Article 67-2Calculating Amounts of Income from Lease Arrangements

①If a Resident enters into a lease arrangement, the property subject to the lease arrangement (hereinafter referred to as "leased property" in this paragraph) is treated as having been sold at the time of the delivery of that leased property from the lessor to the lessee, and the lessor or lessee Resident's Income in Each Class for the year is calculated accordingly.

②If a Resident sells a piece of property conditional upon the transferee's renting out that property to the transferor (but only as falls under the category of a lease arrangement), and, in light of the type of property, developments leading to the sale and leaseback, and any other circumstances, it is found that these arrangements, in essence, constitute the lending of monies, the property is treated as not having been sold, monies are treated as having been lent by the transferee to the transferor, and the transferee or transferor Resident's Income in Each Class for the year is calculated accordingly.

③A lease arrangement as prescribed in the preceding two paragraphs means the rental of a piece of property (this excludes land rental not involving a transfer of ownership and any other rental prescribed by Cabinet Order) that meets the following requirements:

④Cabinet Order provides for the reaching of a determination as to whether the lessee is expected to bear the actual expenses arising from the use of the property referred to in item (ii) of the preceding paragraph and provides for other necessary particulars concerning the application of the preceding three paragraphs.