With regard to the amount that any of the following domestic corporations has accounted for as a loss and credited to the reserve for bad debts in each business year (excluding the business year containing the day preceding the date of a merger of an acquired corporation that does not fall under the category of a qualified merger and the business year containing the date of the determination of residual assets (limited to a determination where the distribution of residual assets does not fall under the category of a qualified in-kind distribution; the same applies in the following paragraph)) as the prospective amount of loss on monetary claims that it holds (excluding those that should be represented by bonds; hereinafter the same applies in this paragraph and the following paragraph), part of which are expected to generate a loss due to bad debts or any other equivalent grounds as a result of the occurrence of the fact that the payment has been granted a grace period or is to be made in installments based on an order on the confirmation of a reorganization plan or any other fact specified by Cabinet Order (in the case where there are other monetary claims against the debtor of the monetary claims, including those other monetary claims; hereinafter such monetary claims are referred to as "individually assessed monetary claims" in this Article), the portion of the credited amount up to the amount calculated as specified by Cabinet Order based on the amount of the portion for which it is found that there is no prospect of the collection or payment of the individually assessed monetary claims as of the end of the business year (such calculated amount is referred to as the "limit to individual credit reserve for bad debts" in paragraph (5)) is included in deductible expenses, when calculating the amount of income for the business year:
次に掲げる内国法人が、その有する金銭債権（債券に表示されるべきものを除く。以下この項及び次項において同じ。）のうち、更生計画認可の決定に基づいて弁済を猶予され、又は賦払により弁済されることその他の政令で定める事実が生じていることによりその一部につき貸倒れその他これに類する事由による損失が見込まれるもの（当該金銭債権に係る債務者に対する他の金銭債権がある場合には、当該他の金銭債権を含む。以下この条において「個別評価金銭債権」という。）のその損失の見込額として、各事業年度（被合併法人の適格合併に該当しない合併の日の前日の属する事業年度及び残余財産の確定（その残余財産の分配が適格現物分配に該当しないものに限る。次項において同じ。）の日の属する事業年度を除く。）において損金経理により貸倒引当金勘定に繰り入れた金額については、当該繰り入れた金額のうち、当該事業年度終了の時において当該個別評価金銭債権の取立て又は弁済の見込みがないと認められる部分の金額を基礎として政令で定めるところにより計算した金額（第五項において「個別貸倒引当金繰入限度額」という。）に達するまでの金額は、当該事業年度の所得の金額の計算上、損金の額に算入する。
a domestic corporation that falls under any of the following corporations as of the end of the business year:
当該事業年度終了の時において次に掲げる法人に該当する内国法人
an ordinary corporation (excluding an investment corporation and a specific purpose company) whose stated capital or capital contributions are 100 million yen or less (excluding a corporation falling under the corporations listed in Article 66, paragraph (5), item (ii) or item (iii) (Tax Rate for Corporation Tax on Income for Each Business Year) and a large group tax sharing corporation prescribed in paragraph (6) of that Article), or that has no stated capital or capital contributions (excluding a large group tax sharing corporation prescribed in that paragraph);
any of the following domestic corporations:
次に掲げる内国法人
a bank prescribed in Article 2, paragraph (1) (Definitions, etc.) of the Banking Act (Act No. 59 of 1981);
銀行法（昭和五十六年法律第五十九号）第二条第一項（定義等）に規定する銀行
an insurance company prescribed in Article 2, paragraph (2) (Definitions) of the Insurance Business Act (Act No. 105 of 1995);
保険業法（平成七年法律第百五号）第二条第二項（定義）に規定する保険会社
a domestic corporation specified by Cabinet Order as being equivalent to those listed in (a) or (b); and
イ又はロに掲げるものに準ずるものとして政令で定める内国法人
a domestic corporation holding monetary claims pertaining to the consideration for the lease assets prescribed in Article 64-2, paragraph (1) (Calculation of the Amount of Income Related to Lease Transactions) that are deemed to have been sold and purchased pursuant to the provisions of that paragraph, or any other domestic corporation specified by Cabinet Order as a domestic corporation holding monetary claims pertaining to transactions related to financing (excluding the domestic corporations listed in the preceding two items).
第六十四条の二第一項（リース取引に係る所得の金額の計算）の規定により売買があつたものとされる同項に規定するリース資産の対価の額に係る金銭債権を有する内国法人その他の金融に関する取引に係る金銭債権を有する内国法人として政令で定める内国法人（前二号に掲げる内国法人を除く。）
The amount that a domestic corporation listed in any of the items of the preceding paragraph has accounted for as a loss and credited to the reserve for bad debts in each business year (excluding the business year containing the day preceding the date of a merger of an acquired corporation that does not fall under the category of a qualified merger and the business year containing the date of the determination of residual assets) to be the prospective net operating loss due to the bad debts of their accounts receivable, loans, or any other equivalent monetary claims (excluding individually assessed monetary claims; hereinafter referred to as "collectively assessed monetary claims" in this Article), is included in deductible expenses, when calculating the amount of income for the business year, up to the amount calculated as specified by Cabinet Order, based on the amount of collectively assessed monetary claims as of the end of the business year and the recent net operating loss due to the bad debts of the accounts receivable, loans, or any other equivalent monetary claims (referred to as the "limit to collective credit reserve for bad debts" in paragraph (6)).
