The tax base of corporation tax imposed on a foreign corporation for income for each business year is to be the amount of income categorized as domestic source income specified in each of the following items for the category of foreign corporation listed in the relevant item:

①The amount of income pertaining to domestic source income listed in item (i), (a) of the preceding Article for each business year of a foreign corporation (hereinafter referred to as "income attributable to a permanent establishment" in this Subsection) is to be the amount obtained by deducting the amount of deductible expenses for the business year pertaining to the business carried on through the permanent establishment of the foreign corporation from the amount of gross profit for the business year pertaining to that business.

②The amount to be included in gross profit or deductible expenses for the business year when calculating the amount of income pertaining to income attributable to a permanent establishment for each business year of a foreign corporation is, except as otherwise provided, the amount that would be the amount of gross profit or the amount of deductible expenses if calculated, with regard to the business carried on through the permanent establishment of the foreign corporation, in accordance with the provisions of Subsections 2 through 9 of Section 1 of Chapter I of the preceding Part (Calculation of the Amount of Income for Each Business Year of a domestic corporation) (excluding Article 23-2 (Exclusion of Dividends Received from Foreign Subsidiaries from Gross Profits), Articles 25-2 through 27 (Gain on Gifts Received, etc.), Article 33, paragraph (5) (Valuation Loss on Assets), Article 37, paragraph (2) (Exclusion of Contributions or Donations from Deductible Expenses), Article 39-2 (Exclusion of Foreign Withholding Tax, etc. on Dividends Received from Foreign Subsidiaries from Deductible Expenses), Article 41 (Exclusion of Foreign Taxes Credited Against the Corporation Tax from Deductible Expenses), Article 41-2 (Exclusion of the Amount Equivalent to Foreign Tax Adjusted at the Time of Distribution from Deductible Expenses), Article 46 (Inclusion in Deductible Expenses of the Depreciated Amount of Fixed Assets Acquired by a Non-investment Partnership with Allotment Monies), Article 57, paragraph (2) (Carryover of Losses) (limited to the part pertaining to the determination of residual assets), Article 60-2 (Dividends Made on the Basis of the Volume of Business with Cooperatives Incurred by Cooperatives), Article 61-2, paragraph (17) (Inclusion of Capital Gains or Losses on Securities in Gross Profits or Deductible Expenses) and Division 5 of Subsection 5 (Profit or Loss on Transactions between Corporations with a Full Controlling Interest)) and Subsection 12 (Details of Calculation of the Amount of Income for Each Business Year).

③In the case of calculating the amount of income pertaining to income attributable to a permanent establishment for each business year of a foreign corporation in accordance with the provisions of Article 22 (General Rules for Calculation of the Amount of Income for Each Business Year) pursuant to the provisions of the preceding paragraph, the following apply:

④Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (2) are specified by Cabinet Order.

①In the case where a foreign corporation receives a refund of the following amount or the amount to be refunded is to be appropriated for the unpaid national tax or local tax, the amount to be refunded or to be appropriated is excluded from the amount of gross profit, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for each business year:

②In the case where the amount of a foreign country's corporate tax (meaning the foreign country's corporate tax prescribed in Article 69, paragraph (1) (Foreign Tax Credit); hereinafter the same applies in this paragraph) that a foreign corporation has come to pay has been reduced in each business year of the foreign corporation starting within seven years after the first day of the business year in which the provisions of Article 144-2, paragraphs (1) through (3) (Foreign Tax Credit for Foreign Corporations) 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 foreign corporation has received the transfer of the whole or a part of the business pertaining to a permanent establishment of another foreign corporation that is an acquired corporation, etc. prescribed in paragraph (6) of that Article as a result of a qualified merger, etc. prescribed in that paragraph, 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 foreign corporation has been reduced in each business year of the foreign 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), the amount specified by Cabinet Order as the portion of the reduced amount by which the creditable amount of the foreign country's corporate tax prescribed in paragraph (1) of that Article has been reduced (excluding the amount specified by Cabinet Order as the amount to be included in gross profit) is excluded from gross profit, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for each business year.

③In the case where a foreign corporation receives a refund of any amount that is excluded from deductible expenses when calculating the amount of income pertaining to income attributable to a permanent establishment for each business year in the case of calculation in accordance with the provisions of Article 55, paragraph (5) pursuant to the provisions of paragraph (2) of the preceding Article, the amount to be refunded is excluded from gross profit, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for each business year.

In the case where a foreign corporation having a permanent establishment has received the application of the provisions of Article 144-13 with regard to the net operating loss caused by a disaster prescribed in Article 144-13, paragraph (11) (Refund Based on Carryback of Losses) that arose during the interim period prescribed in that paragraph (hereinafter referred to as the "net operating loss caused by a disaster" in this Article), the amount equivalent to the net operating loss caused by a disaster that formed the basis for the calculation of the amount to be refunded through the filing of an interim return based on provisional settlement of accounts prescribed in that paragraph is included in gross profit, when calculating the amount of income pertaining to income attributable to a permanent establishment for the business year containing the interim period.

①In the case where the amount of investment assets (meaning those specified by Ministry of Finance Order as assets under management in the case where money or other assets received as insurance premiums are managed in preparation for the performance of future debts under insurance contracts; hereinafter the same applies in this paragraph and paragraph (5)) pertaining to the permanent establishment for each business year of a foreign corporation (limited to a foreign insurance company, etc. prescribed in Article 2, paragraph (7) (Definitions) of the Insurance Business Act; hereinafter the same applies in this paragraph) is less than the amount calculated, as specified by Cabinet Order, as the amount that should be attributed to the permanent establishment out of the amount of investment assets of the foreign corporation, the amount calculated, as specified by Cabinet Order, as the amount of proceeds pertaining to the amount equivalent to the shortfall is included in gross profit, as the amount of proceeds pertaining to the business carried on through the permanent establishment of the foreign corporation, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for the business year.

②The provisions of the preceding paragraph do not apply in the case falling under any of the following:

③The provisions of the preceding paragraph apply only in the case where documents stating that the case falls under any of the cases listed in the items of that paragraph and documents concerning the calculation thereof are retained.

④Even in the case where the documents set forth in the preceding paragraph have not been retained, the district director may, when finding that there are unavoidable circumstances for the failure to retain them, apply the provisions of paragraph (2) only in the case where those documents are submitted.

⑤The time of the calculation of the amount of investment assets and other necessary matters concerning the application of the provisions of paragraphs (1) and (2) are specified by Cabinet Order.

①In the case where the amount of equity capital pertaining to the permanent establishment for each business year of a foreign corporation (meaning the amount calculated, as specified by Cabinet Order, as the amount of net assets pertaining to the permanent establishment) is less than the amount calculated, as specified by Cabinet Order, as the amount that should be attributed to the permanent establishment out of the amount equivalent to the capital of the foreign corporation, the amount calculated, as specified by Cabinet Order, as the portion corresponding to the shortfall, out of the amount specified by Cabinet Order as the amount of interest on liabilities (including anything specified by Cabinet Order as being equivalent thereto) pertaining to the business carried on through the permanent establishment of the foreign corporation for the business year, is excluded from deductible expenses, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for the business year.

②The calculation of the amount equivalent to the capital that should be attributed to a permanent establishment in the case where the amount equivalent to the capital of the foreign corporation is extremely low, and other necessary matters concerning the application of the provisions of the preceding paragraph, are specified by Cabinet Order.

