①The amount specified by Cabinet Order as the portion to be carried over to that year prescribed in Article 165-6, paragraph (3) (Foreign Tax Credit for Nonresidents) of the Act is to be the amount equivalent to the total of the amounts exceeding the credit limit that would be applied to the unused portion within the maximum creditable amount for national tax of that year (meaning the unused portion within the maximum creditable amount prescribed in paragraph (4) of the preceding Article; the same applies hereinafter in this Article), in the case where the amounts exceeding the credit limit (meaning the amount exceeding the credit limit prescribed in paragraph (6) of the preceding Article; the same applies hereinafter in this Article) of each year within the previous three years are applied, in order from that of the oldest year, to that unused portion within the maximum creditable amount for national tax of that year.

②The provisions of paragraph (2) of the preceding Article apply mutatis mutandis to the case referred to in the preceding paragraph. In this case, the phrase "the unused portion within the maximum creditable amount for national tax and the unused portion within the maximum creditable amount for local taxes" in paragraph (2) of that Article is deemed to be replaced with "the amount exceeding the credit limit".

③With regard to the application of the provisions of paragraph (1) and paragraph (1) of the preceding Article for each year after the year in which the provisions of Article 165-6, paragraph (3) of the Act can be applied, the amounts exceeding the credit limit that are to be applied, pursuant to the provisions of paragraph (1), to the unused portion within the maximum creditable amount for national tax of the year in which that application can be received, and the unused portion within the maximum creditable amount for national tax of that year equivalent to those amounts, are deemed not to exist.

④With regard to the application of the provisions of paragraph (1) and paragraph (1) of the preceding Article for each year after the year in which Article 7-19, paragraph (2) (Credit of Foreign Income Tax Amount against Prefectural Inhabitant Tax) of the Order for Enforcement of the Local Tax Act can be applied (excluding a year in which Article 48-9-2, paragraph (2) (Credit of Foreign Income Tax Amount against Municipal Inhabitant Tax) of that Order can also be applied) or the year in which Article 48-9-2, paragraph (2) of that Order can be applied, the amount exceeding the credit limit equivalent to the amount deemed to be the amount of income tax, etc. of a foreign country imposed in the year in which that application can be received under the provisions of Article 7-19, paragraph (2) or Article 48-9-2, paragraph (2) of that Order (excluding, where part of that amount exceeding the credit limit is to be applied under the provisions of paragraph (1) to the unused portion within the maximum creditable amount for national tax of the year in which that application can be received, the portion to be so applied), and the unused portion within the maximum creditable amount for local taxes prescribed in paragraph (5) of the preceding Article of the year in which that application can be received that is equivalent to it, are respectively deemed not to exist.

The provisions of Articles 225-3 to 225-7 (Income Arising from the Management or Holding of Assets Located Outside Japan, etc.), Articles 225-9 to 225-11 (Monetary Awards, etc. for Business Advertisement), and Article 225-14 (Income with a Source Outside Japan) apply mutatis mutandis to the income arising from the management or holding of assets located outside Japan prescribed in Article 165-6, paragraph (4), item (i) (Foreign Tax Credit for Nonresidents) of the Act, the income specified by Cabinet Order as income arising from the transfer of assets located outside Japan prescribed in item (ii) of that paragraph, the business specified by Cabinet Order prescribed in item (iii) of that paragraph, the transactions specified by Cabinet Order as sales and purchase transactions of bonds with a condition of repurchase or resale prescribed in item (vii) of that paragraph, the margin specified by Cabinet Order prescribed in that item, the tools specified by Cabinet Order prescribed in item (viii), (c) of that paragraph, the monetary award specified by Cabinet Order prescribed in item (ix) of that paragraph, the contracts specified by Cabinet Order prescribed in item (x) of that paragraph, the contracts specified by Cabinet Order prescribed in item (xii) of that paragraph, and the income specified by Cabinet Order prescribed in item (xiii) of that paragraph.

①Where, in any year within seven years on or after the year following the year in which a Nonresident received application of the provisions of Article 165-6, paragraphs (1) to (3) (Foreign Tax Credit for Nonresidents) of the Act with respect to the amount of foreign income tax that became payable, the amount of that foreign income tax is reduced, for the year containing the day on which the reduction takes effect for that Nonresident (hereinafter referred to as the "year of the reduction" in this Article), the amount equivalent to the reduced amount of credit-eligible foreign income tax is to be deducted from the amount of credit-eligible foreign income tax that the Nonresident becomes obliged to pay in the year of the reduction (referred to as "credit-eligible foreign income tax to be paid" in paragraph (3)), and the provisions of Article 165-6, paragraphs (1) to (3) of the Act are to be applied to the amount after that deduction.

