Article 75Special Provisions on Consumption Tax on Purchases of the National Government, Local Governments, etc.

一revenue from borrowings and the issuance of bonds, other than that for which laws and regulations provide that subsidies, contributions or other similar payments are to be received for its repayment or redemption (referred to as "borrowings, etc." in item (vi) and the following paragraph);

二capital contributions;

三deposits, savings and money held in custody;

四collections of loans;

五amounts returned and refunds;

六the following revenue (excluding that set forth in the preceding items):

イrevenue that, under laws and regulations or grant guidelines, etc. (meaning a document specifying the use of revenue other than consideration for a transfer, etc. of assets received from the national government, a local government or a corporation established by a special Act (referred to as the "national government, etc." in (a) and paragraph (8)), which the national government, etc. prepared when that revenue is received; the same applies in paragraph (4), item (i), (a) and paragraph (8)), is to be used only for expenditure other than the following expenditure (referred to as "specified expenditure" in (b) and (c)):

（２）expenditure relating to the total of the amount of consideration paid for specified taxable purchases prescribed in Article 30, paragraph (1) of the Act, and the amount of consumption tax on specified taxable purchases prescribed in that paragraph and an amount equivalent to the amount of local consumption tax to be imposed with that amount of consumption tax as its tax base (excluding the amount equivalent to the amount of accessory tax relating to those amounts of tax) (referred to as the "amount of consideration paid for specified taxable purchases, etc." in paragraph (4));

（３）expenditure relating to the value of taxable goods taken out of a bonded area (meaning the amount set forth in Article 54, paragraph (1), item (ii), (a) for taxable goods; the same applies in paragraph (4));

（４）expenditure relating to funds for repayment or redemption of borrowings, etc.;

ロrevenue that, in a document in which the national government or a local government has, by a reasonable method, clarified the use of revenue other than consideration for a transfer, etc. of assets, is to be used only for specified expenditure;

ハrevenue from donations that, in a document relating to the solicitation of the donations prepared by an incorporated public interest association or an incorporated public interest foundation, are to be used only for specified expenditure (limited to revenue from donations for which the administrative agency prescribed in Article 3 (Administrative Agency) of the Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 49 of 2006) has confirmed that the donations' satisfaction of all of the following requirements has been made clear in the document relating to the solicitation of the donations):

（１）that the donations are to be used only for specified expenditure relating to specific activities;

（２）that the donations are to be solicited for a limited period;

（３）that the donations are to be managed separately and clearly from other funds.

一in the case where Article 30, paragraph (2) of the Act does not apply to the calculation of the consumption tax on purchases for the taxable period (meaning the consumption tax on purchases prescribed in Article 32, paragraph (1), item (i) of the Act; the same applies hereinafter in this Article), the sum of the amount set forth in (a) and the amount set forth in (b) (or, where there is an amount that cannot be fully deducted when the amount set forth in (a) is deducted from the total amount of tax on taxable purchases, etc. prescribed in (b), the amount obtained by deducting from the amount set forth in (a) the amount calculated by multiplying that amount that cannot be fully deducted by the adjustment ratio prescribed in (b)):

イthe amount calculated by multiplying the total amount of the part of the specified income for the taxable period that, under laws and regulations, etc. (meaning laws and regulations, grant guidelines, etc., or the document prescribed in paragraph (1), item (vi), (b); the same applies hereinafter in this paragraph), is to be used only for expenditure relating to the amount of consideration paid for taxable purchases, the amount of consideration paid for specified taxable purchases, etc., or the value of taxable goods taken out of a bonded area (hereinafter in this Article referred to as "specified income for taxable purchases, etc.") by 7.8/110 (or, for the specified income for taxable purchases, etc. out of that total that is to be used only for expenditure relating to the amount of consideration paid for taxable purchases relating to taxable transfers, etc. of assets subject to the reduced rate received from another person or the value of taxable goods subject to the reduced rate taken out of a bonded area, 6.24/108);

