# Japanese Tax Law — Sub-Lexicon

Use alongside `references/taxes.md` (main tax lexicon) and `sub-lexicons/japanese-corporate-ma-jv.md` for the corporate/M&A interface.

This sub-lexicon covers Japanese (日本) tax law.

## 1. Headline Taxes — Terminology and Codes

| Japanese term | English |
|---|---|
| 法人税 (ほうじんぜい) | Corporation Tax (national CIT) |
| 法人税法 | Corporation Tax Act |
| 法人税法施行令 / 施行規則 | Order / Regulation for Enforcement of the Corporation Tax Act |
| 地方法人税 | Local Corporation Tax (national-level surtax on corporation tax, 10.3%) |
| 法人住民税 (法人都道府県民税 / 法人市町村民税) | corporate inhabitant tax (prefectural + municipal) |
| 法人事業税 | corporate enterprise tax (prefectural) |
| 特別法人事業税 | Special Corporate Enterprise Tax (national, distributed to prefectures) |
| 外形標準課税 | size-based enterprise tax (pro-forma, for large corporations: added-value + capital components) |
| 所得税 | Income Tax (national PIT) |
| 所得税法 | Income Tax Act |
| 復興特別所得税 | Special Income Tax for Reconstruction (2.1% surtax on income tax; until 2037 and extended) |
| 住民税 (個人) | individual inhabitant tax (prefectural + municipal, flat 10%) |
| 消費税 | Consumption Tax (JCT; VAT-style) |
| 消費税法 | Consumption Tax Act |
| 地方消費税 | Local Consumption Tax (combined total with national CT = 10% standard, 8% reduced) |
| 相続税 | Inheritance Tax |
| 相続税法 | Inheritance Tax Act (governing both inheritance and gift tax) |
| 贈与税 | Gift Tax |
| 印紙税法 | Stamp Duty Act |
| 登録免許税 | Registration and License Tax |
| 不動産取得税 | Real Estate Acquisition Tax (prefectural) |
| 固定資産税 | Fixed Asset Tax (municipal) |
| 都市計画税 | City Planning Tax (municipal) |
| 事業所税 | Office Tax (municipal, in designated cities) |
| 酒税 | Liquor Tax |
| たばこ税 | Tobacco Tax |
| 関税 | Customs Duty |
| 自動車税 / 軽自動車税 | automobile tax / light vehicle tax |
| 国税徴収法 | National Tax Collection Act |
| 租税特別措置法 (措置法 / 租特) | Act on Special Measures Concerning Taxation (Special Taxation Measures Law, STML) |
| 国税庁 | National Tax Agency (NTA) |
| 財務省 | Ministry of Finance |
| 税務署 | Tax Office (local branch) |
| 国税局 | Regional Taxation Bureau |

Translator's note: Japan's corporate tax system stacks **Corporation Tax (23.2%)** + **Local Corporation Tax (10.3% of corporation tax)** + **corporate inhabitant tax** + **corporate enterprise tax / size-based enterprise tax** + **Special Corporate Enterprise Tax**, producing an effective rate around 30% (for large corporations) or 33.58% (pro-forma). Always state the effective combined rate when translating. The **Act on Special Measures Concerning Taxation (措置法)** is a companion statute containing time-limited incentives, special regimes, and derogations — translate as "Special Taxation Measures Law" or "STML" (preserve) and flag it specifically (much of the Japanese tax system's contingent detail lives there).

