Article 170Special Provisions on Capital Gains upon Departure from Japan

①The Securities specified by Cabinet Order prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains upon Departure from Japan) of the Act are the following Securities that are to give rise to the income listed in Article 161, paragraph (1), item (xii) (Domestic Source Income) of the Act:

②The things specified by Cabinet Order as equivalent to a transfer prescribed in Article 60-2, paragraph (4) of the Act are the transfer or extinguishment of rights corresponding to the amount of money and the value of assets other than money, with regard to the shares, etc. prescribed in Article 37-10, paragraph (2) of the Act on Special Measures Concerning Taxation, based on the grounds prescribed in the items of Article 37-10, paragraph (3) or (4) of that Act or in the items of Article 37-11, paragraph (4) of that Act that gave rise to the delivery of money and assets other than money the sum of whose amount and value is deemed, under Article 37-10, paragraph (3) or (4) (Special Provisions on Taxation of Capital Gains, etc. on General Shares, etc.) or Article 37-11, paragraph (3) or (4) (Special Provisions on Taxation of Capital Gains, etc. on Listed Shares, etc.) of that Act, to be revenue pertaining to capital gains, etc. on general shares, etc. prescribed in Article 37-10, paragraph (1) of that Act or capital gains, etc. on listed shares, etc. prescribed in Article 37-11, paragraph (1) of that Act.

③The period specified by Cabinet Order as the period of having a domicile or residence in Japan prescribed in Article 60-2, paragraph (5) of the Act is the following periods:

④The transfers specified by Cabinet Order prescribed in Article 60-2, paragraph (8) of the Act are the following transfers:

⑤The grounds specified by Cabinet Order prescribed in Article 60-2, paragraph (8), item (i) of the Act are the grounds listed in the following items, and the amount calculated as specified by Cabinet Order prescribed in item (i) of that paragraph is the amount calculated by multiplying, by the number of Securities and similar interests for which the transfer or the gift or inheritance with limited liability under item (i) of that paragraph occurred, the amount specified in each of the following items according to the category of the grounds listed in those items that arose with respect to the Securities and similar interests that the individual prescribed in that paragraph held at the time of the departure from Japan (where there are Securities and similar interests acquired after the time of the departure from Japan by the grounds listed in those items, those Securities and similar interests), pertaining to the Securities and similar interests acquired by the grounds listed in those items or held continuously from before the time when those grounds arose; in this case, after the time when those grounds arose with respect to the Securities and similar interests, the amount specified in those items is deemed to be the value at departure from Japan prescribed in those items pertaining to those Securities and similar interests.

