Article 39Calculation of Nontaxable Limit, etc.

①The matters specified by Cabinet Order prescribed in Article 10, paragraph (1), item (iii) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act are, for Investment Trusts (excluding Investment Trusts not managed under instructions from the settlor prescribed in that paragraph), the amount calculated by dividing the amount entrusted or additionally entrusted for that Investment Trust at the time of its establishment or additional establishment by the number of units of the beneficial interest for that trust or additional trust at that time, and, for specified-purpose trusts, the amount calculated by dividing the principal amount pertaining to the bond-type beneficial interest listed in Article 33, paragraph (4), item (viii) (Scope of Deposits and Similar Savings Treated as Nontaxable with Respect to Interest Income, etc.) (meaning the principal amount prescribed in Article 52, paragraph (2), item (iii) (Conditions to Be Attached to a Specified-Purpose Trust Contract Providing for Bond-Type Beneficial Interests) of the Order for Enforcement of the Act on the Securitization of Assets (Cabinet Order No. 479 of 2000)) by the number of units of that beneficial interest.

②With regard to deposits and similar savings placed under an ordinary deposit contract, etc. prescribed in Article 35, paragraph (1) (Special Provisions on Application to Exempt Savings from Taxation for Ordinary Deposit Contracts, etc.) pertaining to an application to exempt savings from taxation with a statement made under that paragraph, on or after the date on which that application form was submitted, the sum of the principal or the sum of the face value or equivalent amount prescribed in each item of Article 10, paragraph (1) of the Act is to be calculated by deeming that the person who submitted that application form continues to hold deposits and similar savings pertaining to that application form in an amount equivalent to the limit amount pertaining to the current balance of the deposits and similar savings stated in that application form (in the case of Securities, the current balance calculated on the basis of face value or equivalent amount; the same applies in the following paragraph) (where an application to exempt savings from taxation with a statement made under the provisions of Article 35, paragraph (2) has been submitted, on or after the date of its submission, the changed limit amount).

③Whether the sum of the principal or the sum of the face value or equivalent amount, prescribed in each item of Article 10, paragraph (1) of the Act, of deposits and similar savings for which an individual has submitted an application to exempt savings from taxation and made a placement does not exceed the maximum limitation prescribed in those items throughout the calculation period of the interest, distributions of proceeds, or dividends of surplus on those deposits and similar savings is to be determined by whether the sum of the final current balances of those deposits and similar savings (excluding those that came to fall under the provisions of the items of Article 36, paragraph (1) (Cases in Which Interest Income, etc. from Small Amounts of Deposits Held by Persons with a Disability or Other Eligible Persons Is Not Treated as Nontaxable) on or before that day) does not exceed that maximum limitation on any day during that calculation period.