Article 4.　No corporation tax shall be imposed upon the corporations as enumerated below:

Article 5.　With respect to the income of the corporation enumerated below, the corporation tax on the income for each accounting period shall not be imposed upon the income other than the income which has accrued from the profit-making business:

Article 5-(2).　The corporation tax on the income for each accounting period shall not be imposed upon the income which has accrued in each accounting period of the corporation in process of liquidation.

Article 5-(3).　With respect to the reserves of the corporation enumerated in each item of Article 5 paragraph 1, no corporation tax on the reserves for each accounting period shall be imposed.

Article 7-(2).　"Family corporation" as used in this Law shall mean a corporation which falls under any one of the following items:

Article 8.　The taxable basis for the corporation tax shall be the amount of income and reserves for each accounting period.

Article 9-(2).　In case a corporation has issued its shares at the price exceeding their face value, the excess over the face value minus the amount expended to issue the shares concerned shall not be counted in profit in computing the income mentioned in paragraph 1 of the preceding Article.

Article 9-(3).　Subscription money to be collected by a corporation enumerated in Article 9 paragraph 6 from a person who newly become an investor of the corporation shall not be counted in profit in computing the income mentioned in paragraph 1 of the same Article.

Article 9-(4).　The profit having accrued from the decrease in the capital of a corporation shall not be counted in profit in computing the income referred to in Article 9 paragraph 1.

Article 9-(5).　In the case of amalgamation of corporations, out of the composite profit accruing to the amalgamating corporation due to the amalgamation (hereinafter referred to as "surplus from amalgamated corporation" ), the sum tantamount to a profit accuring to the amalgamating corporation by allotting to the shareholders, partners or investors of the amalgamated corporation less stocks or less amount of money than the paid-up amount of stocks or the invested amount held by the amalgamated corporation at the time of the amalgamation (hereinafter referred to as"profit from stock retirement at the time of amalgamation) as well as the sum which is tantamount to the reserves of the amalgamated corporation shall not be counted in profit in computing the income referred to in Article 9 paragraph 1.

Article 9-(6).　In case a corporation, on receiving the dividend of profit or the distribution of surplus from a domestic corporation in each accounting period, has stated the matters relative to the said dividend of profit or the said distribution of surpluses in the return as referred to under the provision of Articles 18 to 21 inclusive, the profits or surpluses thus distributed (in case the interest has been paid on the debt required for acquisition of the stock or investment which is the principal of the dividend or distributed surpluses, the sum remaining after deduction of the said interest) shall not be counted in profit in computing the income referred to in Article 9 paragraph 1.

Article 9-(7).　As for the valuation of commodities, raw materials, finished and semi-finished products, goods in process and other assets to be inventoried that is necessary for the computation of income as referred to in Article 9 paragraph 1, a corporation shall choose one of the valuation methods which are prescribed by Ordinance for each kind of business prescribed by Ordinance and shall follow the method thus chosen.

Article 9-(8).　In computing the depreciation charges of fixed assets which shall be counted in loss in the computation of income under Article 9 paragraph 1, a corporation shall follow the method prescribed by Ordinance.

Article 13.　The reserve of a corporation for each accounting period shall be the amount obtained by multiplying the reserve at the beginning of the accounting period concerned minus the reserve on the last day of the accounting period ending just prior to April 1, 1950 (the reserve to be deducted shall be referred to as "the deductive reserve" ) by the number of methods in the accounting period concerned and then divided by 12.

Article 14.　In case the amalgamation of corporations takes place on and after April 1, 1950, the deductive reserve of an amalgamated corporation shall be deemed to be that of the amalgamating corporation in respect to the application of paragraph 1 of the preceding Article.

Article 15.　In case the amalgamation of corporation takes place on and after April 1, 1950 during the accounting period of the corporation which survives after the amalgamation and also where the corporation which survives after the amalgamation succeeds the reserve of the amalgamated corporation, the amount of reserve of the corporation, which survives after the amalgamation, for the accounting period covering the day of amalgamation concerned shall, notwithstanding the provisions of Article 13 and paragraph 1 of the preceding Article, be as follows:the amount of reserve of corporation which survives after the amalgamation, at the beginning of the accounting period concerned minus the amount of the deductive reserve (A). The amount of reserve which has been succeeded from the amalgamated corporation by the corporation which survives after the amalgamation minus the amount of deductive reserve of the amalgamated corporation, and the balanced amount is multiplied by the number of months remaining after the amalgamation for the accounting period and then divided by the number of months for accounting period concerned (B). And the balanced amount in the former (A) plus this amount (B), is multiplied by the number of months of the accounting period of the corporation which survives after the amalgamation and then divided by 12.