## 2. Direct Taxes — Base, Rates, Allocation

| Japanese term | English |
|---|---|
| 課税所得 | taxable income |
| 益金 | gross income items (positive base adjustments) |
| 損金 | loss/deductible items |
| 益金算入 / 益金不算入 | inclusion / exclusion from gross income |
| 損金算入 / 損金不算入 | deductibility / non-deductibility |
| 受取配当等の益金不算入 | dividend-income exclusion from gross income (participation-exemption mechanism) |
| 完全子法人株式等 / 関連法人株式等 / その他株式等 / 非支配目的株式等 | wholly-owned subsidiary stock / related-corporation stock / other stock / non-controlling stock (four tiers determining dividend exclusion %) |
| 完全子法人株式等 (100%益金不算入) | wholly-owned-subsidiary stock (100% exclusion; 100% held throughout) |
| 関連法人株式等 (100%益金不算入、関連利子控除後) | related-corporation stock (100% exclusion less associated interest; >1/3 held ≥6 months) |
| その他株式等 (50%益金不算入) | other stock (50% exclusion; >5% to ≤1/3) |
| 非支配目的株式等 (20%益金不算入) | non-controlling-purpose stock (20% exclusion; ≤5%) |
| 繰越欠損金 | loss carry-forward (10 years from FY 2018; prior 9 years) |
| 欠損金の繰戻還付 | loss carry-back refund (generally suspended; available for SMEs/listed-corporation capital reduction cases) |
| 青色申告 | blue-form return (qualifying for loss c/f, reserve elections, enhanced deductions) |
| 白色申告 | white-form return |
| 減価償却 | depreciation |
| 定額法 / 定率法 | straight-line / declining-balance method |
| 一括償却資産 | lump-sum depreciable assets |
| 少額減価償却資産 | low-value depreciable assets (< JPY 100,000 or under STML up to JPY 300,000 for SMEs) |
| 交際費 | entertainment expenses (non-deductible for large corporations; limited deduction for SMEs) |
| 寄附金 | donations (limited deduction under formula) |
| 役員給与 | director remuneration (deduction requires prescribed form: fixed periodic, performance-linked, pre-notified fixed) |
| 定期同額給与 / 事前確定届出給与 / 業績連動給与 | regular-fixed salary / pre-notified fixed salary / performance-linked salary (the three deductible director-compensation forms) |
| 同族会社 | closely-held corporation (family-controlled) |
| 特定同族会社 | specified closely-held corporation (with top-tier shareholder concentration; retained-earnings tax) |
| 留保金課税 | retained-earnings tax (on specified closely-held corporations) |
| 国際戦略総合特区 | International Strategic Comprehensive Special Zone |
| 総合課税 / 分離課税 | comprehensive taxation / separate taxation (for IIT — different income categories aggregated or taxed separately) |
| 10種類の所得区分 | ten income categories (interest, dividend, real-estate, business, employment, retirement, timber, transfer, occasional, miscellaneous) |
| 利子所得 / 配当所得 / 不動産所得 / 事業所得 / 給与所得 / 退職所得 / 山林所得 / 譲渡所得 / 一時所得 / 雑所得 | interest / dividend / real-estate / business / employment / retirement / timber / transfer (capital gains) / occasional / miscellaneous income |

Translator's note: the **receipt-of-dividend exclusion (受取配当等の益金不算入)** is Japan's participation-exemption mechanism — implemented by excluding dividends from gross income rather than by exemption on the rate. Four tiers exist under current law (since 2015 STML reforms): **100% for wholly-owned subsidiaries (complete parent-subsidiary, ≥1/3 held)**, ~~tier-3 removed~~, 50% for "other" (>5% but not wholly-owned/related), 20% for "non-controlling" (<5%, held <6 months). Translate precisely and flag the year because the 2015 reforms materially narrowed the exclusion. Foreign-subsidiary dividends follow a separate 95% exclusion regime under STML 23-2 since 2009 (see §4).

The **ten income categories** of individual income tax are particularly Japanese — each has its own computation rules, some aggregated (総合課税) with the progressive wage schedule and some separated (分離課税) with their own flat rate. Always identify which category is at issue.

## 3. JCT (消費税) — Japanese Consumption Tax

| Japanese term | English |
|---|---|
| 消費税 (国 7.8% + 地方 2.2% = 10%) | Consumption Tax (JCT; national 7.8% + local 2.2% = 10% combined standard rate) |
| 軽減税率 (8%: 国 6.24% + 地方 1.76%) | reduced rate (8%; food and beverages for home consumption, non-alcoholic; newspapers) |
| 非課税 | exempt |
| 不課税 | out of scope (non-taxable outside the law's scope) |
| 免税 | zero-rated (e.g., exports) |
| 課税売上 | taxable sales |
| 課税仕入 | taxable purchases |
| 仕入税額控除 | input tax credit (purchase-tax deduction) |
| 課税事業者 | taxable person |
| 免税事業者 | exempt (small) business — turnover ≤ JPY 10 million threshold |
| みなし仕入率 | deemed purchase rate (under simplified method) |
| 適格請求書等保存方式 (インボイス制度) | Qualified Invoice System (the "Invoice System"; in force from 1 October 2023) |
| 適格請求書発行事業者 | qualified invoice-issuing business (registered) |
| 適格請求書 | qualified invoice |
| 請求書等 | invoice etc. |
| 特定仕入れ / リバースチャージ | specified purchase / reverse charge (for B2B digital services from overseas, and certain other inbound supplies) |
| 電気通信利用役務の提供 | supply of telecommunication-utilising services (e-services) |
| 事業者向け電気通信利用役務 | B2B e-services (reverse charge applies) |
| 消費者向け電気通信利用役務 | B2C e-services (overseas supplier registers as taxable in Japan) |

Translator's note: the **Qualified Invoice System (適格請求書等保存方式)**, colloquially called the "Invoice System", entered into force on **1 October 2023** — it requires a registered qualified invoice-issuing business number on invoices for input VAT credit to be available. Translate as "Qualified Invoice System" or "Invoice System" (preserve). The **reverse-charge mechanism** for cross-border B2B e-services was introduced in October 2015 and remains important.

