①In the case where a domestic corporation is to pay any foreign country's corporate tax (meaning a tax imposed under foreign laws or regulations that is equivalent to corporation tax and is specified by Cabinet Order; hereinafter the same applies in this paragraph and paragraph (12)) for each business year, the amount of the foreign country's corporate tax (excluding the amount of foreign country's corporate tax specified by Cabinet Order as the part whose burden on the income is high, the amount of foreign country's corporate tax imposed on income arising from transactions that are specified by Cabinet Order as those that are not deemed to be ordinary transactions of the domestic corporation, the amount of foreign country's corporate tax specified by Cabinet Order as that imposed under laws and regulations concerning foreign country's corporate tax on a tax base consisting of an amount on which corporation tax is not to be imposed under the provisions of laws and regulations concerning the corporation tax of domestic corporations, and the amount of any other foreign country's corporate tax specified by Cabinet Order; hereinafter referred to as the "creditable amount of the foreign country's corporate tax" in this Article) is credited against the amount of corporation tax on income for the business year, to the extent of the portion calculated as specified by Cabinet Order as corresponding to the amount of foreign income for the business year (meaning the amount specified by Cabinet Order as equivalent to the amount of income for the business year that would be the tax base if corporation tax on income for each business year were imposed only on income pertaining to foreign source income; the same applies in paragraph (14)), out of the amount calculated by applying the provisions of Article 66, paragraphs (1) through (3) (Tax Rate for Corporation Tax on Income for Each Business Year) to the amount of income for the business year (hereinafter such portion is referred to as the "limitation on a creditable amount" in this Article).

②In the case where the creditable amount of the foreign country's corporate tax that a domestic corporation is to pay in each business year exceeds the sum of the limitation on the creditable amount for the business year, the limitation on the creditable amount for local corporation tax prescribed in Article 12, paragraph (1) (Foreign Tax Credit) of the Local Corporation Tax Act and the amount specified by Cabinet Order as the limitation on a creditable amount for local tax, when the limitation on the creditable amount for each business year within preceding three years (meaning each business year that starts within three years prior to the first day of the business year; hereinafter the same applies in this Article) contains the amount specified by Cabinet Order as the portion to be carried over to the business year (hereinafter referred to as the "limitation on the creditable amount to be carried over" in this paragraph and paragraph (26)), the amount of the excess is credited against corporation tax for the business year, to the extent of the limitation on the creditable amount to be carried over, as specified by Cabinet Order.

③In the case where the creditable amount of the foreign country's corporate tax that a domestic corporation is to pay in each business year is less than the limitation on the creditable amount for the business year, when the creditable amount of the foreign country's corporate tax to be paid in each business year within preceding three years contains an amount as specified by Cabinet Order as the portion to be carried over to the business year (hereinafter referred to as the "creditable amount of the foreign country's corporate tax to be carried over" in this paragraph and paragraph (26)), the creditable amount of the foreign country's corporate tax to be carried over is credited against corporation tax on income for the business year, to the extent of the amount that remains after crediting the creditable amount of the foreign country's corporate tax to be paid in the business year from the limitation on the creditable amount, as specified by Cabinet Order.

④The foreign source income prescribed in paragraph (1) means the following:

⑤The internal transactions prescribed in item (i) of the preceding paragraph means the transfer of assets, provision of services or any other fact between a foreign office or similar establishment and the head office, etc. of a domestic corporation, which is found to be one in which, if similar facts had occurred between independent business operators, sales of assets, purchases of assets, provision of services or other transactions (excluding the guarantee of obligations pertaining to the borrowing of funds, the underwriting of reinsurance for insurance liability pertaining to an insurance contract, and any other transactions specified by Cabinet Order as being similar thereto) would have been conducted between those business operators.

⑥In the case where a tax treaty contains provisions on foreign source income (meaning foreign source income prescribed in paragraph (1); hereinafter the same applies in this paragraph) that are different from the provisions of the preceding two paragraphs, the foreign source income of a domestic corporation that is subject to the tax treaty, notwithstanding these provisions, is governed by the tax treaty to the extent of such different provisions.

⑦In calculating the income listed in paragraph (4), item (i) of a domestic corporation, when the foreign office or similar establishment of the domestic corporation is located in the treaty partner of a tax treaty (limited to one that contains provisions to the effect that taxes may be imposed on the income listed in that item of the domestic corporation, and excluding one that contains provisions to the effect that income arises from internal transactions prescribed in that item), the internal transactions prescribed in that item are not to include any fact equivalent to the payment of interest (including anything specified by Cabinet Order as being equivalent thereto; hereinafter the same applies in this paragraph) between the foreign office or similar establishment and the head office, etc. of the domestic corporation (excluding any fact equivalent to the payment of interest between the foreign office or similar establishment and the head office, etc. of a domestic corporation that falls under the category of a financial institution specified by Cabinet Order) or any other fact specified by Cabinet Order.