①In the case where, in each business year of a foreign corporation that is a foreign bank prescribed in Article 10, paragraph (2), item (viii) (Scope of Business) of the Banking Act pertaining to a branch of a foreign bank prescribed in Article 47, paragraph (2) (License of Foreign Banks, etc.) of that Act, or a financial instruments business operator prescribed in Article 2, paragraph (9) (Definitions) of the Financial Instruments and Exchange Act (limited to a foreign corporation that conducts the type I financial instruments business prescribed in Article 28, paragraph (1) (General Rules) of that Act), there is interest on liabilities (including anything specified by Cabinet Order as being equivalent thereto) paid on liabilities pertaining to what is equivalent to the capital that it holds, the amount calculated, as specified by Cabinet Order, as corresponding to the amount calculated, as specified by Cabinet Order, as the amount that should be attributed to the permanent establishment prescribed in paragraph (1) of the preceding Article of the foreign corporation, out of the amount of the interest, is included in deductible expenses, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for the business year.

②The provisions of the preceding paragraph apply only in the case where a Final Return, amended return or written request for Reassessment is attached with a document stating the amount to be included in deductible expenses pursuant to the provisions of that paragraph and the details of its calculation, and documents concerning the calculation are retained. In this case, the amount to be included in deductible expenses pursuant to the provisions of that paragraph is limited to the amount stated as that amount.

③Even in the case where the documents set forth in the preceding paragraph have not been retained with regard to the whole or a part of the amount to be included in deductible expenses pursuant to the provisions of paragraph (1), the district director may, when finding that there are unavoidable circumstances for the failure to retain those documents, apply the provisions of paragraph (1) to the amount for which those documents were not retained, only in the case where those documents are submitted.

④The scope of liabilities pertaining to what is equivalent to capital prescribed in paragraph (1) and other necessary matters concerning the application of the provisions of that paragraph are specified by Cabinet Order.

In the case where a foreign corporation receives the application of the provisions of Article 144-2, or Article 144-11, paragraph (1) (Refund of Income Tax) or Article 147-3, paragraph (1) (Refund of Income Tax upon a Reassessment or Similar Decision), with regard to the creditable amount of the foreign country's corporate tax prescribed in Article 144-2, paragraph (1) (Foreign Tax Credit for Foreign Corporations), that creditable amount of the foreign country's corporate tax is excluded from deductible expenses, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for each business year.

In the case where a foreign corporation having a permanent establishment receives the application of the provisions of Article 144-2-2, paragraph (1) (Credit for the Amount Equivalent to Foreign Tax Adjusted at the Time of Distribution for Foreign Corporations) with regard to the amount equivalent to foreign tax adjusted at the time of distribution prescribed in that paragraph pertaining to the amount of income tax on distributions of proceeds from a group investment trust that it receives, that amount equivalent to foreign tax adjusted at the time of distribution pertaining to the amount of income tax on the distributions of proceeds that it receives is excluded from deductible expenses, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for each business year.

①In the case where a foreign corporation receives the application of the provisions of Article 142, paragraph (3), item (ii) (Calculation of the Amount of Income Categorized as Income Attributable to a Permanent Establishment), when documents serving as the basis for the calculation concerning the allocation and other documents specified by Ministry of Finance Order are not retained with regard to the amount allocated as specified by Cabinet Order prescribed in that item (hereinafter referred to as "allocated head office expenses" in this Article), the allocated head office expenses for which those documents were not retained are excluded from deductible expenses, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for each business year.

②Even in the case where the documents set forth in the preceding paragraph have not been retained with regard to the whole or a part of the allocated head office expenses, the district director may, when finding that there are unavoidable circumstances for the failure to retain them, refrain from applying the provisions of that paragraph to the allocated head office expenses for which those documents were not retained, only in the case where those documents are submitted.

①In the case where a foreign corporation having a permanent establishment has ceased to have a permanent establishment (excluding the case where it has ceased to have a permanent establishment due to the transfer of the permanent establishment to another person or any other grounds specified by Cabinet Order), with regard to assets attributed to the permanent establishment as of the end of the business year in which a permanent establishment is closed (meaning the business year containing the day on which it became a foreign corporation not having a permanent establishment; hereinafter the same applies in this paragraph) (excluding securities for buying and selling prescribed in Article 61-3, paragraph (1), item (i) (Inclusion of Valuation Gains or Losses on Securities for Buying and Selling in Gross Profits or Deductible Expenses) and other assets specified by Cabinet Order), their valuation gain (meaning, in the case where their value as of that end exceeds their book value as of that time, the amount of the excess) or valuation loss (meaning, in the case where their book value as of that end exceeds their value as of that time, the amount of the excess) is included in the amount of gross profit or the amount of deductible expenses, when calculating the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for the business year in which a permanent establishment is closed.

②The book value of assets whose valuation gain or valuation loss prescribed in the preceding paragraph has been included in the amount of gross profit or the amount of deductible expenses pursuant to the provisions of that paragraph, and other necessary matters concerning the application of the provisions of that paragraph, are specified by Cabinet Order.

①In the case where, between the permanent establishment of a foreign corporation and the head office, etc. prescribed in Article 138, paragraph (1), item (i) (Domestic Source Income), there has been an internal dealing (meaning an internal dealing prescribed in item (i) of that paragraph; hereinafter the same applies in this paragraph) equivalent to the acquisition or transfer by the permanent establishment of assets that would generate domestic source income listed in item (iii) or item (v) of that paragraph, the amount of income pertaining to income attributable to a permanent establishment of the foreign corporation for each business year is calculated by deeming that the internal dealing was carried out at the amount specified by Cabinet Order as being equivalent to the book value of the assets immediately prior to the internal dealing.

②The acquisition cost of assets at the permanent establishment of a foreign corporation in the case where the provisions of the preceding paragraph apply and other necessary matters concerning the application of the provisions of that paragraph are specified by Cabinet Order.

The amount of income pertaining to domestic source income specified in Article 141, item (i), (b) and item (ii) (Tax Base) for each business year of a foreign corporation is to be the amount calculated, as specified by Cabinet Order, with regard to the domestic source income prescribed in those provisions in accordance with the provisions of Article 142 through Article 142-2-2 (Calculation of the Amount of Income Categorized as Income Attributable to a Permanent Establishment).

①The amount of corporation tax imposed on a foreign corporation for income for each business year is to be the amount calculated by multiplying the amount of income categorized as domestic source income by a tax rate of 23.2 percent, for each category of the following domestic source income:

②In the case referred to in the preceding paragraph, with regard to the part of the amount that is eight million yen per annum or less out of the amount of income categorized as domestic source income of an ordinary corporation whose amount of stated capital or amount of capital contributions is 100 million yen or less at the end of each business year or which has no capital or investment at the end of each business year, or of an association or foundation without juridical personality, for each category of domestic source income listed in the items of that paragraph, the applicable tax rate is 19 percent, notwithstanding the provisions of the paragraph.

③With regard to the application of the preceding paragraph to a foreign corporation whose business year is less than one year, the phrase "amount that is eight million yen per annum" in the paragraph is deemed to be replaced with "amount that is calculated by dividing eight million yen by 12 and then multiplying the result by the number of months of the relevant business year."

④The number of months set forth in the preceding paragraph is calculated according to the calendar; a division of less than one month is counted as one month.

