Article 78-2Profits from Afforestation Profit-Sharing Contracts or Forest-Tending Profit-Sharing Contracts

①The amount that a party to an afforestation profit-sharing contract receives, pursuant to that contract, by sharing at the fixed ratio specified in that contract among the profits from afforestation of forested land that is the subject of the contract, the profits from the felling of trees in that forested land or from the transfer of that forested land (including those listed in the items of Article 94, paragraph (1) (Insurance Proceeds or Similar Benefits Treated as Revenue from Timber Income); the same applies in the following paragraph), is, except as provided for in paragraph (3), revenue pertaining to timber income.

②The amount that a party to a forest-tending profit-sharing contract receives, pursuant to that contract, by sharing at the fixed ratio specified in that contract the profits from the felling of trees in forested land that is the subject of the contract, or from the transfer of that forested land, among the profits from forest tending of that forested land, is, except as provided for in the following paragraph, revenue pertaining to timber income.

③Among the amounts shared by parties to an afforestation profit-sharing contract or forest-tending profit-sharing contract pursuant to that contract, an amount that falls under any of the amounts listed in the following items is revenue pertaining to Each Class of Income other than timber income.