Japan's JCT is a single-stage credit-invoice VAT from 1 October 2023; **rates**: 10% standard, 8% reduced (food for home consumption + newspapers). The earlier transitional bookkeeping method (区分記載請求書等) was used between 2019–2023. Always flag the applicable period.

## 4. Withholding Taxes and Cross-Border Items

| Japanese term | English |
|---|---|
| 源泉徴収 | withholding at source |
| 源泉所得税 | withholding income tax |
| 配当の源泉徴収 (20.42%) | dividend WHT (20.42% including 2.1% reconstruction surtax; 15.315% for listed shares) |
| 利子の源泉徴収 | interest WHT (various rates; 15.315%/20.42% with surtax) |
| 使用料の源泉徴収 (20.42%) | royalty WHT (20.42%; treaty-reduced) |
| 技術上の役務 (源泉徴収) | technical services (WHT where under PE or domestic source) |
| 外国子会社配当益金不算入 (租特法 23 の 2) | 95% foreign-subsidiary dividend exclusion (STML 23-2; since 2009) |
| 外国法人税の損金算入の特例 | special rule for foreign corporation tax deduction |
| 租税条約 | tax treaty / tax convention |
| 租税条約の特典の制限 (LOB) | limitation on benefits (treaty) |
| 主要目的テスト (PPT) | principal purpose test |
| 租税条約に関する届出書 (様式 1 等) | tax treaty application form (Form 1 etc.) |
| 特典条項に関する付表 | LOB attachment |
| 外国税額控除 | foreign tax credit |
| 間接外国税額控除 (廃止) | indirect FTC (abolished in 2009 replaced by 95% foreign-subsidiary dividend exclusion) |
| 非居住者 | non-resident individual |
| 外国法人 | foreign corporation |
| 国内源泉所得 | Japan-source income |
| 恒久的施設 (PE) | permanent establishment |

Translator's note: Japan **abolished the indirect foreign tax credit in 2009** and replaced it with the **95% foreign-subsidiary dividend exclusion** under STML 23-2. Dividends from a ≥25%-held foreign subsidiary held for ≥6 months are 95% excluded from gross income (5% is deemed non-deductible expense allocation). Always flag the year and the 25%/6-month tests, and note that treaty-reduced dividend-WHT thresholds may alter the 25% if a favourable treaty applies.

The **2.1% Reconstruction Surtax** is added to all national income/WHT bases until **31 December 2037** (extended; originally 25 years). For example, 15% listed-dividend WHT becomes 15.315%. Always include the surtax in quoted rates for documents post-2013.

## 5. Residency, PE, Allocation

| Japanese term | English |
|---|---|
| 居住者 | resident individual |
| 非永住者 | non-permanent resident (≤5 years in 10) |
| 永住者 | permanent resident (individual, for tax) |
| 住所 | domicile (centre of life) |
| 居所 | habitual abode |
| 内国法人 | domestic corporation (resident company) |
| 本店所在地 | location of head office |
| 主たる事務所 / 事業所 | main office / principal place of business |
| 代理人 PE | agent PE |
| 建設 PE | construction PE |
| サービス PE (条約上) | service PE (treaty-based) |
| 帰属主義 (AOA) | Authorised OECD Approach (attribution method) |

Translator's note: Japan adopted the **Authorised OECD Approach (AOA) for PE attribution from 1 April 2016** — translate as "AOA" (preserve). The **non-permanent resident** category (individuals resident but domiciled ≤5 of the last 10 years) is a distinctive Japanese concept, allowing preferential scope for foreign-source income not remitted to Japan — translate as "non-permanent resident" and explain on first mention.