⑤The provisions of paragraph (2) do not apply to an ordinary corporation which is a foreign corporation and which falls under any of the following corporations as of the end of each business year:

The provisions of Article 68 (Income Tax Credit) apply mutatis mutandis in the case where a foreign corporation receives, in each business year, payment of domestic source income specified in each item of Article 141 (Tax Base) in accordance with the category of foreign corporation listed in the relevant item (for a foreign corporation listed in item (i) of that Article, the category of domestic source income listed in (a) or (b) of that item) (for the domestic source income specified in item (i) of that Article, the domestic source income listed in (a) or (b) of that item), on which income tax is to be imposed pursuant to the provisions of the Income Tax Act. In this case, the phrase "Article 69-2, paragraph (1) (Credit for the Amount Equivalent to Foreign Tax Adjusted at the Time of Distribution)" in Article 68, paragraph (1) is deemed to be replaced with "Article 144-2-2, paragraph (1) (Credit for the Amount Equivalent to Foreign Tax Adjusted at the Time of Distribution for Foreign Corporations)", and the term "excluding" in that paragraph is deemed to be replaced with "excluding the amount of specified income tax (meaning the portion of the amount of income tax collected pursuant to the provisions of Article 212, paragraph (1) (Withholding Obligation) of that Act with respect to the consideration listed in Article 161, paragraph (1), item (vi) (Domestic Source Income) of that Act that corresponds to the salary or remuneration listed in Article 161, paragraph (1), item (xii), (a) or (c) of that Act that is deemed, pursuant to the provisions of Article 215 (Special Provisions on Withholding at the Source on Earnings from the Provision of Personal Services by Nonresidents) of that Act, to have been collected pursuant to the provisions of that paragraph) and"; the phrase "interest and dividends, etc." in paragraph (2) of that Article is deemed to be replaced with "domestic source income prescribed in Article 144 (Income Tax Credit for Foreign Corporations)"; and the phrase "the items of Article 72, paragraph (1)" in paragraph (3) of that Article is deemed to be replaced with "the items of Article 144-4, paragraph (1) or the items of paragraph (2) of that Article", the phrase "Article 78, paragraph (1)" with "Article 144-11, paragraph (1)", and the phrase "Article 133, paragraph (1)" with "Article 147-3, paragraph (1)".

①In the case where a foreign corporation having a permanent establishment is to pay a foreign country's corporate tax (meaning the foreign country's corporate tax prescribed in Article 69, paragraph (1) (Foreign Tax Credit); hereinafter the same applies in this paragraph and paragraph (8)) in each business year, the amount of the foreign country's corporate tax (limited to the amount of the foreign country's corporate tax imposed on the domestic source income listed in Article 138, paragraph (1), item (i) (Domestic Source Income), and excluding the amount of the foreign country's corporate tax specified by Cabinet Order as the portion of the tax for which the burden on the income is high, the amount of the foreign country's corporate tax imposed on income arising from transactions specified by Cabinet Order as not being found to be transactions normally conducted by a foreign corporation, 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 pertaining to income attributable to a permanent establishment for the business year, to the extent of the amount calculated, as specified by Cabinet Order, as the amount corresponding to the amount of foreign income for the business year (meaning the amount specified by Cabinet Order as the amount pertaining to foreign source income out of the amount of income pertaining to income attributable to a permanent establishment), out of the amount calculated by applying the provisions of Article 143, paragraph (1) or (2) (Tax Rate for a foreign corporation's Corporation Tax on Income for Each Business Year) to the amount of income pertaining to the domestic source income listed in Article 141, item (i), (a) (Tax Base) (hereinafter referred to as "income attributable to a permanent establishment" up to paragraph (3) and in paragraph (1) of the following Article) for the business year (hereinafter 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 foreign corporation having a permanent establishment is to pay in each business year exceeds the sum of the limitation on a creditable amount for the business year, the amount specified by Cabinet Order as the limitation on a creditable amount for local corporation tax, and the amount specified by Cabinet Order as the limitation on a creditable amount for local tax, when the limitation on a 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), the amount of the excess is credited against the amount of corporation tax on income pertaining to income attributable to a permanent establishment 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 foreign corporation having a permanent establishment is to pay in each business year is less than the limitation on a creditable amount for the business year, when the creditable amount of the foreign country's corporate tax that it was to pay in the business years within preceding three years contains an amount 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), the creditable amount of the foreign country's corporate tax to be carried over is credited against the amount of corporation tax on income pertaining to income attributable to a permanent establishment for the business year, to the extent of the amount that remains after deducting the creditable amount of the foreign country's corporate tax to be paid in the business year from that limitation on a creditable amount, as specified by Cabinet Order.

④The foreign source income prescribed in paragraph (1) means the income listed in Article 138, paragraph (1), item (i) that falls under any of the following:

⑤In the case where a tax treaty (meaning a treaty prescribed in the proviso to Article 2, item (xii)-19; hereinafter the same applies in this paragraph) contains provisions different from those of the preceding paragraph with regard to foreign source income (meaning foreign source income prescribed in paragraph (1); hereinafter the same applies in this paragraph), with regard to a foreign corporation to which the tax treaty applies, foreign source income is, notwithstanding the provisions of that paragraph, as provided in the tax treaty, to the extent of those different provisions.

⑥The provisions of Article 69, paragraph (9) and paragraph (10) apply mutatis mutandis in the case where a foreign corporation has received, as a result of a qualified merger, qualified company split or qualified capital contribution in kind (referred to as a "qualified merger, etc." in paragraph (8)) in which another foreign corporation is the acquired corporation, splitting corporation or corporation making a capital contribution in kind (referred to as an "acquired corporation, etc." in paragraph (8)), the transfer of the whole or a part of the business pertaining to the permanent establishment of the other foreign corporation. In this case, the phrase "paragraph (2) and paragraph (3)" in paragraph (9) of that Article is deemed to be replaced with "Article 144-2, paragraph (2) and paragraph (3) (Foreign Tax Credit for Foreign Corporations)", the phrase "limitation on a creditable amount for the business year within preceding three years" with "limitation on a creditable amount prescribed in paragraph (1) of that Article (hereinafter referred to as the 'limitation on a creditable amount' in this paragraph and the following paragraph) for the business year within preceding three years prescribed in paragraph (2) of that Article (hereinafter referred to as the 'business year within preceding three years' in this paragraph and the following paragraph)", and the phrase "creditable amount of the foreign country's corporate tax" with "creditable amount of the foreign country's corporate tax prescribed in paragraph (1) of that Article (hereinafter referred to as the 'creditable amount of the foreign country's corporate tax' in this paragraph and the following paragraph)"; and the phrase "the preceding paragraph" in paragraph (10) of that Article is deemed to be replaced with "the preceding paragraph as applied mutatis mutandis pursuant to Article 144-2, paragraph (6)".

