①With regard to the calculation of the amount of income for a business year (limited to a business year that begins on or before March 31, 2023; referred to as a "business year under the transitional measures" in item (i) of the following paragraph) that ends on or after the Effective Date of a corporation that carried out, before the Effective Date, a sale, etc. of assets prescribed in Article 63, paragraph (1) of the Former Corporation Tax Act (excluding a lease transfer prescribed in Article 63, paragraph (1) of the Corporation Tax Act; hereinafter referred to as a "specified sale of assets" in this Article) that falls under a long-term installment sale, etc. prescribed in Article 63, paragraph (6) of the Former Corporation Tax Act (hereinafter referred to as a "long-term installment sale, etc." in this Article) (including a corporation that received a transfer of a contract pertaining to a specified sale of assets falling under a long-term installment sale, etc. carried out before the Effective Date), the provisions of Article 63, paragraphs (1), (4) through (6) and (9) of the Former Corporation Tax Act (limited to the portion pertaining to specified sales of assets, and including the cases where calculation is made in accordance therewith pursuant to the provisions of Article 142, paragraph (2) of the Former Corporation Tax Act) remain in force. In this case, in Article 63, paragraph (4) of the Former Corporation Tax Act, the phrase "consolidated business year" is deemed to be replaced with "consolidated business year (meaning a consolidated business year prescribed in Article 15-2, paragraph (1) (Meaning of Consolidated Business Year) of the Corporation Tax Act prior to the amendment by the provisions of Article 3 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2020))" and the phrase "consolidated income" with "consolidated income (meaning consolidated income prescribed in Article 2, item (xviii)-4 (Definitions) of the Corporation Tax Act prior to the amendment by the provisions of Article 3 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2020))", and in paragraph (5) of that Article, the phrase "Article 61-13, paragraph (1)" is deemed to be replaced with "Article 61-11, paragraph (1)".

②If the amount of proceeds and the amount of expenses pertaining to a specified sale of assets falling under a long-term installment sale, etc. of a corporation that is subject to the provisions of the main clause of Article 63, paragraph (1) (including the cases where calculation is made in accordance therewith pursuant to the provisions of Article 142, paragraph (2) of the Former Corporation Tax Act; the same applies in the following paragraph) of the Former Corporation Tax Act as it remains in force pursuant to the provisions of the preceding paragraph (hereinafter referred to as the "Former Corporation Tax Act Kept in Force" in this Article) fall under the cases set forth in the following items, that amount of proceeds and amount of expenses (excluding those included in the amount of gross profit and the amount of deductible expenses when calculating the amount of income for each business year that began before the first day of the business year specified in the respective items or the amount of consolidated income (meaning consolidated income prescribed in Article 2, item (xviii)-4 of the Corporation Tax Act prior to the amendment by the provisions of Article 3 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2020); the same applies hereinafter in this Article) for each consolidated business year (meaning a consolidated business year prescribed in Article 15-2, paragraph (1) of the Corporation Tax Act prior to the amendment by the provisions of Article 3 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2020); the same applies hereinafter in this Article) that began before that day; referred to respectively as "unrecognized revenue" and "unrecognized expenses" in the following paragraph) are included in the amount of gross profit and the amount of deductible expenses when calculating the amount of income for the business year specified in the respective items (referred to as the "base business year" in the following paragraph and paragraph (4)):

③If the amount of proceeds and the amount of expenses pertaining to a specified sale of assets falling under a long-term installment sale, etc. of a corporation that is subject to the provisions of the main clause of Article 63, paragraph (1) of the Former Corporation Tax Act Kept in Force fall under the cases set forth in the items of the preceding paragraph, and the unrecognized revenue pertaining to that specified sale of assets exceeds the unrecognized expenses pertaining to that specified sale of assets, notwithstanding the provisions of that paragraph, the amount set forth in item (i) (for a business year containing the date of dissolution or of discontinuance or transfer of the whole of the business (excluding a transfer to a succeeding corporation in a company split through a qualified company split and any other transfer specified by Cabinet Order), a business year during liquidation or a business year containing the day preceding the date of the merger of an acquired corporation (excluding a qualified merger), a business year containing the day preceding the day on which an ordinary corporation or a cooperative, etc. comes to fall under a public interest corporation, etc. in the case where it so comes to fall, and a business year in which the amount set forth in that item exceeds the amount set forth in item (ii), the amount set forth in item (ii)) is included in the amount of gross profit and the amount of deductible expenses when calculating the amount of income for each business year on or after the base business year:

④The provisions of the preceding paragraph apply only if the Final Return for the base business year (in the case of filing an interim return for the base business year containing the matters set forth in the items of Article 72, paragraph (1) or the items of Article 144-4, paragraph (1) or (2) of the Corporation Tax Act, that interim return; the same applies in the following paragraph) contains a statement of the amounts to be included in the amount of gross profit and the amount of deductible expenses pursuant to the provisions of the preceding paragraph.

⑤Even in the case where a Final Return without entries for the matters set forth in the preceding paragraph has been filed, the district director may apply the provisions of paragraph (3), when they find any unavoidable grounds for the person's failure to make entries for such matters.

⑥The number of months referred to in paragraph (3), item (i) is calculated in accordance with the calendar, and any fraction of less than one month is rounded down.

⑦If a domestic corporation prescribed in Article 64-11, paragraph (1) of the Corporation Tax Act, another domestic corporation prescribed in Article 64-12, paragraph (1) of that Act or a group tax sharing corporation prescribed in Article 64-13, paragraph (1) of that Act (limited to one that falls under the requirement set forth in item (i) of that paragraph) is subject to the provisions of Article 63, paragraph (1) of the Former Corporation Tax Act Kept in Force in a business year of fair valuation (meaning the business year immediately before the start of group tax sharing prescribed in Article 64-11, paragraph (1) of that Act, the business year immediately before joining group tax sharing prescribed in Article 64-12, paragraph (1) of that Act or the business year immediately before the end of group tax sharing prescribed in Article 64-13, paragraph (1) of that Act (excluding any of those business years that is subject to the provisions of Article 63, paragraph (4) of the Former Corporation Tax Act Kept in Force); the same applies hereinafter in this paragraph), the amount of proceeds and the amount of expenses pertaining to the specified sale of assets subject to those provisions (excluding those included in the amount of gross profit and the amount of deductible expenses when calculating the amount of income or the amount of consolidated income for each business year or each consolidated business year before that business year of fair valuation, and those included in the amount of gross profit and the amount of deductible expenses when calculating the amount of income for that business year of fair valuation pursuant to the provisions of that paragraph) are included in the amount of gross profit and the amount of deductible expenses when calculating the amount of income for that business year of fair valuation, except for those pertaining to a contract that meets the requirements specified by Cabinet Order as a contract under which the difference between that amount of proceeds and that amount of expenses is small, or to any other contract specified by Cabinet Order.

⑧Special provisions for the treatment of the amount of proceeds and the amount of expenses pertaining to a specified sale of assets in the case where a contract pertaining to that specified sale of assets falling under a long-term installment sale, etc. has been transferred through a qualified merger, qualified company split, qualified capital contribution in kind or qualified in-kind distribution, and other necessary matters concerning the application of the provisions of paragraphs (1) through (3) and the preceding paragraph are specified by Cabinet Order.