This Act comes into effect on April 1, 1965.

Except as otherwise provided in these Supplementary Provisions, the provisions of the Corporation Tax Act as amended (hereinafter referred to as "the New Act") apply to corporation tax on income and on retirement pension funds for business years of a corporation ending on or after the date on which this Act comes into effect (hereinafter referred to as "the Effective Date") and to corporation tax on liquidation income from a dissolution or merger on or after that date (including corporation tax on income for a business year in liquidation of a corporation subject to corporation tax on liquidation income and corporation tax to be paid upon a partial distribution of residual assets; hereinafter the same applies in this Article), and the provisions then in force continue to govern corporation tax on income and on retirement pension funds for business years of a corporation that ended before that date and corporation tax on liquidation income from a dissolution or merger before that date.

Any approval or designation, or any return, application, claim, notification or other disposition or procedure, made before the Effective Date pursuant to the provisions of the Corporation Tax Act before the amendment (hereinafter referred to as "the Former Act") or an order based on it, for which the New Act or an order based on it has corresponding provisions, is deemed, except as otherwise provided in these Supplementary Provisions, to be the corresponding disposition or procedure made pursuant to the corresponding provisions of the New Act or an order based on it.

Article 14 (Deemed Business Years) of the New Act applies where a fact falling under any of the items of that Article occurs on or after the Effective Date, and the provisions then in force continue to govern where such a fact occurred before that date.

Article 24, paragraph (1), item (iii) (Deemed Dividends in the Case of Dissolution) of the New Act applies where a corporation receives the delivery of monies or other assets as a distribution of residual assets from a corporation dissolved on or after the Effective Date, and the provisions then in force continue to govern where a corporation receives the delivery of monies or other assets as a distribution of residual assets from a corporation dissolved before that date.

Article 38, paragraph (2) (Exclusion of Taxes and Public Dues from Deductible Expenses) of the New Act applies where a corporation pays any of those listed in the items of that paragraph on or after the Effective Date, and the provisions then in force continue to govern where a corporation made such a payment before that date.

Articles 42 through 51 (Advanced Depreciation by Reduction of Book Value of Assets) of the New Act apply where, on or after the Effective Date, a corporation receives the delivery of the national subsidies, etc. prescribed in Article 42, paragraph (1) of the New Act, the fixed assets prescribed in paragraph (2) of that Article, or the monies or materials prescribed in Article 45, paragraph (1) of the New Act or the fixed assets prescribed in paragraph (2) of that Article, receives the payment of the contributions prescribed in Article 46, paragraph (1) of the New Act, receives the payment of insurance monies, etc. prescribed in Article 47, paragraph (1) of the New Act or the delivery of the substituted assets prescribed in paragraph (2) of that Article, makes an exchange prescribed in Article 50, paragraph (1) of the New Act, or makes a specified contribution prescribed in Article 51, paragraph (1) of the New Act, and the provisions then in force continue to govern where, before that date, a corporation received such delivery, payment of contributions or payment, made such an exchange or made such a specified contribution.

①The amount of a bad debt reserve account, retirement allowance reserve account or special repair reserve account under the provisions of the Former Act (including orders based on it; hereinafter the same applies in this Article) that a corporation holds as of the first day of the business year that includes the Effective Date (excluding any amount already required to be reversed under the provisions of the Former Act; hereinafter referred to as the "balance of former bad-debt and similar reserves" in this Article) is deemed to be, respectively, the amount of the bad debt reserve account, retirement allowance reserve account or special repair reserve account included in the amount of deductible expenses when calculating the amount of income of that corporation for each business year pursuant to the provisions of Article 52, paragraph (1) (Bad Debt Reserves), Article 55, paragraph (1) (Retirement Allowance Reserves) or Article 56, paragraph (1) (Special Repair Reserves) of the New Act.

②The provisions of the preceding paragraph apply mutatis mutandis to the balance of former bad-debt and similar reserves where a corporation has succeeded to the balance of former bad-debt and similar reserves from the acquired corporation in a merger carried out during the period from the first day of the business year that includes the Effective Date to the day before the Effective Date.

③Article 54 (Reserve for Bonuses) of the New Act applies to corporation tax on income for business years of a corporation beginning on or after October 1, 1965.

①In applying the provisions of Article 57, paragraph (1) of the New Act (Inclusion in Deductible Expenses of Losses Carried Forward of a Corporation Filing a Blue Return) or Article 58, paragraph (1) of the New Act (Inclusion in Deductible Expenses of Losses Carried Forward Due to Disasters of a Corporation Not Filing a Blue Return), when the net operating loss incurred in a business year that started within five years before the first day of each business year prescribed in those provisions includes any amount that was included in deductible expenses in the calculation of income for each business year under Article 9, paragraph (5) of the Former Act (Inclusion in Deductible Expenses of Losses Carried Forward of a Corporation Filing a Blue Return) or any amount that served as the basis of the calculation of the amount to be refunded under Article 26-4 of the Former Act (Refund by Carryback of Losses), the amount obtained by deducting those amounts from the amount equivalent to the net operating loss is deemed to be the net operating loss.

