Supplementary Provisions

This Cabinet Order comes into effect as of April 1, 1971; provided, however, that the provisions listed in the following items come into effect as of the dates listed in those items respectively.

Except as otherwise provided, the provisions of the Order for Enforcement of the Income Tax Act after amendment (hereinafter referred to as the "New Order") apply to income tax for 1971 and subsequent years, and the provisions then in force continue to govern income tax for 1970 and earlier years.

The provisions of Article 28, paragraph (2), item (iii) (Scope of Transfers of Securities Similar to Transfers of Business, etc.) of the New Order apply to transfers of the shares listed in that item made on or after the date of enforcement of this Cabinet Order (hereinafter referred to as the "Effective Date"), and the provisions then in force continue to govern transfers of those shares made before that date.

The provisions then in force continue to govern the calculation of amounts that are payable before the Effective Date and are deemed to be amounts of dividends of profits or distributions of surplus under the provisions of Article 25, paragraph (1) (Amounts Deemed to Be Amounts of Dividends and Similar Income) of the Income Tax Act.

Where a Resident who has newly come to fall under a small enterprise prescribed in Article 67-2 (Timing of Attribution of Revenue and Expenses of Small Enterprises) of the Income Tax Act under the provisions of Article 195, item (i) (Requirements for Small Enterprises) of the New Order intends to receive the application of the provisions of Article 67-2 of the Income Tax Act with regard to income tax for each year from 1971 on, the provisions of Article 197, paragraph (1) (Procedures for Receiving the Special Provisions on the Timing of Attribution of Revenue and Expenses) of the New Order apply with the phrase "March 15 of that year" in that paragraph deemed to be replaced with "May 31, 1971".

The provisions of Article 208, item (ii) (Scope of Social Insurance Premiums) of the New Order apply to premiums prescribed in that item that are paid, or deducted from salary, on or after July 1, 1971.

Where the provisions of Article 97, paragraph (1) (Tax Amount Where There Are Household Members Subject to Aggregation) of the Income Tax Act before amendment by the Act Partially Amending the Income Tax Act (Act No. 18 of 1971; hereinafter referred to as the "Amending Act") (hereinafter referred to as the "Former Act") have been applied with respect to the income tax for 1970, the tax prepayment calculation base prescribed in Article 104, paragraph (1) (Making Tax Prepayments) of the Income Tax Act after amendment by the Amending Act (hereinafter referred to as the "New Act") of the principal income earner and household member subject to aggregation prescribed in Article 97, paragraph (1) of the Former Act, for 1971 (hereinafter in this Article referred to as the "tax prepayment calculation base"), is to be calculated, in accordance with Article 98 (Calculation of Tax Amount Where There Are Household Members Subject to Aggregation) of the Former Act, Article 231 (Calculation of the Amount of Income Tax Where There Is an Amount of Dividend Tax Credit That Cannot Be Fully Deducted in Calculating the Amount of Aggregated Income Tax) of the Order for Enforcement of the Income Tax Act before amendment (hereinafter referred to as the "Former Order") and the other methods of calculating the amount of income tax under the provisions of the Former Act and the Former Order, on the basis of the amount calculated under the provisions of Article 5, paragraphs (1) and (2) (Special Provisions on Calculation of Tax Prepayment Calculation Base for Income Tax for 1971) of the Supplementary Provisions of the Amending Act, as those provisions are read with replacements.

The provisions of Article 268 (Order of Appropriation of Amounts of Income Tax to Be Refunded) of the New Order (including as applied mutatis mutandis pursuant to Article 278, paragraph (2) (Calculation, etc. of Refund Amount of Delinquent Tax on Prepaid Taxes by Reassessment or Determination) of the New Order) apply to cases where the Appropriation prescribed in these provisions is made on or after the Effective Date.

The provisions of Part IV, Chapter III (Withholding on Retirement Income) of the New Act relating to the lump-sum payments paid under the system listed in Article 76, paragraph (1), item (iii) (Lump-Sum Payments Deemed to Be Severance Pay or Other Such Compensation) of the New Order and prescribed in that paragraph apply to those lump-sum payments payable on or after June 1, 1971, and the provisions then in force continue to govern those lump-sum payments payable before that date.