Article 292Calculation of the Tax Base, etc. of Income Taxes Imposed on Aggregate Income on Income Attributable to a Permanent Establishment

一Article 26 (Real Property Income) and Article 33 (Capital Gains) of the Act: The other person prescribed in Article 26, paragraph (1) and Article 33, paragraph (1) of the Act is to include the place of business or similar place prescribed in Article 161, paragraph (1), item (i) (Domestic Source Income) of the Act (hereinafter referred to as the "place of business or similar place" in this paragraph and paragraph (4));

二Article 45 (Exclusion of Household-Related Expenses from Necessary Expenses) of the Act: The amounts of the taxes or delinquent charges or penalties prescribed in paragraph (1), items (ii) to (vi) of the same Article (hereinafter referred to as "income tax, etc." in this item) are to include the amounts equivalent to income tax, etc. imposed by a foreign country or a local government thereof (excluding the amount of credit-eligible foreign income tax prescribed in Article 165-6, paragraph (1) (Foreign Tax Credit for Nonresidents) of the Act);

三Article 47 (Calculation of Costs of Inventory Sold and Valuation Methods) of the Act: The Inventory prescribed in paragraph (1) of the same Article is to be limited to the Nonresident's Inventory pertaining to a business conducted through a permanent establishment;

四Article 49 (Calculating Depreciation Allowances for Depreciable Assets; Depreciation Methods) of the Act: The Depreciable Assets prescribed in paragraph (1) of the same Article are to be limited to the Nonresident's Depreciable Assets pertaining to a business conducted through a permanent establishment;

五Article 50 (Calculating Depreciation Allowances for Deferred Assets; Depreciation Methods) of the Act: The Deferred Assets prescribed in paragraph (1) of the same Article are to be limited to the Nonresident's Deferred Assets pertaining to a business that the Nonresident conducts through a permanent establishment;

六Article 51 (Inclusion of Losses on Assets in Necessary Expenses) of the Act: The assets prescribed in paragraph (1) and paragraph (4) of the same Article and the forests prescribed in paragraph (3) of the same Article are to be limited to those of such assets and forests held by a Nonresident that pertain to a business conducted through a permanent establishment, and the accounts receivable, loans, advance payments or any other claims equivalent thereto prescribed in paragraph (2) of the same Article (hereinafter referred to as "accounts receivable, etc." in this item) are to be limited to accounts receivable, etc. pertaining to a business prescribed in the same paragraph which a Nonresident conducts through a permanent establishment;

七Article 52 (Bad Debt Reserves) of the Act: The monetary claims prescribed in paragraph (1) and paragraph (2) of the same Article are to be limited to such monetary claims pertaining to a business prescribed in those provisions which a Nonresident conducts through a permanent establishment, and what is equivalent to monetary claims pertaining to an internal dealing between a permanent establishment and a place of business or similar place (meaning an internal dealing prescribed in Article 161, paragraph (1), item (i) of the Act; the same applies in paragraph (4)) is not to be included in such monetary claims;

八Article 54 (Reserves for Severance Packages) of the Act: The employees prescribed in paragraph (1) of the same Article are to be limited to the Nonresident's employees who work full time in Japan for a business prescribed in the same paragraph which the Nonresident conducts through a permanent establishment;

九Article 58 (Special Provisions on Capital Gains if the Resident Exchanges Fixed Assets) of the Act: The following provisions apply:

イThe acquired assets prescribed in Article 58, paragraph (1) of the Act are to be limited to Fixed Assets that exist in Japan at the time of the exchange prescribed in the same paragraph, and such acquired assets are to include Fixed Assets deemed to have been acquired from a place of business or similar place by that exchange;

ロThe transferred assets prescribed in Article 58, paragraph (1) of the Act are to be limited to Fixed Assets (limited to those pertaining to a business conducted through a permanent establishment) that exist in Japan at the time of the exchange prescribed in the same paragraph;

十Article 62 (Loss of Assets Not Ordinarily Necessary in Everyday Life, Due to Disaster) of the Act: The assets not necessary for maintenance of an ordinary livelihood prescribed in paragraph (1) of the same Article are to be limited to such assets held by a Nonresident listed in Article 164, paragraph (1), item (i) of the Act that pertain to a business conducted through a permanent establishment;

十一Article 67-2 (Calculating Amounts of Income from Lease Arrangements) of the Act: The lease transaction prescribed in paragraph (1) of the same Article is to be limited to the lease transaction pertaining to a business conducted by a Nonresident through a permanent establishment;

十二Article 72 (Casualty Loss Deduction) of the Act: The losses from a disaster or theft or embezzlement prescribed in paragraph (1) of the same Article are to be limited to the losses that occurred to assets held by a nonresident that are located in Japan.