Where Article 33, paragraph (1) (Capital Gains) of the Act applies to the sublease (including an act of causing another person to use that land; the same applies hereinafter in this Article) of land pertaining to a land leasehold right prescribed in Article 79, paragraph (1) (Acts Deemed to Be Transfers of Assets) (hereinafter in this Article referred to as "land leasehold right"), the acquisition cost to be deducted in the calculation of the amount of capital gains pertaining to that sublease is the amount calculated by multiplying the sum of the amount required for the acquisition of the land leasehold right pertaining to the land subleased and the amount of improvement expenses by the proportion that the amount listed in item (i) accounts for in the amount listed in item (ii).
The amount received as consideration for the sublease of the land pertaining to that land leasehold right; and
当該借地権に係る土地の転貸の対価として支払を受ける金額
The sum of the amount listed in the preceding item and the value, immediately after that sublease, of the land leasehold right pertaining to the land subleased (where the land pertaining to that sublease is used solely for the use for which the sublease was made, the value of that land leasehold right is unclear, and there is ground rent paid by reason of that sublease that is delivered to the holder of that land leasehold right, the amount equivalent to 20 times the annual amount of the ground rent delivered to that person).
Where the preceding paragraph applies, if the right pertaining to a previous sublease of land has presently been extinguished, and there is acquisition cost that was deducted under that paragraph in the calculation of the amount of capital gains pertaining to that previous sublease, then, except where consideration was paid for the extinguishment of the right pertaining to that previous sublease, the acquisition cost prescribed in that paragraph is the amount obtained by deducting the amount equivalent to the deducted acquisition cost from the amount calculated under that paragraph for the land leasehold right referred to in that paragraph.
Where paragraph (1) applies, if the land leasehold right pertaining to the subleased land prescribed in that paragraph has been continuously owned since on or before December 31, 1952, the sum of the amount required for the acquisition and the amount of improvement expenses prescribed in that paragraph pertaining to that land leasehold right is the amount equivalent to the sum of the amount calculated for that land leasehold right under Article 172, paragraph (1) (Acquisition Cost of Assets Acquired on or before December 31, 1952) and the amount of improvement expenses expended on or after January 1, 1953.
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land leasehold rightmachine translation
「借地権」
A superficies (地上権) or a lease of land (賃借権) held for the purpose of owning a building or other structure on the land.
Short name set inArticle 176, paragraph (1)· applies only in this article
sublease
転貸
A lessee (賃借人) letting a third party use the thing the lessee leases: subletting. A lessee may do this only with the lessor's (賃貸人) consent, and where the lessee lets a third party use the thing without it, the lessor may cancel the lease (Civil Code, Article 612). Where a thing has been sublet lawfully, the sublessee (転借人) owes duties directly to the lessor, up to what the lessee owes (Article 613, paragraph (1)). For land held in order to own a building, where the tenant wants to transfer the building to someone who would take over or sublease the land, and the landowner refuses consent although that would not put the landowner at a disadvantage, a court can, on the tenant's application, give permission in place of the landowner's consent, and may make it subject to a payment or to changed terms (Act on Land and Building Leases, Article 19, paragraph (1)). The landowner can answer by applying, within the time the court sets, to take the building and the lease, or a sublease, themselves, and the court can then order that, at a fair price and on sublease terms it sets (Article 19, paragraph (3)).
Written by AI using Civil Code, Arts. 612, 613 and Act on Land and Building Leases, Art. 19 as a reference.