前項各号に掲げる内国法人が、その有する売掛金、貸付金その他これらに準ずる金銭債権（個別評価金銭債権を除く。以下この条において「一括評価金銭債権」という。）の貸倒れによる損失の見込額として、各事業年度（被合併法人の適格合併に該当しない合併の日の前日の属する事業年度及び残余財産の確定の日の属する事業年度を除く。）において損金経理により貸倒引当金勘定に繰り入れた金額については、当該繰り入れた金額のうち、当該事業年度終了の時において有する一括評価金銭債権の額及び最近における売掛金、貸付金その他これらに準ずる金銭債権の貸倒れによる損失の額を基礎として政令で定めるところにより計算した金額（第六項において「一括貸倒引当金繰入限度額」という。）に達するまでの金額は、当該事業年度の所得の金額の計算上、損金の額に算入する。
The provisions of the preceding two paragraphs apply only in the case where a tax return contains a detailed statement concerning the inclusion in deductible expenses of the amount credited to the reserve for bad debts prescribed in these provisions.
Even in the case where a tax return without entries for the matters set forth in the preceding paragraph has been filed, the district director of the tax office may apply the provisions of paragraph (1) and paragraph (2), when they find any unavoidable grounds for the person's failure to make entries for such matters.
In the case where a domestic corporation transfers individually assessed monetary claims to a succeeding corporation in a company split, corporation receiving a capital contribution in kind, or corporation receiving a distribution in kind as a result of a qualified company split, qualified capital contribution in kind, or qualified in-kind distribution (for a qualified in-kind distribution, excluding a distribution of all residual assets; hereinafter referred to as a "qualified company split, etc." in this Article) (limited to the case where the domestic corporation would fall under any of the corporations listed in the items of paragraph (1) if the time immediately prior to the qualified company split, etc. were deemed to be the end of the business year), when an account equivalent to the reserve for bad debts set forth in that paragraph (hereinafter referred to as the "reserve for bad debts on individually assessed monetary claims during the period" in this Article) has been established with regard to the individually assessed monetary claims, the portion of the amount equivalent to the amount of the reserve for bad debts on individually assessed monetary claims during the period established as above, up to the amount equivalent to the limit to individual credit reserve for bad debts calculated as prescribed in that paragraph with regard to the individually assessed monetary claims by deeming the time immediately prior to the qualified company split, etc. to be the end of the business year, is included in deductible expenses, when calculating the amount of income for the business year containing the date of the qualified company split, etc.
内国法人が、適格分割、適格現物出資又は適格現物分配（適格現物分配にあつては、残余財産の全部の分配を除く。以下この条において「適格分割等」という。）により分割承継法人、被現物出資法人又は被現物分配法人に個別評価金銭債権を移転する場合（当該適格分割等の直前の時を事業年度終了の時とした場合に当該内国法人が第一項各号に掲げる法人に該当する場合に限る。）において、当該個別評価金銭債権について同項の貸倒引当金勘定に相当するもの（以下この条において「期中個別貸倒引当金勘定」という。）を設けたときは、その設けた期中個別貸倒引当金勘定の金額に相当する金額のうち、当該個別評価金銭債権につき当該適格分割等の直前の時を事業年度終了の時とした場合に同項の規定により計算される個別貸倒引当金繰入限度額に相当する金額に達するまでの金額は、当該適格分割等の日の属する事業年度の所得の金額の計算上、損金の額に算入する。
In the case where a domestic corporation transfers collectively assessed monetary claims to a succeeding corporation in a company split, corporation receiving a capital contribution in kind, or corporation receiving a distribution in kind as a result of a qualified company split, etc. (limited to the case where the domestic corporation would fall under any of the corporations listed in the items of paragraph (1) if the time immediately prior to the qualified company split, etc. were deemed to be the end of the business year), when an account equivalent to the reserve for bad debts set forth in paragraph (2) (hereinafter referred to as the "reserve for bad debts on collectively assessed monetary claims during the period" in this Article) has been established with regard to the collectively assessed monetary claims, the portion of the amount equivalent to the amount of the reserve for bad debts on collectively assessed monetary claims during the period established as above, up to the amount equivalent to the limit to collective credit reserve for bad debts calculated as prescribed in that paragraph with regard to the collectively assessed monetary claims by deeming the time immediately prior to the qualified company split, etc. to be the end of the business year, is included in deductible expenses, when calculating the amount of income for the business year containing the date of the qualified company split, etc.