⑧In the case where the foreign office or similar establishment of a domestic corporation is located in the treaty partner of a tax treaty (limited to one that contains provisions to the effect that, in the case where the foreign office or similar establishment of a domestic corporation carries out the business of purchasing inventory for the head office, etc. and other business, income arising from the business of purchasing the inventory is not included in the income that should be attributed to the foreign office or similar establishment), and the foreign office or similar establishment of the domestic corporation carries out the business of purchasing inventory for the head office, etc. and other business, the income listed in paragraph (4), item (i) that arises from the business of purchasing the inventory carried out by the foreign office or similar establishment is deemed to be nil.

⑨In the case where a domestic corporation has received, as a result of a qualified merger, qualified company split or qualified capital contribution in kind (hereinafter referred to as a "qualified merger, etc." in this paragraph and paragraph (12)), the transfer of the whole or a part of the business from another domestic corporation that is an acquired corporation, splitting corporation or corporation making a capital contribution in kind (referred to as an "acquired corporation, etc." in that paragraph), with regard to the application of the provisions of paragraph (2) and paragraph (3) in each business year on or after the business year containing the date of the domestic corporation's qualified merger, etc., in accordance with the category of qualified merger, etc. listed in the following items, the amount specified in the relevant item is deemed to be the domestic corporation's limitation on the creditable amount in each business year within preceding three years and the creditable amount of the foreign country's corporate tax that the domestic corporation has come to pay in each of the business years within preceding three years, as specified by Cabinet Order:

⑩With regard to a domestic corporation that has received, as a result of a qualified company split, etc., the transfer of a business from another domestic corporation that is a splitting corporation, etc. involved in the qualified company split, etc., the provisions of the preceding paragraph apply only in the case where the domestic corporation has submitted documents stating the amount deemed to be the limitation on a creditable amount and the creditable amount of the foreign country's corporate tax of the domestic corporation for each business year within preceding three years and any other matters as specified by Ministry of Finance Order to the competent district director with jurisdiction over the place for tax payment, within three months from the date of the qualified company split, etc.

⑪In the case where a succeeding corporation in a company split or corporation receiving a capital contribution in kind (hereinafter referred to as a "succeeding corporation in a company split, etc." in this paragraph) involved in a qualified company split, etc. is subject to the provisions of paragraph (9), with regard to the application of the provisions of paragraph (2) and paragraph (3) in each business year on or after the business year containing the date of the qualified company split, etc. of the splitting corporation, etc. involved in the qualified company split, etc., out of the limitation on a creditable amount and the creditable amount of the foreign country's corporate tax for each business year within three years before the company split, etc. of the splitting corporation, etc., the amount deemed to be the limitation on a creditable amount of the succeeding corporation in a company split, etc. for each business year within preceding three years under paragraph (9) and the amount deemed to be the creditable amount of the foreign country's corporate tax that the succeeding corporation in a company split, etc. has come to pay in the business year within preceding three years under that paragraph are deemed not to exist.

⑫With regard to the application of the provisions of paragraphs (1) through (3) in the case where the amount of a foreign country's corporate tax that a domestic corporation has come to pay has been reduced in each business year of the domestic corporation starting within seven years after the first day of the business year in which the provisions of paragraphs (1) through (3) or paragraph (18) (including as applied mutatis mutandis pursuant to paragraph (24)) were applied with regard to the amount of the foreign country's corporate tax (hereinafter referred to as the "applicable business year" in this paragraph) (including, in the case where the domestic corporation has received the transfer of the whole or a part of a business from another domestic corporation that is an acquired corporation, etc. as a result of a qualified merger, etc., the case where, out of the amount of the foreign country's corporate tax that the acquired corporation, etc. has come to pay, the amount of the foreign country's corporate tax that it has come to pay due to income pertaining to the business transferred to the domestic corporation has been reduced in each business year of the domestic corporation starting within seven years after the first day of the applicable business year of the acquired corporation, etc. pertaining to that amount of the foreign country's corporate tax), it is as specified by Cabinet Order.

