Article 3. The tax rate of 20% under the provisions of Article 17 or Article 18 of the Income Tax Law shall be made the tax rate of 10% with respect to the application of these provisions to the income from interest or the dividend of interest among the income from dividend paid to the individual who has no domicile or is not resident for one year or more within the enforcement area of the Income Tax Law or to the corporation that has neither head office nor principal office within the enforcement area of the Corporation Tax Law, for the national bond, local bond or the corporate debenture, share of stock or equity issued by a corporation having either head office or principal office within the enforcement area of the Corporation Tax Law, which was acquired legally on the offer of the foreign means of payment (it shall mean the foreign means of payment as provided for in Article 6 of the Foreign Exchange and Foreign Trade Control Law;hereinafter the same) by the individual who has no domicile or is not resident for one year or more within the enforcement area of the Income Tax Law or by the corporation that has neither head office nor principal office within the enforcement area of the Corporation Tax Law.
In case a person who intends to be favoured with the application of the provision of the preceding paragraph, showing that the national bond, local bond, corporate debenture, share of stock or equity concerned was acquired legally on the offer of the foreign means of payment, has recorded in the books prepared by a person paying the interest or the dividend of interest the name, nationality, domicile, or, title, location of principal office and other matters as provided for by Ordinance, the provision of the same paragraph shall apply only within the term for which the record is effective.
Article 4. With regard to the earned income or the retirement income for each year from 1950 to 1955 accruing, to such person provided for in Article 1 paragraph 1 of the Income Tax Law as has no domicile within the enforcement area of the same Law, the amount of receipt from the payment in the enforcement area of the same Law shall be deemed to be the amount of the receipt as provided for in Article 9 paragraph 1 item (5) or item (6) of the same Law, and then the provision of the same Law shall apply thereto.
In case a person under the provision of the preceding paragraph has received a sum remitted from the outside of the enforcement area of the Income Tax Law for each year prescribed under the provision of the same paragraph, such an amount within the extent of the amount thus received as corresponds to the amount of receipt coming under the category of Article 9 paragraph 1 item (5) of the same Law minus the amount of receipt of earned income paid in the enforcement area of the same Law shall be deemed, in the application of the preceding paragraph, to be the amount of receipt paid in the enforcement area of the same Law.
In case the expenses which are ordinarily necessary for the livelihood of a person under the provision of paragraph 1 within the enforcement area of the Income Tax Law exceed the amount of receipt of the earned income paid in the enforcement area of the same Law (if he has the income under the provision of Article 9 items (1) to (4) inclusive or items (7) to (10) inclusive of the same Law, the amount aggregating the amount of such income under the provision of each item), the amount of receipt of the earned income equal to the excessive amount from the payment outside the same enforcement area (in case there is any amount which is deemed to be the amount of receipt from the payment within the enforcement area of the same Law in accordance with the provision of the preceding paragraph, the amount of receipt after the deduction of such amount) shall, notwithstanding the provision of paragraph 1, be added to the amount of receipt of earned income paid in the enforcement area of the same Law under the provision of paragraph 1 and shall be subject to the provision of the same paragraph.
Article 5. With regard to the individual as provided for in Article 1 paragraph 1 of the Income Tax Law, who has no domicile within the enforcement area of the same Law and who receives a payment of earned income or retirement income from the corporation with foreign investment engaged in the business requiring to introduce the foreign capital or scientific technique for the sound development of the Japanese economy, his receipt of earned income or retirement income paid in each year of 1952 to 1955 by the said corporation (or the amount of receipt minus the deductible amount under the provision of Article 9 paragraph 2, Article 9-(2), Article 11-(3) or Article 11-(4) of the Income Tax Law, if the amount of total income for that year is to be deducted by the amount under these provisions;hereinafter the same) minus the amount equal to 50% thereof (or 3,500,000 yen, if this amount exceeds 3,500,000 yen), shall be deemed to be the amount of receipt under the provision of Article 9 paragraph 1 item (5) or item (6) of the same Law and shall be subject to the provision of the same Law, The same shall apply to the earned income or retirement income paid in each year of 1952 to 1955 to an individual designated by the Minister of Finance, who has no domicile within the enforcement area of the Income Tax Law, and who has accepted a call in order to lead or improve the scientific technique of the business of the corporation engaged in the business requiring to introduce the foreign capital or scientific technique for the sound development of the Japanese economy other than corporations with foreign investments, from such corporation.
In case a person under the provision of the former part of the preceding paragraph intends to be favoured with the application of the former part of the same paragraph, he shall submit to the Government through the payer of the earned income or retirement income concerned a written application stating therein his name, nationality or other matters as provided for by Ordinance in accordance with the procedure as provided for by Ordinance.
The kind of business as provided for in paragraph 1 shall be determined by the Minister of Finance after the consultation with the Foreign Investment Committee and be made public.
The "corporation with foreign investment" as used in paragraph 1 shall mean the corporation as referred to in any one of the following items:
(1) The corporation having its head office or principal office within the enforcement area of the Corporation Tax Law, in the case where the amount computed as may be prescribed by Ordinance, with respect to the investment by means of the offer of the foreign means of payment, importation of goods used for the business under the provision of paragraph 1, or offer of the industrial proprietary or other rights on technique acquired outside the enforcement area of the Corporation Tax Law (including the establishment of the using right on these rights) to the said corporation by the individuals having no domicile or being not resident for one year or more within the enforcement area of the Income Tax Law or by the corporations having neither head office nor principal office within the enforcement area of the, Corporation Tax Law, is not less than 100 million yen on January 1 every year;
(2) The corporation having neither head office nor principal office within the enforcement area of the Corporation Tax Law in the case where the value of the said corporation's assets within the enforcement area of the Corporation Tax Law which were acquired due to the offer of the foreign means of payment or to the importation of goods used for the business under the provision of paragraph 1, or the value of the industrial proprietary for the business purposes or other right on the technique (including the using right on these rights) which was acquired by the said corporation outside the enforcement area of the same Law and is used for the business under the provision of the same paragraph within the enforcement area of the same Law is not less than 100 million yen on January 1 every year.