## 6. Transfer Pricing and Anti-Avoidance

| Japanese term | English |
|---|---|
| 移転価格税制 | transfer pricing regime |
| 独立企業間価格 (ALP) | arm's length price |
| 国外関連者 | foreign related party |
| 移転価格文書化 | TP documentation |
| マスターファイル / ローカルファイル / 国別報告書 (CbCR) | master file / local file / CbCR |
| 事前確認制度 (APA) | advance pricing arrangement |
| 相互協議 (MAP) | mutual agreement procedure |
| 同時文書化 | contemporaneous documentation (if aggregate related-party transactions ≥JPY 5bn or intangible transactions ≥JPY 300m) |
| 無形資産取引 | intangible-asset transactions |
| 所得相応性基準 (DCF 法) | profit-appropriateness standard (DCF / income-based) for hard-to-value intangibles |
| 過少資本税制 | thin-capitalisation regime (JPY 3:1 debt-to-equity related-party, or debt-to-capital ratio) |
| 過大支払利子税制 | earnings-stripping regime (20% adjusted EBITDA since FY 2020; tightened from earlier 50%) |
| 外国子会社合算税制 (タックスヘイブン税制) | CFC regime (Tax Haven Rules / Foreign Subsidiary Consolidated Taxation) |
| 会社単位合算 / 受動的所得合算 | entity-basis inclusion / passive-income inclusion (post-2017 reform: paper-company / cash-box / passive-income triggers) |
| 特定外国関係会社 / 対象外国関係会社 / 部分対象外国関係会社 | specified / targeted / partial-targeted foreign related corporation (CFC categories) |
| 租税回避行為 | tax-avoidance conduct |
| 同族会社の行為計算否認 (法人税法 132 条) | denial of acts/computations of closely-held corporations (CIT Act Art. 132) |
| 組織再編成に係る行為計算否認 (法人税法 132 条の 2) | reorganisation-related denial (CIT Act Art. 132-2) |
| 連結納税 / グループ通算制度 | consolidated-taxation / group-aggregate-relief system |
| グループ通算制度 (令和 4 年度開始) | Group Aggregate Relief System (in force from FY starting on/after 1 April 2022; replaces old consolidated-taxation) |
| 国際的租税回避 (BEPS) | international tax avoidance (BEPS) |
| グローバル・ミニマム課税 (柱 2) | global minimum tax (Pillar Two) |
| 各対象会計年度の国際最低課税額に対する法人税 (所得合算ルール IIR) | IIR — Corporation Tax on International Minimum Tax Amount for each target fiscal year |
| 軽課税所得ルール (UTPR) | UTPR (undertaxed profits rule) |
| 特別措置 | special measure |

Translator's note: Japan replaced the old **連結納税 (consolidated taxation)** system with the **グループ通算制度 (Group Aggregate Relief System)** effective for FY starting on/after 1 April 2022 — translate as "Group Aggregate Relief System" (preserve or gloss) and flag the year.

The **法人税法 132 条** ("denial of acts/computations of closely-held corporations") and **132 条の 2** ("reorganisation-related denial") are Japan's two long-standing GAAR provisions. Translate as "Article 132 denial" / "Article 132-2 denial" on first mention with a gloss.

**Pillar Two**: Japan enacted the IIR (所得合算ルール) in March 2023, effective for FY starting on or after 1 April 2024. The UTPR and QDMTT have been subject of subsequent reform bills with effective dates extending to FY starting on or after 1 April 2025 (UTPR) and later for QDMTT. Always verify the current year and effective date.

## 7. Procedure and Compliance

| Japanese term | English |
|---|---|
| 修正申告 | amended return (upward self-revision) |
| 更正の請求 | claim for correction (downward revision request) |
| 更正 / 決定 | correction / determination (by tax office) |
| 予定納税 / 中間申告 | advance payment / interim return |
| 青色申告の承認 | blue-form approval |
| 記帳義務 | bookkeeping obligation |
| 事前通知 | advance notice (of audit) |
| 質問検査権 | power to question and inspect |
| 過少申告加算税 | under-declaration additional tax (10%/15%) |
| 無申告加算税 | non-filing additional tax (15%/20%) |
| 不納付加算税 | non-payment additional tax (WHT) |
| 利子税 | interest tax (on granted extensions) |
| 除斥期間 | limitation period (5 years standard; 7 years for fraud-related) |
| 納税義務の承継 | succession to tax liability |
| 連帯納付義務 | joint-and-several tax payment obligation |

Translator's note: the **重加算税 (heavy additional tax)** (35% for under-declaration with concealment, 40% for non-filing with concealment) is reserved for cases where the taxpayer *concealed or falsified facts* (仮装又は隠蔽) — translate as "heavy additional tax" (it is an administrative penalty, not criminal). The criminal offence is 脱税罪 under 所得税法 238 条 / 法人税法 159 条 / 消費税法 64 条 etc.

## 8. Authorities, Litigation, Criminal

| Japanese term | English |
|---|---|
| 国税不服審判所 | National Tax Tribunal |
| 異議申立て (現: 再調査の請求) | objection (currently "request for re-investigation" since 2016 reform) |
| 再調査の請求 | request for re-investigation (first-level remedy to head of tax office) |
| 審査請求 | appeal to National Tax Tribunal |
| 裁決 | tribunal ruling |
| 税務訴訟 / 租税訴訟 | tax litigation |
| 地方裁判所 | District Court |
| 高等裁判所 | High Court |
| 最高裁判所 | Supreme Court |
| 脱税 | tax evasion |
| 逋脱 (ほだつ) | tax evasion (statutory term) |
| ほ脱 | tax evasion (abbreviated) |
| 所得税法 238 条 (ほ脱罪) | Income Tax Act Art. 238 (tax-evasion offence) |
| 法人税法 159 条 (ほ脱罪) | Corporation Tax Act Art. 159 (tax-evasion offence) |
| 消費税法 64 条 (ほ脱罪) | Consumption Tax Act Art. 64 (tax-evasion offence) |
| 査察 | investigation (by 査察官 / special investigators) — tax-crime criminal investigation |
| マル査 | "Maru-sa" (nickname for criminal-investigation units) |