⑦The provisions of Article 69, paragraph (11) apply mutatis mutandis in the case where a foreign corporation that is a succeeding corporation in a company split or corporation receiving a capital contribution in kind involved in a qualified company split or qualified capital contribution in kind is subject to the provisions of paragraph (9) of that Article as applied mutatis mutandis pursuant to the preceding paragraph. In this case, the phrase "paragraph (2) and paragraph (3)" in paragraph (11) of that Article is deemed to be replaced with "Article 144-2, paragraph (2) and paragraph (3) (Foreign Tax Credit for Foreign Corporations)", the phrase "limitation on a creditable amount and the creditable amount of the foreign country's corporate tax" with "limitation on a creditable amount prescribed in paragraph (1) of that Article (hereinafter referred to as the 'limitation on a creditable amount' in this paragraph) and the creditable amount of the foreign country's corporate tax prescribed in paragraph (1) of that Article (hereinafter referred to as the 'creditable amount of the foreign country's corporate tax' in this paragraph)", the phrase "under paragraph (9)" with "under paragraph (9) as applied mutatis mutandis pursuant to paragraph (6) of that Article", the phrase "for each business year within preceding three years" with "for each business year within preceding three years prescribed in paragraph (2) of that Article (hereinafter referred to as a 'business year within preceding three years' in this paragraph)", and the phrase "under that paragraph" with "under paragraph (9) as applied mutatis mutandis pursuant to paragraph (6) of that Article".

⑧The application of the provisions of paragraphs (1) through (3) in the case where, in each business year of a foreign corporation that starts within seven years after the first day of the business year in which the provisions of paragraphs (1) through (3) have applied to the amount of the foreign country's corporate tax that the foreign corporation has come to pay (hereinafter referred to as the "applicable business year" in this paragraph), the amount of the foreign country's corporate tax has been reduced (in the case where the foreign corporation has received, as a result of a qualified merger, etc., the transfer of the whole or a part of the business pertaining to the permanent establishment of another foreign corporation that is an acquired corporation, etc., including the case where, in each business year of the foreign corporation that starts within seven years after the first day of the applicable business year of the acquired corporation, etc. pertaining to the amount of the foreign country's corporate tax that the acquired corporation, etc. has come to pay on income pertaining to the business transferred to the foreign corporation, 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 has been reduced) is as specified by Cabinet Order.

⑨The provisions of paragraphs (1) through (5), the provisions of Article 69, paragraph (9) and paragraph (10) as applied mutatis mutandis pursuant to paragraph (6), the provisions of paragraph (11) of that Article as applied mutatis mutandis pursuant to paragraph (7), and the provisions of the preceding paragraph do not apply to the creditable amount of the foreign country's corporate tax that an association or foundation without juridical personality which is a foreign corporation pays on income arising from a business other than its profit-making business or assets belonging thereto.

⑩The provisions of Article 69, paragraph (25), paragraph (26) and paragraph (28) apply mutatis mutandis in the case where a credit under the provisions of paragraphs (1) through (3) is made with regard to the creditable amount of the foreign country's corporate tax that a foreign corporation is to pay. In this case, the phrase "The provisions of paragraph (1)" in paragraph (25) of that Article is deemed to be replaced with "The provisions of Article 144-2, paragraph (1) (Foreign Tax Credit for Foreign Corporations)", the phrase "under the provisions of paragraph (1)" with "under the provisions of paragraph (1) of that Article", and the phrase "calculation of the creditable amount of the foreign country's corporate tax" with "calculation of the creditable amount of the foreign country's corporate tax prescribed in that paragraph (hereinafter referred to as the 'creditable amount of the foreign country's corporate tax' in this paragraph and the following paragraph)"; the phrase "paragraph (2) and paragraph (3)" in paragraph (26) of that Article is deemed to be replaced with "Article 144-2, paragraph (2) and paragraph (3)", the phrase "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" with "pertaining to the limitation on the creditable amount to be carried over prescribed in paragraph (2) of that Article (hereinafter referred to as the 'limitation on the creditable amount to be carried over' in this paragraph) or the creditable amount of the foreign country's corporate tax to be carried over prescribed in paragraph (3) of that Article (hereinafter referred to as the 'creditable amount of the foreign country's corporate tax to be carried over' in this paragraph)", and the phrase "stating the limitation on a creditable amount for each of the business years" with "stating the limitation on a creditable amount for each of the business years (meaning the limitation on a creditable amount prescribed in paragraph (1) of that Article; hereinafter the same applies in this paragraph)"; and the phrase "under the provisions of paragraphs (1) through (3) or paragraph (18)" in paragraph (28) of that Article is deemed to be replaced with "under the provisions of Article 144-2, paragraphs (1) through (3)", and the phrase "apply the provisions of paragraphs (1) through (3) or paragraph (18)" with "apply the provisions of paragraphs (1) through (3) of that Article".

⑪Beyond what is provided for in the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraphs (1) through (6) are specified by Cabinet Order.

①In the case where a foreign corporation having a permanent establishment receives payment of distributions of proceeds from a group investment trust in each business year (limited to the case where it receives payment of distributions of proceeds that fall under the category of income attributable to a permanent establishment), the amount equivalent to the amount specified by Cabinet Order as the portion, corresponding to the distributions of proceeds that the foreign 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 pertaining to income attributable to a permanent establishment 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 an association or foundation without juridical personality which is a foreign corporation.

③The provisions of Article 69-2, paragraph (3) (Credit for Amount Equivalent to the Foreign Tax Adjusted at Distribution) apply mutatis mutandis in the case where a credit under the provisions of paragraph (1) is made with regard to 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.

With regard to a credit against the amount of corporation tax pursuant to the provisions of the preceding three Articles, a credit under the provisions of the preceding Article is to be made first, and then a credit under the provisions of Article 68 (Income Tax Credit) as applied mutatis mutandis pursuant to Article 144 (Income Tax Credit for Foreign Corporations) and the provisions of Article 144-2 (Foreign Tax Credit for Foreign Corporations) is to be made.

①In the case where a business year of an ordinary corporation which is a foreign corporation having a permanent establishment (excluding the business year containing the day on which it became a foreign corporation having a permanent establishment; the same applies in Article 144-4, paragraph (1) (Matters to be Entered in Interim Return in the Case of Provisional Settlement of Accounts)) exceeds six months, the ordinary corporation must file a return containing the following matters with the district director, within two months after the day on which six months have elapsed on or after the first day of the business year (referred to as the "day on which six months have elapsed" in item (i)); provided, however, that it is not required to file the return in the case where the amount listed in that item is 100,000 yen or less or there is no such amount, or in the case where, within those two months, the ordinary corporation which is a foreign corporation having a permanent establishment ceases to have a permanent establishment without giving notification of its tax agent under the provisions of Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes.

②In the case where a business year of an ordinary corporation which is a foreign corporation not having a permanent establishment (excluding the business year containing the day following the day on which it became a foreign corporation not having a permanent establishment; the same applies in Article 144-4, paragraph (2)) exceeds six months, the ordinary corporation must file a return containing the following matters with the district director, within two months after the day on which six months have elapsed on or after the first day of the business year (referred to as the "day on which six months have elapsed" in item (i)); provided, however, that it is not required to file the return in the case where the amount listed in that item is 100,000 yen or less or there is no such amount, or in the case where, within those two months, the ordinary corporation which is a foreign corporation not having a permanent establishment discontinues the business prescribed in Article 138, paragraph (1), item (iv) (Domestic Source Income) that it conducts in Japan.

⑤The provisions of Article 71, paragraph (4) apply mutatis mutandis in the case where the provisions of the preceding paragraphs are applied.

