Article 1. In this Ordinance, Fu (Special Prefecture) Ken (Prefecture), the Prefectural Governor, Prefectural Tax, Prefectural Inhabitants' Tax, or Prefectural Regulations shall respectively include Hokkaido, the Governor-General of Hokkaido, Hokkaido Tax, Hokkaido Inhabitants' Tax, of Hokkaido Regulations. Provisions in this Ordinance regarding Prefectures shall apply with the necessary modifications to Tokyo Metropolis. In this case, "the Prefectural Governor," "Prefectural Tax," "Prefectural Inhabitants' Tax" or "Prefectural Regulations" shall respectively read "the Governor of Tokyo Metropolis," "Tokyo Metropolitan Tax," "Tokyo Metropolitan Inhabitants Tax" or "Tokyo Metropolitan Regulations." In cases where the provisions in this Ordinance regarding cities, towns and villages apply to the cities, towns and villages of Tokyo Metropolis, "the Prefectural Governor" shall read "the Governor-General of Tokyo Metropolis." An association of towns and villages which deals jointly with the whole of the affairs of the towns and villages shall, with regard to the application of this Ordinance, be deemed individual towns or villages.

Article 2. Under the provisions of Article 12, par. 1, items 2 and 3, the public bodies shall be designated as follows: 1. Association of To (Metropolis), Do (Circuit), Fu (Special Prefecture), Ken (Prefecture); Special Cities; Cities; Towns, Villages or Special Districts; 2. Special Districts; 3. Property District; 4. Water-utilization Associations; 5. Federations of Water-utilization Associations; 6. Hokkaido Land-utility Associations.

Article 3. No land-tax or house-tax need be levied unless the total of rental values for land or houses in the same city, town or village amounts to 5.00 yen.

Article 4. A city, town or village shall provide, as prescribed by the Minister for Home Affairs, a list of land-tax-payers and a list of house-tax payers in respect of the land and houses in the city, town or village.

Article 5. The kinds of business subject to business tax shall be the business being operated in the case of juridical persons established for profit, and the following business in the case of individuals: 1. Business of selling commodities (including selling of animals, plants and those things which are not commonly called commodities); 2. Money-lending business; 3. Business of lending commodities (including the lending of animals, plants and those things which are not commonly called commodities); 4. Manufacturing business (including the supplying business of gas or electricity and the working-up or repairing business of goods); 5. Transportation business (including the conduct of affairs relative to transportation or acceptance of what is to be transported); 6. Warehousing business; 7. Business of contractors; 8. Printing business; 9. Publishing business; 10. Photographing business; 11. Business of letting rooms; 12. Hotel business; 13. Restaurant business; 14. Employment agency business; 15. Business of agents; 16. Brokerage business; 17. Wholesale agency business; 18. Mining enterprises; 19. Placer-mining enterprises; 20. Public bath business; 21. Hair-dressing and or beauty-culture business; 22. Money changing business; 23. Theatrical performance business; 24. Variety hall business; 25. Sporting place business; 26. Tourist business; 27. Other business fixed by the Home Minister and the business for which permission with respect to the imposition of business tax has been obtained from the Minister for Home Affairs. Notwithstanding the provisions in the preceding paragraph, no business tax shall be levied on the following acts: 1. Sale of revenue and postage stamps, etc. issued by the Government; 2. Publication under the Press Law; 3. Sale by an individual of agricultural, forest, animal or acquatic products turned out by himself or manufacturing with such products as materials. However, the sale or manufacturing conducted with a business place specially provided for that purpose shall be excepted.

Article 6. The corporation tax or fine or minor fine and the like paid or to be paid in each business year and the income tax paid in the business year concerned which is deductible, under the provisions of Article 10 of the Corporation Tax Law, from the amount of corporation tax shall not be regarded as a loss when calculating the net profit for each business year of a juridical person.