Article 16.　"A reserve" as used in this Law shall mean the legal reserve, reserved fund and others, no matter what the name may be, which have been reserved from the income of corporation during each accounting period (including the income which is not subject to the corporation tax in accordance with the provision of Article 5-(2) or is exempt from the corporation tax in accordance with the provision of Article 6 or the amount that is not counted in profit in accordance with the provision of Article 9-(6)).

Article 17.　The corporation tax shall be imposed at the following rates:

Article 19.　In case of the accounting period of a corporation being longer than six months a corporation which has any corporation tax already paid or fixed to pay before the day prior to the day seven months after the opening date of the accounting period shall, except the case coming under the provision of Article 20, file a return, stating therein the amount of corporation tax tantamount to the amount obtained by dividing six times the total of the corporation tax already paid and the corporation tax fixed to be paid for the previous accounting period (excluding the corporation tax corresponding to the interest on delinquent tax, negligence additional tax, non-filing additional tax and heavy additional tax as referred to in Articles 42 to 43-(2) inclusive which are relative to the corporation tax concerned) by the number of months of the previous accounting period, with the Government within two months from the date on which six months have elapsed from the opening date of the accounting period concerned;provided, however, the corporation may, if it has computed the amounts of income and reserve for the accounting period as the taxable basis in accordance with the provisions of Articles 6 and 9 to 15 inclusive, deeming the period of six months after the opening date of the accounting period concerned to be one accounting period, file a return stating therein the amounts of income and reserve as well as the amount of corporation tax on the income and reserve concerned for the said accounting period (in case there is no income or reserve and no corporation tax thereon, that fact), with the Government within the due date of filing the return concerned in place of the return concerned.

Article 20.　In a case where the first accounting period of a domestic corporation after its establishment or where the first accounting period of foreign corporation newly established exceeds six months or where the accounting period subsequent to the accounting period covering the day of amalgamation of domestic corporation which survives after the amalgamation exceeds six months (excluding a case where the amalgamation is made on the opening day of the accounting period covering the day of amalgamation) or where the amalgamation has been made during the six months after the opening date of the accounting period of the domestic corporation surviving after the amalgamation, which is longer than six months, the domestic corporation or foreign corporation newly established or the domestic corporation which survives after the amalgamation shall, if it finds any corporation tax to pay after computing the amounts of income and reserve for the period as the taxable basis in accordance with the provisions of Article 6 and Articles 9 to 15 inclusive on the presumption that the period of six months after the opening date of the accounting period is one accounting period in respect to the accounting period which is longer than six months, file a return stating therein the amounts of income and reserve for the said period as well as the corporation tax due on the said income and reserve with the Government within two months from the end of the said period.

Article 21.　A corporation liable to pay a corporation tax shall, if it comes under the provision of Article 19 or the preceding Article, file with the Government a return stating therein the amounts of income and reserve as a taxable basis for the accounting period concerned as well as the amount of corporation tax on the said income and reserve on the confirmed settlement within two months from the closing date of the said accounting period;provided, however, in case a corporation cannot file the return by the due date of filing a return, on account of an unsettlement of account owing to the calamity or other unavoidable circumstances, the corporation may, with the approval of the Government, file it within 20 days from the date of confirmation of the settlement of account.

Article 22.　Notwithstanding the provisions of the preceding four Articles, a corporation in process of liquidation with corporation tax liability shall, with respect to the corporation tax for each accounting period closing in the process of liquidation, file with the Government, within two months from the closing date of the accounting period, a return stating therein the amount of reserves as a taxable basis for the accounting period concerned and the corporation tax on the said reserves.

Article 23.　A corporation liable to file a return as referred to in Article 18 paragraph 1, Article 20 paragraph 1, Article 21 paragraph 1 or paragraph 1 of the preceding Article, may, even after the time limit of filing as referred to in each of the said paragraphs, file with the Government a return stating therein matters prescribed by each of the said paragraphs, before the notice of determination is made in accordance with the provision of Article 32.

Article 24.　In case a corporation, which filed a return as referred to in Article 18 to the preceding Article inclusive, has found a deficit in the amount of income, reserve or corporation tax stated in the said return (or in case it has found a corporation tax to pay, in the case of a corporation which filed a return stating therein that it had no corporation tax to pay), it may file with the Government, before the correction or the determination referred to in Article 32 is notified, a return stating therein matters to be amended or other matters as may be prescribed by Ordinance in respect to the matters entered in the return already filed.

