Supplementary Provisions, Article 4Transitional Measures Concerning Methods of Valuation of Inventory, etc.
第四条（棚卸資産の評価の方法等に関する経過措置）
In the case where an individual (hereinafter in this Article referred to as the "person applying a former valuation method") who has selected, for the calculation of the assessed value of Inventory for 2009, the cost method based on the acquisition price calculated by the last-in first-out method listed in Article 99, paragraph (1), item (i), (c) (Methods of Valuation of Inventory Assets) of the Former Order or the simple average method listed in (f) of that item (including the lower of cost or market method listed in item (ii) of that paragraph that is based on the value assessed by that cost method; hereinafter in this Article referred to as the "former valuation method") has selected a former valuation method for the calculation of the assessed value of Inventory (excluding, in the case where on December 31, 2010 a method listed in the items of Article 99, paragraph (1) (Methods of Valuation of Inventory) of the New Order (hereinafter in this Article referred to as the "new valuation method") has been selected for Inventory belonging to that type of business and category of assets, or the approval under Article 99-2, paragraph (1) (Special Methods of Valuation of Inventory Assets) of the New Order has been received, that Inventory) belonging to the type of business and category of assets for which that selection was made (meaning the type of business and category of assets prescribed in Article 100, paragraph (1) (Selection of Methods of Valuation of Inventory Assets) of the New Order; the same applies hereinafter in this Article) that the person holds on December 31, 2010 (if the person applying a former valuation method dies or has an Absence From Japan in the middle of the year, at the time of the death or Absence From Japan), the provisions of Article 99 of the Former Order (limited to the part pertaining to paragraph (1), item (i), (c) and (f)) remain in force with regard to the calculation of the assessed value of the Inventory so selected for 2010.
平成二十一年分における棚卸資産の評価額の計算について旧令第九十九条第一項第一号ハ（たな卸資産の評価の方法）に掲げる後入先出法又は同号ヘに掲げる単純平均法により算出した取得価額による原価法（当該原価法により評価した価額を基礎とする同項第二号に掲げる低価法を含む。以下この条において「旧評価方法」という。）を選定している個人（以下この条において「旧評価方法適用者」という。）が、平成二十二年十二月三十一日（その旧評価方法適用者が年の中途において死亡し、又は出国をした場合には、その死亡又は出国の時）において有するその選定に係る事業の種類及び資産の区分（新令第百条第一項（たな卸資産の評価の方法の選定）に規定する事業の種類及び資産の区分をいう。以下この条において同じ。）に属する棚卸資産（同日において当該事業の種類及び資産の区分に属する棚卸資産につき新令第九十九条第一項各号（棚卸資産の評価の方法）に掲げる方法（以下この条において「新評価方法」という。）を選定している場合又は新令第九十九条の二第一項（たな卸資産の特別な評価の方法）の承認を受けている場合における当該棚卸資産を除く。）について、その評価額の計算上旧評価方法を選定している場合には、平成二十二年分におけるその選定した棚卸資産の評価額の計算については、旧令第九十九条（第一項第一号ハ及びヘに係る部分に限る。）の規定は、なおその効力を有する。
In the case where a person applying a former valuation method seeks to change to a new valuation method the valuation method selected for the calculation of the assessed value of Inventory (limited to Inventory belonging to the type of business and category of assets for which a former valuation method has been selected) for 2010 or 2011, if the person submits to the competent district director with jurisdiction over the place for tax payment, by the Filing Deadline for income tax for each year for which the person seeks to make the change, a written notice stating that fact and the particulars specified by Ministry of Finance Order prescribed in Article 101, paragraph (2) (Procedures for Changing Methods of Valuation of Inventory Assets) of the New Order, that written notice is deemed to be the written application under that paragraph, and the submission of that written notice is deemed to constitute the approval under paragraph (1) of that Article.
Where a person applying a former valuation method falls under any of the cases listed in the following items, the provisions of Article 102, paragraph (1) (Statutory Methods of Valuation of Inventory) of the New Order apply, treating the person as not having selected a valuation method for the calculation of the assessed value of the Inventory prescribed in each of those items for the year specified in that item:
The case where a former valuation method has not been selected for the calculation of the assessed value of the Inventory prescribed in paragraph (1) for 2010: 2010;
The case where, with regard to the calculation of the assessed value of Inventory (limited to Inventory belonging to the type of business and category of assets for which a former valuation method has been selected) for 2010 and 2011, the person has neither changed the valuation method to a new valuation method pursuant to the preceding paragraph or Article 101 of the New Order nor received the approval under Article 99-2, paragraph (1) of the New Order (excluding the case listed in the preceding item): 2011.
