The amount of remuneration that a domestic corporation pays to its officers (such remuneration excludes a retirement allowance that does not fall under the category of performance-linked remuneration, any remuneration that is paid to officers who have duties as employees for carrying out such duties, and any remuneration that is subject to the provisions of paragraph (3); hereinafter the same applies in this paragraph) and that does not fall under any of the following categories of remuneration is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year:
remuneration that is paid for each specified period of one month or less (referred to as "regular remuneration" in (a) of the following item) and where the amount of each payment is the same in the business year, and any other remuneration specified by Cabinet Order as being equivalent thereto (referred to as "regular fixed remuneration" in that item);
remuneration that is paid for the duties of the officer based on provisions to the effect that a fixed amount of monies, or a fixed number of shares (including capital contributions; hereinafter the same applies in this paragraph and paragraph (5)) or share options, or specified restricted shares as prescribed in Article 54, paragraph (1) (Special Provisions on the Business Year for Vesting Expenses in Exchange for Restricted Shares) or specified share options as prescribed in Article 54-2, paragraph (1) (Special Provisions on the Business Year for Vesting Expenses in Exchange for Share Options) pertaining to monetary claims of a fixed amount, are to be delivered at a prescribed time, and that falls under neither regular fixed remuneration nor performance-linked remuneration (including remuneration in succeeding restricted shares as prescribed in Article 54, paragraph (1) pertaining to the shares or the specified restricted shares, or in succeeding share options as prescribed in Article 54-2, paragraph (1) pertaining to the share options or the specified share options, and, in the cases listed below, limited to remuneration that meets the requirements specified below for the respective cases);
その役員の職務につき所定の時期に、確定した額の金銭又は確定した数の株式（出資を含む。以下この項及び第五項において同じ。）若しくは新株予約権若しくは確定した額の金銭債権に係る第五十四条第一項（譲渡制限付株式を対価とする費用の帰属事業年度の特例）に規定する特定譲渡制限付株式若しくは第五十四条の二第一項（新株予約権を対価とする費用の帰属事業年度の特例等）に規定する特定新株予約権を交付する旨の定めに基づいて支給する給与で、定期同額給与及び業績連動給与のいずれにも該当しないもの（当該株式若しくは当該特定譲渡制限付株式に係る第五十四条第一項に規定する承継譲渡制限付株式又は当該新株予約権若しくは当該特定新株予約権に係る第五十四条の二第一項に規定する承継新株予約権による給与を含むものとし、次に掲げる場合に該当する場合にはそれぞれ次に定める要件を満たすものに限る。）
In the case where the remuneration is remuneration other than remuneration paid to an officer to whom regular remuneration is not paid (limited to remuneration in monies paid by a domestic corporation that does not fall under the category of family company) (such remuneration excludes remuneration in shares or share options that is specified by Cabinet Order as pertaining to the provision of services in the future): That a notification concerning the details of the provisions has been filed with the competent district director with jurisdiction over the place for tax payment, as specified by Cabinet Order.
In the case of delivering shares: That the shares are shares with a market price or shares to be exchanged for shares with a market price (limited to those issued by the domestic corporation or a related corporation; referred to as "qualified shares" in the following item).
In the case of delivering share options: That the share options are share options through whose exercise shares with a market price are delivered (limited to those issued by the domestic corporation or a related corporation; referred to as "qualified share options" in the following item).
performance-linked remuneration (in the case where assets other than monies are delivered, limited to remuneration in which qualified shares or qualified share options are delivered) that is paid by a domestic corporation (in the case of a family company, limited to one in which a corporation other than a family company has a full controlling interest) to its executive officers (meaning officers specified by Cabinet Order as those executing business; hereinafter the same applies in this item) and that meets the following requirements (limited to the case where performance-linked remuneration that meets the following requirements is paid to all the other executive officers):
That the method of calculating the amount of monies or the number of shares or share options to be delivered, or the number of share options to be delivered that are to be acquired without consideration or extinguished, is an objective method based on an indicator showing the state of profits for a business year ending on or after the first day of the period for performing the duties to which the remuneration pertains (referred to as the "start date of the period of performance of duties" in (a)) (limited to the amount of profits, an indicator obtained by adjusting the amount of profits by matters to be stated in an annual securities report (meaning an annual securities report as prescribed in Article 24, paragraph (1) (Submission of Annual Securities Reports) of the Financial Instruments and Exchange Act; the same applies in (a)) or any other indicator relating to profits specified by Cabinet Order, which is stated in an annual securities report; the same applies in (a)), an indicator showing the state of the market price of shares during a prescribed period on or after the first day of the business year containing the start date of the period of performance of duties or on a prescribed day on or after the start date of the period of performance of duties (limited to the market price of shares of the domestic corporation or of a corporation that has a full controlling interest with the domestic corporation, its average value or any other indicator relating to the market price of shares specified by Cabinet Order; the same applies in (a)), or an indicator showing the state of sales for a business year ending on or after the start date of the period of performance of duties (limited to the sales, an indicator obtained by adjusting the sales by matters to be stated in an annual securities report or any other indicator relating to sales specified by Cabinet Order, which is used together with an indicator showing the state of profits or an indicator showing the state of the market price of shares and which is stated in an annual securities report) (limited to a method that meets the following requirements).
