Attachment_03_USFJI_51_5_31Oct16_Obtaining_Exemption_from_Japanese_Taxes.pdf

BY ORDER OF THE

COMMANDER

HEADQUARTERS, UNITED STATES FORCES, JAPAN

USFJ INSTRUCTION 51-5

31 October 2016

Accounting and Finance

OBTAINING EXEMPTION FROM JAPANESE TAXES

COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms are available on the U.S. Forces, Japan portal at http://www.usfj.mil/USFJ-Publications/ for downloading or ordering

RELEASABILITY: There are no releasability restrictions on this publication

OPR: USFJ/J06 (Mr. Dale I. Sonnenberg) Certified by: USFJ/J06 (Col Derek I. Grimes) Supersedes USFJPL 177-1, 24May1994 Pages: 12

PURPOSE: To prescribe procedures for obtaining exemption from certain Japanese taxes in connection with official procurement in Japan by the United States (US) armed forces.

SUMMARY OF CHANGES: This instruction is substantially rewritten to revise/update the consumption tax and to redraft it in instruction format.

1. Scope. This instruction is applicable to all USG contracting agencies making procurements in Japan for the benefit of the US armed forces in Japan. It is applicable to all procurement activities in Japan by or for the US armed forces, including nonappropriated-fund instrumentalities.

2. General.

2.1. Paragraph 3, Article XII of the Status of Forces Agreement under Article VI of the Treaty of MutualCooperation and Security between the US and Japan (hereinafter: US-Japan SOFA), provides the basis whereby the US armed forces (either appropriated-fund organizations or purchases made by "authorized procurement agencies" for appropriated-fund organizations or nonappropriated-fund instrumentalities) obtain exemption from Japanese taxes in connection with procurement in Japan of materials, supplies, equipment and services for official purposes. In accordance with the provisions of paragraphs 1 and 2, Article XV of· the US-Japan SOFA, Article XV organizations are exempt from taxation on all such purchases other than purchases of supplies and merchandise purchased in Japan. Also, Article 86-2 of the Act on Special Measures concerning Taxation states that BX and PX are exempt from the consumption tax when purchasing merchandise (including consumable items) from vendors in Japan for the purpose of export by the SOFA personnel, which is the same procedure as the Tax Free Shop in town for international travelers. Currently, these.taxes are:

2.1.1. Consumption Tax (national).

2.1.2. Gasoline Tax and Local Gasoline Tax (national).

HQ USFJ INST 51-5 2

2.1.3. Petroleum Gas Tax (national).

2.1.4. Petroleum Coal Tax (national).

2.1.5. Diesel Oil Delivery Tax (prefectural).

2.1.6. Automobile Acquisition Tax (prefectural).

2.1.7. Stamp Tax (national).

2.2. To permit the US armed forces to obtain exemptions from these taxes, certain tax exemption certicate forms were developed and contracting forms approved in conjunction with the Government of Japan (GOJ). The applicability of these forms and procedures for their preparation, distribution, and control are described below. The forms used to obtain exemptions listed below are serially numbered accountable forms and may be obtained through publications distribution channels. You may contact 374 CS/SCOK, DSN 225-7311 to request the forms. Accountable forms are: ·

2.2.1. USFJ Form 43EJ - Gasoline Tax Exemption

2.2.2, USFJ Forrn 44EJ - Gasoline Tax Exemption

2.2.3. USFJ Form 221 EJ - Gasoline Tax Exemption

2.2.4. USFJ Form 325EJ - Diesel Oil Delivery Tax Exemption

2.2.5. USFJ Forrn 326EJ - Diesel Oil Delivery Tax Exemption

2.2.6. USFJ Form 327EJ - Diesel Oil Delivery Tax Exemption

2.2.7. USFJ Form 419EJ- Tax Exemption Identification Card

2.2.8. USFJ Form 420EJ - Gasoline Tax Exemption

2.2.9. USFJ Form 420EJ (GPC) - Consumption Tax Exemption

2.2.10. USFJ Form 421EJ-Gasoline Tax Exemption

2.2.11. USFJ Form 421 EJ (Carrier)- Consumption Tax Exemption

2.3. Definitions.

2.3.1. Art. XV Organizations. The term includes Navy exchanges, post exchanges, messes, social clubs, theaters, newspapers and other non-appropriated fund organizations authorized and regulated by the United States military authorities.