⑬The provisions of the preceding paragraphs do not apply to the creditable amount of the foreign country's corporate tax that a public interest corporation, etc. or an association or foundation without juridical personality, which is a domestic corporation, pays with regard to profit arising from a business other than its profit-making business or assets belonging thereto.

⑭The limitation on a creditable amount under paragraph (1) for each business year under paragraph (1) of a group tax sharing corporation (limited to one ending on the day of the end of the business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation; hereinafter referred to as a "group tax sharing business year" in this paragraph) is the amount calculated, as specified by Cabinet Order, as the amount corresponding to the amount of foreign income of the group tax sharing corporation for the group tax sharing business year, out of the sum of the amount calculated by applying the provisions of Article 66, paragraphs (1), (3) and (6) to the amount of income of the group tax sharing corporation for the group tax sharing business year and the amount calculated by applying the provisions of paragraphs (1), (3) and (6) of that Article to the amount of income, for each business year ending on that day, of any other group tax sharing corporation that has a group tax sharing full controlling interest with the group tax sharing corporation as of the day of the end of the group tax sharing business year.

⑮In applying the provisions of paragraphs (1) through (3), when the tax credit amount (meaning the amount to be credited under the provisions of paragraphs (1) through (3) in the applicable business year; the same applies hereinafter in this Article) for each business year under paragraphs (1) through (3) of a group tax sharing corporation (limited to one ending on the day of the end of the business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation, and excluding the business year containing the day preceding the date of the merger of an acquired corporation, the business year containing the date of the determination of residual assets and the business year containing the day preceding the date on which it came to fall under the category of a public interest corporation, etc.; hereinafter referred to as an "applicable business year" up to paragraph (17)) differs from the initially reported tax credit amount (meaning the amount entered as the tax credit amount for the applicable business year in documents attached to the return under Article 74, paragraph (1) (Final Returns) for the applicable business year; the same applies hereinafter in this paragraph and paragraph (17)), the initially reported tax credit amount is deemed to be the tax credit amount.

⑯In the case where any of the following cases applies with regard to an applicable business year of the group tax sharing corporation referred to in the preceding paragraph, the provisions of that paragraph do not apply to that applicable business year:

⑰With regard to the application of the provisions of paragraph (15) after an amended return has been filed or a Reassessment has been made for an applicable business year by applying the provisions of the preceding paragraph (limited to the part pertaining to item (i)), notwithstanding the provisions of the preceding paragraph, the amount entered as the tax credit amount for the applicable business year in documents attached to the amended return or to the written notice of Reassessment prescribed in Article 28, paragraph (2) of the Act on General Rules for National Taxes (Procedures for Reassessment or Determination) pertaining to the Reassessment is deemed to be the initially reported tax credit amount.

⑱With regard to a group tax sharing corporation (including a domestic corporation that was a group tax sharing corporation (excluding a domestic corporation that has come to fall under the category of a public interest corporation, etc.); the same applies hereinafter up to paragraph (21)), in each business year (hereinafter referred to as a "covered business year" up to paragraph (22)), as to the tax credit amount for a past applied business year (meaning a business year that started before the first day of the covered business year and in which the provisions of paragraph (15) were applied; the same applies hereinafter in this paragraph and paragraph (21)) (in the case where, in each business year that started before the first day of the covered business year (hereinafter referred to as the "business years before the covered business year" in this paragraph), the provisions of this paragraph or the following paragraph were applied with regard to the tax credit amount pertaining to the past applied business year, the amount obtained by adding to that tax credit amount the amount obtained by deducting the sum of the amounts deducted from the amount of corporation tax for the business years before the covered business year under the provisions of this paragraph from the sum of the amounts added to the amount of corporation tax for the business years before the covered business year under the provisions of the following paragraph; hereinafter referred to as the "adjusted past tax credit amount" in this paragraph and the following paragraph), in the case where it exceeds the originally reported past tax credit amount (meaning the amount entered as the amount to be credited under the provisions of paragraphs (1) through (3) for the past applied business year in documents attached to the return under Article 74, paragraph (1) for the past applied business year (in the case where the provisions of the preceding paragraph were applied for the past applied business year, the amount entered as the amount to be credited under the provisions of paragraphs (1) through (3) for the past applied business year in the most recent of the documents attached to the amended return pertaining to that application or to the written notice of Reassessment prescribed in Article 28, paragraph (2) of the Act on General Rules for National Taxes pertaining to the Reassessment pertaining to that application); the same applies hereinafter in this paragraph and the following paragraph), the amount equivalent to the tax credit shortfall (meaning the amount equivalent to the amount obtained by deducting the originally reported past tax credit amount from the adjusted past tax credit amount; the same applies in paragraphs (20) through (22)) is deducted from the amount of corporation tax on income for the covered business year.

