2 0 1 2

CORPORATION TAX ACT

of JapanIncluding ChapterIIIof

SPECIAL TAXATION MEASURES ACT

Edited by YUJI GO MI and TASUKU HONJO

SOZEISHIRYOKAN

as of April 1,2012

Publication to commemorate the 20th anniversary of the es-tablishment of the Sozeishiryokan (The Institute of Tax Research and Literature)

Public Interest Incorporated Foundation Sozeishiryokan (The Institute of Tax Research and Literature)

was, with the help of so many, in the fortunate position to celebrate in May 2011 the 20th anniversary of

its foundation. I wish to express from the bottom of my heart my sincere thanks to all for your effort and

support.

The Institute of Tax Research and Literature was founded in May 1991 by the Honorary Chairman of the

National TKC Group, Dr. Tsuyoshi Iizuka. Dr. Iizuka had a private book collection of 5,000 original copies

for research on German tax law. With these books as a core, it has also 30,000 Western and 50,000 Japa-

nese books related to taxation and accounting. Being Japan's largest specialist library on tax law it has at-

tracted the highest acclaim from a great many.

On this special occasion of commemorating the 20th anniversary of The Institute of Tax Research and Lit-

erature, it has been decided to distribute, to all private persons and all the institutions and organizations

concerned, the Heisei 24 (2012) Corporation Tax Act of Japan (published in Japanese with the accompany-

ing English translation) in the form of a booklet. The bilingual Corporation Tax Act of Japan features a

complete English translation of all articles and sections of the Corporation Tax Act and Act on Special

Measures Concerning Taxation (Corporation Tax version). This booklet has been issued since 1991 and as

of March 2011 it has been presented in the homepage of The Institute of Tax Research and Literature.

Visiting and downloading files can be made free of charge. In fiscal 2011 the number of instances of access

reached 182,000. This indicates that the Bilingual Japanese-English Corporation Tax Act plays the role of

a unique intellectual infrastructure in the way in which its sends out to the nation and the world at large

an accurate comprehensive picture of the provisions of the Japanese Corporation Tax Act.

The Institute of Tax Research and Literature has indeed celebrated its 20th anniversary. Yet, to gain social

appraisal as an "adult in the true sense" some more maturing will be necessary. I am confi dent that we

will make further efforts by pooling our strengths together with management towards the realization of

the dream (reason for foundation) that the Institute of Tax Research and Literature has been entrusted

with by Dr. Iizuka. In closing my greetings in connection with the presentation of this complimentary

copy of the Bilingual Japanese-English Corporation Tax Act, I wish to ask all and everyone for the favor

of your ongoing support and encouragement.

Teruyuki Kawasaki

Representative Chairman of

The Institute of Tax Research and Literature

(Non-Profi t Organization)

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TKC

IFA

Publication to commemorate the 20th anniversary of the es-tablishment of the Sozeishiryokan (The Institute of Tax Research and Literature, Public In-terest Incorporated Foundation)

As a publication for commemorating the 20th anniversary of the establishment of the Sozeishiryokan (The

Institute of Tax Research and Literature, Public Interest Incorporated Foundation), it has been decided to

present, to all concerned with Tax Law, the Heisei 24 (2012) Corporation Tax Act of Japan (published in

Japanese with the accompanying English translation) in the form of a booklet for their use. Since its first

edition of March 15, 1994 amended versions of this booklet have been successively issued every year. On

reflection, the work of translating the Law into English was at the initial time done by ordinary people in

business and, from the viewpoint of the foreign reader, it lacked unification of the contract-related termi-

nology in the English translation. On the shared recognition that an English translation of Japanese Law

and especially Japanese Tax Law, article by article and section by section, was required for domestic and

overseas companies engaging in international trade or business to have the confidence that legal stability

and predictability can be assured, work on the preparation of this booklet was initiated by a congregation

of volunteers of the National Tax Administration Agency involved in international taxation affairs with

former National Tax Agency Offi cer Yuji Gomi as the key person. While our team had the vigorous desire

to eagerly pursue also the English translation of the notifications of the National Tax Agency with respect

to official interpretation and application of tax laws and regulations at the beginning we recognized the

limited time available for free use amidst the pressure of the day to day work load and narrowed down

the scope of our English translation work to corporation tax law which commands a high priority. In this

manner and with the profound understanding and full cooperation extended to us by The Institute of Tax