2.3.2. Contracting Officer. The term means any officer of the US armed forces or civilian employee, including any Master Labor Contract employee, who in accordance with procedures prescribed by the US, has been or shall be designated a contracting officer (and whose

HQ USFJ INST 51-5 3

designation has not been t_erminated or revoked) with the authority to enter into and administer contracts and make determinations and findings therefore or any part of such authority. The term is construed to include his/her duly appointed successor or authorized representative acting within the limits of his/her authority.

2.3.3. Incorporated in. The term as used above refers to any access whereby an article enters into the building, work, production, or supplies or a component thereof so as to become a part thereof or to be consumed in the building, work, or production thereof, but excludes arti.cles or commodities not consumed in performance of the contract or not delivered to the us.

2.3.4: Official use. Any article is deemed to be sold for official use of the US when it is sold

(a) to the US to be used by the US or disposed of by the US outside Japan or in Japan in accordance with conditions mutually agreeable to the United States Forces, Japan (USFJ) and the GOJ or (b) to a contractor or subcontractor under a US contract (including a supplier) when the article is incorporated in an article sold to the US or in the building or work constructed, altered, improved, or repaired pursuant to a contract with the US.

2.3.5. Prime contract. The term means a contract made by the US. The term includes any contract agreement, purchase order, letter contract, or other preliminary contractual instrument entered into by the US.

2.3.6. Procurement. The term includes, by way of description and without limitation, purchasing, renting, leasing, or otherwise obtaining materials, supplies, equipment, or services.

2.3.7. Subcontract. The term means any purchase or agreement to perform all or any part of the work or to make or furnish any article required for the performance of another contract or subcontract for the US.

2.3.8. United States. The term means the United States of America, represented by the US armed forces through its authorized representatives.

2.4. Description of Taxes.

2.4.1. Consumption Tax (indirect tax\. This tax is applicable to all transactions on transfer of assets or property and tender of services at each distribution stage in the purchase of goods and services in Japan, except for Article XV organizations which have limitations as described in para. 2.1. Exports, interests, rent, medical expenses, and· other limited transactions are exempt from payment of the consumption tax. The tax rate is 6.3% (7.8% from October 2019) for national tax and 1. 7% (2.2%, ditto) for prefectural tax. Therefore, the total effective tax rate is 8% (10%, ditto).

2.4.2. Gasoline Tax and Local Gasoline Tax (indirect tax). These taxes are applicable to the purchase of gasoline (hydrocarbon oil with a specific gravity of not exceeding 0.8017 at 15 degrees C). Gasoline tax is based on th.e quantity of gasoline shipped from refineries or withdrawn from bonded areas after deducting expected losses in storage and transit. The tax rates are as follows:

HQ USFJ INST 51-5

2.4.2.1. Gasoline tax

Local gasoline tax Total

¥48,600/kl ¥5.200/kl ¥53,800/kl

(Okinawa area: ¥42,277/kl) (Okinawa area: ¥4,523/kll (Okinawa area: ¥46,800/kl)

2.4.3. Petroleum Gas Tax (indirect tax). This tax is applicable to the purchase of liquefied petrolum gas (hydrocarbon in gaseous state at 15 degrees c and in 1 atmospheric pressure) for automobile fuel contained in a high pressure container. The tax rate is ¥17.50 per kilogram.

2.4.4. Petroleum Coal Tax (indirect tax). This tax is applicable to the purchase of crude oil, petroleum products, gaseous hydrocarbons .(LPG and LNG) and coal. The tax rates are as follows:·

2.4.4.1. Crude oil and petroleum products

Gaseous hydrocarbons Coal

¥2,800/kl ¥1,860/t ¥1,370/t

2.4.5. Diesel Oil Delivery Tax (indirect tax). This tax is applicable to the purchase of diesel oil having a specific gravity greater than 0.8017 and up to and including 0.8762 at 15 degrees C. This tax is not applicable to other petroleum products having specific gravities within the above range. The tax rate is ¥32, 100 per kiloliter (Note: Interim rate valid from 1 April 2010, for the time being).

2.4.6. Automobile Acquisition Tax (indirect tax). This tax is imposed on the acquisition of new or second-hand automobiles. If the price is not more than ¥500,000, the vehicle is exempt for the tax. The payment to the prefecture must normally be made at the same time as the registration of the automobile. ·

2.4.7. Stamp Tax (indirect tax). This tax is paid by affixing and cancelling a stamp on the documents which are exhaustively listed in the Stamp Tax Act provisions (e.g., contract document, promissory note, receipt, etc).

