①If the business year subject to the transitional measures (meaning a business year that begins during the period from April 1, 2002 to June 30, 2003 and ends on or after March 31, 2003; the same applies hereinafter in this paragraph) of a domestic corporation prescribed in Article 4-3, paragraph (1) of the New Corporation Tax Act is the period that the domestic corporation intends to make its first consolidated business year in which it pays corporation tax on consolidated income for each consolidated business year upon obtaining the approval under Article 4-2 of the New Corporation Tax Act, the provisions of paragraph (1) of that Article apply by deeming the day six months before prescribed in Article 4-3, paragraph (1) of the New Corporation Tax Act to be the day six months before, counting from the last day of that business year subject to the transitional measures (or, if that day falls after December 31, 2002, that date; referred to as the "application deadline for the business year subject to the transitional measures" in the following paragraph).

②The provisions of the preceding paragraph apply only if the domestic corporation prescribed in that paragraph has submitted, by the application deadline for the business year subject to the transitional measures, a document stating that it is to receive the application of the provisions of that paragraph and other matters specified by Ministry of Finance Order to the Commissioner of the National Tax Agency via the competent district director with jurisdiction over the place for tax payment of that domestic corporation.

③With regard to the application of the provisions of paragraphs (3) through (5) and paragraph (10) of Article 4-3 of the New Corporation Tax Act in the case where the domestic corporation prescribed in paragraph (1) and other domestic corporations prescribed in Article 4-2 of the New Corporation Tax Act that have, with that domestic corporation, a full controlling interest prescribed in that Article held by that domestic corporation have submitted the written application under Article 4-3, paragraph (1) of the New Corporation Tax Act with the application of the provisions of paragraph (1), the phrase "under paragraph (1)" in paragraph (3) of that Article is deemed to be replaced with "under paragraph (1) filed with the application of the provisions of Article 3, paragraph (1) (Transitional Measures Concerning Applications for Approval of Consolidated Tax Payment, etc.) of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. (Act No. 79 of 2002)"; the phrase "the written application under paragraph (1)" in paragraph (4) of that Article is deemed to be replaced with "the written application under paragraph (1) with the application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc.", the phrase "the day preceding the first day" with "the last day (or, if that day falls after June 30, 2003, that date; the same applies hereinafter in this paragraph)", the phrase ", that paragraph" with ", paragraph (1)", and the phrase "its first day" with "that last day"; the phrase "the first day" in paragraph (5) of that Article is deemed to be replaced with "the first day (for those of the other domestic corporations that hold assets subject to fair valuation, etc. prescribed in paragraph (9), item (i) at the end of the previous business year of the business year containing the last day of the first consolidated business year in which that domestic corporation is subject to corporation tax on consolidated income for each consolidated business year upon obtaining that approval (or, if the first day of that business year is before the first day of that consolidated business year, at the end of that business year) (excluding those listed in the items of Article 61-11, paragraph (1) (Gains or Losses on the Fair Valuation of Assets upon Commencement of Consolidated Tax Payment); hereinafter referred to as "corporations subject to fair valuation" in this paragraph), those whose business year containing the last day of that consolidated business year began before the first day of that consolidated business year (excluding those corporations subject to fair valuation; hereinafter referred to as "corporations whose business year began before the consolidated business year" in this paragraph), and those whose issued shares or capital contributions are held directly or indirectly by those corporations subject to fair valuation or corporations whose business year began before the consolidated business year, it is to be the day following the last day of that consolidated business year, and for those that fall under none of these, it is to be the first day of the business year containing the last day of that consolidated business year)"; and the phrase "with a consolidated parent corporation held by that consolidated parent corporation" in paragraph (10) of that Article is deemed to be replaced with "with the domestic corporation prescribed in paragraph (1) that obtains the approval under the preceding Article with the application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. held by that domestic corporation", the phrase "if the provisions of Article 15-2, paragraph (2) (Meaning of Consolidated Business Year) apply, the first day of the period specified in the relevant item of that paragraph" with "for those of those other domestic corporations that hold assets subject to fair valuation, etc. prescribed in item (i) of the preceding paragraph at the end of the business year containing that date (excluding those listed in the items of Article 61-12, paragraph (1) (Gains or Losses on the Fair Valuation of Assets upon Joining Consolidated Tax Payment); hereinafter referred to as "corporations subject to fair valuation" in this paragraph), those that have no business year beginning during the period from the day on which they came to have that full controlling interest to the last day of the first consolidated business year in which that domestic corporation is subject to corporation tax on consolidated income for each consolidated business year upon obtaining that approval (excluding those corporations subject to fair valuation; hereinafter referred to as "corporations whose business year began before joining" in this paragraph), and those whose issued shares or capital contributions are held directly or indirectly by those corporations subject to fair valuation or corporations subject to fair valuation prescribed in paragraph (5), or by those corporations whose business year began before joining or corporations whose business year began before the consolidated business year prescribed in that paragraph, it is to be the day following the last day of that consolidated business year, and for those that fall under none of these (hereinafter referred to as "corporations whose business year begins after joining" in this paragraph), it is to be the first day of the business year containing the last day of that consolidated business year (hereinafter referred to as the "applicable business year after joining" in this paragraph) (or, if that date is before the last day prescribed in paragraph (4), that last day)", and the phrase "on or after" with "on or after (for a corporation whose business year begins after joining, on or after the first day of the applicable business year after joining)".

④Necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.