平成二十二年分及び平成二十三年分における棚卸資産（旧評価方法を選定している事業の種類及び資産の区分に属するものに限る。）の評価額の計算について、前項若しくは新令第百一条の規定によりその評価の方法を新評価方法に変更し、又は新令第九十九条の二第一項の承認を受けなかった場合（前号に掲げる場合を除く。） 平成二十三年分
In the case where, with regard to the calculation of the assessed value for 2010 or 2011 of Inventory held by a person applying a former valuation method (limited to Inventory belonging to the type of business and category of assets for which a former valuation method has been selected), the person changes the valuation method to a new valuation method pursuant to Article 101 of the New Order or paragraph (2), or receives the approval under Article 99-2, paragraph (1) of the New Order (including the case where the provisions of the preceding paragraph apply), and the assessed value of that Inventory on December 31 of the year in which the person made the change or received the approval (in the case where the provisions of the preceding paragraph apply, the year to which the provisions of that paragraph apply; hereinafter in this paragraph referred to as the "year of change"), calculated by the valuation method after the change or the valuation method pertaining to the approval (in the case where the provisions of the preceding paragraph apply, the valuation method prescribed in Article 102, paragraph (1) of the New Order; hereinafter in the following paragraph referred to as the "valuation method after the change") exceeds the assessed value that would be calculated by the valuation method before the change or the valuation method before the approval (in the case where the provisions of the preceding paragraph apply, the valuation method that had been selected; hereinafter in the following paragraph referred to as the "valuation method before the change"), the amount obtained by deducting, from the amount of the excess (hereinafter in this Article referred to as the "valuation change adjustment amount"), the amount calculated by dividing that valuation change adjustment amount by seven is to be included in necessary expenses in the calculation of the amount of business income for the year of change of that person applying a former valuation method.
平成二十二年分又は平成二十三年分における旧評価方法適用者の有する棚卸資産（旧評価方法を選定している事業の種類及び資産の区分に属するものに限る。）の評価額の計算について、第二項若しくは新令第百一条の規定によりその評価の方法を新評価方法に変更し、又は新令第九十九条の二第一項の承認を受けた場合（前項の規定の適用を受ける場合を含む。）において、その変更し、又はその承認を受けた年（前項の規定の適用を受ける場合には、同項の規定の適用を受ける年。以下この項において「変更年」という。）の十二月三十一日における当該棚卸資産のその変更後の評価の方法又はその承認に係る評価の方法（前項の規定の適用を受ける場合には、新令第百二条第一項に規定する評価の方法。次項において「変更後評価方法」という。）により計算した評価額が、その変更前の評価の方法又はその承認前の評価の方法（前項の規定の適用を受ける場合には、その選定していた評価の方法。次項において「変更前評価方法」という。）により計算することとした場合の評価額を超えるときは、その超える部分の金額（以下この条において「評価変更調整金額」という。）から当該評価変更調整金額を七で除して計算した金額を控除した金額は、その旧評価方法適用者の当該変更年の年分の事業所得の金額の計算上必要経費に算入する。
The provisions of the preceding paragraph apply only where documents stating the assessed value calculated by the valuation method after the change and the assessed value calculated by the valuation method before the change for the Inventory to which the person seeks to have the provisions of that paragraph applied, and other particulars specified by Ministry of Finance Order, are attached to the Tax Return for the year for which the person seeks to have the provisions of that paragraph applied. In this case, the amount to be included in necessary expenses pursuant to the provisions of that paragraph is limited to the amount calculated on the basis of the amounts stated as those assessed values.
Even where a Tax Return is filed to which the documents referred to in the preceding paragraph are not attached with respect to all or part of the amount to be included in necessary expenses pursuant to the provisions of paragraph (4), the district director may, if the district director finds that there were unavoidable circumstances for the failure to attach those documents, apply the provisions of paragraph (4) to the amount for which those documents were not attached.