⑲With regard to a group tax sharing corporation, in a covered business year, in the case where the originally reported past tax credit amount exceeds the adjusted past tax credit amount, the amount of corporation tax on income for the covered business year is, notwithstanding the provisions of Article 66, paragraphs (1) through (3) and paragraph (6), the amount obtained by adding the amount equivalent to the tax credit excess (meaning the amount equivalent to the amount obtained by deducting the adjusted past tax credit amount from the originally reported past tax credit amount; the same applies in the following paragraph through paragraph (22)) to the amount of corporation tax calculated under those provisions.

⑳In applying the provisions of the preceding two paragraphs, when the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for a covered business year of a group tax sharing corporation differs from the initially reported amount equivalent to tax credit shortfall or the initially reported amount equivalent to excess tax credit (meaning the amount entered as the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess, respectively, for the covered business year in documents attached to the return under Article 74, paragraph (1) for the covered business year; the same applies hereinafter in this paragraph and paragraph (22)), the initially reported amount equivalent to tax credit shortfall or the initially reported amount equivalent to excess tax credit is deemed to be the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for the covered business year.

（二十一）In the case where any of the following cases applies with regard to a covered business year of the group tax sharing corporation referred to in the preceding paragraph, the provisions of that paragraph do not apply to that covered business year:

（二十二）With regard to the application of the provisions of paragraph (20) after an amended return has been filed or a Reassessment has been made for a covered business year by applying the provisions of the preceding paragraph, notwithstanding the provisions of the preceding paragraph, the amount entered as the amount equivalent to the tax credit shortfall or the amount equivalent to the tax credit excess for the covered business year in documents attached to the amended return or to the written notice of Reassessment prescribed in Article 28, paragraph (2) of the Act on General Rules for National Taxes pertaining to the Reassessment is deemed to be the initially reported amount equivalent to tax credit shortfall or the initially reported amount equivalent to excess tax credit.

（二十五）The provisions of paragraph (1) apply only in the case where there is an attachment to a Final Return, an amended return or a written request for Reassessment (referred to as a "tax return or similar filing" in the following paragraph, paragraph (27) and paragraph (31)) of documents stating the amount to be credited under the provisions of paragraph (1) and the details concerning its calculation and documents stating the details concerning the calculation of the creditable amount of the foreign country's corporate tax and other matters specified by Ministry of Finance Order (hereinafter referred to as a "detailed statement" in this paragraph), and documents proving that the creditable amount of the foreign country's corporate tax has been imposed and other documents specified by Ministry of Finance Order are kept. In this case, the creditable amount of the foreign country's corporate tax and other amounts specified by Ministry of Finance Order that serve as the basis of the calculation of the amount to be credited under the provisions of paragraph (1) do not exceed the amount entered as that amount in the detailed statement, except in the case where the district director finds that there are special circumstances.

（二十六）The provisions of paragraph (2) and paragraph (3) apply only in the case where there is an attachment of documents to the tax return or similar filing for each business year on or after the oldest business year pertaining to the limitation on the creditable amount to be carried over or the creditable amount of the foreign country's corporate tax to be carried over, stating the limitation on a creditable amount for each of the business years and the creditable amount of the foreign country's corporate tax that the domestic corporation has come to pay in each of the business years; there is an attachment to the tax return or similar filing for the business year for which the domestic corporation seeks the application of these provisions of documents stating the amount to be credited under these provisions and of documents stating the matters to be the basis of the calculation of the limitation on the creditable amount to be carried over or the creditable amount of the foreign country's corporate tax to be carried over and other matters specified by Ministry of Finance Order; and documents proving that the creditable amount of the foreign country's corporate tax pertaining to the amount to be credited under these provisions has been imposed and other documents specified by Ministry of Finance Order are kept. In this case, the limitation on a creditable amount for each of the business years, the creditable amount of the foreign country's corporate tax that the domestic corporation has come to pay in each of the business years and other amounts specified by Ministry of Finance Order that serve as the basis of the calculation of the amount to be credited under these provisions do not exceed the amount entered as the amount serving as the basis of that calculation in the documents attached under the first sentence of this paragraph to the tax return or similar filing for each of the business years, except in the case where the district director finds that there are special circumstances.