⑥In the case where the due date for filing a return under Article 144-6, paragraph (1) or paragraph (2) for the previous business year prescribed in paragraph (1), item (i) or paragraph (2), item (i) has been extended by four months pursuant to the provisions of Article 75-2, paragraph (1) (Special Provisions on Extension of the Due Date for Filing a Tax Return) as applied mutatis mutandis pursuant to Article 144-8 (Special Provisions on Extension of the Due Date for Filing a Tax Return), and the provisions of Article 10, paragraph (2) (Computation of Periods and Special Provisions on Time Limits) of the Act on General Rules for National Taxes apply to the due date for filing the return, when the amount of corporation tax prescribed in paragraph (1), item (i) or paragraph (2), item (i) has become determined during the period from the day following the due date for filing the return that would apply if the provisions of that paragraph did not apply to the day deemed to be the due date for filing the return pursuant to the provisions of that paragraph, the provisions of the preceding paragraphs apply by deeming that the amount of corporation tax became determined by the day preceding the day on which six months have elapsed prescribed in paragraph (1) or paragraph (2).

In the case where, due to an extension of the due date concerning the filing of returns pursuant to the provisions of Article 11 (Extension of Time Limits due to Disasters and Similar Causes) of the Act on General Rules for National Taxes, the due date for filing an interim return of an ordinary corporation which is a foreign corporation and the due date for filing a return under Article 144-6, paragraph (1) or paragraph (2) (Final Returns) for the business year pertaining to the interim return fall on the same day, the ordinary corporation is not required to file the interim return, notwithstanding the provisions of the main clause of paragraph (1) or the main clause of paragraph (2) of the preceding Article.

①In the case where an ordinary corporation which is a foreign corporation having a permanent establishment (excluding a trust corporation prescribed in Article 4-3 (Application of This Act to Trust Corporations)) deems the period of six months on or after the first day of the business year as one business year and has calculated the amount of income or net operating loss pertaining to domestic source income specified in Article 141, item (i) (Tax Base), which is to be used as the tax base for the period, the ordinary corporation may file an interim return containing the following matters, in lieu of the matters listed in the items of Article 144-3, paragraph (1) (Interim Return); provided, however, that this does not apply in the case where it is not required to file an interim return pursuant to the proviso to that paragraph or the preceding Article (excluding the case where there is an amount of loss caused by a disaster prescribed in paragraph (5), item (i) or item (ii) that arose during the period) or in the case where the amount listed in item (vii) exceeds the amount listed in paragraph (1), item (i) of Article 144-3 calculated pursuant to the provisions of that Article.

②In the case where an ordinary corporation which is a foreign corporation not having a permanent establishment (excluding a trust corporation prescribed in Article 4-3) deems the period of six months on or after the first day of the business year as one business year and has calculated the amount of income or net operating loss pertaining to domestic source income specified in Article 141, item (ii), which is to be used as the tax base for the period, the ordinary corporation may file an interim return containing the following matters, in lieu of the matters listed in the items of Article 144-3, paragraph (2); provided, however, that this does not apply in the case where it is not required to file an interim return pursuant to the proviso to that paragraph or the preceding Article (excluding the case where there is an amount of loss caused by a disaster prescribed in paragraph (6), item (i) that arose during the period) or in the case where the amount listed in item (ii) exceeds the amount listed in paragraph (2), item (i) of Article 144-3 calculated pursuant to the provisions of that Article.

③An interim return containing the matters prescribed in the preceding two paragraphs must be attached with a balance sheet as of the last day of the period prescribed in those paragraphs, a profit and loss statement for the period, and other documents as specified by Ministry of Finance Order.

④With regard to the calculation of the amount of income or net operating loss pertaining to domestic source income listed in Article 141, item (i), (a), which is to be used as the tax base for the period prescribed in paragraph (1), and of the amount of corporation tax listed in item (iii) of that paragraph, of the amount of income or net operating loss pertaining to domestic source income listed in item (i), (b) of that Article, which is to be used as the tax base for the period prescribed in that paragraph, and of the amount of corporation tax listed in item (iv) of that paragraph, or of the amount of income or net operating loss pertaining to domestic source income specified in item (ii) of that Article, which is to be used as the tax base for the period prescribed in paragraph (2), and of the amount of corporation tax listed in item (ii) of that paragraph, the following provisions apply:

⑤In the case where there is an amount of loss caused by a disaster (meaning the amount of loss incurred with regard to inventory, Fixed Assets or deferred assets specified by Cabinet Order due to the disaster, which is specified by Cabinet Order; hereinafter the same applies in this paragraph and the following paragraph) that arose, due to a disaster (meaning an earthquake, storm, flood, fire or any other disaster specified by Cabinet Order; hereinafter the same applies in this paragraph and the following paragraph), during the period prescribed in paragraph (1) of a foreign corporation having a permanent establishment that ends during the period from the day on which the disaster occurred to the day on which six months will have elapsed on or after that day, the following matters may be entered in the interim return prescribed in paragraph (1), in addition to the matters listed in the items of that paragraph:

⑥In the case where there is an amount of loss caused by a disaster that arose, due to a disaster, during the period prescribed in paragraph (2) of a foreign corporation not having a permanent establishment that ends during the period from the day on which the disaster occurred to the day on which six months will have elapsed on or after that day, the following matters may be entered in the interim return prescribed in that paragraph, in addition to the matters listed in the items of that paragraph:

⑦Beyond what is provided for in paragraph (3), necessary matters concerning the calculation of the amount of income or net operating loss that is to be used as the tax base for the period prescribed in paragraph (1) or paragraph (2) and of the amount of corporation tax listed in paragraph (1), item (vii) or paragraph (2), item (ii) are specified by Cabinet Order.

In the case where an ordinary corporation, which is a foreign corporation and is to file an interim return, has failed to file the interim return by the due date, it is deemed that the ordinary corporation has filed an interim return containing the matters specified in the following items for the categories of ordinary corporations listed in the respective items with the district director by the due date, and the provisions of this Act apply:

①A foreign corporation having a permanent establishment must file a return containing the following matters with the district director, based on the final settlement of the accounts, within two months from the day following the last day of each business year (in the case where the foreign corporation ceases to have a permanent establishment without giving notification of its tax agent under the provisions of Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes, by the day preceding the day on which two months have elapsed from the day following the last day of the business year or the day on which it ceases to have a permanent establishment, whichever comes earlier); provided, however, that it is not required to file the return in the case where corporation tax is not to be imposed on the whole of the amount of income pertaining to the domestic source income prescribed in item (i) and item (ii) pursuant to the provisions of a tax treaty (meaning a treaty prescribed in the proviso to Article 2, item (xii)-19 (Definitions); the same applies in the following paragraph) or any other provisions specified by Cabinet Order.

②A foreign corporation not having a permanent establishment must file a return containing the following matters with the district director, based on the final settlement of the accounts, within two months from the day following the last day of each business year (in the case where the foreign corporation discontinues the business prescribed in Article 138, paragraph (1), item (iv) (Domestic Source Income) that it conducts in Japan, by the day preceding the day on which two months have elapsed from the day following the last day of the business year or the day of the discontinuance, whichever comes earlier); provided, however, that it is not required to file the return in the case where it does not have domestic source income specified in Article 141, item (ii), or in the case where corporation tax is not to be imposed on the whole of the amount of income pertaining to the domestic source income prescribed in item (i) pursuant to the provisions of a tax treaty or any other provisions specified by Cabinet Order.

③A return under the preceding two paragraphs must be attached with a balance sheet, a profit and loss statement for the business year, and other documents as specified by Ministry of Finance Order.