②The reduced amount of credit-eligible foreign income tax prescribed in the preceding paragraph means, of the amount by which the amount of foreign income tax was reduced in the year of the reduction of the Nonresident, the amount equivalent to the remainder obtained by deducting the amount listed in item (ii) from the amount listed in item (i).

③In the case referred to in paragraph (1), where there is no credit-eligible foreign income tax to be paid for the year of the reduction, or where the credit-eligible foreign income tax to be paid is less than the reduced amount of credit-eligible foreign income tax prescribed in the preceding paragraph (hereinafter referred to as the "reduced amount of credit-eligible foreign income tax" in this paragraph), the full amount of that reduced amount of credit-eligible foreign income tax or the amount equivalent to the portion of that reduced amount of credit-eligible foreign income tax exceeding the credit-eligible foreign income tax to be paid, respectively, is to be deducted from the amount exceeding the credit limit prescribed in Article 292-11, paragraph (6) (Maximum Carry-Over Credit, etc.) for each year within three years on or before the year preceding the year of the reduction (excluding the amount deemed not to exist in each year on or before the year preceding the year of the reduction pursuant to paragraph (3) of that Article or Article 292-12, paragraph (3) or (4) (Carry-Over Credit-Eligible Foreign Income Tax, etc.); hereinafter referred to as the "amount exceeding the credit limit" in this paragraph), and the provisions of Article 165-6, paragraph (3) of the Act are to be applied to the amount after that deduction. In this case, where there are amounts exceeding the credit limit for two or more years, that deduction is made first from the amount exceeding the credit limit of the oldest year, and where there is an amount that cannot be fully deducted, that deduction is made from the amounts exceeding the credit limit of successively newer years.

With regard to the matters for the application of the provisions of Part II, Chapters V and VI of the Act (Filing of Returns, Payment and Refunds for Residents) as applied mutatis mutandis pursuant to Article 166 (Filing of Returns, Payment of Taxes, and Issuance of Refunds) of the Act, the provisions of Part II, Chapters V and VI (Filing of Returns, Payment and Refunds for Residents) apply mutatis mutandis.

With regard to the matters for the application of the provisions of Part II, Chapter VII of the Act (Special Provisions on Requests for Reassessment) as applied mutatis mutandis pursuant to Article 167 (Special Provisions on Requests for Reassessment) of the Act, the provisions of Part II, Chapter VII (Special Provisions on Requests for Reassessment) apply mutatis mutandis.

With regard to the matters for the application of the provisions of Part II, Chapter VIII of the Act (Reassessments and Tax-Office Decisions) as applied mutatis mutandis pursuant to Article 168 (Reassessments and Tax-Office Decisions) of the Act, the provisions of Part II, Chapter VIII (Reassessments and Tax-Office Decisions) apply mutatis mutandis.

The amount calculated pursuant to the method specified by Cabinet Order prescribed in Article 169, item (v) (Income Tax Base for Separate Taxation) of the Act is to be the amount listed in each of the following items for the case listed in the relevant item:

①A person who files a return form pursuant to the provisions of Article 173, paragraph (1) (Issuance of a Refund Due to Elective Treatment for Taxation of Retirement Income) of the Act must, if any portion of the amount of income tax listed in Article 173, paragraph (1), item (ii) of the Act has been withheld, attach to the return form a written statement of the matters specified by Ministry of Finance Order that explain the withholding.

②The person who has filed the return form set forth in the preceding paragraph must, if any portion of the amount of income tax prescribed in the same paragraph that is stated in the return form had not yet been paid by the time of the filing but has been paid later, submit to the competent district director with jurisdiction over the place for tax payment, without delay, a written notice stating the date of payment, the amount of income tax paid and any other necessary matters.

③Where the return form set forth in paragraph (1) has been filed, the district director must, without delay, perform the procedure for making a refund or appropriation pursuant to the provisions of Article 173, paragraph (2) of the Act, except where there is a reason to find the amount listed in Article 173, paragraph (1), item (iii) of the Act that is stated in the return form to be in excess.