（二十七）The provisions of paragraph (18) (including as applied mutatis mutandis pursuant to paragraph (23) and paragraph (24); the same applies hereinafter up to paragraph (30)) apply only in the case where there is an attachment to the tax return or similar filing of documents stating the amount to be credited under the provisions of paragraph (18) and the details concerning its calculation and other matters specified by Ministry of Finance Order (hereinafter referred to as a "detailed statement" in this paragraph), and documents proving that the creditable amount of the foreign country's corporate tax pertaining to the amount to be credited under the provisions of paragraph (18) has been imposed and other documents specified by Ministry of Finance Order are kept. In this case, the creditable amount of the foreign country's corporate tax and other amounts specified by Ministry of Finance Order that serve as the basis of the calculation of the amount to be credited under the provisions of that paragraph do not exceed the amount entered as that amount in the detailed statement, except in the case where the district director finds that there are special circumstances.

（二十八）Even in the case where the documents specified by Ministry of Finance Order prescribed in the preceding three paragraphs are not kept with regard to the whole or a part of the amount to be credited under the provisions of paragraphs (1) through (3) or paragraph (18), the district director may apply the provisions of paragraphs (1) through (3) or paragraph (18) to the amount for which such documents were not kept, when they find any unavoidable grounds for the person's failure to keep such documents.

（二十九）A domestic corporation that is subject to the provisions of paragraphs (1) through (3) or paragraph (18) must, with regard to any transactions conducted by the domestic corporation with other persons from which the income arising is attributed to a foreign office or similar establishment of the domestic corporation in the calculation of the amount of foreign income prescribed in paragraph (1) for each business year of the domestic corporation, prepare documents stating the details of the transactions attributed to the foreign office or similar establishment and other documents specified by Ministry of Finance Order, as specified by Ministry of Finance Order.

（三十）A domestic corporation that is subject to the provisions of paragraphs (1) through (3) or paragraph (18) must, when the transfer of assets, provision of services or any other fact between the head office, etc. and a foreign office or similar establishment of the domestic corporation falls under the category of internal transactions prescribed in paragraph (4), item (i), prepare documents stating the details of that fact and other documents specified by Ministry of Finance Order, as specified by Ministry of Finance Order.

（三十一）A group tax sharing corporation (including a domestic corporation that was a group tax sharing corporation; the same applies in the following paragraph and paragraph (33)) that is subject to the provisions of paragraph (19) (including as applied mutatis mutandis pursuant to paragraph (23) and paragraph (24); the same applies hereinafter in this paragraph) must attach to the tax return or similar filing documents stating the amount to be added to the amount of corporation tax under the provisions of paragraph (19) and the details concerning its calculation and other matters specified by Ministry of Finance Order (hereinafter referred to as a "detailed statement" in this paragraph), and must keep documents proving that the creditable amount of the foreign country's corporate tax pertaining to the amount to be added under the provisions of paragraph (19) has been imposed and other documents specified by Ministry of Finance Order. In this case, the creditable amount of the foreign country's corporate tax and other amounts specified by Ministry of Finance Order that serve as the basis of the calculation of the amount to be added under the provisions of that paragraph do not exceed the amount entered as that amount in the detailed statement, except in the case where the district director finds that there are special circumstances.

（三十二）In the case where, as a result of an examination concerning corporation tax, it is found that the provisions of paragraph (18) or paragraph (19) should be applied in each business year of a group tax sharing corporation (limited to one for which the due date for filing the return under Article 74, paragraph (1) has not yet arrived), the relevant official of the National Tax Agency, a Regional Taxation Bureau or a tax office is to explain to the group tax sharing corporation the content of the results of the examination (including the amount for which it has been found that the provisions of paragraph (18) or paragraph (19) should be applied and the reasons therefor).

（三十三）In the case where a group tax sharing corporation that was subject to questioning, inspection, etc. prescribed in Article 74-9, paragraph (1) of the Act on General Rules for National Taxes (Advance Notice of Examination to Persons Liable for Tax, etc.) through an on-site examination has a tax agent prescribed in paragraph (3), item (ii) of that Article, if the group tax sharing corporation has given the consent referred to in Article 74-11, paragraph (4) of that Act (Procedures upon Completion of Examination), the explanation prescribed in the preceding paragraph may be given to the tax agent in lieu of being given to the group tax sharing corporation.

（三十四）Beyond what is provided for in paragraph (12), paragraph (13), and paragraph (25) to the preceding paragraph, other necessary matters concerning the application of the provisions of paragraphs (1) through (11) and paragraphs (14) through (24) are specified by Cabinet Order.