Article 7. The profit brought forward by a juridical person from the preceding business year shall not be regarded as a profit when calculating the net profit for the current business year. The loss brought forward by a juridical person from the preceding year shall not be regarded as a loss when calculating the net profit for the current business year. However, this rule shall not apply to a loss which occurred in a business year which commenced less than one year prior to the commencement of each business year of a juridical person and which was not deducted from the total amount of profits when calculating the net profit for a business year subsequent to the business year in which the loss occurred.

Article 8. In the receipts of State subsidy, the subsidy of a prefecture or the subsidy of a city, town or village, the amount of money which has been delivered to meet the expenses for a kind of capital and which has been appropriated to the expenses of a kind of capital shall not be included in the profit when calculating the net profit of a juridical person.

Article 9. The fund for the balancing of price or the transferring amount to reserved fund of the repairing of an institution which has been established by a juridical person fixed by the Home Minister shall be included in a loss in accordance with the Regulations fixed by the Home Minister.

Article 10. With regard to the amount in excess of the face value in cases where a juridical person has issued its shares at a price exceeding the face value, an amount corresponding to five-tenths of the amount with the expenses required for the issuance of the shares concerned deducted from the said amount shall not be regarded as a profit when calculating the net profit for a business year of a juridical person.

Article 11. In case the total amount of contributions which a juridical person has made in a business year exceeds an amount corresponding to one half of the total amount obtained by adding the amount computed by multiplying the amount of capital for the business year concerned (arrived at in accordance with the provisions of Article 15 of the Corporation Tax Law) by 2.5/1000 and the amount computed by multiplying the amount of net profit for the business year concerned by 2.5/100, the excess amount shall not be regarded as a loss when calculating the net profit for the business year of the juridical person. However, contributions which the prefectural governor has deemed specially necessary may be included in the loss.

Article 12. Income tax paid by a juridical person during the period of liquidation which is to be deducted from the amount of corporation tax on liquidation income amount of corporation tax on liquidation income under the provisions of Article 10 of the Corporation Tax Law shall not be regarded as a loss when calculating the liquidation net profit of a juridical person. The amount of reserve fund within the meaning of Article 48, pars. 5 and 6 of the Local Tax Law shall be the reserve and other amounts reserved out of the net profit for each business year of a juridical person. The amount to be paid as corporation tax shall not be included in the amount reserved as mentioned in the preceding paragraph.

Article 13. With regard to net profit accruing from trust property, the beneficiary receiving the net profit as profits from such act of trust shall be deemed the person who owns the said trust property, and business tax shall be imposed on him as such; but this shall not apply in respect of joint-operation-trust (which means a monetary trust which has been accepted by trust companies and which, while being the trust property of numerous trusters who do not act collectively, is put into joint operation). With respect to the application of the provisions of the preceding paragraph, the truster or his successor shall be deemed the beneficiary when there is no beneficiary specified or no beneficiary has yet come into existence. When calculating the net profit for each business year of a trust company, the receipts and disbursements under joint operation trust shall be deducted respectively from the total amount of profit and the total amount of loss.

Article 14. The expenses to be deducted from the total amount of receipts under the provisions of Article 48, paragraph 7 of the Local Tax Law shall be limited to the original cost of goods laid in, prices of materials, repair-expenses or rent for land, houses and other objects, taxes and public charges (except for income tax, prefectural inhabitants' tax and municipal, town and village inhabitants' tax) on land, houses and other objects or business; salaries for employees, interest on liabilities incurred for obtaining an income and other expenses necessary for obtaining an income. However, no household expenses and expenses connected therewith shall be deducted. In respect of business succeeded to, it shall be deemed to have been carried on continuously by the successor and the net profit shall be calculated on that basis.

Article 15. Matters other than those provided for by laws and government ordinances and which are necessary for determining the standard of assessment of business tax shall be provided by prefectural regulations.

Article 16. No business tax shall be imposed under the provisions of Article 48-(2) of the Local Tax Law unless the amount of net business profit of an individual amounts to 1,200 yen. However, this shall not apply in case when the permission of Home Minister has been obtained.