Article 5-(2). With regard to the earned income or retirement income paid in each, year of 1952 to 1955 to an individual as provided for in Article 1 paragraph 1 of the Income Tax Law, who has no domicile within the enforcement area of the same Law from a corporation engaged in such business as facilitates the operation of business of the corporation with foreign investment and as promotes the proper introduction of foreign capital, which is engaged in the business as provided for in paragraph 1 of the preceding Article, the amount of receipt of such earned income or retirement income minus the amount equivalent to 50% of such amount (or 3,500,000 yen, if this amount exceeds 3,500,000 yen) shall be deemed to be the amount of receipt under the provision of Article 9 paragraph 1 item (5) or item (6) of the same Law, and then the provisions of the same Law shall apply thereto.
The provision of paragraph 2 of the preceding Article shall apply mutatis mutandis to a person who intends to be favoured with the application of the preceding paragraph.
With regard to the business income for each year of 1952 to 1955, accruing to an individual as provided for in Article 1 paragraph 1 of the Income Tax Law, who has no domicile within the enforcement area of the same Law and who is engaged in such profession as facilitates the operation of corporation with foreign investment engaged in the business as provided for in paragraph 1 of the preceding Article and as promotes the introduction of foreign capital, the amount of such business income minus the amount (or 3,500,000 yen, in case this amount exceeds 3,500,000 yen) equivalent to 50% of the amount of income derived from such profession (if the deduction from the amount of total income for that year is allowed in accordance with the provision of Article 9 paragraph 2, Article 9-(2), Article 11-(3) or Article 11-(4) of the same Law, the amount of income minus the deductible amount under these provisions) shall be to be deemed the amount of business income as provided for in Article 9 paragraph 1 item (4) of the same Law, and then the provisions of the same Law shall apply thereto.
The provision of paragraph 3 of the preceding Article shall apply mutatis mutandis to the scope of the businesses of the corporation under paragraph 1 and to the scope of the profession under the preceding paragraph.
Article 5-(3). With regard to the earned income or retirement income to be paid in each year of 1952 to 1955 to an individual as provided for in Article 1 paragraph 1 of the income Tax Law, who is a teacher of the universities or upper secondary schools as provided for in Article 1 of the School Education Law (including universities, preparatory schools and colleges under old provisions as provided for in Article 98 of the same Law) and who has no domicile within the enforcement area of the Income Tax Law, the amount of receipt of such earned income or retirement income minus the amount equivalent to 50% of such amount (or 3,500,000 yen, if this amount exceeds 3,500,000 yen) shall be deemed to be the amount of receipt under the provision of Article 9 paragraph 1 item (5) or item (6) of the Income tax Law, and then the provisions of the same Law shall apply thereto. The same shall also apply to the earned income or retirement income paid in each year of 1952 to 1955 to such clergyman or other person engaged in the missionary work from the religious organization to which he belongs, who has no domicile within the enforcement area of the Income Tax Law and comes under the provision of Article 1 paragraph 1 of the same Law.
The provision of Article 5 paragraph 2 shall apply mutatis mutandis to the individual who intends to be favoured with the application of the provision of the preceding paragraph.
Article 5-(4). With regard to the income for 1950 and 1951 accruing to an individual as provided for in Article 1 paragraph 1 of the Income Tax Law, who has no domicile within the enforcement area of the same Law and also falls under any one of the following items, the amount of total income for 1950 minus the amount (in case this amount exceeds the amount computed by multiplying 3,500,000 yen by the number of months involved in the term designated by Ordinance and then dividing by 12, the amount thus computed) equivalent to 50% of the amount of income accruing during the term (in case the deduction from the amount of total income for that year is allowed in accordance with the provision of Article 9 paragraph 2, Article 11-(3) or Article 11-(4) of the same Law, the amount accruing during the term minus such deductible amount under these provisions), while, in a case of 1951, the amount of total income for 1951 minus the amount (or 3,500,000 yen if this amount exceeds 3,500,000 yen) equivalent to 50% of the amount of total income for that year (in case the deduction from such total income amount is allowed in accordance with the provision of Article 9 paragraph 2, Article 9-(2), Article 11-(3) or Article 11-(4) of the same Law, the amount of total income minus the deductible amount under these provisions;hereinafter the same) shall be deemed to be the amount of taxable total income as provided for in Article 13 of the same Law, and then the provisions of the same Law shall apply thereto:
1. An individual who has legally got an income in foreign currency within the enforcement area of the Income Tax Law before the time when the provision of this Article has been enforced;
2. An individual who has legally got a residence within the enforcement area of the Income Tax Law after the time when the provision of this Article has been enforced.
With regard to an individual as provided for in the preceding paragraph, the amount of receipt of earned income or retirement income paid to the individual in such term of 1950 as provided for in the same paragraph and in 1951 minus the amount equivalent to 50% of such amount of receipt (in respect to the retirement income, the amount of retirement income minus the amount equivalent to 15% of such income) shall be deemed to be the amount of earned income or retirement income as provided for in Article 38 paragraph 1 of the Income Tax Law, and then the provisions of the same paragraph shall apply thereto.
The provision of Article 5 paragraph 2 shall apply mutatis mutandis to a person who intends to be favoured with the application of the provision of the preceding paragraph.