Article 221-5Calculation of the Amount of Income Pertaining to Income Attributable to a Foreign Office or Similar Establishment Pertaining to Specific Internal Dealings
第二百二十一条の五（特定の内部取引に係る国外事業所等帰属所得に係る所得の金額の計算）
Where there is an internal dealing, between a Resident's foreign office or similar establishment and a place of business or similar place, that corresponds to the acquisition or transfer by that foreign office or similar establishment of an asset (limited to an asset that is to generate foreign source income listed in Article 95, paragraph (4), item (iii) or (v) (Foreign Tax Credit) of the Act; the same applies hereinafter in this Article), the amount of income pertaining to income attributable to a foreign office or similar establishment of that Resident for each year is calculated on the basis that that internal dealing was carried out at an amount equivalent to the value of that asset immediately before the internal dealing.
居住者の国外事業所等と事業場等との間で資産（法第九十五条第四項第三号又は第五号（外国税額控除）に掲げる国外源泉所得を生ずべき資産に限る。以下この条において同じ。）の当該国外事業所等による取得又は譲渡に相当する内部取引があつた場合には、当該内部取引は当該資産の内部取引の直前の価額に相当する金額により行われたものとして、当該居住者の各年分の国外事業所等帰属所得に係る所得の金額を計算する。
The amount equivalent to the value immediately before prescribed in the preceding paragraph is, depending on which of the internal dealings listed in the following items the internal dealing between the Resident's foreign office or similar establishment and place of business or similar place falls under, the amount provided for in the relevant item:
an internal dealing that corresponds to the acquisition of an asset by a foreign office or similar establishment: the amount equivalent to the amount that would be treated as the cost pertaining to the transfer of assets if the amount of business income, amount of timber income, amount of capital gains or amount of miscellaneous income of that person for each year that is to arise from that transfer of assets were calculated on the assumption that there had been, at the time of that internal dealing, a transfer to another person of the asset pertaining to that internal dealing;
an internal dealing that corresponds to the transfer of an asset by a foreign office or similar establishment: the amount equivalent to the amount that would be treated as the cost pertaining to the transfer of assets if the amount of income pertaining to income attributable to a foreign office or similar establishment of that person for each year that is to arise from that transfer of assets were calculated on the assumption that there had been, at the time of that internal dealing, a transfer to another person of the asset pertaining to that internal dealing.
国外事業所等による資産の譲渡に相当する内部取引 当該内部取引の時に当該内部取引に係る資産の他の者への譲渡があつたものとみなして当該資産の譲渡により生ずべきその者の各年分の国外事業所等帰属所得に係る所得の金額を計算するとした場合に当該資産の譲渡に係る原価の額とされる金額に相当する金額
Where the provisions of paragraph (1) apply, the acquisition price at that foreign office or similar establishment of the asset pertaining to an internal dealing between a Resident's foreign office or similar establishment and a place of business or similar place (limited to an internal dealing that corresponds to the acquisition of an asset by that foreign office or similar establishment; the same applies hereinafter in this paragraph) is to be the amount provided for in item (i) of the preceding paragraph (or, if there are expenses required for the acquisition by that internal dealing, the amount to which the amount of those expenses is added).
Read this with the articles around it
foreign source incomemachine translation
「国外源泉所得」
In the chapter on the foreign tax credit, foreign source income as defined in Article 95, paragraph (1) of the Income Tax Act: income with its source outside Japan, of the kinds paragraph (4) of that Article lists.
Defined inArticle 221-2, paragraph (1)· applies only in this chapter
foreign office or similar establishmentmachine translation
「国外事業所等」
A resident's permanent establishment abroad, or something else of a kind a Cabinet Order (政令) specifies, through which the resident carries on business outside Japan.
Defined inArticle 221-3, paragraph (1)· applies only in this provision and in Articles 221-3 to 221-5
income attributable to a foreign office or similar establishmentmachine translation
「国外事業所等帰属所得」
In Articles 221-3 to 221-5, the foreign source income listed in Article 95, paragraph (4), item (i) of the Income Tax Act — the income that ought to be attributed to a resident's foreign office or similar establishment; its amount is what the taxable base would be if only the income from business carried on through that office were taxed.
Short name set inArticle 221-3, paragraph (1)· applies only in this provision and in Articles 221-3 to 221-5
internal dealingmachine translation
「内部取引」
A transfer of assets, provision of services or other dealing between a resident's foreign office or similar establishment (国外事業所等) and the resident's other places of business that would count as a sale, purchase or other transaction if the two were independent businesses, as Article 95, paragraphs (4) and (5) of the Income Tax Act describe it.
Defined inArticle 221-3, paragraph (3)· applies only in this article and in Article 221-4, paragraph (2); and Article 221-5
place of business or similar placemachine translation
「事業場等」
A resident's place of business or similar place, as defined in Article 95, paragraph (4), item (i) of the Income Tax Act, other than the resident's foreign office or similar establishment (国外事業所等).
Defined inArticle 221-3, paragraph (4)· applies only in this provision and in Article 221-3, paragraph (5); Article 221-4, paragraph (2); and Article 221-5