With regard to the application of the provisions of Article 23, paragraphs (1) and (4) of the New Corporation Tax Act in a business year of a corporation (excluding an ordinary corporation whose amount of capital or amount of capital contributions as of the end of each business year exceeds 100 million yen, and a mutual company prescribed in the Insurance Business Act (Act No. 105 of 1995) and those specified by Cabinet Order as being equivalent thereto) that begins during the period from April 1, 2002 to March 31, 2003 and ends on or after March 31, 2003, the phrase "50 percent" in those provisions is deemed to be replaced with "70 percent", and with regard to the application of those provisions in a business year of that corporation that begins during the period from April 1, 2003 to March 31, 2004, the phrase "50 percent" in those provisions is deemed to be replaced with "60 percent".

The provisions of Article 37, paragraph (2) of the New Corporation Tax Act apply to the amount of contributions or donations prescribed in that paragraph that a corporation disburses on or after the day on which it obtains the approval under Article 4-2 of the New Corporation Tax Act.

①If a corporation carries out a company split by spin-off, etc. (meaning a company split by spin-off, a capital contribution in kind or a post-formation acquisition of assets (meaning a post-formation acquisition of assets prescribed in Article 2, item (xii)-6 of the New Corporation Tax Act); the same applies hereinafter in this paragraph and the following paragraph) in the business year or consolidated business year that ends first on or after March 31, 2003 (hereinafter referred to as the "business year of the amendment" in this Article) (limited to the case where it carries out that company split by spin-off, etc. before the Effective Date), the provisions of Article 54 (excluding paragraphs (2) and (3)) of the Former Corporation Tax Act remain in force until the time of that company split by spin-off, etc.

③If the amount of the retirement allowance reserve account after reversing the amount listed in the right-hand column of each item of the table in the preceding paragraph in the business year or consolidated business year listed in the middle column of that item exceeds the total amount of retirement allowances calculated for each employee in accordance with the retirement allowance rules prescribed in Article 54, paragraph (1) of the Former Corporation Tax Act in effect for that employee at the end of that business year or consolidated business year, assuming that all employees in service at that time were to retire at that time for their own convenience, the corporation must reverse the amount of that excess in that business year or consolidated business year.

④The amount of the retirement allowance reserve account reversed pursuant to the provisions of the preceding two paragraphs is included in the amount of gross profit in the calculation of the amount of income for the business year, or the amount of consolidated income for the consolidated business year, containing the day of that reversal.

⑤In the case where a corporation that has an amount of the retirement allowance reserve account has, in each business year or each consolidated business year on or after the business year of the amendment, carried out an Organizational Restructuring (meaning a merger, company split or capital contribution in kind, limited to one carried out on or after the Effective Date; the same applies hereinafter in this Article), and its employees have consequently come to engage in the business of the acquiring corporation, etc. (meaning the acquiring corporation, succeeding corporation in a company split or corporation receiving a capital contribution in kind; the same applies hereinafter in this paragraph and the following paragraph) involved in the Organizational Restructuring, if the corporation satisfies the requirements specified by Cabinet Order, such as not having paid a retirement allowance to the employees who have come to engage in that business, the amount of the retirement allowance reserve account specified in each of the following items, in accordance with the category of Organizational Restructuring listed in each of those items, is to be transferred to the acquiring corporation, etc.:

⑥The amount of the retirement allowance reserve account transferred to an acquiring corporation, etc. pursuant to the provisions of the preceding paragraph is deemed to be an amount of the retirement allowance reserve account held by the acquiring corporation, etc. at the time of the Organizational Restructuring referred to in that paragraph. In this case, for the purpose of applying the provisions of paragraphs (2) and (3), that amount of the retirement allowance reserve account is to be included in the balance of the retirement allowance reserve at the time of the amendment of the acquiring corporation, etc.

⑦The calculation of the amounts in the right-hand column of each item of the table in paragraph (2) in the case where an Organizational Restructuring has been carried out, and other necessary matters concerning the application of the provisions of the preceding paragraphs, are specified by Cabinet Order.

①The provisions of Article 61-11 of the New Corporation Tax Act apply to assets subject to fair valuation prescribed in paragraph (1) of that Article (referred to as "assets subject to fair valuation" in the following Article) held by a corporation as of the end of a business year ending on or after the day on which six months have elapsed counting from the day following the Effective Date.

②In the case where a corporation has received the application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions and 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 Article) as of the end of the previous business year of the business year that includes the last day of the first consolidated parent corporation business year prescribed in Article 61-11, paragraph (1) of the New Corporation Tax Act (referred to as the "first consolidated parent corporation business year" in this paragraph and the following Article) (or, if the first day of that business year is before the first day of the first consolidated parent corporation business year, as of the end of that business year), for the purpose of applying the provisions of Article 61-11 of the New Corporation Tax Act, the phrase "the day before the first day (or, if the other domestic corporation is a corporation subject to fair valuation prescribed in Article 4-3, paragraph (9), item (i) (Effect of Approval for Consolidated Tax Payment), the last day of the first consolidated parent corporation business year)" in paragraph (1) of that Article is deemed to be replaced with "the last day".

③For a business year immediately preceding the commencement of consolidation prescribed in Article 61-11, paragraph (1) of the New Corporation Tax Act of a corporation that ends before December 31, 2006, the provisions of that Article apply by deeming the day five years before prescribed in the items of that paragraph to be January 1, 2002.

④In the case where a corporation has received the application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions, for the purpose of applying the provisions of Article 61-11, paragraph (1) of the New Corporation Tax Act to the corporation, the phrase "the due date for filing" in item (vi), (b) of that paragraph is deemed to be replaced with "the due date for filing or the application deadline for the business year subject to the transitional measures prescribed in Article 3, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. (Act No. 79 of 2002), whichever is later".

①The provisions of Article 61-12 of the New Corporation Tax Act apply to assets subject to fair valuation held by a corporation as of the end of a business year ending on or after the day on which six months have elapsed counting from the day following the Effective Date.

②In the case where a corporation has received the application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions, if a corporation that has come to have a full controlling interest prescribed in Article 4-2 of the New Corporation Tax Act with that corporation, by that corporation, in the first consolidated parent corporation business year holds assets subject to fair valuation, etc. as of the end of the business year that includes the day on which it came to have the full controlling interest, for the purpose of applying the provisions of Article 61-12 of the New Corporation Tax Act, the phrase "the day before the day on which it came to have a full controlling interest prescribed in Article 4-2 (Consolidated Taxpayers) with the consolidated parent corporation, by the consolidated parent corporation (or, if the other domestic corporation is a corporation subject to fair valuation prescribed in item (i) of that paragraph, the last day of the first consolidated parent corporation business year)" in paragraph (1) of that Article is deemed to be replaced with "the last day of the first consolidated parent corporation business year".

③For a business year immediately preceding joining the consolidation prescribed in Article 61-12, paragraph (1) of the New Corporation Tax Act of a corporation that ends before December 31, 2006, the provisions of that Article apply by deeming the day five years before prescribed in the items of that paragraph to be January 1, 2002.

④For the purpose of applying the provisions of Article 61-12, paragraph (1) of the New Corporation Tax Act to a joining corporation (meaning a corporation that has come to have a full controlling interest prescribed in Article 4-2 of the New Corporation Tax Act with a corporation that has received the application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions, by that corporation, in the first consolidated parent corporation business year of that corporation), the phrase "the due date for filing" in item (iv), (b) of that paragraph is deemed to be replaced with "the due date for filing or the application deadline for the business year subject to the transitional measures prescribed in Article 3, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. (Act No. 79 of 2002), whichever is later".