⑥Where calculation is made in accordance with the provisions of Article 110, Article 111, paragraph (2), Article 112, Article 113, paragraphs (1) through (3), (6), and (7), Article 113-2, paragraphs (1) and (2), Article 114, paragraphs (1), (3), (4), and (6), Article 115, and Article 116 pursuant to the provisions of items (iii) through (xvi) of the preceding paragraph, the phrase "acquisition price per share (per unit for capital contributions and investment units; the same applies hereinafter in this Division) of the shares held after the split or consolidation that forms the basis for that calculation is to be the amount calculated by multiplying the previous acquisition price of one old share" in Article 110, paragraph (1) is deemed to be replaced with "value at departure from Japan prescribed in Article 170, paragraph (5), item (iii) (Special Provisions on Capital Gains upon Departure from Japan) (hereinafter referred to as "value at departure from Japan") per share (per unit for capital contributions and investment units; the same applies hereinafter in this Division) of the shares held after the split or consolidation that forms the basis for that calculation is to be the amount calculated by multiplying the previous value at departure from Japan of one old share"; the term "acquisition price" in paragraph (2) of that Article and Article 111, paragraph (2) is deemed to be replaced with "value at departure from Japan"; the phrase "acquisition price per share of the acquired shares of the acquiring corporation (hereinafter in this paragraph referred to as "acquiring corporation shares") or shares of the parent corporation of the acquiring corporation (hereinafter in this paragraph referred to as "shares of the parent corporation of the acquiring corporation") that forms the basis for that calculation is to be the amount calculated by dividing the previous acquisition price of one old share (if there is an amount deemed to have been received as a dividend of surplus, dividend of profits, distribution of surplus, or distribution of monies pursuant to Article 25, paragraph (1), item (i) (Deemed Dividends in the Case of a Merger) of the Act, or an amount of expenses required for the acquisition of those acquiring corporation shares or shares of the parent corporation of the acquiring corporation, the amount obtained by adding the portion of that amount deemed to have been received and that amount of expenses that corresponds to one old share)" in Article 112, paragraph (1) is deemed to be replaced with "value at departure from Japan per share of the acquired shares of the acquiring corporation (hereinafter in this paragraph referred to as "acquiring corporation shares") or shares of the parent corporation of the acquiring corporation (hereinafter in this paragraph referred to as "shares of the parent corporation of the acquiring corporation") that forms the basis for that calculation is to be the amount calculated by dividing the previous value at departure from Japan of one old share"; the phrase "acquisition price per share of the shares held that serves as the basis of that calculation is" in paragraph (2) of that Article is deemed to be replaced with "value at departure from Japan per share of the shares held that serves as the basis of that calculation is", "acquisition price of one of the shares held" with "value at departure from Japan of one of the shares held", "held immediately before that merger without consideration" with "held at the time of the departure from Japan prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains upon Departure from Japan) of the Act", "acquisition price of one old share (meaning" with "value at departure from Japan of one old share (meaning", and "the same applies hereinafter in this paragraph) (where there is an amount deemed to have been received as a dividend of surplus, dividend of profits, or distribution of surplus pursuant to Article 25, paragraph (1), item (i) of the Act, the amount obtained by adding the portion of that amount deemed to have been received that corresponds to one old share)" with "the same applies hereinafter in this paragraph)"; the phrase "acquisition price per unit of the acquired beneficial interest in the consolidated Investment Trust, etc. that serves as the basis of that calculation is the amount calculated by dividing the previous acquisition price of one unit of the old beneficial interest (where there is an amount of expenses required for the acquisition of that beneficial interest in the consolidated Investment Trust, etc., the amount obtained by adding the portion of that amount of expenses that corresponds to one unit of the old beneficial interest)" in paragraph (3) of that Article is deemed to be replaced with "value at departure from Japan per unit of the acquired beneficial interest in the consolidated Investment Trust, etc. that serves as the basis of that calculation is the amount calculated by dividing the previous value at departure from Japan of one unit of the old beneficial interest"; the term "acquisition price" in Article 113, paragraph (1) is deemed to be replaced with "value at departure from Japan", and the phrase "acquired for one of the shares held (where there is an amount deemed to have been received as a dividend of surplus or dividend of profits pursuant to Article 25, paragraph (1), item (ii) (Deemed Dividends in the Case of a Company Split by Split-Off) of the Act, or an amount of expenses required for the acquisition of those shares in the succeeding corporation in a company split or shares in the succeeding parent corporation in a company split, the amount obtained by adding the portion of the amount deemed to have been received and the amount of expenses that corresponds to one share in the succeeding corporation in a company split or one share in the succeeding parent corporation in a company split)" with "acquired for one of the shares held"; the term "acquisition price" in paragraph (2) of that Article is deemed to be replaced with "value at departure from Japan", "held immediately before that company split by split-off without consideration" with "held at the time of the departure from Japan prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains upon Departure from Japan) of the Act", and "amount (where there is an amount deemed to have been received as a dividend of surplus or dividend of profits pursuant to Article 25, paragraph (1), item (ii) of the Act, the amount obtained by adding the portion of that amount deemed to have been received that corresponds to one of the shares held)" with "amount"; the term "acquisition price" in paragraph (3) of that Article is deemed to be replaced with "value at departure from Japan"; the term "acquisition price" in paragraph (6) of that Article is deemed to be replaced with "value at departure from Japan", and the phrase "acquired for one unit of the old beneficial interest (where there is an amount of expenses required for the acquisition of that successor trust beneficial interest, the amount obtained by adding the portion of that amount of expenses that corresponds to one unit of successor trust beneficial interest)" with "acquired for one unit of the old beneficial interest"; the term "acquisition price" in paragraph (7) of that Article is deemed to be replaced with "value at departure from Japan"; the term "acquisition price" in Article 113-2, paragraph (1) is deemed to be replaced with "value at departure from Japan", and the phrase "acquired for one of the shares held (where there is an amount deemed to have been received as a dividend of surplus or dividend of profits pursuant to Article 25, paragraph (1), item (iii) (Deemed Dividends in the Case of a Share Distribution) of the Act, or an amount of expenses required for the acquisition of those wholly owned subsidiary shares, the amount obtained by adding the portion of the amount deemed to have been received and the amount of expenses that corresponds to one wholly owned subsidiary share)" with "acquired for one of the shares held"; the term "acquisition price" in paragraph (2) of that Article and Article 114, paragraphs (1), (3), (4), and (6) is deemed to be replaced with "value at departure from Japan"; the phrase "acquisition price per unit of the acquired new shares that forms the basis for that calculation is to be the amount calculated by multiplying the previous acquisition price of one unit of old shares (if there are expenses required for the acquisition of those new shares, the amount obtained by adding the portion of the amount of those expenses that corresponds to one unit of old shares)" in Article 115 is deemed to be replaced with "value at departure from Japan per unit of the acquired new shares that forms the basis for that calculation is to be the amount calculated by multiplying the previous value at departure from Japan of one unit of old shares"; and the phrase "acquisition price per unit of the acquired acquiring corporation's share options, etc. that forms the basis for that calculation is to be the amount calculated by dividing the previous acquisition price of one unit of former share options, etc. (if there are expenses required for the acquisition of those acquiring corporation's share options, etc., the amount obtained by adding the portion of the amount of those expenses that corresponds to one unit of former share options, etc.)" in Article 116 is deemed to be replaced with "value at departure from Japan per unit of the acquired acquiring corporation's share options, etc. that forms the basis for that calculation is to be the amount calculated by dividing the previous value at departure from Japan of one unit of former share options, etc.".

