This Act comes into effect on August 1, 2002.

Except as otherwise provided for in these Supplementary Provisions, the provisions of the Corporation Tax Act as amended by the provisions of Article 1 (hereinafter referred to as "the New Corporation Tax Act"), the provisions of the Act on Measures to Reduce the Burden of Income Tax and Corporation Tax to Be Taken Promptly in Response to Changes in the Economy and Society, etc. as amended by the provisions of Article 2, the provisions of the Act on Special Measures Concerning Taxation as amended by the provisions of Article 3 (hereinafter referred to as "the New Act on Special Measures Concerning Taxation"), the provisions of the Act on Temporary Special Provisions of Acts Related to National Tax, in Relation to Victims, etc. of Hanshin-Awaji Earthquake as amended by the provisions of Article 4 (hereinafter referred to as the "New Special Provisions Law for Earthquake Victims"), and the provisions of Articles 7 and 24 of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. (Act No. 24 of 1998) as amended by the provisions of Article 9 apply to corporation tax on income for business years of a corporation (including an association or foundation without juridical personality prescribed in Article 2, item (viii) of the New Corporation Tax Act; the same applies hereinafter) ending on or after March 31, 2003, corporation tax on consolidated income for consolidated business years of a consolidated corporation ending on or after that date, corporation tax on income for calculation periods of a corporation that is the trustee of a specified trust ending on or after that date, corporation tax on retirement pension funds for business years of a corporation ending on or after that date, and corporation tax on liquidation income resulting from the dissolution (excluding dissolution due to a merger; the same applies hereinafter in this Article) of a corporation on or after that date (including corporation tax on income for business years 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; the same applies hereinafter in this Article), and with regard to corporation tax on income for business years of a corporation that ended before that date, corporation tax on income for calculation periods of a corporation that is the trustee of a specified trust that ended before that date, corporation tax on retirement pension funds for business years of a corporation that ended before that date, and corporation tax on liquidation income resulting from the dissolution of a corporation before that date, the provisions then in force continue to govern.

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.

①Except in the cases provided for in the following paragraph through paragraph (4), the provisions of Article 14 of the New Corporation Tax Act apply to the cases where a fact prescribed in any of the items of that Article occurs on or after the date on which this Act comes into effect (hereinafter referred to as "the Effective Date"), and with regard to the cases where a fact prescribed in any of the items of Article 14 of the Corporation Tax Act prior to the amendment by the provisions of Article 1 (hereinafter referred to as "the Former Corporation Tax Act") occurred before the Effective Date, the provisions then in force continue to govern.

②With regard to the domestic corporation prescribed in paragraph (1) of the preceding Article that obtains the approval under Article 4-2 of the New Corporation Tax Act with the application of the provisions of that paragraph, a subsidiary corporation under the transitional measures (meaning another domestic corporation prescribed in paragraph (3) of the preceding Article that obtains the approval under that Article with the application of the provisions of that paragraph; the same applies hereinafter in this Article) and a corporation joining during the transitional period (meaning another domestic corporation prescribed in Article 4-2 of the New Corporation Tax Act that has come to have, with that domestic corporation, a full controlling interest prescribed in that Article held by that domestic corporation in the first consolidated business year in which that domestic corporation is subject to corporation tax on consolidated income for each consolidated business year; the same applies hereinafter in this Article), the provisions of Article 14 of the New Corporation Tax Act (for that domestic corporation, excluding item (xiii) of that Article) apply to the cases where a fact prescribed in any of the items of that Article occurs on or after the day following the last day of that consolidated business year of that domestic corporation.

③With regard to the domestic corporation prescribed in the preceding paragraph, a subsidiary corporation under the transitional measures and a corporation joining during the transitional period, if a fact prescribed in any of the items of Article 14 of the Former Corporation Tax Act occurs by the last day of the first consolidated business year of that domestic corporation, as prescribed in that paragraph, the provisions of that Article remain in force.

④If a subsidiary corporation under the transitional measures or a corporation joining during the transitional period has a business year that begins before and ends after the last day of the first consolidated business year of the domestic corporation prescribed in paragraph (2), as prescribed in that paragraph, the period from the first day of that business year to that last day and the period from the day following that last day to the last day of that business year are each deemed to be a business year of that subsidiary corporation under the transitional measures or corporation joining during the transitional period.

①If the domestic corporation prescribed in Article 3, paragraph (1) of the Supplementary Provisions that has received the application of the provisions of that paragraph and other domestic corporations prescribed in paragraph (3) of that Article have obtained the approval under Article 4-2 of the New Corporation Tax Act, the first consolidated business year of a corporation, among those other domestic corporations, that falls under none of a corporation subject to fair valuation (meaning such other domestic corporation that holds assets subject to fair valuation, etc. prescribed in Article 4-3, paragraph (9), item (i) of the New Corporation Tax Act (referred to as "assets subject to fair valuation, etc." in the following paragraph) at the end of the previous business year of the business year containing the last day of the first consolidated business year (meaning the first consolidated business year prescribed in Article 15-2, paragraph (1) of the New Corporation Tax Act; the same applies hereinafter in this Article) of that domestic corporation (or, if the first day of that business year is before the first day of that first consolidated business year, at the end of that business year) (excluding those listed in the items of Article 61-11, paragraph (1) of the New Corporation Tax Act); the same applies hereinafter in this paragraph), a corporation whose business year began before the consolidated business year (meaning such other domestic corporation whose business year containing the last day of that first consolidated business year began before the first day of that first consolidated business year (excluding that corporation subject to fair valuation); the same applies hereinafter in this paragraph), and a related corporation, etc. (meaning such other domestic corporation whose issued shares or capital contributions are held directly or indirectly by that corporation subject to fair valuation or corporation whose business year began before the consolidated business year), is, notwithstanding the provisions of Article 15-2 of the New Corporation Tax Act, the period from the first day of the business year of that corporation containing the last day of the first consolidated business year of that domestic corporation to that last day.

②The first consolidated business year of a corporation, among the other domestic corporations prescribed in Article 4-2 of the New Corporation Tax Act that have come to have, with the domestic corporation prescribed in the preceding paragraph, a full controlling interest prescribed in that Article held by that domestic corporation in the first consolidated business year of that domestic corporation, that falls under none of a corporation subject to fair valuation (meaning such other domestic corporation that holds assets subject to fair valuation, etc. at the end of the business year containing the day on which it came to have that full controlling interest (excluding those listed in the items of Article 61-12, paragraph (1) of the New Corporation Tax Act); the same applies hereinafter in this paragraph), a corporation whose business year began before joining (meaning such other domestic corporation that has no business year beginning during the period from the day on which it came to have that full controlling interest to the last day of that first consolidated business year (excluding that corporation subject to fair valuation); the same applies hereinafter in this paragraph), and a related corporation, etc. (meaning such other domestic corporation whose issued shares or capital contributions are held directly or indirectly by that corporation subject to fair valuation or a corporation subject to fair valuation prescribed in the preceding paragraph, or by that corporation whose business year began before joining or a corporation whose business year began before the consolidated business year prescribed in that paragraph), is, notwithstanding the provisions of Article 15-2 of the New Corporation Tax Act, the period from the first day of the business year of that corporation containing the last day of the first consolidated business year of that domestic corporation to that last day.

③The provisions of Article 15-2, paragraph (2) of the New Corporation Tax Act do not apply to the other domestic corporations prescribed in Article 4-2 of the New Corporation Tax Act that have come to have, with the domestic corporation prescribed in paragraph (1), a full controlling interest prescribed in that Article held by that domestic corporation in the first consolidated business year of that domestic corporation.