The provisions of Article 75 (Extension of the Due Date for Filing a Tax Return) apply mutatis mutandis in the case where it is found that a foreign corporation is unable to file a return under paragraph (1) or paragraph (2) of the preceding Article (excluding a return that is to be filed in the case where a foreign corporation having a permanent establishment ceases to have a permanent establishment without giving notification of its tax agent under the provisions of Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes or in the case where a foreign corporation not having a permanent establishment discontinues the business prescribed in Article 138, paragraph (1), item (iv) (Domestic Source Income) that it conducts in Japan) by the due date prescribed in paragraph (1) or paragraph (2) of the preceding Article because its accounts are not settled due to a disaster or any other unavoidable reason (excluding a reason for which it may receive the application of the provisions of Article 75-2, paragraph (1) (Special Provisions on Extension of the Due Date for Filing a Tax Return) as applied mutatis mutandis pursuant to the following Article).

The provisions of Article 75-2 (Special Provisions on Extension of the Due Date for Filing a Tax Return) apply mutatis mutandis to the due date for filing a return under Article 144-6, paragraph (1) or paragraph (2) (Final Returns) (excluding a return that is to be filed in the case where a foreign corporation having a permanent establishment ceases to have a permanent establishment without giving notification of its tax agent under the provisions of Article 117, paragraph (2) (Tax Agent) of the Act on General Rules for National Taxes or in the case where a foreign corporation not having a permanent establishment discontinues the business prescribed in Article 138, paragraph (1), item (iv) (Domestic Source Income) that it conducts in Japan) for each business year on or after the business year, in the case where it is found that, due to the provisions of the articles of incorporation, articles of endowment, rules, bylaws or any other equivalent documents of a foreign corporation, or due to special circumstances of the foreign corporation, an ordinary general meeting concerning the settlement of accounts for each business year is habitually not convened within two months from the day following the last day of each business year on or after the business year.

When an ordinary corporation, which is a foreign corporation and which has filed an interim return, holds any amount listed in Article 144-3, paragraph (1), item (i) (Interim Return) that it entered in the return (in the case where it has filed an interim return containing the matters listed in the items of Article 144-4, paragraph (1) (Matters to be Entered in Interim Return in the Case of Provisional Settlement of Accounts), the amount listed in item (vii) of that paragraph) or any amount listed in Article 144-3, paragraph (2), item (i) that it entered in the return (in the case where it has filed an interim return containing the matters listed in the items of Article 144-4, paragraph (2), the amount listed in item (ii) of that paragraph), it must pay corporation tax equivalent to these amounts to the State by the due date for filing the return.

When a foreign corporation, which has filed a return under Article 144-6, paragraph (1) or paragraph (2) (Final Returns), holds any amount listed in item (vii) of paragraph (1) of that Article that it entered in the return under that paragraph (in the case falling under the provisions of item (x) of that paragraph, the amount listed in that item) or any amount listed in item (ii) of paragraph (2) of that Article that it entered in the return under that paragraph (in the case falling under the provisions of item (iv) of that paragraph, the amount listed in that item), it must pay corporation tax equivalent to these amounts to the State by the due date for filing these returns.

①In the case where an interim return (limited to one containing the matters listed in the items of Article 144-4, paragraph (1) or the items of paragraph (2) of that Article (Matters to be Entered in Interim Return in the Case of Provisional Settlement of Accounts)) has been filed or a Final Return has been filed, when the return states any amount listed in paragraph (5), item (i) or item (ii) or paragraph (6), item (i) of that Article, or any amount listed in Article 144-6, paragraph (1), item (v) (Final Returns) (in the case falling under the provisions of item (viii) of that paragraph, the amount listed in that item), any amount listed in item (vi) of that paragraph (in the case falling under the provisions of item (ix) of that paragraph, the amount listed in that item) or any amount listed in paragraph (2), item (iii) of that Article, the district director refunds the amount of tax equivalent to these amounts to the foreign corporation that has filed the return.

②The provisions of Article 78, paragraph (2) (Refund of Income Tax) apply mutatis mutandis in the case of calculating interest on a refund with regard to a refund under the provisions of the preceding paragraph, and the provisions of paragraph (3) of that Article apply mutatis mutandis in the case of the appropriation of a refund under the provisions of the preceding paragraph for the unpaid portion of corporation tax on income pertaining to domestic source income specified in Article 141, item (i) or item (ii) (Tax Base) for the business year pertaining to the interim return set forth in that paragraph or the business year pertaining to the Final Return set forth in that paragraph, which was filed by the foreign corporation set forth in that paragraph.

③Procedures for a refund set forth in paragraph (1), methods for the appropriation of a refund (including interest on a refund related thereto) pursuant to the provisions of that paragraph, and other necessary matters concerning the application of the provisions of that paragraph are specified by Cabinet Order.

①In the case where an ordinary corporation, which is a foreign corporation and has filed an interim return, has filed a Final Return for the business year pertaining to the interim return, when the Final Return states any amount listed in Article 144-6, paragraph (1), item (xi) or paragraph (2), item (v) (Final Returns), the district director refunds the amount of interim payment equivalent to these amounts to the ordinary corporation.

②The provisions of Article 79, paragraph (2) (Refund of the Amount of Interim Payment) apply mutatis mutandis in the case where a refund under the provisions of the preceding paragraph is made; the provisions of paragraph (3) of that Article apply mutatis mutandis in the case of calculating interest on a refund with regard to a refund under the provisions of the preceding paragraph; the provisions of paragraph (4) of that Article apply mutatis mutandis in the case of the appropriation of a refund under the provisions of the preceding paragraph for the unpaid portion of corporation tax on income pertaining to domestic source income specified in Article 141, item (i) or item (ii) (Tax Base) for the business year pertaining to the amount of interim payment that was used as the basis of the calculation of the amount of the refund; and the provisions of Article 79, paragraph (5) apply mutatis mutandis to a refund under the provisions of paragraph (2) of that Article as applied mutatis mutandis pursuant to this paragraph.

③Procedures for a refund set forth in paragraph (1), methods for the appropriation of a refund (including interest on a refund related thereto) pursuant to the provisions of that paragraph, and other necessary matters concerning the application of the provisions of the preceding two paragraphs are specified by Cabinet Order.

①In the case where there is a net operating loss listed in any of the following items that arose in a business year for which a foreign corporation having a permanent establishment files a Final Return that is a Blue Return (excluding the case falling under the provisions of paragraph (9) or paragraph (10)), the foreign corporation may claim, at the same time as filing the Final Return, from the competent district director with jurisdiction over the place for tax payment, a refund of the corporation tax equivalent to the amount specified in the relevant item:

②In the case where there is a net operating loss pertaining to domestic source income specified in Article 141, item (ii) that arose in a business year for which a foreign corporation not having a permanent establishment files a Final Return that is a Blue Return (excluding the case falling under the provisions of paragraph (10)), the foreign corporation may claim, at the same time as filing the Final Return, from the competent district director with jurisdiction over the place for tax payment, a refund of the corporation tax equivalent to the amount calculated by multiplying the amount of corporation tax (excluding the amount of penalty tax, and, in the case where there is any amount credited pursuant to the provisions of Article 68 as applied mutatis mutandis pursuant to Article 144, the amount obtained by adding that amount; hereinafter the same applies in this Article) on income pertaining to domestic source income specified in that item for any business year that started within one year before the first day of the business year in which the net operating loss arose (hereinafter referred to as the "business year showing a loss" in this paragraph) by the ratio, to the amount of income pertaining to domestic source income specified in that item for that business year (hereinafter referred to as the "business year with refunds" in this paragraph), of the amount equivalent to the net operating loss for the business year showing a loss (excluding that which serves as the basis of the calculation of the amount to be refunded with regard to the amount of corporation tax on income pertaining to domestic source income specified in that item for the business year with refunds pursuant to the provisions of this paragraph as applied mutatis mutandis pursuant to paragraph (11), and that which serves as the basis of the calculation of the amount to be refunded with regard to the amount of corporation tax on income pertaining to domestic source income specified in that item for another business year with refunds pursuant to the provisions of this Article).

