Article 61-3Inclusion of Valuation Gains or Losses on Securities for Buying and Selling in Gross Profits or Deductible Expenses
第六十一条の三（売買目的有価証券の評価益又は評価損の益金又は損金算入等）
With regard to securities held by a domestic corporation as of the end of a business year, the amounts prescribed in the following items, in accordance with the category of the securities listed as follows, are to be their fair value at that time:
Securities for Buying and Selling (meaning the securities specified by Cabinet Order as those acquired for the purpose of profit from short-term price fluctuations; hereinafter the same applies through paragraph (3)): the amount evaluated by the fair value method (meaning the method by categorizing securities held as of the end of a business year by issue and calculating the current value of securities of the same issue as specified by Cabinet Order, and thereby deeming the calculated amount to be their fair value at that time) with regard to the Securities for Buying and Selling (referred to as the "fair value" in the following paragraph); or
securities not for buying and selling (meaning securities other than securities for buying and selling):The amount evaluated by the cost method (meaning the method deeming that the book value of the securities held as of the end of a business year (hereinafter referred to as "securities held at the end of the period" in this item) at that time (with regard to securities with provisions concerning the redemption date and redemption price, the amount adding or subtracting the portion of the difference between the book value and the redemption price that is to be allotted to the business year, as specified by Cabinet Order) to be the fair value at that time of the securities held at the end of the period).
In the case where a domestic corporation holds Securities for Buying and Selling as of the end of a business year, the valuation gain therefrom (meaning, in the case where the fair value of the Securities for Buying and Selling exceeds their book value at that time (hereinafter referred to as the "book value at the end of the period" in this paragraph), the amount of the excess; the same applies in the following paragraph) or a valuation loss therefrom (meaning, in the case where the book value at the end of the period of the Securities for Buying and Selling exceeds their fair value, the amount of the excess; the same applies in the following paragraph) is included in gross profits or deductible expenses, when calculating the amount of income for the business year, notwithstanding the provisions of Article 25, paragraph (1) (Exclusion of Asset Valuation Gains from Gross Profits) or Article 33, paragraph (1) (Exclusion of Valuation Loss on Assets from Deductible Expenses).
内国法人が事業年度終了の時において売買目的有価証券を有する場合には、当該売買目的有価証券に係る評価益（当該売買目的有価証券の時価評価金額が当該売買目的有価証券のその時における帳簿価額（以下この項において「期末帳簿価額」という。）を超える場合におけるその超える部分の金額をいう。次項において同じ。）又は評価損（当該売買目的有価証券の期末帳簿価額が当該売買目的有価証券の時価評価金額を超える場合におけるその超える部分の金額をいう。次項において同じ。）は、第二十五条第一項（資産の評価益の益金不算入）又は第三十三条第一項（資産の評価損の損金不算入）の規定にかかわらず、当該事業年度の所得の金額の計算上、益金の額又は損金の額に算入する。
In the case where a domestic corporation transfers Securities for Buying and Selling 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 paragraph), the amount equivalent to the valuation gain or valuation loss on the Securities for Buying and Selling that would be calculated under the provisions of the preceding paragraph if the day preceding the date of the qualified company split, etc. were the last day of the business year is included in gross profits or deductible expenses, when calculating the amount of income for the business year containing the date of the qualified company split, etc., notwithstanding the provisions of Article 25, paragraph (1) or Article 33, paragraph (1).
Disposition of valuation gain or loss prescribed in paragraph (2) in the following business year, and other necessary matters concerning the application of the provisions of the preceding three paragraphs are specified by Cabinet Order.