Article 25.　A corporation may use a return of blue colour (this return shall be called a "blue return" ) with an approval of the Government for the return to be filed in accordance with the provisions of Article 18 to the preceding Article inclusive.

Article 25-(2).　The representative of the corporation (all representatives, if two persons or more represent jointly the corporation) shall sign his name and affix his seal to the return as referred to in Articles 18 to 24 inclusive;provided, however, in case there are two or more representatives of the corporation (excepting the case where two or more persons represent jointly the corporation), the president, chief director, managing director, executive director or other person who actually manages the business of corporation at the time of preparation of the return, shall sign his name and affix his seal to the return.

Article 26.　The corporation which has filed the return as provided in Article 18 paragraph 1, Article 20 paragraph 1 or Article 22 paragraph 1 shall pay to the Government the corporation tax equal to the amount entered on the return by the due date of filing the return as referred to in each of the said paragraph.

Article 26-(2).　The corporation which has filed the return as provided in Article 23 paragraph 1 shall pay the corporation tax equal to the amount entered in the return concerned (or (or equal to the amount as computed by applying mutatis mutandis the provision of paragraph 3 of the preceding Article, in case of the return containing the matter as provided in Article 21 paragraph 1) to the Government on the day when the return has been filed.

Article 26-(3).　The corporation which files the blue return may, if its total loss exceeds its total profit in the computation of the income for each accounting period as provided for in Article 9 paragraph 1, claim to the Government, in accordance with the provisions of the Ordinance, a refund of corporation tax tantamount to the difference between the corporation tax on the income for the accounting period that opened within a year before the opening date of the accounting period concerned and the corporation tax on such income as is computed by deducting wholly or partially such part of loss (hereinafter referred to as "the amount of loss" ) as exceeds the income for the preceding accounting period from the income for the preceding accounting period, simultaneously with the filing of the return for the accounting period concerned as provided for in Article 18 paragraph 8 or Article 21 paragraph 4;provided, however, that this shall be limited to the case where the corporation has filed the blue return for the accounting period with respect to which the corporation intends to deduct the loss amount from the income (hereinafter referred to as "the accounting period for refund" in this Article), and files continuously thereafter the blue return.

Article 29.　In case the return or the revised return as provided for in Articles 18 to 24 inclusive has been filed, if the taxable basis or corporation tax stated in the said return or revised return is at variance with the result of the investigation made by the Government, the Government shall correct the taxable basis or corporation tax according to its investigation.

Article 31-(2).　In case the taxable basis, amount of loss or amount of corporation tax is corrected or determined by the Government in accordance with the provisions of the preceding three Articles, if the Government has found that the admission of the act or computation of the family corporation results in considerable decrease of the burden of the corporation tax on it, the Government may compute the taxable basis or amount of loss for the said corporation on its own opinion, regardless of the said act or computation.

Article 31-(3).　In case the Government corrects or determines the taxable basis as well as the amount of loss or the amount of corporation tax as provided for in the provisions of Articles 29 to 31 inclusive with respect to the accounting period for which the blue return was filed by the corporation which is permitted to file the blue return, with the exception of the case to which the provision of the latter part of Article 25 paragraph 7 applied with respect to the return for the accounting period concerned, the Government shall do so only in case it recognizes that there is any error in the calculation of the taxable basis or the amount of loss after investigating the books and document of the corporation;provided, however, upon investigation of the return and attached documents filed in accordance with the provisions of Articles 18 to 24 inclusive, if it is clear that the computation of the taxable basis, amount of loss or amount of corporation tax entered in the return or revised return is not in accordance with the provisions of Article 6 and Articles 9 to 15 inclusive, or if there is a mistake to be found in the computation of the corporation tax entered in the return which was filed in, accordance with the provision of the main clause of Article 19 paragraph 1, the correction or determination of the taxable basis, amount of loss or amount of corporation tax as provided for in Articles 29 to 31 inclusive may be made.

Article 39.　The Government shall give a public notice of the name of corporation which has income of more than one million yen (in the case of the return as provided for in Article 21 paragraph 1 or the case of the return as provided for in Article 23 paragraph 1, entered with the matters as prescribed in the same paragraph or the revised return for these returns, 2,000,000 yen) that has been stated in the return (excluding the return as provided for in the main clause of Article 19 paragraph 1) or in the revised return place of tax payment of tax as provided for in Article 46-(3), name of representative, (in case of a foreign corporation, a responsible person as referred to in Article 46-(4) paragraph 2), the amount of income stated in the return, its accounting period or the term as provided for in the proviso to Article 19 paragraph 1 (including the case where it applies mutatis mutandis in paragraph 7 of the same Article) or Article 20 paragraph 1, within two months from the day on which the said return was filed, for the duration of one month at least.

