①Where a business operator makes a transfer, etc. of assets under a contract for undertaking long-term large-scale construction prescribed in Article 66, paragraph (1) (Periods to Which Revenue and Expenses Associated with Contracts for Construction Work Are Attributed) of the Income Tax Act or Article 63, paragraph (1) (Special Provisions on the Business Year to Which Profits and Expenses Associated with Contracts for Construction Work Are Attributed) of the Corporation Tax Act (hereinafter in this Article referred to as "long-term large-scale construction"), the business operator may treat the part of the subject matter of that long-term large-scale construction that pertains to the amount of revenue or amount of profit calculated by the method of the construction progress criteria prescribed in those provisions as having been the subject of a transfer, etc. of assets in the taxable period that includes December 31 of each year in which that amount of revenue was included in gross revenue under those provisions, or in the taxable period that includes the last day of each business year in which that amount of profit was included in the amount of gross profits under those provisions.

②Where a business operator makes a transfer, etc. of assets under a contract for undertaking construction work prescribed in Article 66, paragraph (2) of the Income Tax Act or Article 63, paragraph (2) of the Corporation Tax Act (hereinafter in this Article referred to as "construction work"), if, in order to be subject to the application of those provisions, that business operator accounts for the amount of consideration for that construction work by the method of the construction progress criteria prescribed in those provisions, the business operator may treat the part of the subject matter of that construction work that pertains to the amount of revenue or amount of profit accounted for by that method as having been the subject of a transfer, etc. of assets in the taxable period that includes December 31 of each year in which that amount of revenue was included in gross revenue under those provisions, or in the taxable period that includes the last day of each business year in which that amount of profit was included in the amount of gross profits under those provisions; provided, however, that where the case prescribed in the proviso to Article 66, paragraph (2) of the Income Tax Act or the proviso to Article 63, paragraph (2) of the Corporation Tax Act comes to apply, this does not apply to the taxable periods on or after the taxable period that includes December 31 of the year in which the accounting was not done as prescribed in the proviso to Article 66, paragraph (2) of the Income Tax Act, or the taxable periods on or after the taxable period that includes the last day of the business year pertaining to the settlement of accounts for which the accounting was not done as prescribed in the proviso to Article 63, paragraph (2) of the Corporation Tax Act.

③Where a business operator that has become subject to the application of paragraph (1) or the main clause of the preceding paragraph has delivered the subject matter of the long-term large-scale construction under paragraph (1) or the construction work under the preceding paragraph, for the part of the transfer, etc. of assets pertaining to that long-term large-scale construction or construction work that was deemed under those provisions to have been made in each taxable period from the taxable period that includes the start date to the taxable period immediately preceding the taxable period that includes the day of that delivery, the total amount of consideration pertaining to that part is deducted from the amount of consideration pertaining to that long-term large-scale construction or construction work, deeming that there was no transfer, etc. of assets in the taxable period that includes that day.

④A business operator that intends to be subject to the application of the preceding three paragraphs is to make a note to that effect on the return under Article 45, paragraph (1).

⑤In addition to what is provided for in the preceding paragraph, special provisions on the time of transfers, etc. of assets pertaining to long-term large-scale construction or construction work in the case where an individual business operator to which paragraph (1) or (2) applies has died, where a corporation to which those provisions apply has ceased to exist through a merger, or where a corporation to which those provisions apply has caused a successor corporation in a company split to succeed, through a corporate split, to the business pertaining to long-term large-scale construction or construction work, and other matters necessary for the application of paragraphs (1) through (3), are specified by Cabinet Order.