Article 17. A person who is liable to pay tax in respect of business tax shall, as provided for by the Minister for Home Affairs, make a report to the prefectural governor of matters necessary concerning the imposition of business tax and business surtax (including business rate).

Article 18. The standard for permission to be given by the Minister for Home Affairs under the provisions of Article 48-(3), par. 1 or Article 48-(4) of the Local Tax Law or Article 5, par. 1, item 29 of this Ordinance and the designation in accordance with the provisions mentioned in the item shall be determined by the Minister for Home Affairs in consultation with the Minister of Finance. In case the Minister for Home Affairs intends to give permission in respect of cases which exceed the standard as referred to in the preceding paragraph, the Minister for Home Affairs shall consult with the Minister of Finance.

Article 19. Of the matters requiring the permission of a prefectural governor under the provisions of Articles 58, 59 and 66 of the Local Tax Law, the following shall require the permission of the Minister for Home Affairs as well: 1. Matters relating to Kyoto City, Osaka City, Yokohama City, Kobe City and Nagoya City; 2. To set rates of land surtax, house surtax or business surtax in excess of 1.5 times the standard rates in cities (except the cities mentioned in the preceding item); 3. To set rates of land surtax, house surtax, or business surtax in excess of 2 times the standard rates in towns and villages; 4. To set rates of surtax on mine-lots excess of rates corresponding to 1.2 times the rates provided for under Article 59 of the Local Tax Law in cities, towns and villages (except the cities mentioned in item 1).

Article 20. With respect to permission for taxation of prefectural inhabitants' tax or municipal, town or village, inhabitants' tax under Article 45-(4) and Article 66 of the Local Tax Law; permission for rates of land-tax, house-tax or business tax, or land surtax, house surtax or business surtax under Article 48-(4) and Article 58 of the Local Tax Law, as well as permission for rates of tax on mine-lots or surtax on mine-lots under the provisions of Article 49, paragraph 2, and Article 59, the year or years in which such permission is applicable may be prescribed according to the financial conditions of the local body concerned.

Article 21. The powers to give permission as referred to in Article 62, paragraph 4 of the Local Tax Law in respect of taxes designated by the Minister for Home Affairs and the Minister of Finance shall be delegated to the prefectural governor under the provisions of Article 84, paragraph 2 of the Local Tax Law.

Article 22. Under the provisions of Article 84, paragraph 3 of the Local Tax Law, no permission shall be required concerning the following matters: 1. To reduce the rates of imposition or the total amount imposed for which permission has been obtained under the provisions of Articles 45-(4), 48-(4), 49-(2), 58, 59 and 66 of the Local Tax Law; 2. To reduce the rates of imposition or the fixed amount imposed without changing the standard of assessment in respect of the Independence Tax or Object Tax under the provisions of Article 44, paragraph 2, Article 62, paragraph 3, Article 76, paragraph 3 or Article 79, paragraph 1.

Article 23. Concerning the imposition of Tokyo Metropolitan tax in areas in which special districts of Tokyo Metropolis are located, the areas in which the special districts of Tokyo Metropolis are located shall be deemed cities as regards the application of the provisions of Articles 8 and 9 of the Local Tax Law. As regards the application of the provisions of Article 4, the special districts of Tokyo Metropolis and the wards in Kyoto City, Osaka City, Yokohama City, Kobe City and Nagoya City shall be deemed cities.

Article 24. In case the special districts of Tokyo Metropolis levy part of Tokyo Metropolitan Inhabitants' Tax as the special district tax, it shall be the Special District Inhabitants' Tax.

Article 25. Matters concerning the prefectural tax and the assessment and collection thereof in islands which cannot be dealt with under the Local Tax Law may be determined by prefectural regulations. Matters concerning town and village tax and the assessment and collection thereof in towns and villages in islands which cannot be dealt with under the Local Tax Law may be determined by the prefectural governor.

Article 26. Matters necessary concerning the local tax and the assessment and collection thereof except those provided for in this and other Imperial Ordinances shall be determined by the Minister for Home Affairs and the Minister of Finance.