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Supplementary Provisions, Article 21Transitional Measures Concerning the Definition of Permanent Establishment Pertaining to Foreign Corporations

第二十一条(外国法人に係る恒久的施設の定義に関する経過措置)

The provisions of Article 2, item (xii)-19 of the New Corporation Tax Act apply to corporation tax on income for business years of foreign corporations that begin on or after January 1, 2019, and with regard to corporation tax on income for business years of foreign corporations that began before that date, the provisions then in force continue to govern.

新法人税法第二条第十二号の十九の規定は、外国法人の平成三十一年一月一日以後に開始する事業年度の所得に対する法人税について適用し、外国法人の同日前に開始した事業年度の所得に対する法人税については、なお従前の例による。

With regard to the application of the provisions of the Corporation Tax Act, the Local Corporation Tax Act and the Act on Special Measures Concerning Taxation to a foreign corporation that had a former permanent establishment (meaning a foreign corporation that had, as of December 31, 2018, a permanent establishment prescribed in prior to the amendment by the provisions of (hereinafter referred to as "the Former Corporation Tax Act") (hereinafter referred to as a "former permanent establishment" in this paragraph) and that did not have anything that falls under a permanent establishment prescribed in Article 2, item (xii)-19 of the New Corporation Tax Act (hereinafter referred to as a "new permanent establishment" in this paragraph and the following paragraph)) or to a foreign corporation that had no former permanent establishment (meaning a foreign corporation that did not have a former permanent establishment as of that date and that had anything that falls under a new permanent establishment; the same applies in the following paragraph) in the case where the provisions of Article 2, item (xii)-19 of the New Corporation Tax Act apply pursuant to the provisions of the preceding paragraph, the terms set forth in the middle column of the following table in the provisions set forth in the left-hand column of that table are deemed to be replaced with the terms set forth in the right-hand column of that table.

Article 10-3, paragraph (3) of the Corporation Tax Actforeign corporation that has a permanent establishmentforeign corporation that had a former permanent establishment (meaning a foreign corporation that had a former permanent establishment prescribed in Article 21, paragraph (2) of the Supplementary Provisions (Transitional Measures Concerning the Definition of Permanent Establishment Pertaining to Foreign Corporations) of the Act Partially Amending the Income Tax Act, etc. (Act No. 7 of 2018; hereinafter referred to as the "Amending Act"); the same applies hereinafter)
that foreign corporationthat foreign corporation that had a former permanent establishment
the day on which it comes to have no permanent establishmentthe day preceding the day on which it comes to have no permanent establishment
Article 10-3, paragraph (4) of the Corporation Tax Actforeign corporation that has no permanent establishmentforeign corporation that has no permanent establishment (including a foreign corporation that had no former permanent establishment (meaning a foreign corporation that had no former permanent establishment prescribed in Article 21, paragraph (2) of the Supplementary Provisions of the Amending Act; the same applies hereinafter); the same applies hereinafter in this paragraph)
had a permanent establishment inhad a permanent establishment prescribed in prior to the amendment by the provisions of of the Amending Act (hereinafter referred to as a "former permanent establishment") in
that foreign corporationthat foreign corporation that has no permanent establishment
Article 14, paragraph (1), item (xxiii) of the Corporation Tax Actthat has no permanent establishmentthat had no former permanent establishment
Article 14, paragraph (1), item (xxiv) of the Corporation Tax Actthat has a permanent establishmentthat had a former permanent establishment
until the day on which it came tountil the day preceding the day on which it came to
from the day following the dayfrom the day
Article 142-8, paragraph (1) of the Corporation Tax Actthat has a permanent establishmentthat had a former permanent establishment
of the permanent establishmentof the former permanent establishment
of the dayof the day preceding the day
to the permanent establishmentto the former permanent establishment
, that foreign corporation, that foreign corporation that had a former permanent establishment
Article 144-3, paragraph (1) of the Corporation Tax Actis a foreign corporation that has a permanent establishmentis a foreign corporation that had a former permanent establishment
(permanent establishment(former permanent establishment
Article 144-6, paragraph (1) of the Corporation Tax Actthat has a permanent establishmentthat had a former permanent establishment
(that foreign corporation(that foreign corporation that had a former permanent establishment
Articles 144-7 and 144-8 of the Corporation Tax Actthat has a permanent establishmentthat had a former permanent establishment
Article 149, paragraph (1) of the Corporation Tax Actan ordinary corporation that is a foreign corporation that has no permanent establishment comes to have a permanent establishmentan ordinary corporation that is a foreign corporation that had no former permanent establishment comes to have a permanent establishment
foreign corporation that has a permanent establishmentforeign corporation that had a former permanent establishment prescribed in Article 21, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 7 of 2018)
Article 68-3-4, paragraph (3) of the Act on Special Measures Concerning Taxationforeign corporation that has a permanent establishmentforeign corporation that had a former permanent establishment prescribed in Article 21, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 7 of 2018; hereinafter referred to as the "Amending Act")
that foreign corporationthat foreign corporation that had a former permanent establishment
the day on which it comes to have no permanent establishmentthe day preceding the day on which it comes to have no permanent establishment
Article 68-3-4, paragraph (4) of the Act on Special Measures Concerning Taxationforeign corporation that has no permanent establishmentforeign corporation that has no permanent establishment (including a foreign corporation that had no former permanent establishment prescribed in Article 21, paragraph (2) of the Supplementary Provisions of the Amending Act; the same applies hereinafter in this paragraph)
had a permanent establishment inhad a permanent establishment prescribed in prior to the amendment by the provisions of of the Amending Act in
that foreign corporationthat foreign corporation that has no permanent establishment

