②With regard to each taxable period (limited, for an individual business operator (meaning an individual business operator prescribed in Article 2, paragraph (1), item (iii) of the Consumption Tax Act; the same applies hereinafter in this Article), to a taxable period beginning on or before December 31, 2030, and, for a corporation, to each taxable period included in a business year beginning on or before March 31, 2030; hereinafter in this paragraph and the following paragraph referred to as a "taxable period under the transitional measures") included in a year or business year beginning on or after the Effective Date of a business operator that has made a former lease transfer before the Effective Date (including a business operator that has received the transfer of a contract pertaining to a former lease transfer made before the Effective Date), the provisions of Article 16 of the Former Consumption Tax Act (excluding paragraph (5) (limited to the part pertaining to the transfer on deferred payment terms of assets that give rise to forest income or transfer income prescribed in that paragraph)) remain in force. In this case, with regard to a 2025 transitional taxable period (meaning, among taxable periods under the transitional measures, for an individual business operator, a taxable period beginning on or before December 31, 2027, and, for a corporation, each taxable period included in a business year beginning on or before March 31, 2027; the same applies hereinafter in this paragraph), the phrase "Income Tax Act" in paragraph (1) of that Article is deemed to be replaced with "Former Income Tax Act Kept in Effect (meaning the Former Income Tax Act Kept in Effect prescribed in Article 4, paragraph (3) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 13 of 2025; hereinafter in this paragraph referred to as the ‘2025 Amendment Act’))", the phrase "Corporation Tax Act" in that paragraph with "Former Corporation Tax Act Kept in Effect (meaning the Former Corporation Tax Act Kept in Effect prescribed in Article 17, paragraph (3) of the Supplementary Provisions of the 2025 Amendment Act; the same applies in the following paragraph)", the phrase "came to fall under the case prescribed in the proviso to Article 65, paragraph (1) of the Income Tax Act or the proviso to Article 63, paragraph (1) of the Corporation Tax Act" in the proviso to paragraph (2) of that Article with "did not account by the deferred payment standard method prescribed in that paragraph or became subject to the application of Article 63, paragraph (3) or (4) of the Former Corporation Tax Act Kept in Effect", the phrase "prescribed in the proviso to Article 65, paragraph (1) of the Income Tax Act" with "that", the phrase "taxable period or prescribed in the proviso to Article 63, paragraph (1) of the Corporation Tax Act" with "taxable period or that", and the phrase "課税期間若しくは" (taxable period or, joining a smaller group of alternatives) with "課税期間又は" (taxable period or); and with regard to each taxable period under the transitional measures other than a 2025 transitional taxable period, the phrase "Income Tax Act" in paragraph (1) of that Article is deemed to be replaced with "Former Income Tax Act (meaning the Former Income Tax Act prescribed in Article 4, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 13 of 2025; hereinafter in this paragraph referred to as the ‘2025 Amendment Act’))", the phrase "Corporation Tax Act" in that paragraph with "Former Corporation Tax Act (meaning the Former Corporation Tax Act prescribed in Article 16 of the Supplementary Provisions of the 2025 Amendment Act)", the phrase "that business operator, in order to be subject to the application of those provisions," in that paragraph with "that business operator", the phrase "came to fall under the case prescribed in the proviso to Article 65, paragraph (1) of the Income Tax Act or the proviso to Article 63, paragraph (1) of the Corporation Tax Act" in the proviso to paragraph (2) of that Article with "did not account by the deferred payment standard method prescribed in that paragraph", the phrase "prescribed in the proviso to Article 65, paragraph (1) of the Income Tax Act" with "that", the phrase "taxable period or prescribed in the proviso to Article 63, paragraph (1) of the Corporation Tax Act" with "taxable period or that", and the phrase "taxable period or any taxable period on or after the taxable period that includes the last day of a business year to which the provisions of paragraph (3) or (4) of that Article applied" with "taxable period".