⑦The grounds specified by Cabinet Order prescribed in Article 60-2, paragraph (11), item (iii) of the Act are the grounds listed in paragraph (5), items (iii) through (v), item (vii), item (viii), item (x), item (x)-2, and items (xv) through (xvii).

⑧Where an individual (including the individual's heir) who is to be subject to the application of Article 60-2, paragraph (1) of the Act for the income tax for the year that includes the day of the departure from Japan has, after the time of that departure from Japan, transferred Securities and similar interests by transfer or by gift or inheritance with limited liability prescribed in Article 60-2, paragraph (8) of the Act, the determination of whether the Securities and similar interests so transferred fall under the Securities and similar interests that the person held at the time of that departure from Japan is to be made on the assumption that the person first transferred or gave Securities and similar interests of the same class acquired after the time of that departure from Japan (excluding, among Securities and similar interests of the same class acquired by gift, inheritance, or bequest, those Securities and similar interests in the case where the person who made the gift or the heir pertaining to the inheritance or bequest is subject to the application of Article 137-3, paragraph (1) or (2) of the Act for the income tax for the year that includes the day of the gift or the day of the commencement of the succession (hereinafter in this paragraph referred to as "Securities, etc. with deferred tax")), and next transferred or gave, in order, starting from those to which the provisions of Article 60-2, paragraph (1) or Article 60-3, paragraph (1) (Special Provisions on Capital Gains upon Transfer of Assets to a Nonresident by Gift or Similar Transfer) of the Act applied earlier, the Securities and similar interests that the individual held at the time of that departure from Japan or the Securities, etc. with deferred tax.

⑨Where the grounds listed in the items of Article 60-2, paragraph (11) of the Act arise with respect to the Securities and similar interests held by the individual prescribed in the preceding paragraph (hereinafter in this paragraph referred to as "former Securities and similar interests"), and the Securities and similar interests acquired by those grounds (hereinafter in this paragraph referred to as "acquired Securities, etc.") are deemed, under Article 60-2, paragraph (11) of the Act, to have been continuously owned, the provisions of the preceding paragraph apply by treating the portion of those former Securities and similar interests that gave rise to the acquisition of those acquired Securities, etc. as Securities and similar interests of the same class as those acquired Securities, etc.