前項の規定により新法人税法第二条第十二号の十九の規定の適用がある場合における旧恒久的施設を有していた外国法人(平成三十年十二月三十一日においての規定による改正前の法人税法(以下「旧法人税法」という。)に規定する恒久的施設(以下この項において「旧恒久的施設」という。)を有していた外国法人であって、新法人税法第二条第十二号の十九に規定する恒久的施設(以下この項及び次項において「新恒久的施設」という。)に該当するものを有していなかったものをいう。)又は旧恒久的施設を有していなかった外国法人(同日において旧恒久的施設を有していなかった外国法人であって、新恒久的施設に該当するものを有していたものをいう。次項において同じ。)に係る法人税法、地方法人税法及び租税特別措置法の規定の適用については、次の表の上欄に掲げる規定中同表の中欄に掲げる字句は、同表の下欄に掲げる字句とする。

法人税法第十条の三第三項恒久的施設を有する外国法人旧恒久的施設を有していた外国法人(所得税法等の一部を改正する法律(平成三十年法律第七号。以下「改正法」という。)附則第二十一条第二項(外国法人に係る恒久的施設の定義に関する経過措置)に規定する旧恒久的施設を有していた外国法人をいう。以下同じ。)
当該当該旧恒久的施設を有していた
なる日なる日の前日
法人税法第十条の三第四項有しない外国法人有しない外国法人(旧恒久的施設を有していなかつた外国法人(改正法附則第二十一条第二項に規定する旧恒久的施設を有していなかつた外国法人をいう。以下同じ。)を含む。以下この項において同じ。)
おいて恒久的施設おいての規定による改正前の(定義)に規定する恒久的施設(以下「旧恒久的施設」という。)
当該外国法人当該恒久的施設を有しない外国法人
恒久的施設を有しない旧恒久的施設を有していなかつた
恒久的施設を有する旧恒久的施設を有していた
なつた日までなつた日の前日まで
の翌日からから
法人税法第百四十二条の八第一項恒久的施設を有する旧恒久的施設を有していた
恒久的施設の旧恒久的施設の
日の日の前日の
恒久的施設に旧恒久的施設に
、当該、当該旧恒久的施設を有していた
法人税法第百四十四条の三第一項恒久的施設を有する外国法人である旧恒久的施設を有していた外国法人である
(恒久的施設(旧恒久的施設
法人税法第百四十四条の六第一項恒久的施設を有する旧恒久的施設を有していた
(当該(当該旧恒久的施設を有していた
法人税法第百四十四条の七及び第百四十四条の八恒久的施設を有する旧恒久的施設を有していた
法人税法第百四十九条第一項恒久的施設を有しない外国法人である普通法人が恒久的施設旧恒久的施設を有していなかつた外国法人である普通法人が恒久的施設
恒久的施設を有する外国法人所得税法等の一部を改正する法律(平成三十年法律第七号)附則第二十一条第二項に規定する旧恒久的施設を有していた外国法人
租税特別措置法第六十八条の三の四第三項恒久的施設を有する外国法人所得税法等の一部を改正する法律(平成三十年法律第七号。以下「改正法」という。)附則第二十一条第二項に規定する旧恒久的施設を有していた外国法人
当該当該旧恒久的施設を有していた
なる日なる日の前日
租税特別措置法第六十八条の三の四第四項有しない外国法人有しない外国法人(改正法附則第二十一条第二項に規定する旧恒久的施設を有していなかつた外国法人を含む。以下この項において同じ。)
おいておいての規定による改正前のに規定する
当該当該恒久的施設を有しない

In the case where the provisions of Article 2, item (xii)-19 of the New Corporation Tax Act apply pursuant to the provisions of paragraph (1), when a foreign corporation that had no former permanent establishment has come to have a new permanent establishment on January 1, 2019, with regard to the portion of the redemption gains (meaning redemption