An individual to whom the provisions of paragraph (4) have applied is to include, in gross revenue in the calculation of the amount of business income for each year on or after the year following the year in which those provisions applied, the amount listed in item (i) (or, where that year is the year that includes the date on which the individual transferred or discontinued the whole of the business pertaining to Inventory belonging to the same type of business and category of assets as the Inventory to which the provisions of that paragraph applied (hereinafter in this paragraph referred to as "applicable assets"), or the date on which the individual ceased to hold all of the applicable assets, or where the amount listed in item (i) exceeds the amount listed in item (ii), the amount listed in item (ii)).
the amount calculated by dividing the valuation change adjustment amount pertaining to the applicable assets by seven;
the amount obtained by deducting the amount set forth in (b) from the amount set forth in (a):
イに掲げる金額からロに掲げる金額を控除した金額
the amount included in necessary expenses in the calculation of the amount of business income pursuant to the provisions of paragraph (4);
第四項の規定により事業所得の金額の計算上必要経費に算入された金額
the amount included in gross revenue in the calculation of the amount of business income pursuant to the provisions of this paragraph for the year preceding that year and earlier years.
その年の前年分までにこの項の規定により事業所得の金額の計算上総収入金額に算入された金額
With regard to the application of Article 103, paragraph (1) (Acquisition Price of Inventory Assets) and Article 104, paragraph (1) (Special Provisions on Acquisition Price of Inventory Assets) of the New Order in the case where the provisions of paragraph (1) apply, the words in the middle column of the following table in the provisions of the New Order in the left-hand column of that table are deemed to be replaced with the words in the right-hand column of that table.
| Article 103, paragraph (1) | or Article 99-2, paragraph (1) (Special Methods of Valuation of Inventory Assets) | or Article 99-2, paragraph (1) (Special Methods of Valuation of Inventory Assets), or Article 99, paragraph (1) (Methods of Valuation of Inventory Assets) of the Order for Enforcement of the Income Tax Act prior to amendment by the Cabinet Order Partially Amending the Order for Enforcement of the Income Tax Act (Cabinet Order No. 104 of 2009), which remains in force pursuant to the provisions of Article 4, paragraph (1) (Transitional Measures regarding Methods of Valuation of Inventory, etc.) of the Supplementary Provisions of that Cabinet Order (hereinafter in the following Article referred to as the "Former Order for Enforcement of the Income Tax Act Kept in Force") |
| Article 104, paragraph (1) | or Article 99-2, paragraph (1) (Special Methods of Valuation of Inventory Assets) | or Article 99-2, paragraph (1) (Special Methods of Valuation of Inventory Assets), or Article 99, paragraph (1) (Methods of Valuation of Inventory Assets) of the Former Order for Enforcement of the Income Tax Act Kept in Force |
第一項の規定の適用がある場合における新令第百三条第一項（たな卸資産の取得価額）及び第百四条第一項（たな卸資産の取得価額の特例）の規定の適用については、次の表の上欄に掲げる新令の規定中同表の中欄に掲げる字句は、同表の下欄に掲げる字句とする。
| 第百三条第一項 | 又は第九十九条の二第一項（たな卸資産の特別な評価の方法） | 若しくは第九十九条の二第一項（たな卸資産の特別な評価の方法）又は所得税法施行令の一部を改正する政令（平成二十一年政令第百四号）附則第四条第一項（棚卸資産の評価の方法等に関する経過措置）の規定によりなおその効力を有するものとされる同令による改正前の所得税法施行令（次条において「旧効力所令」という。）第九十九条第一項（たな卸資産の評価の方法） |
| 第百四条第一項 | 又は第九十九条の二第一項（たな卸資産の特別な評価の方法） | 若しくは第九十九条の二第一項（たな卸資産の特別な評価の方法）又は旧効力所令第九十九条第一項（たな卸資産の評価の方法） |
New Ordermachine translation
「新令」
This Cabinet Order as amended by Cabinet Order No. 104 of 2009.
Short name set inSupplementary Provisions, Article 2, paragraph (1)
Former Ordermachine translation
「旧令」
In the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, the Order for Enforcement of the Income Tax Act as it stood before that Cabinet Order amended it.
Short name set inSupplementary Provisions, Article 2, paragraph (1)
type of business and category of assetsmachine translation
「事業の種類及び資産の区分」
The type of business and category of assets for which a method of valuing inventory is chosen, as defined in Article 100, paragraph (1) of the Order for Enforcement of the Income Tax Act as Cabinet Order No. 104 of 2009 left it.
Defined inSupplementary Provisions, Article 4, paragraph (1)· applies only in this article
new valuation methodmachine translation
「新評価方法」
In Article 4 of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, a method of valuing inventory listed in Article 99, paragraph (1) of this Order as that Cabinet Order amended it.
Short name set inSupplementary Provisions, Article 4, paragraph (1)· applies only in this article
former valuation methodmachine translation
「旧評価方法」
In Article 4 of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, the cost method using acquisition cost worked out by the last-in, first-out method or the simple average method, as listed in Article 99, paragraph (1), item (i) of this Order before that Cabinet Order amended it, including the lower-of-cost-or-market method based on that cost method.
Short name set inSupplementary Provisions, Article 4, paragraph (1)· applies only in this article
person applying a former valuation methodmachine translation
「旧評価方法適用者」
In Article 4 of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, an individual who chose a former valuation method (旧評価方法) for valuing their inventory for 2009.
Short name set inSupplementary Provisions, Article 4, paragraph (1)· applies only in this article
valuation method before the changemachine translation
「変更前評価方法」
In Article 4 of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, the inventory valuation method an individual who had chosen one of the abolished methods (旧評価方法) used before changing to a new method or being approved for a special one; where valuation by the new method comes out higher, part of the difference is a necessary expense.
Short name set inSupplementary Provisions, Article 4, paragraph (4)· applies only in this provision and in Supplementary Provisions, Article 4, paragraph (5)
year of changemachine translation
「変更年」
In Article 4, paragraph (4) of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, the year in which an individual who had chosen one of the abolished inventory valuation methods (旧評価方法) changed to a new method or was approved for a special one — or, where paragraph (3) applies, the year it applies to.
Short name set inSupplementary Provisions, Article 4, paragraph (4)· applies only in this paragraph
valuation method after the changemachine translation
「変更後評価方法」
In Article 4 of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, the inventory valuation method an individual who had chosen one of the abolished methods (旧評価方法) changed to or was approved for (or, where paragraph (3) applies, the statutory method); where valuation by it comes out higher than by the earlier method, part of the difference is a necessary expense.
Short name set inSupplementary Provisions, Article 4, paragraph (4)· applies only in this provision and in Supplementary Provisions, Article 4, paragraph (5)
valuation change adjustment amountmachine translation
「評価変更調整金額」
For an individual who used the former valuation method (旧評価方法) for inventory and changed it in 2010 or 2011, the amount by which the inventory's value on 31 December of the year of change under the new method exceeds its value under the old one; six-sevenths of it is counted as necessary expenses for that year.
Short name set inSupplementary Provisions, Article 4, paragraph (4)· applies only in this article
applicable assetsmachine translation
「適用資産」
Inventory assets (棚卸資産) of the same kind of business and class of assets as those for which an individual took the adjustment of paragraph (4) of Article 4 of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009, made on changing the method of valuing them.
Short name set inSupplementary Provisions, Article 4, paragraph (7)· applies only in this paragraph
Former Order for Enforcement of the Income Tax Act Kept in Forcemachine translation
「旧効力所令」
In the wording that Article 4, paragraph (8) of the supplementary provisions (附則) of Cabinet Order No. 104 of 2009 reads into this Order, the Order for Enforcement of the Income Tax Act as it stood before that Cabinet Order amended it, as kept in force by Article 4, paragraph (1) of those supplementary provisions.
Short name set inSupplementary Provisions, Article 4, paragraph (8)· applies only in this provision and in Article 104
district director
税務署長
The head of a tax office (税務署), the local office of the National Tax Agency that deals with taxpayers in its district (Act for Establishment of the Ministry of Finance, Article 24). It is the office a person usually deals with: an income tax return is filed with a district director (Income Tax Act, Article 120, paragraph (1)), and reassessments, determinations and the collection of national tax are done by the district director for the taxpayer's current place for tax payment (Act on General Rules for National Taxes, Articles 30 and 43). A person who objects to what a district director has decided can ask that director to look at it again (再調査の請求) or go straight to the National Tax Tribunal (Article 75, paragraph (1), item (i)) — unless the notice of the decision says officials of a Regional Taxation Bureau or of the National Tax Agency investigated, in which case it counts as the regional commissioner's decision, with the same choice, or as the Commissioner of the National Tax Agency's, which can only be challenged by a request for review to the Commissioner (Article 75, paragraph (2)).
Written by AI using Act for Establishment of the Ministry of Finance, Art. 24, Act on General Rules for National Taxes, Arts. 30, 43, 75 and Income Tax Act, Art. 120 as a reference.