③In the case referred to in paragraph (1), item (i), when the provisions of this Article have already been applied to the amount of corporation tax on income pertaining to domestic source income listed in Article 141, item (i), (a) for the business year with refunds prescribed in that item, the amount that remains after crediting the amount already refunded pursuant to these provisions against the amount is deemed to be the amount of corporation tax, and the amount that remains after deducting the net operating loss pertaining to the application of these provisions from the amount equivalent to the amount of income pertaining to domestic source income listed in item (i), (a) of that Article for the business year with refunds is deemed to be the amount of income pertaining to domestic source income listed in item (i), (a) of that Article for the business year with refunds, and thereby the provisions of that paragraph (limited to the part pertaining to item (i)) apply.

④In the case referred to in paragraph (1), item (ii), when the provisions of this Article have already been applied to the amount of corporation tax on income pertaining to domestic source income listed in Article 141, item (i), (b) for the business year with refunds prescribed in that item, the amount that remains after crediting the amount already refunded pursuant to these provisions against the amount is deemed to be the amount of corporation tax, and the amount that remains after deducting the net operating loss pertaining to the application of these provisions from the amount equivalent to the amount of income pertaining to domestic source income listed in item (i), (b) of that Article for the business year with refunds is deemed to be the amount of income pertaining to domestic source income listed in item (i), (b) of that Article for the business year with refunds, and thereby the provisions of that paragraph (limited to the part pertaining to item (ii)) apply.

⑤In the case referred to in paragraph (2), when the provisions of this Article have already been applied to the amount of corporation tax on income pertaining to domestic source income specified in Article 141, item (ii) for the business year with refunds prescribed in that paragraph, the amount that remains after crediting the amount already refunded pursuant to these provisions against the amount is deemed to be the amount of corporation tax, and the amount that remains after deducting the net operating loss pertaining to the application of these provisions from the amount equivalent to the amount of income pertaining to domestic source income specified in that item for the business year with refunds is deemed to be the amount of income pertaining to domestic source income specified in that item for the business year with refunds, and thereby the provisions of that paragraph apply.

⑥The provisions of paragraph (1) (limited to the part pertaining to item (i)) apply only in the case where the foreign corporation set forth in that paragraph has consecutively filed Final Returns that are Blue Returns for each business year from the business year with refunds prescribed in that item to the previous business year of the business year showing a loss prescribed in that item (excluding a business year for which it is not required to file a Final Return pursuant to the proviso to Article 144-6, paragraph (1) (Final Returns)), and has filed a Final Return that is a Blue Return (excluding a return filed after the due date) for the business year showing a loss by its due date (in the case where the district director finds that there are unavoidable circumstances, including the case where it has filed a Final Return that is a Blue Return for the business year showing a loss after its due date).

⑦The provisions of paragraph (1) (limited to the part pertaining to item (ii)) apply only in the case where the foreign corporation set forth in that paragraph has consecutively filed Final Returns that are Blue Returns for each business year from the business year with refunds prescribed in that item to the previous business year of the business year showing a loss prescribed in that item (excluding a business year for which it is not required to file a Final Return pursuant to the proviso to Article 144-6, paragraph (1)), and has filed a Final Return that is a Blue Return (excluding a return filed after the due date) for the business year showing a loss by its due date (in the case where the district director finds that there are unavoidable circumstances, including the case where it has filed a Final Return that is a Blue Return for the business year showing a loss after its due date).

⑧The provisions of paragraph (2) apply only in the case where the foreign corporation set forth in that paragraph has consecutively filed Final Returns that are Blue Returns for each business year from the business year with refunds prescribed in that paragraph to the previous business year of the business year showing a loss prescribed in that paragraph (excluding a business year for which it is not required to file a Final Return pursuant to the proviso to Article 144-6, paragraph (2)), and has filed a Final Return that is a Blue Return (excluding a return filed after the due date) for the business year showing a loss by its due date (in the case where the district director finds that there are unavoidable circumstances, including the case where it has filed a Final Return that is a Blue Return for the business year showing a loss after its due date).

⑨The provisions of paragraph (1) (limited to the part pertaining to item (i)) and paragraph (3) apply mutatis mutandis in the case where, with regard to the foreign corporation set forth in paragraph (1), a dissolution (excluding a dissolution due to a qualified merger), transfer of the whole of its business, commencement of reorganization proceedings or any other fact equivalent thereto that is specified by Cabinet Order has occurred, when there is a net operating loss prescribed in that item (excluding that which was included in deductible expenses in the calculation of the amount of income pertaining to domestic source income listed in Article 141, item (i), (a) for each business year in the case of calculating in accordance with the provisions of Article 57, paragraph (1) (Carryover of Losses) pursuant to the provisions of Article 142, paragraph (2) (Calculation of the Amount of Income Pertaining to Income Attributable to a Permanent Establishment), and that which is specified by Cabinet Order) that arose in any business year that ended within one year before the day on which the fact occurred or in the business year containing that day. In this case, the phrase "at the same time as filing the Final Return" in paragraph (1) is deemed to be replaced with "within one year on or after the day on which the fact prescribed in paragraph (9) occurred", and the phrase "may claim" with "may claim; provided, however, that with regard to the amount listed in item (i), this is limited to the case where it has consecutively filed Final Returns that are Blue Returns for each business year from the business year with refunds prescribed in that item to the business year showing a loss prescribed in that item (excluding a business year for which it is not required to file a Final Return pursuant to the proviso to Article 144-6, paragraph (1) (Final Returns))".

⑩The provisions of paragraph (1) (limited to the part pertaining to item (ii)) and paragraph (4), or paragraph (2) and paragraph (5), apply mutatis mutandis in the case where, with regard to a foreign corporation, a dissolution (excluding a dissolution due to a qualified merger), transfer of the whole of its business, commencement of reorganization proceedings or any other fact equivalent thereto that is specified by Cabinet Order has occurred, when there is a net operating loss prescribed in that item or paragraph (2) (excluding that which was included in deductible expenses in the calculation of the amount of income pertaining to domestic source income listed in Article 141, item (i), (b) or specified in item (ii) of that Article for each business year in the case of calculating in accordance with the provisions of Article 57, paragraph (1) pursuant to the provisions of Article 142, paragraph (2) as applied in accordance with the provisions of Article 142-10 (Calculation of the Amount of Income Pertaining to Other Domestic Source Income), and that which is specified by Cabinet Order) that arose in any business year that ended within one year before the day on which the fact occurred or in the business year containing that day. In this case, the phrase "at the same time as filing the Final Return" in paragraph (1) is deemed to be replaced with "within one year on or after the day on which the fact prescribed in that paragraph occurred", and the phrase "may claim" with "may claim; provided, however, that with regard to the amount listed in item (ii), this is limited to the case where it has consecutively filed Final Returns that are Blue Returns for each business year from the business year with refunds prescribed in that item to the business year showing a loss prescribed in that item (excluding a business year for which it is not required to file a Final Return pursuant to the proviso to Article 144-6, paragraph (1) (Final Returns))"; and the phrase "at the same time as filing the Final Return" in paragraph (2) is deemed to be replaced with "within one year on or after the day on which the fact prescribed in that paragraph occurred", and the phrase "may claim" with "may claim; provided, however, that this is limited to the case where it has consecutively filed Final Returns that are Blue Returns for each business year from the business year with refunds to the business year showing a loss (excluding a business year for which it is not required to file a Final Return pursuant to the proviso to Article 144-6, paragraph (2))".

