①In the case where a Resident has obtained the approval of the competent district director with jurisdiction over the place for tax payment to calculate the amount of depreciation allowance for the Resident's Depreciable Assets set forth in Article 6, items (i) through (viii) (Scope of Depreciable Assets) (excluding those to which the following Article or Article 122 (Depreciation Methods Using Special Depreciation Rates) applies, and the Depreciable Assets set forth in Article 120, paragraph (1), item (i), (b) and item (vi) (Depreciation Methods for Depreciable Assets) and in paragraph (1), item (i), (b) and item (vi) of the preceding Article) by a depreciation method other than the depreciation methods specified in Article 120, paragraph (1), items (i) through (v) or paragraph (1), items (i) through (v) of the preceding Article that have been established according to the category of the asset, in place of those depreciation methods (for the Depreciable Assets set forth in item (iii), (a) of that paragraph (referred to as "mining buildings" in paragraph (3)), excluding the Declining-balance Method and methods equivalent to it; the same applies hereinafter in this paragraph), the Resident may, for the calculation of the amount of depreciation allowance for each year on or after the year in which the date of that approval falls for that asset, select the depreciation method so approved.

②A Resident who intends to obtain the approval under the preceding paragraph must submit to the competent district director with jurisdiction over the place for tax payment a written application stating the particulars of the depreciation method the Resident intends to adopt, the reasons for intending to adopt that method, the types of assets for which the Resident intends to calculate the amount of depreciation allowance by that method (for those for which the unit of selection of the depreciation method is the type of facility, the type of facility, and, in the case of a Resident with two or more offices or vessels who intends to select the depreciation method for each office or vessel, those types for each office or vessel; the same applies in the following paragraph), and other particulars specified by Ministry of Finance Order.

③Upon the submission of the written application referred to in the preceding paragraph, a district director examines it without delay and approves the depreciation method and type of asset pertaining to the application, or rejects the application when the district director finds that it would be difficult to properly calculate the Resident's amount of real property income, amount of business income, amount of timber income, or amount of miscellaneous income for each year by the depreciation method pertaining to the application (including the case where, if the type of asset pertaining to the application is a mining building, the district director finds that the depreciation method is the Declining-balance Method or a method equivalent to it).

④If, after granting the approval under paragraph (1), a district director finds that a special circumstance has arisen that makes it inappropriate to calculate the amount of depreciation allowance for the Depreciable Assets pertaining to that approval by the depreciation method pertaining to that approval, the district director may rescind that approval.

⑤When taking the disposition referred to in the preceding two paragraphs, the district director is to notify the Resident subject to the disposition to that effect in writing.

⑥If the disposition under paragraph (4) has been made, the effect of that disposition arises with respect to the calculation of the amount of depreciation allowance for the Depreciable Assets pertaining to that disposition when calculating the amount of real property income, the amount of business income, the amount of timber income, or the amount of miscellaneous income for each year on or after the year in which the day of that disposition falls.

⑦A Resident who has received the disposition under paragraph (4) must notify the competent district director with jurisdiction over the place for tax payment in writing, by the Filing Deadline for the income tax for the year in which the day of receiving that disposition falls, of the depreciation method to be used, from among the depreciation methods prescribed in Article 120, paragraph (1) or paragraph (1) of the preceding Article, for each category prescribed in Article 123, paragraph (1) (Choice of Depreciation Methods for Depreciable Assets) (in the case of a Resident with two or more offices or vessels who intends to select the depreciation method for each office or vessel, for each of those categories for each office or vessel), for the Depreciable Assets pertaining to that disposition; provided, however, that this does not apply to the intangible Fixed Assets set forth in Article 120, paragraph (1), item (iv) and paragraph (1), item (iv) of the preceding Article.

①For the calculation of the amount of depreciation allowance for replacement assets, if the approval of the competent district director with jurisdiction over the place for tax payment has been obtained, the replacement method may be selected in place of the depreciation method that has been adopted as specified in Article 120, paragraph (1), item (ii) or Article 120-2, paragraph (1), item (i) or (ii) (Depreciation Methods for Depreciable Assets).

②The replacement method prescribed in the preceding paragraph is a method of depreciating, as the depreciation allowance for each year, the sum of the following amounts:

③The replacement assets prescribed in the preceding two paragraphs are those specified by Ministry of Finance Order from among the Depreciable Assets used in a business that gives rise to business income, such as rails and sleepers, that are used in large quantities for the same purpose and a portion of which becomes unfit for use every year and is replaced in approximately equal quantities.

④A Resident who intends to obtain the approval under paragraph (1) must submit to the competent district director with jurisdiction over the place for tax payment, by March 15 of the year in which the Resident intends to adopt the replacement method prescribed in paragraph (2) (referred to as the "replacement method" in the following paragraph and Article 132, paragraph (1) (Special Provisions on Depreciation Allowance for Depreciable Assets, etc. Put to Business Use in the Middle of the Year)), a written application stating the type and name of the Depreciable Assets to which the Resident intends to have paragraph (1) apply, the place where they are located, and other particulars specified by Ministry of Finance Order.

⑤If, upon the submission of the written application referred to in the preceding paragraph, a district director finds that it would be difficult to properly calculate the Resident's amount of business income for each year if the calculation of the depreciation allowance for the Depreciable Assets pertaining to the application were made by the replacement method, the district director may reject the application.