③In the case where, with respect to a former lease transfer of a business operator to which Article 16, paragraph (1) or the main clause of paragraph (2) of the Former Consumption Tax Act that remains in force pursuant to the provisions of the preceding paragraph (hereinafter in this Article referred to as the "Former Consumption Tax Act Kept in Effect") applies, the proviso to that paragraph (excluding the part pertaining to Article 63, paragraphs (3) and (4) of the Former Corporation Tax Act Kept in Effect prescribed in Article 17, paragraph (3) of the Supplementary Provisions; the same applies hereinafter in this paragraph) has come to apply in a taxable period under the transitional measures, the business operator is deemed to have made a transfer, etc. of assets (meaning a transfer, etc. of assets prescribed in Article 2, paragraph (1), item (viii) of the Consumption Tax Act; the same applies hereinafter in this Article) in the taxable period that includes the last day of the year or business year in which the case prescribed in the proviso to Article 16, paragraph (2) of the Former Consumption Tax Act Kept in Effect came to apply (referred to as the "non-application base year, etc." in paragraph (5)), for the part of that former lease transfer pertaining to the installments of that former lease transfer whose payment due dates arrive on or after the first day of that taxable period (excluding those already paid on or before the day preceding that first day).

④In the case where, among the former lease transfers of a business operator to which Article 16, paragraph (1) or the main clause of paragraph (2) of the Former Consumption Tax Act Kept in Effect applies (excluding those to which the provisions of the preceding paragraph apply), there is a part for which the business operator has not been treated as having made a transfer, etc. of assets, in a taxable period beginning on or before December 31, 2030 in the case of an individual business operator, or in each taxable period included in a business year beginning on or before March 31, 2030 in the case of a corporation, the business operator is deemed to have made a transfer, etc. of assets in the taxable period that includes the last day of the expiry base year, etc. (meaning, for an individual business operator, 2031, and, for a corporation, the first business year beginning on or after April 1, 2030; the same applies hereinafter in this paragraph and the following paragraph), for the part of that former lease transfer pertaining to the installments of that former lease transfer whose payment due dates arrive on or after the first day of the expiry base year, etc. (excluding those already paid on or before the day preceding that first day).

⑤In the case where a former lease transfer of a business operator to which Article 16, paragraph (1) or the main clause of paragraph (2) of the Former Consumption Tax Act Kept in Effect applies, as it pertains to that application, falls under any of the cases prescribed in the preceding two paragraphs, then, notwithstanding those provisions, for the part of that former lease transfer pertaining to the amount set forth in item (i) (or, in a taxable period in which the amount set forth in item (i) exceeds the amount set forth in item (ii), the amount set forth in that item), the business operator may be deemed to have made a transfer, etc. of assets in each taxable period that includes the last day of each year or each business year on or after the non-application base year, etc. or the expiry base year, etc. (hereinafter in this paragraph and the following paragraph referred to as an "applicable taxable period").

⑥A business operator that wishes to be subject to the application of the provisions of the preceding paragraph is to enter a statement to that effect on the return under Article 45, paragraph (1) of the Consumption Tax Act (including the return filed after the due date prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes pertaining to that return) for the first applicable taxable period for which it wishes to be subject to the application of the provisions of that paragraph.

⑦The number of months in paragraph (5), item (i) is to be calculated according to the calendar, and any fraction of less than one month is to be discarded.

⑧Matters necessary for the application of the provisions of the preceding paragraphs, including special provisions on the time of transfer, etc. of assets pertaining to a former lease transfer in the case where an individual business operator to which the provisions of paragraph (2) apply dies, in the case where a corporation to which those provisions apply is extinguished by a merger, in the case where a corporation to which those provisions apply causes a successor corporation in a company split prescribed in Article 2, paragraph (1), item (vi)-2 of the Consumption Tax Act to succeed to the business pertaining to a former lease transfer by a company split, or in the case where a business operator to which the provisions of paragraph (2) apply becomes subject to the application of the main clause of Article 9, paragraph (1) of that Act, are specified by Cabinet Order.