Article 42.　A corporation liable to pay the corporation tax shall, in case it comes under any item of the following items, pay the amount of interest on delinquent tax computed by applying the rate of 4 sen per 100 yen (per day) to the amount of corporation tax according to the term as enumerated in each concerned item, in addition to the amount of corporation tax as enumerated in each item concerned:

Article 43.　In case the return under the provision of Article 18, the proviso to Article 19 paragraph 1 (including the case where it applies mutatis mutandis in paragraph 7 of the said Article) or Articles 20 to 22 inclusive, was filed, when the correction or determination under the provision of Articles 29 to 31 inclusive has been made or the revised return under the provision of Article 24 has been filed, the Government shall collect the negligence additional tax equivalent to the amount computed by applying 5% to the amount of deficiency tax under Article 33 paragraph 1 concerning the correction or determination concerned, to the amount of corporation tax to be collected according to the provision of paragraph 2 of the same Article or to the amount of corporation tax to be paid due to filing of the revised return concerned in accordance with the provision of Article 26-(2) paragraph 2 or paragraph 3, in case the Government finds no good reason for an error in the amount of corporation tax (in case a return to the effect that there is no corporation tax to be paid was filed, the return to that effect) which was stated in the return or the revised return filed before the correction or determination concerned or previously filed before the revised return has been filed.

Article 43-(2).　In the case coming under the provision of paragraph 1 of the preceding Article, in case a corporation concealed or disguised the facts which were to be the basis for computation of the taxable basis or the amount of losses and has filed a return under the provision of Article 18, the proviso to Article 19 paragraph 1 (including the case where it applies mutatis mutandis in paragraph 7 of the same Article) or Articles 20 to 22 inclusive or a revised return under the provision of Article 24 on the basis of the facts thus concealed or disguised, the Government shall collect the amount of heavy additional tax, in lieu of the amount of negligence additional tax, equivalent to the amount computed by applying 50% to the amount of deficiency tax under Article 33 paragraph 1, or the amount of corporation tax to be collected according to the provision of paragraph 2 of the same Article or the amount of corporation tax to be collected according to the provision of Article 26-(2) paragraph 2 or paragraph 3 which is to be the basis for computation of the amount of negligence additional tax.

Article 46-(4).　A domestic corporation which has been newly established (excluding the corporations enumerated in Article 4 and the corporations not liable to pay a corporation tax by virtue of other laws and orders) shall inform to the Government the date of its establishment, its name, the purpose of its business, names of its representative, and the location of its head office or its principal place of business, within one month from the day of its establishment.

Article 46-(5).　In case the liquidation of a domestic corporation has been settled, the liquidator of the corporation concerned shall file a return with the Government stating therein to that effect and the date when the liquidation has been settled.

Article 48.　In case a corporation has evaded the corporation tax for which the return shall be filed in accordance with the provision of Article 18 paragraph 1, Article 21 paragraph 1 or Article 22 paragraph 1 or has received the refund of the amount as provided in Article 26-(3) paragraph 4, by an act of fraud or other illegal practices, the representatives, deputies, employees or other members who have committed such violations shall be punished with penal servitude not exceeding three years or with a fine not exceeding 5,000,000 yen, or both.

Article 48-(2).　In case a corporation has failed to file a return as provided in Article 18 paragraph 1, Article 21 paragraph 1 or Article 22 paragraph 1 by the due date of filing the return as referred to in the said respective paragraph without any justifiable reason, the representatives, deputies, employees or other members who have committed such violations shall be punished with penal servitude for not exceeding one year or with a fine not exceeding 200,000 yen;provided, however, that the punishment may be remitted according to the circumstances.

Article 48-(3).　A person who has violated the provisions of Article 25-(2) paragraphs 1 to 3 inclusive or who, in case a return has been filed in contravention of these provisions has committed such violations shall be punished with penal servitude not exceeding one year or with a fine not exceeding 100,000 yen;provided, however, that the punishment shall be remitted according to the circumstances.

Article 53.　The provisions of Article 48 paragraph 2, Article 63 and Article 66 shall not apply to any person who has committed the crime as provided for in Article 48 paragraph 1;provided, however, that this shall not apply to the case where a penal servitude is to be imposed or to the penal servitude in the case where both the penal servitude and the fine are to be imposed.