⑪The provisions of paragraphs (1) through (8) apply mutatis mutandis in the case where there is a net operating loss caused by a disaster (meaning, out of the net operating loss listed in Article 144-6, paragraph (1), item (i) or item (ii) or paragraph (2), item (i) (Final Returns) or the net operating loss listed in Article 144-4, paragraph (1), item (i) or item (ii) or paragraph (2), item (i) that arose in a business year or interim period, the amount up to the amount of loss incurred with regard to inventory, Fixed Assets or deferred assets specified by Cabinet Order due to a disaster, which is specified by Cabinet Order (in the case where there is any amount that has already served as the basis of the calculation of the amount to be refunded through the filing of an interim return based on provisional accounts, the amount after deducting that amount)) that arose, due to a disaster (meaning an earthquake, storm, flood, fire or any other disaster specified by Cabinet Order; hereinafter the same applies in this paragraph), in each business year of a foreign corporation that ends during the period from the day on which the disaster occurred to the day on which one year will have elapsed on or after that day, or in an interim period (meaning the period prescribed in Article 144-4, paragraph (1) (Matters to be Entered in Interim Return in the Case of Provisional Settlement of Accounts) or the period prescribed in paragraph (2) of that Article, in the case where an interim return containing the matters listed in the items of paragraph (1) of that Article for the period prescribed in that paragraph or the matters listed in the items of paragraph (2) of that Article for the period prescribed in that paragraph (hereinafter referred to as an "interim return based on provisional accounts" in this paragraph) is filed; hereinafter the same applies in this paragraph) of the foreign corporation that ends during the period from the day on which the disaster occurred to the day on which six months will have elapsed on or after that day. In this case, the phrase "the Final Return" in paragraph (1) is deemed to be replaced with "the Final Return for the relevant business year, or, for the interim period concerned (meaning an interim period prescribed in paragraph (11); hereinafter the same applies through paragraph (8)), the interim return based on provisional accounts (meaning an interim return based on provisional accounts prescribed in paragraph (11); hereinafter the same applies through paragraph (8))"; the phrase "the business year in which the net operating loss arose" in item (i) of that paragraph is deemed to be replaced with "the business year or interim period in which the net operating loss caused by a disaster (meaning a net operating loss caused by a disaster prescribed in paragraph (11); hereinafter the same applies through paragraph (8)) arose", the phrase "within one year before" with "within one year (in the case where the Final Return or the interim return based on provisional accounts for the business year showing a loss is a Blue Return, two years) before", and the phrase "net operating loss for the business year showing a loss (excluding that which serves as the basis of the calculation of the amount to be refunded with regard to the amount of corporation tax on income pertaining to domestic source income listed in item (i), (a) of that Article for the business year with refunds pursuant to the provisions of this paragraph as applied mutatis mutandis pursuant to paragraph (11), and that which" with "net operating loss caused by a disaster for the business year showing a loss (excluding that which"; the phrase "the business year in which the net operating loss arose" in item (ii) of that paragraph is deemed to be replaced with "the business year or interim period in which the net operating loss caused by a disaster arose", the phrase "within one year before" with "within one year (in the case where the Final Return or the interim return based on provisional accounts for the business year showing a loss is a Blue Return, two years) before", and the phrase "net operating loss for the business year showing a loss (excluding that which serves as the basis of the calculation of the amount to be refunded with regard to the amount of corporation tax on income pertaining to domestic source income listed in item (i), (b) of that Article for the business year with refunds pursuant to the provisions of this paragraph as applied mutatis mutandis pursuant to paragraph (11), and that which" with "net operating loss caused by a disaster for the business year showing a loss (excluding that which"; the phrase "the Final Return" in paragraph (2) is deemed to be replaced with "the Final Return for the relevant business year, or, for the interim period concerned, the interim return based on provisional accounts", the phrase "the business year in which the net operating loss arose" with "the business year or interim period in which the net operating loss caused by a disaster arose", the phrase "within one year before" with "within one year (in the case where the Final Return or the interim return based on provisional accounts for the business year showing a loss is a Blue Return, two years) before", and the phrase "net operating loss for the business year showing a loss (excluding that which serves as the basis of the calculation of the amount to be refunded with regard to the amount of corporation tax on income pertaining to domestic source income specified in that item for the business year with refunds pursuant to the provisions of this paragraph as applied mutatis mutandis pursuant to paragraph (11), and that which" with "net operating loss caused by a disaster for the business year showing a loss (excluding that which"; in paragraph (6) and paragraph (7), the phrase "consecutively filed Final Returns that are Blue Returns" is deemed to be replaced with "consecutively filed Final Returns", and the phrase "has filed a Final Return that is a Blue Return (excluding a return filed after the due date) for the business year showing a loss by its due date (in the case where the district director finds that there are unavoidable circumstances, including the case where it has filed a Final Return that is a Blue Return for the business year showing a loss after its due date)" with "has filed a Final Return for the business year showing a loss (where it receives the application of the provisions of paragraph (1) (limited to the part pertaining to that item) with regard to a net operating loss caused by a disaster that arose in an interim period, where it has filed the interim return based on provisional accounts for the interim period concerned)"; and in paragraph (8), the phrase "consecutively filed Final Returns that are Blue Returns" is deemed to be replaced with "consecutively filed Final Returns", and the phrase "has filed a Final Return that is a Blue Return (excluding a return filed after the due date) for the business year showing a loss by its due date (in the case where the district director finds that there are unavoidable circumstances, including the case where it has filed a Final Return that is a Blue Return for the business year showing a loss after its due date)" with "has filed a Final Return for the business year showing a loss (where it receives the application of the provisions of paragraph (2) with regard to a net operating loss caused by a disaster that arose in an interim period, where it has filed the interim return based on provisional accounts for the interim period concerned)".

⑫A foreign corporation that intends to make a claim for a refund under the provisions of paragraph (1) (including as applied mutatis mutandis pursuant to the preceding three paragraphs) or paragraph (2) (including as applied mutatis mutandis pursuant to the preceding two paragraphs) must submit a refund claim form stating the amount of corporation tax for which it seeks the refund, the basis of the calculation thereof and other matters specified by Ministry of Finance Order to the competent district director with jurisdiction over the place for tax payment.

⑬The provisions of Article 80, paragraph (10) (Refund by Carryback of Loss) apply mutatis mutandis in the case where a refund claim form set forth in the preceding paragraph has been submitted, and the provisions of paragraph (11) of that Article apply mutatis mutandis in the case of calculating interest on a refund with regard to a refund under the provisions of paragraph (10) of that Article as applied mutatis mutandis pursuant to this paragraph.