2.4.8. Corporation Tax (direct tax). This tax is imposed on the income of domestic and foreign corporations in Japan.

2.5. Control Procedures.

2.5.1. ·Tax Exemption. The exemption from a tax is obtained through the issuance of appropriate tax exemption certificates executed by officers appointed for this purpose as indicated below and use of authorized contracting forms. The procedures for the preparation and processing of the various tax exemption certificates and contracting forms are described in Attachment 1. The result of these procedures is that the person or firm on whom that tax would be otherwise leviable under Japanese law will be granted an exemption by the GOJ ..

2.5.2 Tax Exemption Certificates. Certificates for tax exemptions are executed and issued only by contracting officers and receiving officers who are appointed for such purpose.

· Service commanders or their designated representatives will make such appointments for activities coming under their congnizance. USFJ Form 419 (Tax Exemption Identification Card), other than for the consumption tax, is used in making these appointments. For

HQ USFJ INST 51-5 5

purposes of control, the number of officers appointed to execute tax exemption certificates will be kept to the minimum consistent with efficient operation. The form is made out in triplicate.

The original of the form is furnished to the officer appointed to execute the certificates. The duplicate copy is retained by the appointing authority. The triplicate copy is forwarded by the applicable service commander to:

2.5.2.1. Chief, Excise Section

Indirect National Tax Division National Tax Administration Agency, Ministry of Finance 3-1-1, Kasumigaseki, Chiyoda-ku, Tokyo

2.5.3. Prohibitions. The tax exemption certificates may not be used by nonappropriated-fund instrumentalities to procure supplies or merchandise in Japan, notwithstanding authorization to do so in other regulations. This will avoid confusion by vendors and within the Japanese tax authorities. It would also be counter to the provisions of the Joint Committee agreements that identified these documents as tax exemption certificates. Using them for such taxable purposes would jeopardize the ability of nonappropriated-fund instrumentalities to obtain tax relief more broadly under the US-Japan SOFA.

3. Tax Relief for purchase of merchandise in Japan by Exchange.

3.1. Notwithstanding the provisions of Article XV permitting taxation of Exchange purchases of merchandise in Japan, under Article 86-2 of the law, References 4.4., Exchanges may obtain tax exemptions for purchases of merchandise if they follow the procedures set out in the Japan National Tourism Organization/Ministry of Land, Infrastructure, Transport and Tourism website at http://www.mlit.go.jp/kankocho/tax-free/after.html.

4. References.

4.1. Paragraph 3, Article XII of the Status of Forces Agreement under Article VI of the Treaty of Mutual Cooperation and Security between the United States of America and Japan.

4.2. Act on Temporary Special Provision of the Income Tax Law, etc., attendant upon the .

Enforcement of the SOFA, Law No. 111, dated 28 April 1952.

4.3. Act on Temporary Special Provision of the Local Tax Law attendant upon the Enforcement of the SOFA, Law No. 119, dated 28 April 1952.

4.4. Act on Special Measures concerning Taxation, Law No. 26, dated 31 March 1957.

. as~c~lj Attachment:

Major General, U.S. Marine Corps Deputy Commander

Instructions for Preparation and Distribution of Tax Exemption Forms

1. Consumption Tax:

Attachment 1

INSTRUCTIONS FOR PREPARATION AND

DISTRIBUTION OF TAX EXEMPTION FORMS

1.1. USFJ Form 5EJ is used in connection with subcontractor or supplier to the Article XIV Contractor for consumption tax. The form will be prepared in triplicate.

1.1.1. Copy 1 will be retained by the issuing authority.

1.1.2. Copy2 will be retained by the Article XIV Contractor.

1.1.3. Copy 3 will be retained by the subcontractor or supplier.

1.2 USFJ Form 6EJ is used in connection with subcontractor or supplier to a US prime contractor (e.g., a US contractor not doing business in Japan or Article 1 (b) Contractor, etc) for consumption tax. Two copies of the form will be prepared.

1.2.1. Copy 1 will be retained by the issuing authority.

1.2.2. Copy 2 will be retained by the subcontractor or supplier.

1.3. USFJ Form 420EJ (GPC) is used for the consumption tax when purchases are made · with GCPC/GPC or cash. The form will be prepared in triplicate.

1.3.1. Copy 1 and Copy 2 will be retained by the issuing authority.

1.3.2. Copy 3 yvill be retained by the contractor.

1.4. USFJ Form 421 EJ (Carrier) is used for the consumption tax on Japanese carriers with US HHG carriers. Two copies of the form will be prepared.