ロthe amount calculated by multiplying the remainder obtained by deducting the amount set forth in (a) from the total amount of tax on taxable purchases, etc. for the taxable period (meaning the amount of tax on taxable purchases, etc. prescribed in Article 30, paragraph (2) of the Act where calculated for the taxable period pursuant to Articles 30 through 36 of the Act; the same applies hereinafter in this Article) by the adjustment ratio for the taxable period (meaning the proportion accounted for by the total amount of specified income other than the specified income for taxable purchases, etc. in the amount obtained by adding the total amount of specified income other than the specified income for taxable purchases, etc. for the taxable period to the total amount of consideration for transfers, etc. of assets for the taxable period; the same applies hereinafter in this Article);

二in the case where the consumption tax on purchases for the taxable period is calculated by the method specified in Article 30, paragraph (2), item (i) of the Act, the total of the amounts set forth in (a) through (c) (or, where there is an amount that cannot be fully deducted when the sum of the amount set forth in (a) and the amount set forth in (b) is deducted from the total amount of tax on taxable purchases, etc. for the taxable period, the amount obtained by deducting from the sum of the amount set forth in (a) and the amount set forth in (b) the amount calculated by multiplying that amount that cannot be fully deducted by the adjustment ratio prescribed in (c)):

イthe amount calculated by multiplying the total amount of the part of the specified income for the taxable period that, under laws and regulations, etc., is to be used only for expenditure relating to the amount of consideration paid for taxable purchases required only for taxable transfers, etc. of assets, the amount of consideration paid for specified taxable purchases, etc. required only for taxable transfers, etc. of assets, or the value of taxable goods taken out of a bonded area required only for taxable transfers, etc. of assets by 7.8/110 (or, for the specified income for taxable purchases, etc. out of that total that is to be used only for expenditure relating to the amount of consideration paid for taxable purchases relating to taxable transfers, etc. of assets subject to the reduced rate received from another person or the value of taxable goods subject to the reduced rate taken out of a bonded area, 6.24/108);

ロthe amount calculated by multiplying the total amount of the part of the specified income for the taxable period that, under laws and regulations, etc., is to be used only for expenditure relating to the amount of consideration paid for taxable purchases required in common for taxable transfers, etc. of assets and other transfers, etc. of assets (meaning other transfers, etc. of assets prescribed in Article 30, paragraph (2), item (i) of the Act; the same applies hereinafter in this item and paragraph (8), item (ii), (b)), the amount of consideration paid for specified taxable purchases, etc. required in common for taxable transfers, etc. of assets and other transfers, etc. of assets, or the value of taxable goods taken out of a bonded area required in common for taxable transfers, etc. of assets and other transfers, etc. of assets by 7.8/110 (or, for the specified income for taxable purchases, etc. out of that total that is to be used only for expenditure relating to the amount of consideration paid for taxable purchases relating to taxable transfers, etc. of assets subject to the reduced rate received from another person or the value of taxable goods subject to the reduced rate taken out of a bonded area, 6.24/108), and then multiplying the amount so calculated by the taxable sales ratio prescribed in Article 30, paragraph (2), item (i), (b) of the Act (or, where the main clause of Article 30, paragraph (3) of the Act applies, the amount calculated using the ratio relating to the approval prescribed in that paragraph);

ハthe amount calculated by multiplying the remainder obtained by deducting the sum of the amount set forth in (a) and the amount set forth in (b) from the total amount of tax on taxable purchases, etc. for the taxable period by the adjustment ratio for the taxable period;

三in the case where the consumption tax on purchases for the taxable period is calculated by the method specified in Article 30, paragraph (2), item (ii) of the Act, the sum of the amount set forth in (a) and the amount set forth in (b) (or, where there is an amount that cannot be fully deducted when the amount set forth in (a) is deducted from the total amount of tax on taxable purchases, etc. for the taxable period, the amount obtained by deducting from the amount set forth in (a) the amount calculated by multiplying that amount that cannot be fully deducted by the adjustment ratio prescribed in (b)):

イthe amount calculated by multiplying the total amount of the specified income for taxable purchases, etc. for the taxable period by 7.8/110 (or, for the specified income for taxable purchases, etc. out of that total that is to be used only for expenditure relating to the amount of consideration paid for taxable purchases relating to taxable transfers, etc. of assets subject to the reduced rate received from another person or the value of taxable goods subject to the reduced rate taken out of a bonded area, 6.24/108), and then multiplying the amount so calculated by the taxable sales ratio prescribed in Article 30, paragraph (2), item (ii) of the Act;

ロthe amount calculated by multiplying the remainder obtained by deducting the amount set forth in (a) from the total amount of tax on taxable purchases, etc. for the taxable period by the adjustment ratio for the taxable period.

