Exclusively for a Resident) who receives a salary as prescribed in that paragraph, and other than a spouse falling under the category of a relative employed only by the Resident prescribed in paragraph (3) of that Article (referred to as a "relative employed only by a blue-return filer or similar person" in item (xxxiii)-4)) and whose total income is 580,000 yen or less;

三十三の二Claimable Spouse: a spouse in the same household who is the spouse of a Resident whose total income is 10 million yen or less;

三十三の三Claimable Elderly Spouse:a Claimable Spouse who is 70 years of age or older;

三十三の四Spouse for withholding deduction: the spouse of a Resident (limited to a Resident whose total income is nine million yen or less) whose living expenses are paid from the same resources as the Resident (other than a relative employed only by a blue-return filer or similar person) and whose total income is 950,000 yen or less;

三十四Dependent: the relative of a Resident (other than the Resident's spouse), a child placed with a foster parent as prescribed in Article 6-4 (Definitions) of the Child Welfare Act (Act No. 164 of 1947) pursuant to Article 27, paragraph (1), item (iii) (Measures to Be Taken by Prefectures) of that Act, or an elderly person placed with a nursing care provider as prescribed in Article 11, paragraph (1), item (iii) (Measures to Be Taken by Municipalities) of the Act on Social Welfare for the Elderly (Act No. 133 of 1963) pursuant to that item, whose living expenses are paid from the same resources as the Resident (other than one falling under the category of a relative employed only by the blue-return filer as prescribed in Article 57, paragraph (1) who receives a salary as prescribed in that paragraph, and other than a person falling under the category of a relative employed only by the Resident as prescribed in paragraph (3) of that Article (referred to as a "relative employed only by a blue-return filer, etc." in item (xxxiv)-5)) and whose total income is 580,000 yen or less;

三十四の二Claimable dependent: a dependent who is the person specified below for the category of person set forth below to which the dependent belongs:

イa Resident: a person 16 years of age or older;

ロa Nonresident: a person 16 years of age or older but younger than 30, a person 70 years of age or older, and a person 30 years of age or older but younger than 70 who falls under any of the following:

（１）a person who has ceased to have a domicile and residence in Japan due to studying abroad;

（２）a Person with a Disability;

（３）a person who receives payments of 380,000 yen or more from the Resident in that year to be used for living expenses or educational expenses.

三十四の三Specified dependent: a claimable dependent who is 19 years of age or older and younger than 23 years of age;

三十四の四Elderly dependent: a claimable dependent who is 70 years of age or older;

三十四の五Relative for withholding deduction: a person from among claimable dependents, and the relatives of a Resident (other than the Resident's spouse) and children placed with a foster parent as prescribed in Article 6-4 of the Child Welfare Act pursuant to Article 27, paragraph (1), item (iii) of that Act, whose living expenses are paid from the same resources as the Resident (other than a relative employed only by a blue-return filer or similar person), who is 19 years of age or older and younger than 23 years of age and whose total income is one million yen or less (limited to a person who does not fall under the category of a claimable dependent);

三十五Special Farming Income Earner:a person whose farming income (meaning income arising from a business involving the production or cultivation of rice, wheat, tobacco, fruits, vegetables, or flowers; the raising of silkworms; or any other business that Cabinet Order prescribes as being equivalent thereto; hereinafter the same applies in this item) in a given year accounts for over 70% of the person's gross income, and whose farming income arising on or after September 1 of that year exceeds 70% of the person's total farming income for the year;

三十六Tax Prepayment: an amount of income tax that must be paid pursuant to Article 104, paragraph (1) (Making Tax Prepayments) or Article 107, paragraph (1) (Tax Prepayments by Special Farming Income Earners) (including as applied mutatis mutandis pursuant to Article 166 (Filing of Returns, Payment of Taxes, and Issuance of Refunds));