1.4.1. Copy 1 will be retained by the issuing authority.

1.4.2. Copy 2 will be retained by the Japanese carriers.

1.4.3. NOTE: The USFJ Form 6EJ also shall be applied for the carrier case.

1.5. The following forms are also used for the consumption tax exemption form.

1.5.1. Standard Form 1034 (Public Voucher for Purchases and Services Other Than Personal).

1.5.2. Standard Form 1113 (Public Voucher for Transportation Charges).

HQ USFJ INST 51-5 .7

1.5.3. Standard Form 44 (Purchase Order-Invoice Voucher).

1.5.4. DD Form 1155 (Order for Supplies or Service).

1.5.5. NAVCOMPT Form 2277 (Order for Disbursement and/or Collection).

1.5.6. ENG Form 93 (Payment Estimate-Contract Performance).

1.6. A copy of the authorized form bearing the signature of the Authorized Certifying Officer will be considered as valid,

1.7. The paying officer must insure that a signed copy is provided for the contractors and advise that the contractors must retain the copy for seven years, but they are not required to present the form to the tax office under Article 2 (Tax Exemption Procedure for Consumption Tax) of the Order for Enforcement of the Special Measures Act on the Income Tax Law, etc., attendant upon the Enforcement of the "Agreement under Article VI of the Treaty of Mutual Cooperation and Security between the United States of America and Japan regarding Facilities and Areas and the Status of United States Armed Forces in Japan" (Cabinet Order 124 of 28 April 1952).

1.8. The following is the National Tax Agency's website URL where information about the tax exemption procedure, including the applicable laws, Standard Form 1034 and USFJ Form 420EJ (GPC), can be found which will help the buyer when explaining the tax exemption to the Japanese contractors. http://www.nta.go.jp/shiraberu/ippanjoho/pamph/shohi/kokan/index.htm 7 J. 9 :IJ-€>#:00ll<~~ I: O)J&'JJ;;:~'/i0illJ'.mO):>M~f;:-?i,'-c (The consumption tax exemption concerning transactions with the US armed forces, etc.)

2. Gasoline Tax and Local Gasoline Tax:

2.1. USFJ Form 420EJ (Certificate for Tax Exemption for Materials, Supplies, and Equipment Procured by the United States Armed Forces) is used when gasoline but excluding diesel fuel is purchased directly by the US as end items. NOTE: This certificate has been used only for domestic gasoline since the Commodity Tax Act was abolished in 1989 when the Consumption Tax Act was established.

2.1.1. USFJ Form 420EJ will be prepared in quintuplicate. Part I, thereof, will be executed initially and Part II after delivery of consumption of the supplies involved. Distribution is as follows:

2.1.1.1 The original and Copy 2 will be retained by the issuing authority.

2.1.1.2. Copy 3 will be retained by the contractor.

2.1.1.3. Copies 4 and 5 will be furnished by the contractor to his/her tax office for approval of production, manufacture, or delivery to the US armed forces without payment of tax.

2.1.1.4. The issuing authority will complete Part II of the form after determining that the gasoline has been delivered to the US armed forces as evidenced by copies of the receiving reports. He/She will then deliver the original of the form to the· contractor for presentation to his/her tax office for tax exemption.

2.1.1.5. The tax office will retain the original and return Copy 5 to the contractorwith the amount of tax exempted entered thereon and a stamp or other notification that the exemption has been granted.

2.1.1.6. Copy 5 will be returned by the contractor to the issuing authority and will be placed in the contract file supported by copies fo the receiving report.

2.2. USFJ Form 421EJ (Certificate for Tax Exemption for Materials, Supplies, and Equipment Procured on Behalf of the United States Armed Forces) is used when gasoline, but excluding diesel oil, is purchased by a prime contractor designated under Article XIV of the SOFA.

NOTE: This certificate has been used only for domestic gasoline since the Commodity Tax Act was abolished in 1989 when the Consumption Tax Act was established.

2.2.1. The prime contractor will notify the issuing authority of his/her requirement to purchase gasoline in connection with the contract. Part I of the certificate will be prepared in quintuplicate for use as follows:

2.2.1.1. The original and Copy 2 will be retained by the issuing authority.

2.2.1.2. Copy 3 will be retained by the prime contractor.

2.2.1.3. Copy 4 will be retained by the subcontractor or supplier, ·2.2.1.4. Copy 5 will be furnished to the subcontractor's or supplier's tax office as a basis for tax deferral, pending further certification from the issuing authority that the gasoline has been consumed in connection with the contract.