交付される金銭の額若しくは株式若しくは新株予約権の数又は交付される新株予約権の数のうち無償で取得され、若しくは消滅する数の算定方法が、その給与に係る職務を執行する期間の開始の日（イにおいて「職務執行期間開始日」という。）以後に終了する事業年度の利益の状況を示す指標（利益の額、利益の額に有価証券報告書（金融商品取引法第二十四条第一項（有価証券報告書の提出）に規定する有価証券報告書をいう。イにおいて同じ。）に記載されるべき事項による調整を加えた指標その他の利益に関する指標として政令で定めるもので、有価証券報告書に記載されるものに限る。イにおいて同じ。）、職務執行期間開始日の属する事業年度開始の日以後の所定の期間若しくは職務執行期間開始日以後の所定の日における株式の市場価格の状況を示す指標（当該内国法人又は当該内国法人との間に完全支配関係がある法人の株式の市場価格又はその平均値その他の株式の市場価格に関する指標として政令で定めるものに限る。イにおいて同じ。）又は職務執行期間開始日以後に終了する事業年度の売上高の状況を示す指標（売上高、売上高に有価証券報告書に記載されるべき事項による調整を加えた指標その他の売上高に関する指標として政令で定めるもののうち、利益の状況を示す指標又は株式の市場価格の状況を示す指標と同時に用いられるもので、有価証券報告書に記載されるものに限る。）を基礎とした客観的なもの（次に掲げる要件を満たすものに限る。）であること。
That the method sets as its limit a fixed amount for remuneration in monies, and a fixed number for remuneration in shares or share options, and is the same as the calculation method pertaining to the performance-linked remuneration paid to the other executive officers.
金銭による給与にあつては確定した額を、株式又は新株予約権による給与にあつては確定した数を、それぞれ限度としているものであり、かつ、他の業務執行役員に対して支給する業績連動給与に係る算定方法と同様のものであること。
That appropriate procedures specified by Cabinet Order have been followed, including that, by the day specified by Cabinet Order, the compensation committee set forth in Article 404, paragraph (3) (Authority of Nominating Committee) of the Companies Act (limited to a committee the majority of whose members are persons specified by Cabinet Order as persons, among the outside directors as prescribed in Article 2, item (xv) (Definitions) of that Act of the domestic corporation, whose independence in performing their duties is ensured (referred to as "independent outside directors" in (2)), and excluding a committee of which a person who has a special relationship as specified by Cabinet Order with an executive officer of the domestic corporation is a member) has made a decision (limited to a decision in the case where all of the independent outside directors who are members of the compensation committee have voted in favor of the resolution of the compensation committee pertaining to the decision).
政令で定める日までに、会社法第四百四条第三項（指名委員会等の権限等）の報酬委員会（その委員の過半数が当該内国法人の同法第二条第十五号（定義）に規定する社外取締役のうち職務の独立性が確保された者として政令で定める者（（２）において「独立社外取締役」という。）であるものに限るものとし、当該内国法人の業務執行役員と政令で定める特殊の関係のある者がその委員であるものを除く。）が決定（当該報酬委員会の委員である独立社外取締役の全員が当該決定に係る当該報酬委員会の決議に賛成している場合における当該決定に限る。）をしていることその他の政令で定める適正な手続を経ていること。
That its details have been disclosed, without delay on or after the day on which the appropriate procedures specified by Cabinet Order referred to in (2) were completed, by being stated in an annual securities report or by any other method specified by Ministry of Finance Order.
その内容が、（２）の政令で定める適正な手続の終了の日以後遅滞なく、有価証券報告書に記載されていることその他財務省令で定める方法により開示されていること。
Any other requirements specified by Cabinet Order.
その他政令で定める要件
The portion of the amount of remuneration paid by a domestic corporation to its officers (excluding remuneration subject to the provisions of the preceding paragraph or the following paragraph) that is specified by Cabinet Order as an amount which is unreasonably high is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year.
The amount of remuneration paid by a domestic corporation to its officers through accounting by concealing or falsifying facts is excluded from deductible expenses, when calculating the amount of income of the domestic corporation for each business year
Remuneration as prescribed in the preceding three paragraphs is to include profits resulting from a release from an obligation and other economic benefits.
前三項に規定する給与には、債務の免除による利益その他の経済的な利益を含むものとする。
The performance-linked remuneration prescribed in paragraph (1) means remuneration in monies, or in shares or share options, of an amount or number calculated on the basis of an indicator showing the state of profits, an indicator showing the state of the market price of shares or any other indicator showing the performance of the domestic corporation referred to in that paragraph or of a corporation that has a controlling interest with the domestic corporation, and remuneration in specified restricted shares or succeeding restricted shares as prescribed in Article 54, paragraph (1) or in specified share options or succeeding share options as prescribed in Article 54-2, paragraph (1) in which the number of shares or share options to be acquired without consideration or extinguished varies due to grounds other than the period of provision of services.
Officers who have duties as employees as prescribed in paragraph (1) are officers (excluding the president, chief director or others specified by Cabinet Order) who hold any of the positions of department director, section chief, or other employees of a corporation and who are engaged in the duties of a full-time employee.
The related corporation prescribed in paragraph (1), item (ii), (b) and (c) means a corporation specified by Cabinet Order as a corporation that has a controlling interest with the domestic corporation referred to in that paragraph.
Beyond what is provided for in paragraph (4) through the preceding paragraph, necessary matters concerning the application of the provisions of paragraphs (1) through (3) are specified by Cabinet Order.
第四項から前項までに定めるもののほか、第一項から第三項までの規定の適用に関し必要な事項は、政令で定める。