一in the case where the amount set forth in (a) exceeds the amount set forth in (b), the amount obtained by deducting, from the amount calculated as prescribed by Cabinet Order prescribed in Article 60, paragraph (4) of the Act when calculated based on the preceding paragraph (hereinafter in this Article referred to as the "tax on taxable purchases, etc. attributed to specified income"), the remainder obtained by deducting the amount set forth in (b) from the amount set forth in (a) (referred to as the "adjustment difference" in paragraph (7)):

イthe amount obtained by adding, to the tax on taxable purchases, etc. attributed to specified income when calculated for the taxable period based on the preceding paragraph, the total amount of the tax on taxable purchases, etc. attributed to specified income for each taxable period from the taxable period that includes the day preceding the day two years before the first day of the taxable period to the taxable period immediately preceding the taxable period;

ロthe total amount of the tax on taxable purchases, etc. attributed to specified income for each aggregate taxable period when calculated based on the preceding paragraph, for each taxable period from the taxable period that includes the day preceding the day two years before the first day of the taxable period to the taxable period (hereinafter in this item and the following paragraph referred to as the "aggregate taxable period"), using the aggregate adjustment ratio for the taxable period in place of the adjustment ratio for that aggregate taxable period;

二in the case where the amount set forth in (a) of the preceding item is less than the amount set forth in (b) of that item, the amount obtained by adding, to the tax on taxable purchases, etc. attributed to specified income for the taxable period when calculated based on the preceding paragraph, the remainder obtained by deducting the amount set forth in (a) of that item from the amount set forth in (b) of that item.

一the amount obtained by adding the total amount of specified income other than the specified income for taxable purchases, etc. in the aggregate taxable period for the taxable period to the total amount of consideration for transfers, etc. of assets in that aggregate taxable period;

二the total amount of specified income other than the specified income for taxable purchases, etc. in the aggregate taxable period for the taxable period.

一in the case where the taxable period in which the specified income subject to recapture was received falls under the case set forth in paragraph (4), item (i), the amount calculated by multiplying the total amount of that consideration paid for non-deductible purchases by 7.8/110 (or, for the consideration paid for non-deductible purchases out of that total that relates to taxable transfers, etc. of assets subject to the reduced rate received from another person, 6.24/108);

二in the case where the taxable period in which the specified income subject to recapture was received falls under the case set forth in paragraph (4), item (ii), the sum of the amount set forth in (a) and the amount set forth in (b):

イthe amount calculated by multiplying the total amount of that consideration paid for non-deductible purchases (limited to the consideration paid for non-deductible purchases required only for taxable transfers, etc. of assets) by 7.8/110 (or, for the consideration paid for non-deductible purchases out of that total that relates to taxable transfers, etc. of assets subject to the reduced rate received from another person, 6.24/108);

ロthe amount calculated by multiplying the total amount of that consideration paid for non-deductible purchases (limited to the consideration paid for non-deductible purchases that is required in common for both taxable transfers, etc. of assets and other transfers, etc. of assets) by 7.8/110 (6.24/108 for the portion of that total that is consideration paid for non-deductible purchases relating to a taxable transfer, etc. of assets subject to the reduced rate received from another person), and then multiplying the amount so calculated by the taxable sales ratio prescribed in Article 30, paragraph (2), item (i), (b) of the Act for that taxable period (where the main clause of paragraph (3) of that Article applies, the amount calculated using the ratio relating to the approval prescribed in that paragraph);

三in the case where the taxable period in which that specified income subject to recapture arose falls under a case set out in paragraph (4), item (iii): the amount calculated by multiplying the total amount of that consideration paid for non-deductible purchases by 7.8/110 (6.24/108 for the portion of that total that is consideration paid for non-deductible purchases relating to a taxable transfer, etc. of assets subject to the reduced rate received from another person), and then multiplying the amount so calculated by the taxable sales ratio prescribed in Article 30, paragraph (2), item (ii) of the Act for that taxable period.