2.2.1.5. When the issuing authority determines that the gasoline has been consumed in connection with the contract, he/she will complete the certificate in Part lll of the original of the form and deliver it to the prime contractor for delivery to the subcontractor or supplier, who in tun will present it to the tax office for tax exemption.

2.2.1.6. The tax office will retain the original and return Copy 5 with the amount of tax exempted entered thereon and a stamp or other notification that the tax exemption has been granted.

2.2.1.7. Copy 5 will be returned by the subcontractor or supplier to the issuing authority through the prime contractor. Copy 5 will be placed in the contract file.

2.3: USFJ Form 221 EJ (Certificate for Gasoline, Liquefied Petroleum Gas, and Local Gasoline Tax Exemption) is used in all cases, except direct purchase of gasoline or liquefied petroleum gas by the US and except in connection with an Article XIV contractor.

2.3.1. Unlike USFJ Forms 420EJ and 421 EJ, this certificate will be issued subsequent to the consumption of the gasoline or liquefied petroleum gas, either at the end of each month or upon termination of the contract, and is applied against future purchases of gasoline and liquefied petroleum gas.

2.3.2. It will be issued only to a prime contractor. In the event a subcontractor or supplier is involved, it will be necessary for the prime contractor to effect the purchase in order to secure

. exemption. The certificate is issued in one orginal only.

2.3.3. In the event issuance of a duplicate copy can not be avoided, the duplicate is not to be signed. Every reasonable effort will be made by personnel concerned to determine the accuracy of contractor's figures on gasoline or liquefied petroleum gas consumption reported in USFJ Form 221EJ.

2.4. USFJ Form 43EJ (Request for Designation of Gasoline Retailer for the United States Armed Forces, Japan, in connection with Exemption from Gasoline Tax and Local Road Tax) and USFJ Form 44EJ (Certificate for Gasoline Tax and Local Road Tax Exemption) are used for exemption of gasoline and local gasoline taxes when gasoline is either purchased for use in

· commercially leased vehicles or purchased by credit card. The USFJ Form 43EJ will be issued by competent US officials to the local tax office requesting the designation of the appropriate gasoline retailers.

2.4.1. Upon purchase of gasoline by this means, the vehicle driver shall submit a document, such as a servo plate, to certify that the vehicle is officially used by the USFJ, to the designated retailer.

2.4.2. The designated retailer shall make two copies of the sales slip containing the information listed below and obtain the signature of the vehicle driver. One copy of the sales slip shall be given to the vehicle driver and the other will be kept by the designated retailer.

2.4.2.1. Name and address of the designated retailer.

2.4.2.2. Date of Sale.

2.4.2.3. Kind and quantity of gasoline and price.

2.4.2.4. Name of organization which uses the vehicle, and of the driver.

2.4.2.5. Serial number of the document.

2.4.2.6. Vehicle plate number.

2.4.2.7. Total running distance (kilometer) of the vehicle at the time of refueling.

2.4.3. At the end of each month, the designated retailer shall submit the sales slips issued during the month to competent US officials in order to receive a copy of USFJ Form 44EJ and the copies of sales slips previously issued to USFJ vehicle drivers. The retailer will present the form to the tax office for tax exemption.

2.5. In the case of the purchase of imported gasoline, USFJ Form 381 EJ (Customs Free Cargo Imported or Exported on behalf of US Forces) will be issued for an oil company (see USFJ Instruction 90-205). By issuing the Form 381 EJ, the customs and the national taxes

(consumption tax, gasoline tax and local gasoline tax, petroleum coal tax) are exempt under the Act on Temporary Special Provision of the Customs Law, etc., attendant upon the Enforcement of the SOFA, Law No. 112, dated 28 April 1952.

3. Petroleum Gas Tax:

3.1. Official procurement of liquefied petroleum gas for automobile fuel by the US armed forces or by authorized procurement agencies of the US armed forces is exempt from the said tax in the same manner as gasoline tax (see para. 2 above).

3.2. In the case of purchase of imported liquefied petroleum gas for automobile fuel, USFJ Form 381 EJ (Customs Free Cargo Imported or Exported on behalf of US Forces) will be used

· (see para. 2.5. above).

4. Petroleum Coal Tax:

4.1. Official procurement of crude oil, petroleum products, gaseous hydrocarbons and coal by the US armed forces, or by authorized procurement agencies will be exempt from the said tax in the same manner as gasoline tax (see para. 2 above).