Translator's note: Japanese tax administrative appeals flow **tax office → request for re-investigation (再調査の請求) → National Tax Tribunal (国税不服審判所) → District Court → High Court → Supreme Court**. The older term **異議申立て (objection)** was renamed **再調査の請求 (request for re-investigation)** effective 1 April 2016 — flag the year if the source uses the older term. The taxpayer may also skip the re-investigation stage and go straight to National Tax Tribunal in many cases.

**ほ脱罪 (tax-evasion offence)** is a criminal offence distinct from administrative heavy additional tax — maximum 10 years imprisonment and/or fine up to the amount evaded (since 2010 reforms tightened penalties).

## 9. M&A and Restructuring Interface

| Japanese term | English |
|---|---|
| 組織再編税制 | organisational-restructuring tax regime (post-2001 unified regime) |
| 合併 (吸収合併 / 新設合併) | merger (absorption / consolidation) |
| 会社分割 (吸収分割 / 新設分割) | corporate demerger (absorption / new-establishment) |
| 現物出資 | contribution in kind |
| 現物分配 | in-kind distribution |
| 株式交換 | share exchange |
| 株式移転 | share transfer (full transfer to new holding company) |
| 株式交付 (平成 26 年追加) | share delivery (since 2021 — partial-acquisition share-for-share structure) |
| 適格合併 / 適格分割 / 適格株式交換 | qualified merger / demerger / share exchange (tax-deferred) |
| 非適格 | non-qualified (triggers taxable asset step-up) |
| 適格要件 | qualifying conditions |
| 完全支配関係 (100%) | complete control relationship (100%) |
| 支配関係 (50% 超) | control relationship (>50%) |
| 共同事業要件 | joint-business requirement |
| 従業者引継要件 | employee-continuation requirement |
| 事業継続要件 | business-continuation requirement |
| 主要な資産引継要件 | main-asset-continuation requirement |
| 株式継続保有要件 | share-holding continuation requirement |
| 繰越欠損金の引継ぎ | succession to loss carry-forward (requires joint-business or 50%+ control with continuity conditions) |
| グループ法人税制 | group-corporation tax system (applicable within 100% groups; since 2010) |
| 譲渡損益繰延 | deferral of gain/loss on intra-group transfers |
| 受贈益の益金不算入 (グループ内) | exclusion of donations received (within group) |
| 固定資産税評価額 | fixed-asset-tax assessed value |

Translator's note: **適格組織再編成 (qualified organisational restructurings)** is the core tax-neutral M&A regime. A qualified merger/demerger/share exchange requires the transaction to fit one of three patterns — **100%-owned intra-group**, **50%+ intra-group with continuity**, or **joint-business reorganisation** (including JV-type). Each pattern has specified continuity conditions. Translate precisely because the distinction between qualified and non-qualified entirely changes the tax treatment (step-up in basis vs carryover).

**Group Corporation Tax System (グループ法人税制, since 2010)** is compulsory for 100%-owned groups and provides intra-group transfer-gain deferral and donation exclusions. Note its distinction from the elective **Group Aggregate Relief System** (since FY 2022, replacing consolidated taxation) covered in §6.

**Share Delivery (株式交付)** was introduced by Companies Act amendment in 2019 (effective 1 March 2021) as a partial-acquisition tool — only the receiving company must be a Japanese stock corporation, and no 100%-parent requirement (unlike share exchange). Tax-deferred treatment under STML 66-2 where the acquisition is ≥50% and other conditions met. Flag the effective date.

