②Taxable gross income, taxable retirement income, or taxable timber income is whatever remains after the deductions under Section 4 (Deductions from Income) of the preceding Chapter are taken against gross income, retirement income, or timber income.

①If the sum total of a Resident's Fluctuating Income and Ad Hoc Income for the year (or the Resident's Ad Hoc Income for the year, if Fluctuating Income for the year is 50% or less of the sum total of the Fluctuating Income for the previous year and the year before that) makes up 20% or more of the Resident's gross income for the year, the amount of income taxes imposed on the Resident's taxable income for the year is the sum total of the following amounts:

②The rate prescribed in item (ii) of the preceding paragraph is calculated to two decimal places; any decimal places beyond this are disregarded.

③The average taxable amount as prescribed in paragraph (1) means the sum total of Fluctuating Income (or the amount by which Fluctuating Income for the current year exceeds 50% of the sum total of the Fluctuating Income for the previous year and the year before that, if there was Fluctuating Income in the previous year or the year before that) and Ad Hoc Income.

④The provisions of paragraph (1) apply only if a Tax Return, Amended Return, or written request for Reassessment indicates recourse to the application of the provisions of that paragraph and has attached to it a document giving the details of the calculation of the sum total of the amounts set forth in the items of that paragraph.

①If a Resident has dividend income arising from dividends of surplus (meaning dividends of surplus as prescribed in Article 24, paragraph (1) (Dividend Income); hereinafter the same applies in this Article), dividends of profits (meaning dividends of profits as prescribed in that paragraph; hereinafter the same applies in this Article), distributions of surplus (meaning distributions of surplus as prescribed in that paragraph; hereinafter the same applies in this Article), distributions of monies (meaning distributions of monies as prescribed in that paragraph; hereinafter the same applies in this Article), or distributions of proceeds from a Securities Investment Trust (other than as set forth in Article 9, paragraph (1), item (xi) (Nontaxability of Distributions of Proceeds Constituting a Return of Principal); hereinafter the same applies in this Article) (such dividend income excludes income from amounts received from a Foreign Corporation (other than income from a distribution of proceeds from a Securities Investment Trust established as a trust at a Foreign Corporation's business office, business establishment, or any other place equivalent thereto in Japan); hereinafter the same applies in this Article), the amount that each of the following items prescribes for the category of case set forth in the item is allowed as a credit against the Resident's amount of income tax (meaning the amount of income taxes under the preceding Section (Tax Rates); hereinafter the same applies in this Article) for the year:

②The amount allowed as a credit under the preceding paragraph is applied against the amount of income taxes imposed on taxable gross income, taxable timber income, and taxable retirement income, in that order. In such a case, if the amount allowed as a credit exceeds the amount of income taxes for the year, the amount allowed as a credit is equivalent to the amount of income taxes.

③A credit under the provisions of paragraph (1) is referred to as a dividend tax credit.

①If, in any year, a Resident receives payment of a distribution of proceeds from a collective Investment Trust prescribed in Article 176, paragraph (3) (Special Provisions on Taxation of Interest and Similar Income from Trust Property), an amount equivalent to the amount prescribed by Cabinet Order as the portion corresponding to the distribution of proceeds the Resident receives, out of the amount of foreign tax adjusted at the time of distribution with respect to that distribution of proceeds (meaning a tax equivalent to income tax imposed pursuant to the foreign laws or orders prescribed in that paragraph, which is prescribed by Cabinet Order) that has been deducted from the amount of income tax on that distribution of proceeds pursuant to the provisions of that paragraph or Article 180-2, paragraph (3) (Special Provisions on Taxation of Interest and Similar Income from Trust Property) (referred to as the "amount equivalent to the foreign tax adjusted at distribution" in the following paragraph), is allowed as a credit against the amount of income tax for the year.

②The provisions of the preceding paragraph apply only if a Tax Return, Amended Return, or written request for Reassessment has attached to it a document giving the amount equivalent to the foreign tax adjusted at distribution that is subject to the credit under that paragraph, the amount to be credited, and the details of the calculation of that amount, and any other documents specified by Ministry of Finance Order. In such a case, the amount to be credited under that paragraph is limited to the amount stated as the amount equivalent to the foreign tax adjusted at distribution in the document giving those details.

③The provisions of paragraph (2) of the preceding Article apply mutatis mutandis to the amount to be credited under paragraph (1).

④Beyond what is provided for in the preceding two paragraphs, necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

⑤A credit under paragraph (1) is referred to as a credit for the amount equivalent to the foreign tax adjusted at distribution.