4.2. In the case of purchase of imported crude oil, petroleum products, gaseous hydrocarbons and coal, USFJ Form 381 EJ (Customs Free Cargo Imported or Exported on behalf of US Forces) will be used (see para. 2.5. above).

5. Diesel Oil Delivery Tax:

5.1. USFJ Form 325EJ (Certificate for Tax Exemption for Diesel Oil procured by the United States Armed Forces or the Authorized Procurement Agencies Thereof) is used when diesel oil is being procured directly by the US as an end item. Part I of the certificate will be prepared in quintuplicate for use as follows:

5.1.1. Original and Copy 2 will be retained by the issuing authority.

5.1.2. Copy 3 will be retained by the contractor.

5.1.3. Copies 4 and 5 will be furnished by the commission agent or distributor to the prefectural tax office for approval of delivery to the US armed forces, without payment of tax.

5.1.4. The issuing authorities will complete the applicable portion of Part II of the form after determining that the diesel oil has been received as indicated by receiving reports and the "period of use" has expired. The period of use will be obtained from the requiring agency.

He/She will then deliver the original of the form to the com.mission agent or distributor for completion of Part JI and presentation to his/her tax office. The tax office will retain the original and return Copy 5 to the commission agent or distributor with verification of the amount of exemption indicated thereon. The commission agent or distributor will return Copy 5 to the issuing authority for the contract file.

5.2. USFJ Form 326EJ (Certificate for Tax Exemption for Diesel Oil procured on Behalf of the United States Armed Forces) is used only in connection with a prime contractor approved under the provisions of Article XIV of the SOFA. Parts I and II of the form will be prepared in sextuplicate for use as follows:

5.2.1. The original and Copy 2 will be retained by the issuing authority.

5.2.2. Copy 3 will be retained by the prime contractor.

5.2.3. Copy 4 will be retained by the commission agent or distributor or supplier.

5.2.4. Copies 5 and 6 will be furnished by the commission agent or distributor or supplier to the prefectural tax office as a basis for tax deferral pending further certification from the issuing authority that the diesel oil has been used in connection with the contract.

5.2.5. When the issuing authority determines that the diesel oil has been used in connection with the contract, he/she will complete the certificate in Part HI of the original of the form and deliver it to the prime contractor for delivery to the commission agent or distributor or supplier, who in turn will present it to the tax office for tax exemption.

5.2.6. The tax office will retain the original and return Copy 5 to the commission agent or distributor or supplier with verification of the amount of exemption indicated thereon. The contractor will return Copy 5 to the issuing authority for the contract file.

5.3. USFJ Form 327EJ (Certificate for Diesel Oil Delivery Tax Exemption) is used in connection with all contractors other than Article XIV contractors. The procedures for using this form are identical with those prescribed for USFJ Form 221 EJ.

5.4. In the case of purchase of imported diesel oil, USFJ Form 381 EJ (Customs Free Cargo Imported or Exported on behalf of US Forces) will be used (see USFJ Instruction 90-205). By issuing the Form 381 EJ, the customs tax and the national taxes (consumption tax, petroleum coal tax) are exempt under the Act on Temporary Special Provision of the Customs Law, etc., attendant upon the Enforcement of the SOFA, Law No. 112, dated 28April1952, and by issuing USFJ Form 325EJ (see para. 5.1. above), the prefectural tax (i.e., diesel oil delivery tax) will be exempt under the Act on Temporary Special Provision of the Local Tax Law attendant upon the Enforcement of the SOFA, Law No. 119, dated 28 April 1952.

6. Automobile Acquisition Tax:

6.1. Vehicles purchased for use by the US armed forces or by the authorized procurement agencies of the US armed forces are exempt from the tax. There is no requirement to issue the tax exemption form for this tax, however, it is necessary to check that the payment does not include the said tax.

7. Stamp Tax:

7.1. This tax is not imposed on certifiates and account books issued by the US armed forces, authorized procurement agencies of the US armed forces or by Article XV organizations, etc.

HQ USFJ INST 51-5 12

8. Corporation Tax:

8.1. Article XIV of SOFA exempts from the corporation tax income delived by the Article XIV contractor from the business of providing material, supplies, equipment, and services for official purposes by the US armed forces or by the authorized procurement agencies of the US armed forces. The exemption applies to Article 1 (b) contractors. There is no requirement to submit a tax exemption form to the tax office.

9. All entries in tax exemption certificates and contracting forms described above must be typed, entered on a computer or written in ink or indelible pencil.