## 10. Personal, Inheritance and Wealth Interface

| Japanese term | English |
|---|---|
| 所得税 (累進 5%–45%) | income tax (progressive 5%–45%, plus 2.1% surtax) |
| 住民税 (10% フラット) | inhabitant tax (10% flat at local level) |
| 確定申告 | final IIT return (16 Feb – 15 Mar) |
| 源泉徴収票 | withholding statement (employer's form) |
| 年末調整 | year-end adjustment (by employer, for most wage-earners) |
| 所得控除 | income deduction (personal allowances) |
| 基礎控除 | basic deduction (JPY 480,000, phased out above JPY 24m) |
| 配偶者控除 / 配偶者特別控除 | spouse deduction / special spouse deduction |
| 扶養控除 | dependent deduction |
| 医療費控除 | medical expenses deduction |
| 生命保険料控除 | life insurance premium deduction |
| ふるさと納税 | Furusato Nozei (hometown tax donation; effectively a redirection of inhabitant tax with small bonus) |
| 特定口座 / 源泉徴収あり | designated account / with WHT (for listed securities) |
| NISA (少額投資非課税制度) | NISA (Tax-Free Small-Investment Programme; reformed 2024: 新 NISA) |
| 相続税 (10%–55% 累進) | inheritance tax (progressive 10%–55%) |
| 贈与税 (10%–55% 累進) | gift tax (progressive 10%–55%) |
| 相続時精算課税制度 | Taxation System for Settlement at Time of Inheritance (elect-in; JPY 25m lifetime exclusion + 20% gift rate) |
| 暦年課税 | calendar-year gift taxation (annual JPY 1.1m exclusion) |
| 遺産課税方式 / 遺産取得課税方式 | estate-tax method / inheritor-based method (Japan uses a hybrid — "legal-inheritance-share method" 法定相続分課税方式) |
| 法定相続分課税方式 | statutory-share taxation method |
| 小規模宅地等の特例 | special measure for small-scale residential land (up to 80% reduction) |
| 事業承継税制 | business succession tax regime (special relief for unlisted-family-business inheritance/gift) |
| 非上場株式等についての相続税・贈与税の納税猶予 | inheritance/gift tax deferral on unlisted-company shares |
| 国外転出時課税 (出国税) | exit tax on emigration (individuals with ≥JPY 100m in securities; since 1 July 2015) |

Translator's note: Japan's **inheritance tax** uses the **統制相続分課税方式 (statutory-share taxation method)** — a hybrid of estate and inheritor-based, where the total tax is computed using the statutory-share method and then apportioned among heirs. Translate as "statutory-share taxation method" and explain on first mention. Rates are high (up to 55%) with correspondingly low exclusion (JPY 30m + JPY 6m × statutory heirs since 2015). The **exit tax (国外転出時課税)** was introduced on 1 July 2015 for individuals departing Japan with ≥JPY 100m in qualifying securities — translate as "exit tax" or "departure tax".

The **2024 new NISA** was reformed effective 1 January 2024 — unified 累積 permanent JPY 18m non-taxable investment pool (growth-investment + tsumitate-investment frames, JPY 12m and JPY 6m respectively) — translate as "new NISA" and flag the date.

## 11. Tax Incentives, Innovation, Real-Estate Facilities

| Japanese term | English |
|---|---|
| 研究開発税制 | R&D tax credit |
| 試験研究費の総額型 / オープンイノベーション型 | R&D total-amount credit / open-innovation credit |
| 試験研究費の増加型 (廃止) | R&D incremental credit (various vintages) |
| 所得拡大促進税制 (現: 賃上げ促進税制) | wage-increase promotion tax credit (formerly income-expansion-promotion) |
| 地方活力向上地域等における雇用促進税制 | regional employment tax credit |
| 中小企業投資促進税制 | SME investment-promotion tax credit |
| 中小企業経営強化税制 | SME management-strengthening tax credit |
| 5G 投資促進税制 | 5G investment-promotion tax credit |
| IoT 投資促進税制 | IoT investment-promotion tax credit |
| デジタルトランスフォーメーション (DX) 投資促進税制 | DX investment-promotion tax credit |
| カーボンニュートラル投資促進税制 | Carbon-neutral investment-promotion tax credit |
| オープンイノベーション促進税制 | Open-innovation-promotion tax credit (start-up investment) |
| 戦略分野国内生産促進税制 | Strategic Field Domestic Production Promotion Tax System (2024 reform; for semiconductors, batteries, etc.) |
| パンデミック対応のための特別措置 | pandemic-response special measures |

## 12. Customs and Excise

| Japanese term | English |
|---|---|
| 関税定率法 | Customs Tariff Act |
| たばこ税 / たばこ特別税 | Tobacco Tax / Special Tobacco Tax |
| 揮発油税 / 地方揮発油税 | Gasoline Tax / Local Gasoline Tax |
| 石油ガス税 | Petroleum Gas Tax |
| 石油石炭税 | Petroleum and Coal Tax |
| 航空機燃料税 | Aircraft Fuel Tax |
| 電源開発促進税 | Power-Source Development Promotion Tax |
| 地球温暖化対策のための税 | Global-Warming Countermeasure Tax (carbon tax, levied as addition to Petroleum and Coal Tax) |
| 自動車重量税 | Vehicle Weight Tax |
| 環境性能割 | Environmental Performance Discount (on vehicle acquisitions) |
| 印紙税 | Stamp Duty (on contracts, receipts etc.) |
| 国際観光旅客税 | International Tourist Tax (since 2019; JPY 1,000 per outbound departure) |
| ゴルフ場利用税 | Golf Course Use Tax (prefectural) |
| 入湯税 | Bathing Tax (municipal, hot springs) |
| 宿泊税 | Accommodation Tax (Tokyo, Osaka, Kyoto, etc.) |