Research and Literature we have been able to publish the English translation of the text of all provisions

of the Corporation Tax Act and Act on Special Measures Concerning Taxation every year. Meeting the

age of electronic publication this booklet has been published in the homepage of The Institute of Tax Re-

search and Literature since March 2009 and can be viewed and downloaded free of charge. We as the

members of the translation team are delighted that the work of The Institute of Tax Research and Litera-

ture with its highly public-benefit oriented nature has in part been acknowledged, seeing that in fiscal 2011

there were 182 thousand instances of access to our homepage.

On the present occasion of the distribution of the Corporation Tax Act of Japan (published in Japanese

with the accompanying English translation), published to commemorate the 20th anniversary of the estab-

lishment of the Sozeishiryokan (The Institute of Tax Research and Literature ), to all concerned with the

tax affairs sector - university professors specializing in tax affairs, National Tax College, tax authorities,

major national libraries, awardees of The Institute of Tax Research and Literature Prize, members of the

Japan Federation of Certifi ed Tax Accountant's Associations and TKC members - we take this opportuni-

ty to express our profound gratitude for the support you have extended to our work of translating this

tax act and also to give our warmest acknowledgement to all members of The Institute of Tax Research

and Literature, notably Executive Director Kenichi Morooka as well as both Ms. Emiko Sakano and

Ms(Mr). Rui Hamana for their encouragement and devoted cooperation.

Tasuku Honjo

On behalf of the Translators and Authors

IFA Chairman of the Japan Branch

20122011

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Law

Act

P R E F A C EThis book is an English translation of the Corporation Tax Act and its related chapter (CHAPTER III) of the

Special Taxation Measures Act, and includes a brief and compact explanation of the key provisions of these acts.

Chapter III of the Special Taxation Measures Act prescribes, as a temporary measure of the Corporation Tax Act,

the reduction, exemption or refund of corporation taxes and the establishment of special treatment regarding tax

liability, calculation of tax base or tax amount, and due date for fi ling a return.

This book has been amended to include the 2012 tax reform legislation which generally related to the changes in

the Corporation Tax Act and the Special Taxation Measures Act for 2012. We have also reviewed the descriptions

in the 2011 edition and have made minor amendments.

Therefore, these tax acts are in effect as at April 2012.

Japanese tax acts are usually revised each April. Thus, this book will be renewed at the earliest possible time to

refl ect future revisions. Efforts will be continued to further improve the English translation found herein.

As tax acts are very technical and complicated in their form of expression, the translation remains to be improved.

Comments from readers are welcome.

Lastly, my warm thanks go out to Mr. Ken-ichi Moro-oka, Mrs. Emiko Sakano, Ms. Rui Hamana, Mr. Katsuhiko

Yamashiro, Mr. Hiroki Nakajima, all the translators and writers for their help in the publication of this book.

Sep. 2012

YUJI GOMI TASUKU HONJO

(Note) This English translation has been made, where appropriate, in compliance with the Standard Bilingual

Dictionary (March 2009 edition) issued by the Japanese Government.

As a consequence, the previous term Law has been replaced with Act where a specifi c law including the

Corporation Tax Act is implied.

Translators and Writers

Mr. TASUKU HONJO Mr. GO KAWADA Mr. YOSHIHIKO FUKUTOMI Mr. MINORI TAKADA Mr. YOSHIYASU OKADA Mr. KAZUYOSI KAWADA Mr. TOSHIRO KOJIMA Mr. AKIRA MURAYAMA

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