①In the case where a domestic corporation receives payment of distributions of proceeds from a group investment trust in each business year, the amount equivalent to the amount specified by Cabinet Order as the portion, corresponding to the distributions of proceeds that the domestic corporation receives, of the amount of the foreign tax adjusted at distribution pertaining to the distributions of proceeds (meaning a tax equivalent to income tax imposed under foreign laws and regulations as prescribed in Article 176, paragraph (3) (Special Provisions on Taxation of Interest and Similar Income from Trust Property) of the Income Tax Act, which is specified by Cabinet Order) that has been deducted from the amount of income tax on the distributions of proceeds pursuant to the provisions of that paragraph or Article 180-2, paragraph (3) (Special Provisions on Taxation of Interest and Similar Income from Trust Property) of that Act (referred to as the "amount equivalent to the foreign tax adjusted at distribution" in the following paragraph and paragraph (3)) is deducted, as specified by Cabinet Order, from the amount of corporation tax on income for the business year.

②The provisions of the preceding paragraph do not apply to the amount equivalent to the foreign tax adjusted at distribution pertaining to income arising from a business other than the profit-making business, or assets belonging thereto, of a public interest corporation, etc. or an association or foundation without juridical personality which is a domestic corporation.

③The provisions of paragraph (1) apply only in the case where a Final Return, amended return or written request for reassessment is attached with a document stating the amount equivalent to the foreign tax adjusted at distribution that is subject to the deduction under the provisions of that paragraph, the amount to be deducted and the details concerning the calculation of that amount. In this case, the amount to be deducted pursuant to the provisions of that paragraph does not exceed the amount entered in the document as the amount equivalent to the foreign tax adjusted at distribution.

④Beyond what is provided for in the preceding two paragraphs, necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

In the case where the district director has made a reassessment with regard to corporation tax on income for a business year that commenced before the first day of each business year of a domestic corporation (including, with regard to an acquired corporation in a qualified merger in which the domestic corporation is the acquiring corporation and which was effected on or before the last day of the relevant business year, a business year that commenced before the date of the qualified merger (hereinafter referred to as a "business year of the acquired corporation" in this Article)), when the provisions of Article 135, paragraph (1) (Special Provisions on Refund of Corporation Tax upon reassessment after Excessive Return Based on Fictitious Accounting) have been applied to the reassessment, the corporation tax paid on fictitious accounting prescribed in that paragraph pertaining to the reassessment (excluding the amount that has already become refundable pursuant to the provisions of paragraph (2), paragraph (3) or paragraph (7) of that Article and the amount deducted pursuant to the provisions of this Article) is deducted from the amount of corporation tax on income for the relevant business year (limited to a business year ending on or after the date of the reassessment (in the case where the reassessment was made with regard to corporation tax on income for a business year of the acquired corporation before the date of the qualified merger, the date of the qualified merger)).

With regard to a credit for corporation tax pursuant to the provisions of this Subsection, a credit under Article 69-2 (Credit for Amount Equivalent to the Foreign Tax Adjusted at Distribution) is made first, a credit under the preceding Article is made next, and then a credit under Article 68 (Income Tax Credit) and Article 69 (Foreign Tax Credit) is to be made.