## 13. Verbal Anchors — Tax Context

| Japanese | English |
|---|---|
| 課税する / 課する | to tax / impose |
| 非課税 / 免税 | tax-exempt / duty-free |
| 納付する / 納める | to pay (tax) |
| 源泉徴収する | to withhold at source |
| 申告する | to declare / file |
| 更正する / 決定する | to correct / determine |
| 控除する | to deduct / credit |
| 益金に算入する / 益金不算入 | to include in / exclude from gross income |
| 損金に算入する / 損金不算入 | to include as / exclude from deductible loss items |
| 繰り越す / 繰り戻す | to carry forward / carry back |
| 譲渡する / 譲り受ける | to transfer / to be transferred to |
| 取得する | to acquire |
| 合併する / 分割する | to merge / to demerge |
| 現物出資する | to contribute in kind |
| ~に該当する / ~に該当しない | to constitute / not to constitute |
| 適用する | to apply (a provision) |
| 遡及する | to apply retroactively |
| 移転価格を修正する | to adjust transfer prices |
| タックス・ヘイブン税制の適用 | to apply the CFC (tax haven) rules |

## 14. Section Headings — Common Tax-Document Rubrics

| Japanese | English |
|---|---|
| 総則 | General Provisions |
| 納税義務者 | Taxpayer / Tax-liable person |
| 課税標準 | Tax base |
| 税率 | Tax rate |
| 益金の額及び損金の額の計算 | Computation of gross income and deductible items |
| 同族会社等の特例 | Special rules for closely-held corporations |
| 組織再編成 | Organisational restructurings |
| 外国税額の控除 | Foreign tax credit |
| 特別税額控除 (租特) | Special tax credits (STML) |
| 申告、納付及び還付 | Return, payment and refund |
| 更正、決定及び加算税 | Correction, determination and additional taxes |
| 不服申立て | Remedies / appeals |
| 罰則 | Penal provisions |