⑥If, upon the submission of the written application referred to in paragraph (4), a district director makes a disposition of approval or rejection of the application, the district director notifies the Resident who made the application to that effect in writing.

⑦If the written application referred to in paragraph (4) has been submitted and no disposition of approval or rejection of the application has been made by December 31 of the year prescribed in that paragraph (if the Resident who submitted the written application dies or becomes Absent From Japan in the middle of that year, by the time of that death or the start of that Absence From Japan), the approval is deemed to have been granted on that day or at that time.

①For lease rental assets (meaning Depreciable Assets that are the subject of a pre-amendment lease transaction prescribed in Article 120, paragraph (1), item (vi) (Depreciation Methods for Depreciable Assets) (excluding foreign lease assets prescribed in that item); the same applies hereinafter in this Article), the former lease period straight-line method (meaning a method of depreciating, as the depreciation allowance for each year, the amount calculated by multiplying the amount calculated by dividing the revised acquisition cost of that lease rental asset by the number of months of the revised lease term by the number of months of that revised lease term in that year) may be selected in place of the depreciation method that has been adopted as prescribed in that paragraph or Article 120-2, paragraph (1) (Depreciation Methods for Depreciable Assets).

②A Resident who intends to have the provisions of the preceding paragraph apply must submit to the competent district director with jurisdiction over the place for tax payment, by the Filing Deadline for the income tax for the year in which the Resident intends to adopt the former lease period straight-line method prescribed in the preceding paragraph, a written notice stating the type of asset of the lease rental assets to which the Resident intends to have the preceding paragraph apply, as prescribed in Article 120-3, paragraph (2) (Special Depreciation Methods for Depreciable Assets), and other particulars specified by Ministry of Finance Order.

③The revised acquisition cost prescribed in paragraph (1) means the amount obtained by deducting the guaranteed residual value (meaning the guaranteed amount specified in the contract pertaining to the pre-amendment lease transaction prescribed in that paragraph for that lease rental asset, in the case where, if the disposal value of that lease rental asset at the end of the period of the lease of that lease rental asset specified in that contract (hereinafter in this paragraph referred to as the "lease term") is less than the guaranteed amount specified in the contract pertaining to that pre-amendment lease transaction, the lessee or other person pertaining to that pre-amendment lease transaction is to pay the amount of the shortfall to the lessor, and zero if no such guaranteed amount is specified) from the acquisition price of the lease rental asset to which paragraph (1) applies as of January 1 of the first year to which that paragraph applies (if that lease rental asset was put into lease use after that day, the day on which it was so put into use) (if there is an amount already included as depreciation allowance in necessary expenses in calculating the amount of real property income, the amount of business income, the amount of timber income, or the amount of miscellaneous income for each year up to the year preceding that year, the amount obtained by deducting that amount), and the revised lease term prescribed in paragraph (1) means, of the lease term of the lease rental asset to which that paragraph applies (if that lease rental asset was transferred from another person (excluding a Depreciable Asset prescribed in Article 126, paragraph (2) (Acquisition Price of Depreciable Assets) that was transferred for a reason set forth in the items of Article 60, paragraph (1) (Acquisition Costs of Assets Acquired as Gifts) of the Act), limited to the period on or after the day of that transfer), the period on or after January 1 of the first year to which paragraph (1) applies (if that lease rental asset was put into lease use on or after that day, that lease term).

④The number of months referred to in paragraph (1) is calculated in accordance with the calendar, and any fraction of less than one month is counted as one month.

①With regard to the calculation of the amount of depreciation allowance for those Depreciable Assets (excluding leased assets set out in Article 120-2, paragraph (1), item (vi) (Depreciation Methods for Depreciable Assets)) that are fishing nets, metals commonly used for type, or other assets specified by Ministry of Finance Order, a Resident may choose, in place of the depreciation method prescribed in Article 120, paragraph (1) (Depreciation Methods for Depreciable Assets) or Article 120-2, paragraph (1) that the Resident has adopted, a method of depreciating by treating the amount calculated by multiplying the acquisition price of the asset by a depreciation rate certified for that asset by the competent regional commissioner with jurisdiction over the place for tax payment as the amount of depreciation allowance for each year.

②A Resident who intends to obtain the certification referred to in the preceding paragraph must submit to the competent regional commissioner with jurisdiction over the place for tax payment, through the competent district director with jurisdiction over the place for tax payment, a written application stating the type and name of the Depreciable Asset to which the Resident intends the provisions of that paragraph to apply, the place where it is located, and other particulars specified by Ministry of Finance Order, with attached documents stating the matters that are to form the basis for calculating the depreciation rate pertaining to that certification.

③When a written application referred to in the preceding paragraph is submitted, the regional commissioner is to examine it without delay and certify the depreciation rate of the Depreciable Asset pertaining to the application.

④Where, after giving the certification referred to in paragraph (1), the regional commissioner finds that special grounds have arisen that make it inappropriate to calculate the amount of depreciation allowance for the Depreciable Asset referred to in that paragraph using the depreciation rate pertaining to that certification, the regional commissioner may change that depreciation rate.

⑤When making a disposition under the preceding two paragraphs, the regional commissioner is to notify the Resident pertaining to that certification to that effect in writing.

⑥Where a disposition under paragraph (3) or (4) has been made, the effect of that disposition is to arise in the calculation of the amount of depreciation allowance for the Depreciable Asset pertaining to that disposition when calculating the amount of real property income, amount of business income, or amount of miscellaneous income for each year on or after the year that includes the date of that disposition.