Article 142-4Exclusion from Deductible Expenses of Interest on Liabilities Corresponding to Capital That Should Be Attributed to a Permanent Establishment
第百四十二条の四（恒久的施設に帰せられるべき資本に対応する負債の利子の損金不算入）
In the case where the amount of equity capital pertaining to the permanent establishment for each business year of a foreign corporation (meaning the amount calculated, as specified by Cabinet Order, as the amount of net assets pertaining to the permanent establishment) is less than the amount calculated, as specified by Cabinet Order, as the amount that should be attributed to the permanent establishment out of the amount equivalent to the capital of the foreign corporation, the amount calculated, as specified by Cabinet Order, as the portion corresponding to the shortfall, out of the amount specified by Cabinet Order as the amount of interest on liabilities (including anything specified by Cabinet Order as being equivalent thereto) pertaining to the business carried on through the permanent establishment of the foreign corporation for the business year, is excluded from deductible expenses, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for the business year.
外国法人の各事業年度の恒久的施設に係る自己資本の額（当該恒久的施設に係る純資産の額として政令で定めるところにより計算した金額をいう。）が、当該外国法人の資本に相当する額のうち当該恒久的施設に帰せられるべき金額として政令で定めるところにより計算した金額に満たない場合には、当該外国法人の当該事業年度の恒久的施設を通じて行う事業に係る負債の利子（これに準ずるものとして政令で定めるものを含む。）の額として政令で定める金額のうち、その満たない金額に対応する部分の金額として政令で定めるところにより計算した金額は、当該外国法人の当該事業年度の恒久的施設帰属所得に係る所得の金額の計算上、損金の額に算入しない。
The calculation of the amount equivalent to the capital that should be attributed to a permanent establishment in the case where the amount equivalent to the capital of the foreign corporation is extremely low, and other necessary matters concerning the application of the provisions of the preceding paragraph, are specified by Cabinet Order.