## 15. Notes and Cautions

- **Citation style.** Japanese tax statutes are cited as *Act name + article*: e.g., *法人税法 22 条* = "Corporation Tax Act Art. 22"; *租税特別措置法 42 の 4* = "STML Art. 42-4". Subparagraphs use 項 (paragraph) and 号 (item). A comprehensive citation is e.g. *法人税法 132 条の 2 第 1 項第 1 号* = "CIT Act Art. 132-2(1)(i)". Preserve the "Article X-Y" format where the Japanese uses "条の" (e.g., 132 条の 2 → Art. 132-2).
- **Case citations.** Supreme Court of Japan cases cited as *最判 [date] 民集 [volume]-[page]* or *最判令和 [year] [month] [day]*. Also sometimes by the case's informal name (e.g., "Yahoo! Japan case", "IBM case") — English translations commonly use the informal name.
- **Era references → Gregorian.** Japanese tax statutes routinely cite year by era (e.g., 令和 5 年度税制改正 = "FY 2023 tax reform"). Per the universal rule in `references/general-legal.md` and the era table in `japanese-general-legal.md`, render every such reference in full Gregorian form in the English output — never use `Reiwa`, `Heisei`, `Showa`, `Taisho` or `Meiji` (strict rule, no first-mention exception).
- **Annual Tax Reform (税制改正).** Japan's tax-reform cycle is annual — the "令和 X 年度税制改正大綱" (FY X Tax Reform Outline) is published in December preceding the fiscal year and implemented by spring (by 31 March for FY starting 1 April). Rules can change year-on-year — always verify the effective date for specific rules.
- **Pillar Two.** IIR ("所得合算ルール") implemented by Act No. 3 of 2023, effective for FY starting on or after 1 April 2024. UTPR and domestic QDMTT were considered in the FY 2024–FY 2025 reforms with effective dates extending to 1 April 2025 (UTPR) and later for QDMTT. Given the fast pace of change, always verify the current status.
- **Consumption Tax "Invoice System" transitional.** The Invoice System entered into force 1 October 2023. Transitional rules during 2023–2029 allow partial input-tax credit on invoices from non-registered suppliers (80% during 1 Oct 2023 – 30 Sep 2026; 50% during 1 Oct 2026 – 30 Sep 2029; 0% thereafter). Flag the transaction date.
- **Group Aggregate Relief System.** Effective for FY starting on or after 1 April 2022, replacing the old consolidated-taxation regime (連結納税). The new system requires each group member to compute its own taxable income and tax, with group-level aggregate-relief adjustments for losses. Elective. Different from the compulsory 100%-group-corporation-tax system (グループ法人税制).
- **Closely-held corporation retained-earnings tax (留保金課税).** A 10/15/20% additional CIT charge on accumulated earnings above a threshold for certain closely-held corporations (specified closely-held corporations). SMEs (≤JPY 100m stated capital) are exempt. Translate precisely and flag the size thresholds.
- **Reconstruction surtax.** 2.1% special income tax on all national income tax (including WHT). Effective for payments from 1 January 2013 through 31 December 2037 (extended). Always include it when quoting net rates. There is also a "Reconstruction Special Corporation Tax" (復興特別法人税) — but that was abolished for FY starting on or after 1 April 2014 (only a 3-year charge). Distinguish.
- **False friends.**
  - *税* → tax (ubiquitous kanji; be careful: *課税* = taxation, *非課税* = exempt, *脱税* = evasion).
  - *法人税* → Corporation Tax (preferred English for Japan; "corporate income tax" is also acceptable but "Corporation Tax" is standard in Japanese-NTA translations).
  - *事業税* → Enterprise Tax (a prefectural tax; not business tax like the old Chinese BT).
  - *消費税* → Consumption Tax / JCT (not "sales tax" — JCT is a credit-invoice VAT).
  - *印紙税* → Stamp Duty (not "stamp tax" — convention).
  - *登録免許税* → Registration and License Tax (composite: registration + licensing).
  - *源泉徴収* → withholding at source.
  - *益金 / 損金* → gross income items / deductible-loss items (tax-specific terms, not literal "benefit money / loss money").
  - *適格 / 非適格* → qualified / non-qualified (in restructuring and remuneration contexts).
  - *組織再編成* → organisational restructuring.
  - *繰延* → deferral (of gain/loss).
  - *受取配当等の益金不算入* → dividend-income exclusion from gross income (the Japanese participation-exemption mechanism).
  - *合算* → aggregation / inclusion (of income; e.g., CFC *合算課税* = CFC inclusion).
  - *措置法* / *租特* → Act on Special Measures Concerning Taxation (STML) — shorthand.
  - *確定申告* → final tax return (annual filing; contrast with *修正申告* amended return).
  - *更正* → correction (by tax authority; not "renewal").
  - *同族会社* → closely-held corporation (not "same-tribe"; test is ≤3 shareholder groups owning >50%).
  - *国外転出時課税* → exit tax on emigration.
  - *ふるさと納税* → Furusato Nozei (hometown tax donation; preserve as proper noun).

## Standard Bilingual Dictionary (2006) — Additional Mappings

| Japanese | English |
|---|---|
| 国税 | national tax |
| 地方税 | local tax |
| 国税通則法 | Act on General Rules for National Taxes |
| 法人税 | corporation tax (Japanese CIT) |
| 地価税 | land value tax (historic — suspended) |
| 住民税 | inhabitant tax (resident tax — prefectural + municipal component) |
| 事業税 | enterprise tax (local corporation/business tax) |
| 自動車税 | automobile tax |
| 復興特別法人税 (historic) | Special Reconstruction Corporation Tax (ended 2014) |
| 税理士 | certified tax accountant |
| 申告 | filing of return / declaration |
| 中間申告 | interim tax return |
| 更正 | reassessment |
| 決定 | determination (where no return filed) |
| 税務調査 | tax audit / tax examination |
| 加算税 | additional tax |
| 重加算税 | heavy additional tax (for fraudulent/intentional non-reporting) |
| 延滞税 | delinquent tax / interest on late payment |
| 国際的二重課税 | international double taxation |
| タックス・ヘイブン対策税制 | CFC rules / anti-tax-haven regime |
| グループ通算制度 | Group Aggregate Relief System (replaced consolidated tax system from 2022) |
| 完全支配関係 | wholly-controlled relationship (100% group test) |
| 連結納税 (historic) | consolidated tax filing (superseded by group aggregate relief) |
| みなし配当 | deemed dividend |
| 適格合併 | qualifying merger (tax-deferred) |
| 非適格合併 | non-qualifying merger |
| インボイス制度 | Invoice System (qualified invoice method for consumption tax — from October 2023) |
| 簡易課税制度 | simplified taxation system (for small enterprises below JPY 50M turnover) |
| 国内ミニマム税 (QDMTT) | Qualified Domestic Minimum Top-up Tax (Pillar Two — Japan enacted fiscal 2024 implementing Act) |
| 各対象会計年度の国際最低課税額に対する法人税 | corporation tax on internationally-minimum taxable amount per fiscal year (Japan's IIR — Income Inclusion Rule) |