gains prescribed in Article 67-17, paragraph (4) of the Act on Special Measures Concerning Taxation; the same applies hereinafter in this paragraph) on discount bonds (meaning discount bonds prescribed in Article 41-12-2, paragraph (6), item (i) of the Act on Special Measures Concerning Taxation; the same applies hereinafter in this paragraph) issued before that date by that foreign corporation that had no former permanent establishment which is specified by Cabinet Order as pertaining to the business conducted through that new permanent establishment, the provisions of the Corporation Tax Act and other laws and regulations concerning corporation tax apply by deeming that portion not to fall under the redemption gains on discount bonds that are deemed to be domestic source income listed in Article 138, paragraph (1), item (ii) of the Corporation Tax Act pursuant to the provisions of Article 67-17, paragraph (4) of the Act on Special Measures Concerning Taxation.

第一項の規定により新法人税法第二条第十二号の十九の規定の適用がある場合において、旧恒久的施設を有していなかった外国法人が平成三十一年一月一日において新恒久的施設を有することとなったときにおける当該旧恒久的施設を有していなかった外国法人の同日前に発行した割引債(租税特別措置法第四十一条の十二の二第六項第一号に規定する割引債をいう。以下この項において同じ。)の償還差益(租税特別措置法第六十七条の十七第四項に規定する償還差益をいう。以下この項において同じ。)のうち、当該新恒久的施設を通じて行う事業に係るものとして政令で定めるものについては、租税特別措置法第六十七条の十七第四項の規定により法人税法第百三十八条第一項第二号に掲げる国内源泉所得とみなされる割引債の償還差益に該当しないものとみなして、その他法人税に関する法令の規定を適用する。

Beyond what is provided for in the preceding two paragraphs, necessary matters concerning the application of the provisions of laws and regulations concerning corporation tax in the case where the provisions of Article 2, item (xii)-19 of the New Corporation Tax Act apply pursuant to the provisions of paragraph (1) are specified by Cabinet Order.

前二項に定めるもののほか、第一項の規定により新法人税法第二条第十二号の十九の規定の適用がある場合における法人税に関する法令の規定の適用に関し必要な事項は、政令で定める。

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