内国法人が、適格分割等により分割承継法人、被現物出資法人又は被現物分配法人に一括評価金銭債権を移転する場合（当該適格分割等の直前の時を事業年度終了の時とした場合に当該内国法人が第一項各号に掲げる法人に該当する場合に限る。）において、当該一括評価金銭債権について第二項の貸倒引当金勘定に相当するもの（以下この条において「期中一括貸倒引当金勘定」という。）を設けたときは、その設けた期中一括貸倒引当金勘定の金額に相当する金額のうち、当該一括評価金銭債権につき当該適格分割等の直前の時を事業年度終了の時とした場合に同項の規定により計算される一括貸倒引当金繰入限度額に相当する金額に達するまでの金額は、当該適格分割等の日の属する事業年度の所得の金額の計算上、損金の額に算入する。
The provisions of the preceding two paragraphs apply only in the case where the domestic corporation prescribed in these provisions has submitted documents stating the amount equivalent to the amount of the reserve for bad debts on individually assessed monetary claims during the period or the amount of the reserve for bad debts on collectively assessed monetary claims during the period and other matters specified by Ministry of Finance Order to the competent district director with jurisdiction over the place for tax payment, within two months on or after the date of the qualified company split, etc.
前二項の規定は、これらの規定に規定する内国法人が適格分割等の日以後二月以内に期中個別貸倒引当金勘定の金額又は期中一括貸倒引当金勘定の金額に相当する金額その他の財務省令で定める事項を記載した書類を納税地の所轄税務署長に提出した場合に限り、適用する。
In the case where a domestic corporation has effected a qualified merger, qualified company split, qualified capital contribution in kind, or qualified in-kind distribution (hereinafter referred to as a "qualified organizational restructuring" in this paragraph and paragraph (11)), the amount of the reserve for bad debts, or the amount of the reserve for bad debts on individually assessed monetary claims during the period or the amount of the reserve for bad debts on collectively assessed monetary claims during the period, prescribed in the following items, in accordance with the category of qualified organizational restructuring listed in the relevant item, is to be succeeded to by an acquiring corporation, succeeding corporation in a company split, corporation receiving a capital contribution in kind, or corporation receiving a distribution in kind (referred to as an "acquiring corporation, etc." in paragraph (11)) involved in the qualified organizational restructuring:
qualified merger or qualified in-kind distribution (limited to a distribution of all residual assets): The amount of the reserve for bad debts prescribed in paragraph (1) or paragraph (2) that was included in deductible expenses, when calculating the amount of income for the business year containing the day preceding the date of the qualified merger or the date of the determination of residual assets, pursuant to these provisions; and
qualified company split, etc.: The amount of the reserve for bad debts on individually assessed monetary claims during the period or the amount of the reserve for bad debts on collectively assessed monetary claims during the period that was included in deductible expenses, when calculating the amount of income for the business year containing the date of the qualified company split, etc., pursuant to the provisions of paragraph (5) or paragraph (6).
適格分割等 第五項又は第六項の規定により当該適格分割等の日の属する事業年度の所得の金額の計算上損金の額に算入された期中個別貸倒引当金勘定の金額又は期中一括貸倒引当金勘定の金額
With regard to the application of the provisions of paragraph (1), paragraph (2), paragraph (5), and paragraph (6), individually assessed monetary claims and collectively assessed monetary claims do not include the following monetary claims:
monetary claims held by a domestic corporation listed in paragraph (1), item (iii) (in the case of applying the provisions of paragraph (5) or paragraph (6), a domestic corporation that would fall under the domestic corporation listed in that item if the time immediately prior to the qualified company split, etc. were deemed to be the end of the business year), other than the monetary claims specified by Cabinet Order in accordance with the category of the domestic corporation; and
monetary claims that a domestic corporation holds against another corporation that has a full controlling interest with the domestic corporation.
The amount of the reserve for bad debts prescribed in paragraph (1) or paragraph (2) that was included in deductible expenses, when calculating the amount of income for each business year pursuant to these provisions, is included in gross profits, when calculating the amount of income for the following business year after the business year.
The amount of the reserve for bad debts, or the amount of the reserve for bad debts on individually assessed monetary claims during the period or the amount of the reserve for bad debts on collectively assessed monetary claims during the period, succeeded to by an acquiring corporation, etc. pursuant to the provisions of paragraph (8) is included in gross profits, when calculating the amount of income for the business year containing the date of a qualified organizational restructuring of the acquiring corporation, etc.
第八項の規定により合併法人等が引継ぎを受けた貸倒引当金勘定の金額又は期中個別貸倒引当金勘定の金額若しくは期中一括貸倒引当金勘定の金額は、当該合併法人等の適格組織再編成の日の属する事業年度の所得の金額の計算上、益金の額に算入する。
In the case where an ordinary corporation or a cooperative, etc. falls under the category of a public interest corporation, etc., the provisions of paragraph (1) and paragraph (2) do not apply to the business year of the ordinary corporation or cooperative, etc. containing the day preceding the day on which it falls under the category.
Beyond what is provided for in paragraph (3), paragraph (4), and paragraph (7), necessary matters concerning the application of the provisions of paragraph (1), paragraph (2), paragraph (5), paragraph (6), and paragraph (8) to the preceding paragraph are specified by Cabinet Order.