三十七Tax Return:a return form as under Part II, Chapter V, Section 2, Subsection 1 or Subsection 2 (Tax Returns) (including as applied mutatis mutandis pursuant to Article 166) (this includes a return filed after the deadline using such a return form);

三十八Return filed after the deadline: a return filed after the deadline as prescribed in Article 18, paragraph (2) (Filing After the Deadline) of the Act on General Rules for National Taxes (Act No. 66 of 1962);

三十九Amended Return: an Amended Return as prescribed in Article 19, paragraph (3) (Amended Return) of the Act on General Rules for National Taxes;

四十Blue Return:a Tax Return filed with a blue-colored return form pursuant to the provisions of Article 143 (Blue Returns) and any related Amended Return (including as applied mutatis mutandis pursuant to Article 166);

四十の二written request for Reassessment: a written request for Reassessment as prescribed in Article 23, paragraph (3) (Request for Reassessment) of the Act on General Rules for National Taxes;

四十一Filing Deadline: the deadline for filing a return as under Article 120, paragraph (1) (Filing Income Tax Returns) (including as applied mutatis mutandis pursuant to Article 166); if the taxpayer dies partway through the year, the term refers to the deadline for filing a return under Article 125, paragraph (1) (Filing a Tax Return If the Taxpayer Has Died Partway Through the Year), and in the case of the taxpayer's Absence From Japan partway through the year, the term refers to the deadline for filing a return pursuant to Article 127, paragraph (1) (Filing a Tax Return If the Taxpayer Will Become Absent From Japan Partway Through the Year) (including as applied mutatis mutandis pursuant to Article 166);

四十二Absence From Japan: a Resident ceasing to be domiciled or reside in Japan without informing the relevant parties of a tax agent under Article 117, paragraph (2) (Tax Agents) of the Act on General Rules for National Taxes, or a Nonresident ceasing to reside in Japan without informing the relevant parties of a tax agent under that paragraph (for a Nonresident not residing in Japan who has a permanent establishment, the term refers to the Nonresident ceasing to have a permanent establishment, and for a Nonresident not residing in Japan who does not have a permanent establishment, the term refers to the Nonresident discontinuing the business prescribed in Article 161, paragraph (1), item (vi) (Domestic Source Income) that the Nonresident conducts in Japan);

四十三Reassessment:a Reassessment pursuant to the provisions of Article 24 (Reassessment) or Article 26 (Further Reassessment) of the Act on General Rules for National Taxes;

四十四Determination: except in the cases under Article 19 (Effect of Returns and Other Filings If a Disposition Designating the Locality for Paying Over Taxes Is Revoked), Article 44-2 (Exclusion from Gross Revenue of Economic Benefits from Debt Forgiveness Received Due to an Order Granting Discharge or Similar), Article 52 (Bad Debt Reserves), Article 57-4 (Special Provisions on Capital Gains Due to Share Exchange), Article 151-4 (Special Provisions on Amended Returns If There Is a Change in the Acquisition Cost of Securities or Similar Assets Acquired by Inheritance), Article 159 (Refunding Taxes Withheld, Based on Reassessment or Similar), Article 160 (Refunding of Prepaid Taxes Based on Reassessment or Similar), and Article 228-2 (Report on the Exercise of Share Options), a determination pursuant to the provisions of Article 25 (Determination) of the Act on General Rules for National Taxes;

四十五Withholding:the withholding and payment of income tax pursuant to the provisions of Part IV, Chapter I through Chapter VI (Withholding);

四十六Punitive Tax:a punitive tax as prescribed in Article 2, item (iv) (Definitions) of the Act on General Rules for National Taxes;

四十七Appropriation:appropriation under Article 57, paragraph (1) (Appropriation) of the Act on General Rules for National Taxes, except as set forth in Article 190 (Year-End Adjustment) and Article 191 (Refund of Amounts Overpaid).

四十八(Refund) Interest:interest on refunds as prescribed in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes.