①This Act is to prescribe, with regard to consumption tax, the subject of taxation, taxpayers, the method of calculating the amount of tax, and the procedures for filing returns, payment and refund, as well as the matters necessary to ensure the proper performance of the tax liability.

②The revenue from consumption tax is to be used, in addition to as provided for in the Local Allocation Tax Act (Act No. 211 of 1950), each fiscal year to cover the expenses required for social security benefits for pensions, medical care and long-term care that have been established as systems, and for measures to address the declining birthrate.

①In this Act, the meanings of the terms set forth in the following items are as prescribed respectively in those items:

②In this Act, "lending of assets" includes the creation of rights pertaining to assets and all other acts of causing another person to use assets (excluding those acts that fall under the supply of telecommunications services).

③In this Act, "borrowing of assets" includes the creation of rights pertaining to assets and all other acts of using the assets of another person (excluding those acts that fall under the supply of telecommunications services received from another person).

④In this Act, "inheritance" includes a universal bequest, "heir" includes a universal legatee, and "decedent" includes a person who has made a universal bequest.

An association or foundation without legal personality is deemed to be a corporation, and the provisions of this Act (excluding Articles 12-2 and 46-2 and Appended Table 3) apply to it.

①Consumption tax is imposed under this Act on transfers, etc. of assets conducted by business operators in Japan (excluding those that fall under specified transfers, etc. of assets; the same applies in paragraph (3)) and on specified purchases (meaning specified transfers, etc. of assets received from another person as a business; the same applies hereafter in this Chapter).

②Consumption tax is imposed under this Act on foreign goods taken out of a bonded area.

③Whether a transfer, etc. of assets was conducted in Japan is to be determined by whether the place specified in the relevant one of the following items, according to the category of cases set forth in those items, is in Japan; provided, however, that in the case set forth in item (iii), if there is no place specified in that item, that transfer, etc. of assets is to be regarded as having been conducted outside Japan.

④Whether a specified purchase was conducted in Japan is to be determined by whether the place specified in item (ii) or (iii) of the preceding paragraph, with respect to the provision of services received from another person as that specified purchase, is in Japan, from the standpoint of the business operator that made that specified purchase; provided, however, that, of the specified purchases that a foreign business operator makes at a permanent establishment (meaning a permanent establishment prescribed in Article 2, paragraph (1), item (viii)-4 (Definitions) of the Income Tax Act or Article 2, item (xii)-19 (Definitions) of the Corporation Tax Act) (limited to those that fall under the provision of telecommunications services for businesses received from another person; the same applies in this paragraph), those required for transfers, etc. of assets conducted in Japan are deemed to have been conducted in Japan, and, of the specified purchases that a business operator (excluding a foreign business operator) makes at a foreign office or similar establishment (meaning a foreign office or similar establishment prescribed in Article 95, paragraph (4), item (i) (Foreign Tax Credit) of the Income Tax Act or Article 69, paragraph (4), item (i) (Foreign Tax Credit) of the Corporation Tax Act), those required only for transfers, etc. of assets conducted outside Japan are deemed to have been conducted outside Japan.

⑤The following acts are deemed to be transfers of assets conducted for consideration as a business:

⑥Where foreign goods have been consumed or used in a bonded area, the person who consumed or used them is deemed to take those foreign goods out of that bonded area at the time of that consumption or use; provided, however, that this does not apply where those foreign goods have been consumed or used as raw materials or materials for taxable goods, or in any other case specified by Cabinet Order.

⑦In addition to what is provided for in paragraph (3) through the preceding paragraph, necessary matters concerning the details of the subject of taxation are specified by Cabinet Order.

①A business operator has an obligation to pay consumption tax under this Act with respect to taxable transfers, etc. of assets conducted in Japan (excluding those that fall under specified transfers, etc. of assets; the same applies hereafter, except in Article 30, paragraph (2) and Article 32) and specified taxable purchases (meaning, of taxable purchases, those that fall under specified purchases; the same applies hereafter).

②A person who takes foreign goods out of a bonded area has an obligation to pay consumption tax under this Act with respect to the taxable goods.

①Consumption tax is not imposed on those transfers, etc. of assets conducted in Japan that are set forth in Appended Table 2.

②Consumption tax is not imposed on those foreign goods taken out of a bonded area that are set forth in Appended Table 2-2.

①Consumption tax is exempted for those, among taxable transfers, etc. of assets conducted in Japan by a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)), that fall under any of the following:

②The provisions of the preceding paragraph do not apply unless it has been proved, as provided by Ministry of Finance Order, that the taxable transfer, etc. of assets falls under a transfer, etc. of assets set forth in the items of that paragraph.

①In the case where a business operator that operates a tax-free shop has made, to a person eligible for tax-free purchase (meaning a non-resident prescribed in Article 6, paragraph (1), item (vi) (Definitions) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) who stays in Japan with the landing permission prescribed in Articles 14 through 18 (Permission for Landing) of the Immigration Control and Refugee Recognition Act (Cabinet Order No. 319 of 1951), who stays in Japan with the status of residence of "Diplomat" or "Official" in Appended Table I (1) of that Act or the status of residence of "Temporary Visitor" in Appended Table I (3) of that Act, or any other person specified by Cabinet Order; the same applies hereafter in this Article), a transfer (excluding a transfer on which consumption tax is not to be imposed under Article 6, paragraph (1)) of goods specified by Cabinet Order that are purchased by the method specified by Cabinet Order for the purpose of export (in a case specified by Cabinet Order, limited to where the total amount of consideration prescribed in Article 28, paragraph (1) pertaining to the transfer of those goods is equal to or more than the amount specified by Cabinet Order), consumption tax is exempted for the transfer of those goods.

②The provisions of the preceding paragraph do not apply where the business operator that operates the tax-free shop that made the transfer referred to in that paragraph does not retain documents or electronic or magnetic records (meaning electronic or magnetic records prescribed in Article 2, item (iii) (Definitions) of the Act on Special Provisions concerning Preservation Methods for Books and Documents Related to National Tax Prepared by Means of Computers (Act No. 25 of 1998)) proving that the goods were purchased by a person eligible for tax-free purchase by the method prescribed in that paragraph; provided, however, that this does not apply where consumption tax has already been collected through the application of the main clause of the following paragraph or the main clause of paragraph (5) (including as applied mutatis mutandis pursuant to paragraph (6)), or where that business operator has proved that it was unable to retain those documents or electronic or magnetic records due to a disaster or other unavoidable circumstances.

③Where a person eligible for tax-free purchase who purchased the goods prescribed in paragraph (1) at a tax-free shop by the method prescribed in that paragraph does not export those goods by the day of departure from Japan (or, where that person ceases to be a person eligible for tax-free purchase, by the day on which that person ceases to be so), the director-general of the customs house having jurisdiction over the port of departure (or, where that person ceases to be a person eligible for tax-free purchase, the district director having jurisdiction over the place of that person's address or residence at the time of ceasing to be so; the same applies hereafter in this paragraph) is to immediately collect from that person consumption tax equivalent to the amount of consumption tax exempted under paragraph (1) for the transfer of those goods, except where that person has obtained the approval of that director-general of the customs house for not exporting the goods because they were lost due to a disaster or other unavoidable circumstances; provided, however, that this does not apply where a fact falling under the case prescribed in the main clause of the preceding paragraph has already arisen, or where consumption tax has been collected through the application of the main clause of paragraph (5) (including as applied mutatis mutandis pursuant to paragraph (6)).

④Goods prescribed in paragraph (1) that a person eligible for tax-free purchase has purchased at a tax-free shop by the method prescribed in that paragraph must not be transferred or acquired in Japan (including, upon being commissioned to carry out such transfer or acquisition or for the purpose of mediating it, possessing those goods, or causing a person commissioned to carry out the transfer or a person who mediates it to possess them for the purpose of transfer; the same applies hereafter through paragraph (6)); provided, however, that this does not apply where, in a case in which there are unavoidable circumstances for the transfer or acquisition of those goods, the approval of the district director having jurisdiction over the place where those goods are located has been obtained.

⑤When goods prescribed in the preceding paragraph have been transferred or acquired in Japan, the district director is to immediately collect consumption tax equivalent to the amount of consumption tax exempted under paragraph (1) for the transfer of those goods, from the person who obtained the approval under the proviso to the preceding paragraph if there is such a person, or, where the transfer or acquisition was made without obtaining that approval, from the person who transferred those goods (including a person who caused them to be possessed as prescribed in the main clause of the preceding paragraph; the same applies in the following paragraph); provided, however, that this does not apply where a fact falling under the case prescribed in the main clause of paragraph (2) has already arisen, or where consumption tax has been collected through the application of the main clause of paragraph (3).

⑥Where goods prescribed in paragraph (4) have been transferred or acquired in Japan without the approval under the proviso to paragraph (4), the person who acquired those goods (including a person who possessed them as prescribed in the main clause of that paragraph) is jointly and severally liable with the person who transferred those goods to pay consumption tax equivalent to the amount of consumption tax exempted under paragraph (1) for the transfer of those goods. In this case, the provisions of the preceding paragraph apply mutatis mutandis to the collection of the consumption tax.

⑦A tax-free shop prescribed in paragraphs (1) through (4) is a sales outlet operated by a business operator that satisfies all of the following requirements (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of paragraph (1) of the following Article) (excluding a temporary sales outlet prescribed in paragraph (9)), for which permission has been obtained from the district director having jurisdiction over the business operator's place for tax payment as a sales outlet capable of transferring to persons eligible for tax-free purchase goods prescribed in paragraph (1) that are purchased by the method prescribed in that paragraph:

⑧The district director may revoke the permission under the preceding paragraph for a tax-free shop if the business operator that operates the tax-free shop prescribed in that paragraph has violated the provisions of laws and regulations concerning consumption tax, or if its facilities and other conditions are found to be particularly unsuitable for a tax-free shop prescribed in that paragraph.

⑨Where a business operator that intends to establish a temporary sales outlet (meaning a sales outlet established for a period fixed at seven months or less for the purpose of transferring goods prescribed in paragraph (1) to persons eligible for tax-free purchase) (limited to a business operator that operates a tax-free shop prescribed in paragraph (7)) and that has obtained the approval under the following paragraph submits, by the day before the day of establishing that temporary sales outlet, to the district director having jurisdiction over its place for tax payment a written notification stating the period during which it intends to establish that temporary sales outlet and other matters specified by Ministry of Finance Order, with the documents specified by Ministry of Finance Order attached, the provisions of paragraphs (1) through (4) apply, only for that period, deeming that temporary sales outlet to be a tax-free shop prescribed in paragraph (7).

⑩A business operator that seeks to be subject to the application of the preceding paragraph must obtain, in advance, the approval of the district director having jurisdiction over its place for tax payment, as provided by Cabinet Order.

⑪The director-general of a customs house may, as provided by Cabinet Order, delegate part of the authority pertaining to the approval and collection under the main clause of paragraph (3), and of the authority based on the provisions of laws and regulations concerning the consumption tax to be immediately collected pursuant to the main clause of that paragraph, to the head of a branch office of the customs house or other customs house office.

⑫Matters concerning permission for tax-free shops prescribed in paragraph (7), and other matters necessary for the application of the preceding paragraphs, are specified by Cabinet Order.

①With respect to a business operator whose taxable sales in the base period for its taxable period are 10 million yen or less (excluding a qualified invoice issuer), notwithstanding Article 5, paragraph (1), the obligation to pay consumption tax is exempted for the taxable transfers, etc. of assets and specified taxable purchases conducted in Japan during that taxable period; provided, however, that this does not apply where otherwise provided for in this Act.

②The taxable sales in the base period prescribed in the preceding paragraph means the amount specified in the following items for the category of business operators set forth in those items:

③The number of months in item (ii) of the preceding paragraph is to be calculated according to the calendar, and if a fraction of less than one month arises, it is to be counted as one month.

④Where a business operator that would be exempted from the obligation to pay consumption tax under the main clause of paragraph (1) submits to the district director having jurisdiction over its place for tax payment, for a taxable period in which its taxable sales in the base period (meaning the taxable sales in the base period prescribed in that paragraph; the same applies hereafter in this Chapter, except in Article 11, paragraph (4) and Article 12, paragraph (3)) are 10 million yen or less, a written notification stating that it will not be subject to the application of the main clause of paragraph (1), the main clause of that paragraph does not apply to taxable transfers, etc. of assets and specified taxable purchases conducted in Japan by the business operator that made that submission during each taxable period from the taxable period following the taxable period that includes the day of that submission (or, where the taxable period that includes the day of that submission is the taxable period that includes the day on which the business was commenced or any other taxable period specified by Cabinet Order, from that taxable period) onward (excluding a taxable period in which its taxable sales in the base period exceed 10 million yen).

⑤A business operator that has submitted a written notification under the provisions of the preceding paragraph must, when it intends to cease to be subject to the application of that paragraph or when it has discontinued its business, submit to the district director having jurisdiction over its place for tax payment a written notification to that effect.

⑥In the case referred to in the preceding paragraph, a business operator that has submitted a written notification under the provisions of paragraph (4) may, except where it has discontinued its business, submit a written notification stating that it intends to cease to be subject to the application of that paragraph only on or after the first day of the taxable period that includes the day on which two years have elapsed from the first day of the following taxable period prescribed in that paragraph.

⑦In the case referred to in paragraph (5), where a business operator that has submitted a written notification under the provisions of paragraph (4) has, during any taxable period beginning during the period from the first day of the following taxable period prescribed in that paragraph to the day on which two years have elapsed from that day (excluding a taxable period to which Article 37, paragraph (1) applies), made a taxable purchase of an adjustment-target fixed asset in Japan or taken out of a bonded area taxable goods that fall under adjustment-target fixed assets (excluding those for which consumption tax is exempted under the provisions of another Act or a treaty; the same applies in paragraph (9), Article 12-2, paragraph (4) and Article 12-4) (hereinafter in this paragraph, Article 12-2, paragraph (2) and Article 12-3, paragraph (3) referred to as a "purchase, etc. of an adjustment-target fixed asset") (including where it made that purchase, etc. of an adjustment-target fixed asset before the submission of that written notification in the taxable period specified by Cabinet Order prescribed in paragraph (4)), then, notwithstanding the provisions of the preceding paragraph, except where it has discontinued its business, it may submit a written notification stating that it intends to cease to be subject to the application of the provisions of paragraph (4) only on or after the first day of the taxable period that includes the day on which three years have elapsed from the first day of the taxable period that includes the day of that purchase, etc. of an adjustment-target fixed asset (meaning the day specified in each item of Article 30, paragraph (1) for the category of cases set forth in that item pertaining to that purchase, etc. of an adjustment-target fixed asset; the same applies hereafter in this paragraph and Article 12-2, paragraph (2)). In this case, if, during the period from the first day of the taxable period that includes the day of that purchase, etc. of an adjustment-target fixed asset to the day of that purchase, etc. of an adjustment-target fixed asset, it has submitted to the district director having jurisdiction over its place for tax payment a written notification stating that it intends to cease to be subject to the application of the provisions of paragraph (4), then, for the purpose of the application of the provisions of the following paragraph, the submission of that written notification is deemed not to have been made.

⑧When a written notification under the provisions of paragraph (5) has been submitted, the notification under the provisions of paragraph (4) ceases to be effective on or after the day following the last day of the taxable period that includes the day of that submission.

⑨Special provisions on the application of paragraph (4) or the preceding paragraph in the case where, due to unavoidable circumstances, the written notification under the provisions of paragraph (4) or (5) could not be submitted by the day before the first day of the taxable period for which the business operator intends to become subject to, or to cease to be subject to, the application of the provisions of paragraph (4), and other matters necessary for the application of paragraph (7) in the case where the purchase, etc. of an adjustment-target fixed asset prescribed in that paragraph is the taking out of a bonded area of taxable goods pertaining to the submission of a special return, or in other cases, are specified by Cabinet Order.

①In the case where the taxable sales in the base period for that year of an individual business operator, or in the base period for its business year of a corporation, are 10 million yen or less, if, among those individual business operators or corporations (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under paragraph (4) of the preceding Article), the taxable sales of the individual business operator in the specified period for that year, or of the corporation in the specified period for its business year, exceed 10 million yen, the main clause of paragraph (1) of that Article does not apply to taxable transfers, etc. of assets and specified taxable purchases in that year of that individual business operator or in that business year of that corporation.

②The taxable sales in the specified period prescribed in the preceding paragraph means the balance remaining after deducting, from the total amount of consideration for taxable transfers, etc. of assets conducted in Japan during that specified period, the total of the amounts obtained by deducting the amount set forth in item (ii) from the amount set forth in item (i).

③Where a business operator other than a foreign business operator applies paragraph (1), notwithstanding the preceding paragraph, it may treat as the taxable sales in the specified period under paragraph (1) the total of the amounts specified by Ministry of Finance Order as corresponding to the amount of the salary or other wage under that paragraph that should be stated in the payment slip prescribed in Article 231, paragraph (1) (Paper-Based Payment Slips for Salary and Other Wages, Severance Pay and Other Such Compensation, and Public Pensions and Retirement Packages) of the Income Tax Act, which the business operator paid during the specified period under paragraph (1).

④The specified period prescribed in the preceding three paragraphs means the period specified in the following items for the category of business operators set forth in those items:

⑤Special provisions on that period in the case where the last day of the six-month period prescribed in item (ii) or (iii) of the preceding paragraph is not the last day of the month, and other matters necessary for the application of the preceding paragraphs, are specified by Cabinet Order.

①In the case where an inheritance has occurred in a year, if an heir whose taxable sales in the base period for that year are 10 million yen or less (excluding an heir whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1); the same applies hereafter in this paragraph and the following paragraph) has succeeded to the business of a decedent whose taxable sales in that base period exceed 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases of that heir during the period from the day following the day of that inheritance to December 31 of that year.

②In the case where the taxable sales in the base period for the year of an heir who succeeded to the business of a decedent by inheritance in the year before, or two years before, that year are 10 million yen or less, if the total of the taxable sales of that heir in that base period and the taxable sales in that base period of the decedent pertaining to that inheritance exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases of that heir in that year.

③Matters necessary for the calculation of the taxable sales in the base period of a decedent in the case where, by inheritance, the business of a decedent having two or more places of business has been succeeded to by two or more heirs who divided those two or more places of business among them place by place, and other matters necessary for the application of the preceding two paragraphs, are specified by Cabinet Order.

①In the case where a merger (excluding a merger in which a corporation is established through the merger; the same applies hereafter in this paragraph and the following paragraph) has taken place, if the amount calculated as provided by Cabinet Order as the taxable sales of a merged corporation in the period corresponding to the base period for the business year of the merging corporation that includes the day on which the merger took place (if there are two or more merged corporations, that amount pertaining to any one of the merged corporations) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases during the period from the day on which that merger took place to the last day of the business year that includes the day on which that merger took place, in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

②In the case where a merger took place during the period from the day following the first day of the base period for the business year of a merging corporation to the day before the first day of that business year, if the total of the taxable sales of that merging corporation in the base period for that business year and the amount calculated as provided by Cabinet Order as the taxable sales of a merged corporation in the period corresponding to the base period for that business year of that merging corporation (if there are two or more merged corporations, the total of that amount pertaining to each merged corporation) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

③In the case where a merger (limited to a merger in which a corporation is established through the merger; the same applies hereafter in this paragraph and the following paragraph) has taken place, if any of the amounts calculated as provided by Cabinet Order as the taxable sales of the merged corporations in the period corresponding to the base period for the business year of the merging corporation that includes the day on which the merger took place exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in the business year that includes the day on which that merger took place of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4)).

④In the case where a merger took place during the period from the day two years before the first day of the business year of a merging corporation to the day before the first day of that business year, if the total of the taxable sales of that merging corporation in the base period for that business year (meaning the balance remaining after deducting the total tax-exclusive refunds, etc. of consideration for sales in the base period for the business year from the total amount of consideration for taxable transfers, etc. of assets in Japan during the base period for the business year; the same applies hereafter in this paragraph) and the total of the amounts calculated as provided by Cabinet Order as the taxable sales of each merged corporation in the period corresponding to the base period for that business year of that merging corporation (or, where that merging corporation has no taxable sales in the base period for that business year or in any other case specified by Cabinet Order, the amount specified by Cabinet Order) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period prescribed in Article 9, paragraph (1) are 10 million yen or less) of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

①In the case where a corporate split, etc. has taken place, if the amount calculated as provided by Cabinet Order as the taxable sales of the corporation that carried out that corporate split, etc. (hereinafter in this paragraph through paragraph (4) referred to as a "split-off parent corporation") in the period corresponding to the base period for the business year that includes the day on which the corporate split, etc. took place of the corporation established through that corporate split, etc. or that received the transfer of assets through it (hereinafter in this paragraph through paragraph (4) referred to as a "split-off subsidiary corporation") (if there are two or more split-off parent corporations, that amount pertaining to any one of the split-off parent corporations) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases during the period from the day on which that corporate split, etc. took place to the last day of the business year that includes the day on which that corporate split, etc. took place, of that split-off subsidiary corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4)).

②In the case where a corporate split, etc. took place during the period from the day before the day one year before the first day of the business year of a split-off subsidiary corporation to the day before the first day of that business year, if the amount calculated as provided by Cabinet Order as the taxable sales of a split-off parent corporation in the period corresponding to the base period for that business year of that split-off subsidiary corporation (if there are two or more split-off parent corporations, that amount pertaining to any one of the split-off parent corporations) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year of that split-off subsidiary corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

③In the case where a corporate split, etc. (excluding one involving two or more split-off parent corporations; the same applies in the following paragraph) took place on or before the day two days before the day that is one year before the first day of the relevant business year of a split-off subsidiary corporation, and the split-off subsidiary corporation falls under the specified requirement (meaning a case where shares or capital contributions in a number or amount exceeding 50 percent of the total number or total amount of the issued shares or capital contributions of the split-off subsidiary corporation (excluding treasury shares or capital contributions held by that split-off subsidiary corporation) belong to the split-off parent corporation and persons having a special relationship specified by Cabinet Order with that split-off parent corporation, or any other case specified by Cabinet Order; the same applies in the following paragraph) on the last day of the base period of that business year, and the total of the amount calculated as provided by Cabinet Order as the taxable sales of that split-off subsidiary corporation in the base period of that business year and the amount calculated as provided by Cabinet Order as the taxable sales of that split-off parent corporation in the period corresponding to the base period of that business year of that split-off subsidiary corporation exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period prescribed in Article 9, paragraph (1) are 10 million yen or less) of that split-off subsidiary corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

④In the case where a corporate split, etc. took place on or before the day two days before the day that is one year before the first day of the relevant business year of a split-off parent corporation, and a split-off subsidiary corporation falls under the specified requirement on the last day of the base period of that business year, and the total of the taxable sales of that split-off parent corporation in the base period of that business year and the amount calculated as provided by Cabinet Order as the taxable sales of that split-off subsidiary corporation in the period corresponding to the base period of that business year of that split-off parent corporation exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that split-off parent corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

⑤In the case where an absorption-type company split took place, if the amount calculated as provided by Cabinet Order as the taxable sales of the splitting corporation in the period corresponding to the base period of the business year of the successor corporation in a company split that includes the day on which the absorption-type company split took place (if there are two or more splitting corporations, that amount in relation to any one of the splitting corporations) exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases during the period from the day on which the absorption-type company split took place to the last day of the business year that includes that day, in the business year that includes the day on which that absorption-type company split took place (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that successor corporation in a company split (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

⑥In the case where an absorption-type company split took place during the period from the day before the day that is one year before the first day of the relevant business year of a successor corporation in a company split to the day before the first day of that business year, if the amount calculated as provided by Cabinet Order as the taxable sales of the splitting corporation in the period corresponding to the base period of that business year of that successor corporation in a company split (if there are two or more splitting corporations, that amount in relation to any one of the splitting corporations) exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that successor corporation in a company split (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

⑦The corporate split, etc. prescribed in paragraphs (1) through (4) means any of the following.

①Of corporations that have no base period for the business year (excluding a social welfare corporation prescribed in Article 22 (Definitions) of the Social Welfare Act (Act No. 45 of 1951) and any other corporation established exclusively for the purpose of making transfers, etc. of assets listed in Appended Table 2, as specified by Cabinet Order), for a corporation whose amount of capital or contributions on the first day of that business year is 10 million yen or more (hereinafter in this paragraph and the following paragraph referred to as a "newly established corporation"), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period included in the business year of that newly established corporation in which it has no base period (excluding a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 11, paragraph (3) or (4), or paragraph (1) or (2) of the preceding Article).

②In the case where a newly established corporation prescribed in the preceding paragraph makes a purchase, etc. of an adjustment-target fixed asset during a taxable period included in the business year in which it has no base period (excluding a taxable period to which the provisions of Article 37, paragraph (1) apply), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period that includes the day of the purchase, etc. of the adjustment-target fixed asset by that newly established corporation through the taxable period that includes the day on which three years have elapsed from the first day of that taxable period (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 11, paragraph (3) or (4), paragraphs (1) through (3) of the preceding Article, or the preceding paragraph).

③In the case where a foreign corporation that has a base period for the business year (meaning a foreign corporation prescribed in Article 2, item (iv) (Definitions) of the Corporation Tax Act; the same applies in paragraph (5) of the following Article) commences, on or after the day following the last day of that base period, a business relating to taxable transfers, etc. of assets in Japan, the provisions of the preceding two paragraphs apply to that business year, deeming that there is no base period.

④Necessary matters concerning the application of the provisions of paragraph (2) in the case where the purchase, etc. of an adjustment-target fixed asset prescribed in that paragraph is the taking of taxable goods out of a bonded area in connection with the submission of a special return, and in other cases, are specified by Cabinet Order.

①Of corporations that have no base period for the business year (excluding a newly established corporation prescribed in paragraph (1) of the preceding Article, a social welfare corporation prescribed in Article 22 (Definitions) of the Social Welfare Act, and any other corporation established exclusively for the purpose of making transfers, etc. of assets listed in Appended Table 2, as specified by Cabinet Order; hereinafter in this Article referred to as a "newly founded corporation"), for a newly founded corporation in the case where, on the first day of the business year in which it has no base period (hereinafter in this paragraph and the following paragraph referred to as the "new establishment start date"), it falls under the specified requirement (meaning a case where shares or capital contributions in a number or amount exceeding 50 percent of the total number or total amount of the issued shares or capital contributions of the newly founded corporation (excluding treasury shares or capital contributions held by that newly founded corporation) are held directly or indirectly by another person, or any other case specified by Cabinet Order as one in which the newly founded corporation is controlled by another person; the same applies hereinafter in this Article), and, with respect to any one of the other person who formed the basis for the determination that the newly founded corporation falls under the specified requirement and the corporations having a special relationship specified by Cabinet Order with that other person, the amount calculated as provided by Cabinet Order as taxable sales in the period corresponding to the base period of the business year of that newly founded corporation that includes the new establishment start date (excluding the amount of consideration for taxable transfers, etc. of assets in a business conducted by the national government or a local government as business pertaining to its general account) exceeds 500 million yen or the amount calculated as provided by Cabinet Order as gross revenue in the period corresponding to that base period (excluding that in a business conducted by the national government or a local government as business pertaining to its general account, or in a business conducted by a foreign country or a local government of a foreign country) exceeds 5 billion yen (such a newly founded corporation is hereinafter in this paragraph and paragraph (3) referred to as a "specified newly founded corporation"), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period included in the business year of that specified newly founded corporation in which it has no base period (excluding a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 11, paragraph (3) or (4), Article 12, paragraph (1) or (2), or paragraph (2) of the preceding Article).

②In the case where a newly founded corporation falls under the specified requirement on its new establishment start date and, among corporations that were corporations having the special relationship specified by Cabinet Order prescribed in the preceding paragraph with the other person prescribed in that paragraph and that were dissolved within one year before the day of establishment of that newly founded corporation or within one year before that new establishment start date, there is one that fell under a corporation having that special relationship on the day of its dissolution (excluding one that is still a corporation having that special relationship on that new establishment start date; hereinafter in this paragraph referred to as a "dissolved corporation"), the provisions of the preceding paragraph apply to that newly founded corporation, deeming that dissolved corporation to be a corporation having that special relationship.

③The provisions of paragraphs (2) and (4) of the preceding Article apply mutatis mutandis to the case where a specified newly founded corporation makes a purchase, etc. of an adjustment-target fixed asset during a taxable period included in the business year in which it has no base period (excluding a taxable period to which the provisions of Article 37, paragraph (1) apply). In this case, the phrase "newly established corporation prescribed in the preceding paragraph" in paragraph (2) of the preceding Article is deemed to be replaced with "specified newly founded corporation prescribed in paragraph (1) of the following Article", the phrase "that newly established corporation" with "that specified newly founded corporation", and the phrase "or the preceding paragraph" with "this paragraph, or paragraph (1) of the following Article".

④The other person prescribed in paragraph (1), when requested by a newly founded corporation that falls under the specified requirement to provide information on matters necessary for determining whether the case applies where the amount calculated as provided by Cabinet Order as the taxable sales referred to in that paragraph exceeds 500 million yen or the case applies where the amount calculated as provided by Cabinet Order as the gross revenue referred to in that paragraph exceeds 5 billion yen, must comply with the request.

⑤In the case where a foreign corporation that has a base period for the business year commences, on or after the day following the last day of that base period, a business relating to taxable transfers, etc. of assets in Japan, the provisions of the preceding paragraphs apply to that business year, deeming that there is no base period.

⑥Beyond what is specified in paragraph (2) through the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

①In the case where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes, during a taxable period to which the provisions of Article 37, paragraph (1) do not apply, a taxable purchase in Japan of a high-value specified asset (meaning inventory or an adjustment-target fixed asset whose value is high as specified by Cabinet Order; the same applies hereinafter in this Article) or the taking out of a bonded area of taxable goods that fall under a high-value specified asset (hereinafter in this paragraph referred to as a "purchase, etc. of a high-value specified asset") (in the case of a high-value specified asset that the business operator itself constructed, manufactured or produced (hereinafter in this paragraph and the following paragraph referred to as "construction, etc.") under a contract with another person or as inventory or an adjustment-target fixed asset of the business operator (hereinafter in this paragraph referred to as a "self-constructed high-value specified asset"), the case where the amount of expenses specified by Cabinet Order required for the construction, etc. of that self-constructed high-value specified asset becomes the amount specified by Cabinet Order or more (referred to in item (ii) as a "case of a purchase of a self-constructed high-value specified asset")), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period following the taxable period that includes the day of that purchase, etc. of a high-value specified asset (meaning the day specified in each of the following items according to the category of high-value specified asset set forth in that item) through the taxable period that includes the day on which three years have elapsed from the first day of the taxable period that includes the day of that purchase, etc. of a high-value specified asset (in the case of a self-constructed high-value specified asset, the taxable period that includes the day on which the construction, etc. of that self-constructed high-value specified asset is completed) (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 10, paragraph (2), Article 11, paragraph (2) or (4), Article 12, paragraphs (2) through (4) or paragraph (6), Article 12-2, paragraph (1) or (2), or paragraph (1) or (3) of the preceding Article).

②In the case where a business operator has been subject to the application of the provisions of Article 36, paragraph (1) or (3) in respect of inventory or taxable goods that are high-value specified assets, or inventory that the business operator itself constructed, etc. under a contract with another person or as its own inventory (including inventory that a decedent, merged corporation or splitting corporation itself constructed, etc. where the business operator succeeded to the business of that decedent, merged corporation or splitting corporation through inheritance, merger or split; limited to inventory for which the amount of expenses specified by Cabinet Order required for the construction, etc. of that inventory has become the amount specified by Cabinet Order or more; hereinafter in this paragraph referred to as an "adjustment-target self-constructed high-value asset"), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period following the taxable period in which those provisions were applied through the taxable period that includes the day on which three years have elapsed from the first day of the taxable period in which those provisions were applied (in the case of an adjustment-target self-constructed high-value asset whose construction, etc. had not been completed by the day before the day on which it came to fall under the case prescribed in those provisions, the taxable period that includes the day on which that construction, etc. is completed) (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 10, paragraph (2), Article 11, paragraph (2) or (4), Article 12, paragraphs (2) through (4) or paragraph (6), Article 12-2, paragraph (1) or (2), paragraph (1) or (3) of the preceding Article, or the preceding paragraph).

③In the case where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes, during a taxable period to which the provisions of Article 37, paragraph (1) do not apply, a taxable purchase in Japan of gold or platinum bullion or any other asset similar thereto as specified by Ministry of Finance Order (hereinafter in this paragraph referred to as "gold bullion and similar items") or the taking out of a bonded area of taxable goods that fall under gold bullion and similar items (including a taxable purchase or a taking out of a bonded area relating to inventory to which the provisions of Article 36, paragraph (1) or (3) apply in that taxable period; hereinafter in this paragraph referred to as a "purchase, etc. of gold bullion and similar items"), if the case falls under a case specified by Cabinet Order as one in which the total amount of that purchase, etc. of gold bullion and similar items during that taxable period is high, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period following the taxable period in which that purchase, etc. of gold bullion and similar items was made through the taxable period that includes the day on which three years have elapsed from the first day of the taxable period in which that purchase, etc. of gold bullion and similar items was made (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 10, paragraph (2), Article 11, paragraph (2) or (4), Article 12, paragraphs (2) through (4) or paragraph (6), Article 12-2, paragraph (1) or (2), paragraph (1) or (3) of the preceding Article, or the preceding two paragraphs).

④Necessary matters concerning the application of the provisions of paragraph (1) or the preceding paragraph in the case where the purchase, etc. of a high-value specified asset prescribed in paragraph (1) or the purchase, etc. of gold bullion and similar items prescribed in the preceding paragraph is the taking of taxable goods out of a bonded area in connection with the submission of a special return, and otherwise concerning the application of the provisions of the preceding three paragraphs, are specified by Cabinet Order.

①Where a person who is legally regarded as having made a transfer, etc. of assets is a mere nominee and does not enjoy the consideration for that transfer, etc. of assets, and a person other than that person enjoys the consideration for that transfer, etc. of assets, the provisions of this Act apply on the basis that that transfer, etc. of assets was made by the person who enjoys that consideration.

②Where a person who is legally regarded as having made a specified purchase is a mere nominee and does not pay the consideration for that specified purchase, and a person other than that person is the person who is to pay the consideration for that specified purchase, the provisions of this Act apply on the basis that that specified purchase was made by the person who is to pay that consideration.

①A beneficiary of a trust (limited to a person who actually has rights as a beneficiary) is deemed to hold the assets belonging to the trust property of that trust, and the asset transactions, etc. pertaining to that trust property (meaning transfers, etc. of assets, taxable purchases and the taking of taxable goods out of a bonded area; the same applies hereafter in this paragraph and paragraph (1) of the following Article) are deemed to be the asset transactions, etc. of that beneficiary, and the provisions of this Act apply; provided, however, that this does not apply to the assets belonging to the trust property of a group investment trust prescribed in Article 2, item (xxix) (Definitions) of the Corporation Tax Act, a trust subject to corporate taxation prescribed in item (xxix)-2 of that Article, a retirement pension trust, etc. prescribed in Article 12, paragraph (4), item (i) (Vesting of Assets and Liabilities in Trust Property and Profit and Expenses to Be Attributed to Trust Property) of that Act, or a public interest trust or participant protection trust prescribed in item (ii) of that paragraph, or to the asset transactions, etc. pertaining to that trust property.

②A person who actually has the authority to make changes to a trust (other than what Cabinet Order prescribes as the authority to make minor changes) and who is meant to benefit from the trust property of that trust (other than a beneficiary) is deemed to be a beneficiary as prescribed in the preceding paragraph, and the provisions of that paragraph apply.

③The application of paragraph (1) in the case where there are two or more beneficiaries, the determination of whether a person falls under a person who is meant to benefit from the trust property as prescribed in the preceding paragraph, and other matters necessary for the application of the provisions of the preceding two paragraphs are specified by Cabinet Order.

①The trustee of a trust subject to corporate taxation prescribed in the proviso to paragraph (1) of the preceding Article or a public interest trust prescribed in the proviso to that paragraph (hereinafter in this Article referred to as a "trust subject to corporate taxation, etc.") is deemed to be a separate person for each of the trust assets, etc. (meaning the assets belonging to the trust property and the asset transactions, etc. pertaining to that trust property; the same applies hereafter in this Article) of each trust subject to corporate taxation, etc. and its own assets, etc. (meaning the assets and asset transactions, etc. other than the trust assets, etc. of trusts subject to corporate taxation, etc.; the same applies hereafter in this Article), and the provisions of this Act (excluding Article 5, the preceding Article, Articles 20 through 27, Articles 47, 50 and 51, and Chapter VI; the same applies hereafter in this Article) apply.

②In the case referred to in the preceding paragraph, the trust assets, etc. and own assets, etc. of each trust subject to corporate taxation, etc. belong to the respective separate persons deemed under that paragraph.

③Where an individual business operator is a trustee business operator (meaning the trustee of a trust subject to corporate taxation, etc. where, under the preceding two paragraphs, the provisions of this Act are applied to that trustee as the person to whom the trust assets, etc. pertaining to that trust subject to corporate taxation, etc. belong; the same applies hereafter in this Article), that trustee business operator is deemed to be a corporation, and the provisions of this Act apply.

④With respect to the taxable sales in the base period for the taxable period of an own-assets business operator (meaning the trustee of a trust subject to corporate taxation, etc. where, under paragraphs (1) and (2), the provisions of this Act are applied to that trustee as the person to whom the own assets, etc. pertaining to that trust subject to corporate taxation, etc. belong; the same applies hereafter in this Article), notwithstanding Article 9, paragraph (2), the taxable sales are the total of the following amounts:

⑤With respect to the taxable sales in the base period for the taxable period of a trustee business operator, notwithstanding Article 9, paragraph (2), the taxable sales are the taxable sales in the base period for the taxable period of the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator that includes the first day of that taxable period.

⑥In the case where, on the first day of the taxable period of a trustee business operator, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator is a qualified invoice issuer on the first day of the taxable period of that own-assets business operator that includes that first day (limited to a taxable period in which its taxable sales in the base period are 10 million yen or less), or is a business operator whose obligation to pay consumption tax is not exempted, for taxable transfers, etc. of assets and specified taxable purchases in that taxable period, by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Articles 10 through 12-4, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in the taxable period of that trustee business operator that includes that first day.

⑦With respect to the taxable sales in the specified period prescribed in Article 9-2, paragraph (1) (or, where paragraph (3) of that Article applies, the total prescribed in that paragraph), the taxable sales in the base period for that business year prescribed in Article 11, paragraph (4), and the taxable sales in the taxable period prescribed in Article 30, paragraph (2) of an own-assets business operator or trustee business operator, notwithstanding Article 9-2, paragraph (2) or (3), Article 11, paragraph (4) or Article 30, paragraph (6), the taxable sales are, respectively, the amounts calculated as provided by Cabinet Order in accordance with paragraph (4) or (5) as corresponding to those amounts.

⑧Article 37, paragraph (1) applies to the taxable period of a trustee business operator that includes the first day of that taxable period only in the case where, on that first day, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator is a business operator to which Article 37, paragraph (1) applies for the taxable period of that own-assets business operator that includes that first day. In this case, in that paragraph, the phrase "business operator (" is deemed to be replaced with "trustee business operator (meaning a trustee business operator prescribed in Article 15, paragraph (3), and excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) on the first day of its taxable period, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator (meaning a trust subject to corporate taxation, etc. prescribed in Article 15, paragraph (1)) (meaning an own-assets business operator prescribed in paragraph (4) of that Article, and"; the phrase "to the district director having jurisdiction over its place for tax payment, for a taxable period in which its" is deemed to be replaced with "for a taxable period in which its"; the phrase "a written notification stating that it will be subject to the application of this paragraph, then, for each taxable period from the taxable period following the taxable period that includes the day on which the written notification was submitted (or, where the taxable period that includes the day on which the written notification was submitted is the taxable period that includes the day on which the business was commenced or any other taxable period specified by Cabinet Order, from that taxable period) onward (excluding a taxable period in which its taxable sales in the base period exceed 50 million yen and a taxable period pertaining to a corporate split, etc.)" is deemed to be replaced with "is a business operator to which this paragraph applies, then, for the taxable period of that trustee business operator that includes that first day"; and the phrase "that business operator" in the items of that paragraph is deemed to be replaced with "that trustee business operator".

⑨Where the own-assets business operator referred to in the preceding paragraph has become subject to the application of Article 37-2, paragraph (1) or (6) for the taxable period of that own-assets business operator that includes the first day prescribed in that paragraph (hereinafter in this paragraph referred to as the "own-assets taxable period"), the application of the preceding paragraph is as provided in the following items for the category of cases set forth in those items:

⑩For the application of Article 42 to a trustee business operator, a merger of trusts is deemed to be a merger, and the trustee business operator pertaining to the trust subject to corporate taxation, etc. that is the former trust involved in the merger of trusts is to be included in the merged corporation, and the trustee business operator pertaining to the trust subject to corporate taxation, etc. that is the new trust involved in the merger of trusts is to be included in the merging corporation.

⑪The provisions of Article 9, paragraphs (4) through (9), Articles 10 through 12-4, Article 37, paragraphs (3) through (8), Article 37-2 and Articles 57 through 57-3 do not apply to a trustee business operator.

⑫Where there are two or more trustees of a trust subject to corporate taxation, etc., the trust assets, etc. of each trustee pertaining to that trust subject to corporate taxation, etc. are deemed to be the trust assets, etc. of the trustee who presides over the trust affairs of that trust subject to corporate taxation, etc. (hereinafter in this Article referred to as the "presiding trustee"), and the provisions of this Act apply.

⑬With respect to the consumption tax pertaining to the trust assets, etc. deemed under the preceding paragraph to be the trust assets, etc. of the presiding trustee, trustees other than the presiding trustee are liable for joint payment of that consumption tax.

⑭For the application of the provisions of Article 43, paragraph (1) (Competent Agency for Collection of National Taxes) of the Act on General Rules for National Taxes where the consumption tax prescribed in the preceding paragraph is collected from a trustee other than the presiding trustee, in that paragraph, the phrase "The collection of a national tax" is deemed to be replaced with "The collection of consumption tax pertaining to the liability for joint payment prescribed in Article 15, paragraph (13) of the Consumption Tax Act of a trustee other than the presiding trustee prescribed in paragraph (12) of that Article (hereinafter in this paragraph referred to as the "presiding trustee") (hereinafter in this paragraph referred to as a "jointly liable trustee") of a trust subject to corporate taxation, etc. prescribed in paragraph (1) of that Article (Application of This Act to Trustees of Trusts Subject to Corporate Taxation, etc.)", and the phrase "the place for tax payment of the national tax" is deemed to be replaced with "the place for tax payment of that consumption tax or the place for tax payment of that consumption tax in the case where that jointly liable trustee had been the presiding trustee of that trust subject to corporate taxation, etc.".

⑮In addition to what is provided for in the preceding paragraphs, matters necessary for the calculation of the amount of consumption tax on purchases in the case where a merger or split of trusts subject to corporate taxation, etc. has taken place, and other matters necessary for the application of the provisions of this Act to a trustee business operator or an own-assets business operator, are specified by Cabinet Order.

①Where the supply of telecommunications services conducted in Japan by a foreign business operator (excluding that which falls under the provision of telecommunications services for businesses; the same applies hereafter in this Article) is conducted via a digital platform (meaning a venue constructed through information processing using computers that is intended for use by an unspecified and large number of persons, and that is ordinarily provided via a telecommunications line to an unspecified and large number of persons for displaying information on the supply of telecommunications services so that persons other than the person providing the venue can supply telecommunications services via the venue; the same applies hereafter in this Article), and the consideration for it is received via a specified platform operator (meaning, among business operators that provide that digital platform (referred to as "platform operators" in the following paragraph), one that has been designated by the Commissioner of the National Tax Agency pursuant to the provisions of that paragraph; hereinafter in this Article), the provisions of this Act apply deeming that the specified platform operator has supplied those telecommunications services.

②The Commissioner of the National Tax Agency is to designate a platform operator as a business operator deemed under the preceding paragraph to have supplied telecommunications services if, in the taxable period of the platform operator, the total of the amounts of consideration for the supply of telecommunications services conducted in Japan by foreign business operators via the digital platform it provides (meaning the amount of all money, or anything other than money, or rights or other economic benefits received or to be received as consideration, and including, where there is an amount equivalent to the amount of consumption tax to be imposed on that supply of telecommunications services and to the amount of local consumption tax to be imposed with that amount of consumption tax as the tax base (excluding an amount equivalent to the amount of accessory taxes on those amounts of tax), that equivalent amount; the same applies in paragraph (7)) that is received via that platform operator (or, where that taxable period is less than one year, the amount calculated by dividing that total by the number of months in that taxable period (calculated according to the calendar, with a fraction of less than one month counted as one month; the same applies in that paragraph) and multiplying the result by 12) exceeds 5 billion yen. In this case, the designation takes effect on the first day of the month following the month that includes the day on which six months have elapsed from the deadline for filing of the written notification under the following paragraph (or, where the written notification has not been submitted by that deadline, from the day on which the notice under paragraph (4) pertaining to the designation was issued).

③A person that is to be designated as a specified platform operator under the preceding paragraph must submit to the Commissioner of the National Tax Agency, via the district director having jurisdiction over its place for tax payment, a written notification stating that fact and other matters specified by Ministry of Finance Order, by the deadline for filing of the return under Article 45, paragraph (1) for its taxable period (or, where it has no obligation to file a return under that paragraph, the deadline for filing of the return under that paragraph that would apply if it had that obligation); provided, however, that this does not apply to a person that is a specified platform operator on the last day of that taxable period.

④When the Commissioner of the National Tax Agency has designated a specified platform operator under paragraph (2), the Commissioner is to notify that specified platform operator to that effect in writing. In this case, the Commissioner of the National Tax Agency must promptly publish, as provided by Cabinet Order, the name of the digital platform pertaining to that specified platform operator and other matters specified by Cabinet Order.

⑤A specified platform operator that has received the notice under the preceding paragraph is to promptly notify the foreign business operator pertaining to the supply of telecommunications services to which the provisions of paragraph (1) are to apply that the provisions of that paragraph are to apply, and the date thereof.

⑥A specified platform operator must, when there has been a change in the matters published pursuant to paragraph (4), promptly submit a written notification to that effect to the Commissioner of the National Tax Agency via the district director having jurisdiction over its place for tax payment. In this case, the Commissioner of the National Tax Agency must promptly publish the matters that have changed, as provided by Cabinet Order.

⑦A specified platform operator may, where the total of the amounts of consideration for the supply of telecommunications services to which paragraph (1) applies is 5 billion yen or less in every taxable period from its taxable period through the taxable period that includes the day on which three years have elapsed from the first day of that taxable period (hereinafter in this paragraph referred to as the "third-year taxable period") (or, where any of those taxable periods is less than one year, the amount calculated by dividing that total by the number of months in that taxable period and multiplying the result by 12), apply to have the designation under paragraph (2) lifted, by submitting to the Commissioner of the National Tax Agency via the district director having jurisdiction over its place for tax payment, by the deadline for filing of the return under Article 45, paragraph (1) for the third-year taxable period, a document stating that fact and other matters specified by Ministry of Finance Order.

⑧When there has been an application under the preceding paragraph, the Commissioner of the National Tax Agency is to examine it without delay and lift the designation pertaining to the application, or, where the Commissioner finds that the case does not fall under the case set forth in that paragraph, dismiss the application.

⑨A business operator whose designation as a specified platform operator has been lifted pursuant to the preceding paragraph is deemed to continue to be a specified platform operator, and paragraph (1) applies, during the period from the day following the day on which the Commissioner of the National Tax Agency issued the notice under paragraph (12) until the last day of the month that includes the day on which six months have elapsed from that following day.

⑩A specified platform operator must, when it has discontinued the business pertaining to a digital platform to which paragraph (1) applies, promptly submit a written notification to that effect to the Commissioner of the National Tax Agency via the district director having jurisdiction over its place for tax payment.

⑪The Commissioner of the National Tax Agency may lift the designation of a specified platform operator under paragraph (2) if the Commissioner finds that the specified platform operator falls under any of the following facts:

⑫When the Commissioner of the National Tax Agency has lifted the designation of a specified platform operator pursuant to paragraph (8) or the preceding paragraph, or has dismissed an application pursuant to paragraph (8), the Commissioner is to notify the business operator subject to those dispositions to that effect in writing. In this case, when the Commissioner of the National Tax Agency has given the notice pertaining to the lifting of a designation, the Commissioner must promptly publish, as provided by Cabinet Order, the fact that the designation has been lifted and the date on which paragraph (1) ceases to apply.

⑬A business operator that has received the notice under the preceding paragraph pertaining to the lifting of the designation of a specified platform operator is to promptly notify the foreign business operator pertaining to the supply of telecommunications services to which paragraph (1) will cease to apply that the provisions of that paragraph will cease to apply, and the date thereof.

⑭For the application of Article 9, paragraph (1) and Article 37, paragraph (1) to a specified platform operator to which paragraph (1) applies, in Article 9, paragraph (1), the phrase "excluding a qualified invoice issuer" is deemed to be replaced with "excluding a qualified invoice issuer and a specified platform operator prescribed in Article 15-2, paragraph (1) to which that paragraph applies", and in Article 37, paragraph (1), the phrase "and a foreign business operator" is deemed to be replaced with ", a foreign business operator and a specified platform operator prescribed in Article 15-2, paragraph (1) to which that paragraph applies".

⑮A specified platform operator must attach to the return under Article 45, paragraph (1) for its taxable period (including a return filed after the due date prescribed in Article 18, paragraph (2) (Filing of a Return after the Due Date) of the Act on General Rules for National Taxes that pertains to that return) a detailed statement stating the amount to which paragraph (1) applies and other matters specified by Ministry of Finance Order.

⑯In addition to what is provided for in the preceding paragraphs, the procedures in the case where a business operator succeeds, by merger or split, to the business pertaining to the digital platform of a specified platform operator, or acquires that business by transfer, and other matters necessary for the application of the provisions of this Article, are specified by Cabinet Order.

①Where an individual business operator has made a transfer, etc. of assets that falls under a transfer on deferred payment terms of assets giving rise to timber income or capital gains prescribed in Article 132, paragraph (1) (Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) of the Income Tax Act (hereinafter in this Article referred to as a "transfer on deferred payment terms"), if that individual business operator (including its heir; the same applies hereafter in this Article) has obtained the permission for deferred payment under that paragraph for all or part of the amount of income tax pertaining to that transfer on deferred payment terms, then, for the part of that transfer on deferred payment terms that pertains to installments of that transfer on deferred payment terms whose payment due dates do not arrive in the taxable period that includes the day on which that transfer on deferred payment terms was made (excluding installments received in that taxable period), the individual business operator may deem that it did not make a transfer, etc. of assets in that taxable period, and deduct the amount of consideration pertaining to that part from the amount of consideration pertaining to that transfer on deferred payment terms in that taxable period.

②The part that is deemed under the preceding paragraph not to have been the subject of a transfer, etc. of assets in the taxable period that includes the day on which the transfer on deferred payment terms was made is deemed to be the subject of a transfer, etc. of assets made, as provided by Cabinet Order, by that individual business operator in each taxable period that includes the due date for payment of the installments pertaining to that transfer on deferred payment terms, for the part pertaining to each such installment; provided, however, that where, with respect to the amount of income tax pertaining to the transfer on deferred payment terms, the permission for deferred payment referred to in the preceding paragraph is rescinded pursuant to Article 135, paragraph (1) (Cancelling Deferments for Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) of the Income Tax Act, this does not apply to the taxable periods on or after the taxable period that includes the day on which the permission for deferred payment was rescinded.

③An individual business operator that intends to be subject to the application of paragraph (1) is to make a note to that effect on the return under Article 45, paragraph (1) for the taxable period for which it intends to be subject to that application and for each taxable period for which it intends to be subject to the application of the main clause of the preceding paragraph (including a return filed after the due date prescribed in Article 18, paragraph (2) (Filing of a Return after the Due Date) of the Act on General Rules for National Taxes that pertains to that return; the same applies in Article 17, paragraph (4) and Article 18, paragraph (2)).

④In addition to what is provided for in the preceding paragraph, special provisions on the time of transfers, etc. of assets pertaining to a transfer on deferred payment terms in the case where an individual business operator to which paragraph (1) applies has died or has become subject to the application of the main clause of Article 9, paragraph (1), and other matters necessary for the application of paragraph (1) or (2), are specified by Cabinet Order.

①Where a business operator makes a transfer, etc. of assets under a contract for undertaking long-term large-scale construction prescribed in Article 66, paragraph (1) (Periods to Which Revenue and Expenses Associated with Contracts for Construction Work Are Attributed) of the Income Tax Act or Article 63, paragraph (1) (Special Provisions on the Business Year to Which Profits and Expenses Associated with Contracts for Construction Work Are Attributed) of the Corporation Tax Act (hereinafter in this Article referred to as "long-term large-scale construction"), the business operator may treat the part of the subject matter of that long-term large-scale construction that pertains to the amount of revenue or amount of profit calculated by the method of the construction progress criteria prescribed in those provisions as having been the subject of a transfer, etc. of assets in the taxable period that includes December 31 of each year in which that amount of revenue was included in gross revenue under those provisions, or in the taxable period that includes the last day of each business year in which that amount of profit was included in the amount of gross profits under those provisions.

②Where a business operator makes a transfer, etc. of assets under a contract for undertaking construction work prescribed in Article 66, paragraph (2) of the Income Tax Act or Article 63, paragraph (2) of the Corporation Tax Act (hereinafter in this Article referred to as "construction work"), if, in order to be subject to the application of those provisions, that business operator accounts for the amount of consideration for that construction work by the method of the construction progress criteria prescribed in those provisions, the business operator may treat the part of the subject matter of that construction work that pertains to the amount of revenue or amount of profit accounted for by that method as having been the subject of a transfer, etc. of assets in the taxable period that includes December 31 of each year in which that amount of revenue was included in gross revenue under those provisions, or in the taxable period that includes the last day of each business year in which that amount of profit was included in the amount of gross profits under those provisions; provided, however, that where the case prescribed in the proviso to Article 66, paragraph (2) of the Income Tax Act or the proviso to Article 63, paragraph (2) of the Corporation Tax Act comes to apply, this does not apply to the taxable periods on or after the taxable period that includes December 31 of the year in which the accounting was not done as prescribed in the proviso to Article 66, paragraph (2) of the Income Tax Act, or the taxable periods on or after the taxable period that includes the last day of the business year pertaining to the settlement of accounts for which the accounting was not done as prescribed in the proviso to Article 63, paragraph (2) of the Corporation Tax Act.

③Where a business operator that has become subject to the application of paragraph (1) or the main clause of the preceding paragraph has delivered the subject matter of the long-term large-scale construction under paragraph (1) or the construction work under the preceding paragraph, for the part of the transfer, etc. of assets pertaining to that long-term large-scale construction or construction work that was deemed under those provisions to have been made in each taxable period from the taxable period that includes the start date to the taxable period immediately preceding the taxable period that includes the day of that delivery, the total amount of consideration pertaining to that part is deducted from the amount of consideration pertaining to that long-term large-scale construction or construction work, deeming that there was no transfer, etc. of assets in the taxable period that includes that day.

④A business operator that intends to be subject to the application of the preceding three paragraphs is to make a note to that effect on the return under Article 45, paragraph (1).

⑤In addition to what is provided for in the preceding paragraph, special provisions on the time of transfers, etc. of assets pertaining to long-term large-scale construction or construction work in the case where an individual business operator to which paragraph (1) or (2) applies has died, where a corporation to which those provisions apply has ceased to exist through a merger, or where a corporation to which those provisions apply has caused a successor corporation in a company split to succeed, through a corporate split, to the business pertaining to long-term large-scale construction or construction work, and other matters necessary for the application of paragraphs (1) through (3), are specified by Cabinet Order.

①For an individual business operator that is subject to the application of Article 67, paragraph (1) or (2) (Periods to Which Revenue and Expenses of Small Enterprises and Similar Businesses Are Attributed) of the Income Tax Act, the time of its transfers, etc. of assets and taxable purchases may be deemed to be the day on which the amount of consideration for the transfer, etc. of assets was received and the day on which the amount of expenses for the taxable purchase was paid.

②A business operator that intends to be subject to the application of the preceding paragraph is to make a note to that effect on the return under Article 45, paragraph (1).

③In addition to what is provided for in the preceding paragraph, special provisions on the time of transfers, etc. of assets and taxable purchases in the case where an individual business operator to which paragraph (1) applies ceases to be subject to that application, and other matters necessary for the application of that paragraph, are specified by Cabinet Order.

①In this Act, "taxable period" means the period specified in each of the following items in accordance with the category of business operator listed in that item.

②The notification under the provisions of items (iii) through (iv)-2 of the preceding paragraph takes effect on or after the first day of the period following the period specified in those provisions in which falls the day on which the written notification under those provisions was filed (hereinafter in this paragraph referred to as the "filing date") (or, where the period in which the filing date falls is the period in which falls the day on which the business was commenced or any other period specified by Cabinet Order, that period). In this case, the period specified in each of the following items in accordance with the category of cases listed in that item is deemed to be a single taxable period.

③A business operator that has filed a written notification under the provisions of items (iii) through (iv)-2 of paragraph (1) must, when it intends to cease to be subject to the application of those provisions or when it has discontinued its business, file a written notification to that effect with the district director having jurisdiction over its place for tax payment.

④When a written notification under the preceding paragraph has been filed, the notification under the provisions of items (iii) through (iv)-2 of paragraph (1) ceases to be effective on and after the day following the last day of the taxable period in which falls the day on which that filing was made. In this case, the period specified in each of the following items in accordance with the category of cases listed in that item is deemed to be a single taxable period.

⑤A business operator that has filed a written notification under the provisions of items (iii) through (iv)-2 of paragraph (1) may not, except where it has discontinued its business, file a written notification under those provisions (limited to one relating to a change) or a written notification under paragraph (3), except on or after the first day of the period specified in those provisions in which falls the day on which two years have elapsed from the day on which the notification under those provisions takes effect (or, in the case where a business operator that has filed a written notification under item (iii) or item (iv) of paragraph (1) intends to become subject to the application of item (iii)-2 or item (iv)-2 of paragraph (1), or in any other case specified by Cabinet Order, the day specified by Cabinet Order).

The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by an individual business operator is the place specified in each of the following items in accordance with which of the cases listed in that item the individual business operator falls under.

①The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by an individual business operator who has a residence in Japan in addition to a domicile and who is subject to the application of Article 16, paragraph (1) (Special Provisions on the Locality for Paying Over Taxes) of the Income Tax Act (excluding a person who has been designated a place for tax payment under Article 23, paragraph (1)) is, notwithstanding the provisions of item (i) of the preceding Article, the place of residence in lieu of the place of domicile.

②The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by an individual business operator who has a domicile or residence in Japan and also has an office or similar place at a location other than the place of domicile or the place of residence, and who is subject to the application of Article 16, paragraph (2) of the Income Tax Act (excluding a person who has been designated a place for tax payment under Article 23, paragraph (1)) is, notwithstanding the provisions of item (i) or item (ii) of the preceding Article, the location of that office or similar place (or, where there are two or more such offices or similar places, the location of the principal one).

③Where an individual business operator dies, the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by the person who died is the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by that person at the time of death, irrespective of the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by that person's heirs.

The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by a corporation is the place specified in each of the following items in accordance with which of the cases listed in that item the corporation falls under.

①If the place for tax payment under the provisions of the preceding three Articles is found to be inappropriate as the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases, in light of the status of the transfer, etc. of assets and specified purchases conducted by an individual business operator or a corporation, the regional commissioner having jurisdiction over that place for tax payment (or, in the cases specified by Cabinet Order, the Commissioner of the National Tax Agency; the same applies in the following paragraph) may, notwithstanding those provisions, designate the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases.

②When the regional commissioner has designated the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases under the preceding paragraph, the regional commissioner notifies the individual business operator or corporation referred to in that paragraph to that effect in writing.

Even if a disposition designating the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases under paragraph (1) of the preceding Article is revoked by a determination on a request for reinvestigation, a ruling on a request for review, or a judgment, the revocation is not to affect the validity of any return, application, claim, notification, or other submission of documents or any payment made with regard to that consumption tax, or of any disposition by the Commissioner of the National Tax Agency, a regional commissioner, or a district director (other than the disposition that was revoked), during the period from the time of the revoked disposition until the time of the revocation, treating the place for tax payment that was the subject of the revocation as the place for tax payment of the business operator to which the disposition related.

If there has been a change in the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases of a corporation (excluding a change in the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases resulting from a designation under Article 23, paragraph (1)), the corporation must, without delay, notify the district director having jurisdiction over the place for tax payment before the change to that effect in writing.