②The provisions of Article 59 of the New Act (Inclusion in Deductible Expenses of Losses in the Case of Provision of Private Assets, etc. in Connection with the Arrangement of Assets) apply to cases where the facts prescribed in paragraph (1) of that Article have arisen on or after the Effective Date.

①The provisions of Article 69 (Deduction of Part of the Amount of Deemed Dividends), Article 97 (Inclusion of Part of the Amount of Deemed Dividends in the Value of Residual Assets) and Article 101 (Deduction of Part of the Amount of Deemed Dividends from the Amount of Corporation Tax on Liquidation Income in the Case of Dissolution) of the New Act (limited to the part pertaining to monies or other assets listed in Article 24, paragraph (1), item (iii) of the New Act (Deemed Dividends in the Case of Dissolution)) apply to cases where a domestic corporation receives the delivery of monies or other assets as a distribution of residual assets from a corporation that dissolved on or after the Effective Date, and with regard to cases where a domestic corporation receives the delivery of monies or other assets as a distribution of residual assets from a corporation that dissolved before that date, the provisions then in force continue to govern.

②With regard to monies or other assets prescribed in Article 9-6, paragraph (2), item (ii) or item (iii) of the Former Act (Deemed Dividends in the Case of Dissolution or Merger) that a foreign corporation received before the Effective Date, the provisions of Article 10-2 of the Former Act (Deduction of Part of the Amount of Deemed Dividends from the Amount of Corporation Tax on Income for Each Business Year) and other provisions of the Former Act remain in force.

①With regard to the application of the provisions of Article 71 of the New Act (Interim Return) (including as applied mutatis mutandis pursuant to Article 145, paragraph (1) of the New Act (Mutatis Mutandis Application to Foreign Corporations)) to corporation tax pertaining to the interim return of an ordinary corporation for the business year containing the Effective Date (excluding corporation tax falling under the provisions of the following paragraph), the phrase "the amount listed in Article 74, paragraph (1), item (ii) (Amount of Corporation Tax Pertaining to Final Returns) that is to be entered in the Final Return" in Article 71, paragraph (1), item (i) of the New Act is deemed to be replaced with "the amount of corporation tax that is to be entered in a return under Article 18, paragraph (1) (Final Returns of Corporations Not Required to File Interim Returns) or Article 21, paragraph (1) (Final Returns of Corporations Required to File Interim Returns) of the former Corporation Tax Act (Act No. 28 of 1947) (hereinafter referred to as a "former final return" in this Article)", and the phrase "the amount listed in Article 74, paragraph (1), item (ii) that is to be entered in the Final Return" in paragraph (2), item (i) of that Article is deemed to be replaced with "the amount of corporation tax that is to be entered in the former final return".

②With regard to corporation tax pertaining to a return under Article 19 (Interim Returns) or Article 20 (Special Provisions on Interim Returns of Newly Established Corporations, etc.) of the Former Act for which the due date for filing arrived by the day preceding the Effective Date, the provisions then in force continue to govern.

③Corporation tax with regard to which the provisions then in force continue to govern pursuant to the provisions of the preceding paragraph is deemed, with regard to the application of the provisions of the New Act, to be corporation tax pertaining to a return under Article 71, paragraph (1) of the New Act (including as applied mutatis mutandis pursuant to Article 145, paragraph (1) of the New Act).

①The provisions of Article 81, paragraph (1) of the New Act (Refund by Carryback of Losses) (including as applied mutatis mutandis pursuant to Article 145, paragraph (1) of the New Act (Mutatis Mutandis Application to Foreign Corporations); the same applies hereinafter in this Article) apply to a net operating loss incurred in a business year of a corporation ending on or after the Effective Date, and with regard to a net operating loss incurred in a business year of a corporation that ended before that date, the provisions then in force continue to govern.

②The provisions of Article 81, paragraph (4) of the New Act (including as applied mutatis mutandis pursuant to Article 145, paragraph (1) of the New Act; the same applies hereinafter in this Article) apply to cases where the grounds prescribed in Article 81, paragraph (4) of the New Act have arisen on or after the Effective Date, and with regard to cases where those grounds arose before that date, the provisions then in force continue to govern.

③In applying the provisions of Article 81, paragraph (1) of the New Act, when the provisions of Article 26-4 of the Former Act (Refund by Carryback of Losses) have already been applied to the amount of corporation tax on income for the business year with refunds prescribed in that paragraph, the amount obtained by deducting the amount refunded through that application from that amount is deemed to be the amount of corporation tax, and the amount obtained by deducting the net operating loss pertaining to that application from the amount equivalent to the amount of income for the business year with refunds is deemed to be the amount of income for the business year with refunds.

④In applying the provisions of Article 81, paragraph (4) of the New Act, when the net operating loss prescribed in that paragraph includes any amount that was included in deductible expenses in the calculation of income for each business year under Article 9, paragraph (5) or paragraph (6) of the Former Act (Inclusion in Deductible Expenses of Losses Carried Forward) or any amount that served as the basis of the calculation of the amount to be refunded under Article 26-4 of the Former Act, the amount obtained by deducting those amounts from the amount equivalent to the net operating loss is deemed to be the net operating loss.