Supplementary Provisions

This Cabinet Order comes into effect as of April 1, 1974.

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 1974 and subsequent years, and the provisions then in force continue to govern income tax for 1973 and earlier years.

①The provisions of Article 33 (Scope of Securities Treated as Nontaxable for Interest Income, etc.) of the New Order apply to the Securities prescribed in Article 10, paragraph (1) (Nontaxable Interest Income, etc. on Small-Amount Deposits) of the Income Tax Act that are purchased 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 those Securities purchased before that date.

②The provisions of Article 40, paragraph (1) (Statement of Tax-Exempt Savings) of the New Order apply to the statement of tax-exempt savings prescribed in that paragraph that is submitted on or after the Effective Date (excluding one submitted under the provisions of Article 4, paragraph (3) (Transitional Measures Concerning Nontaxable Interest Income, etc. on Small-Amount Deposits) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act and the Act on Reduction or Release, Deferment of Collection and Other Measures Related to Tax Imposed on Disaster Victims (Act No. 15 of 1974; hereinafter referred to as the "Amending Act")), and the provisions then in force continue to govern that statement of tax-exempt savings submitted before that date.

③In the declaration and application form prescribed in Article 4, paragraph (3) of the Supplementary Provisions of the Amending Act that are submitted under the provisions of that paragraph, there must be stated, in addition to the matters listed in the items of Article 10, paragraph (3) of the Income Tax Act after amendment by the Amending Act (hereinafter referred to as the "New Act"), the items of Article 39-2 (Required Particulars of Declaration of Change to the Tax-Exempt Savings Limit) of the New Order, or the items of Article 34, paragraph (1) (Required Particulars of Application to Exempt Savings from Taxation) of the New Order, the fact that they are submitted under the provisions of Article 4, paragraph (3) of the Supplementary Provisions of the Amending Act.

The provisions of Article 74, paragraph (2) (Special Provisions on Calculation of Retirement Income Deduction) of the New Order apply to cases where the earlier severance pay or other such compensation prescribed in that paragraph is to be received on or after January 1, 1974; in cases where that earlier severance pay or other such compensation relates to payment during 1973, the provisions of Article 74, paragraph (2) of the Order for Enforcement of the Income Tax Act before amendment (hereinafter referred to as the "Former Order") are to be followed, with the phrase "Article 30, paragraph (3) of the Act" in that paragraph deemed to be replaced with "Article 30, paragraph (3) of the Act before amendment by the Act Partially Amending the Income Tax Act and the Act on Reduction or Release, Deferment of Collection and Other Measures Related to Tax Imposed on Disaster Victims (Act No. 15 of 1974)".

①Where, on the Effective Date, an individual holds Former Small-Value Depreciable Assets (meaning those Depreciable Assets put to use in the individual's business before January 1, 1974 for which the acquisition price prescribed in Article 138 (Inclusion in Necessary Expenses of the Acquisition Price of Small-Value Depreciable Assets) of the Former Order is less than 50,000 yen and for which there is an acquisition price after depreciation on that date), the amount equivalent to that acquisition price after depreciation of those Former Small-Value Depreciable Assets is, notwithstanding Article 49, paragraph (1) (Calculating Depreciation Allowances for Depreciable Assets; Depreciation Methods) of the Income Tax Act, to be included in necessary expenses in calculating the amount of real property income, the amount of business income, the amount of timber income or the amount of miscellaneous income for 1974.

②The provisions of the preceding paragraph apply mutatis mutandis where, on the Effective Date, an individual holds Former Small-Value Deferred Assets (meaning those expenses prescribed in Article 139 (Inclusion in Necessary Expenses of Small-Amount Expenses That Become Deferred Assets) of the Former Order that were paid before January 1, 1974, for which the amount paid is less than 50,000 yen and for which there is an amount after depreciation on that date). In this case, the phrase "Article 49, paragraph (1) (Calculating Depreciation Allowances for Depreciable Assets; Depreciation Methods) of the Income Tax Act" in the preceding paragraph is deemed to be replaced with "Article 50, paragraph (1) (Calculating Depreciation Allowances for Deferred Assets; Depreciation Methods) of the Income Tax Act".

①Where 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 1974, 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, 1974".

②The provisions of Article 197, paragraph (1) of the New Order (limited to the portion pertaining to the case where the business prescribed in that paragraph is commenced) apply to cases where that business is commenced on or after the Effective Date, and the provisions then in force continue to govern cases where that business was commenced before that date.

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 Amending Act (hereinafter referred to as the "Former Act") have been applied with respect to the income tax for 1973, the tax prepayment calculation base prescribed in Article 104, paragraph (1) (Making Tax Prepayments) of 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 1974, 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 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 6, paragraphs (1) and (2) (Special Provisions on Calculation of Tax Prepayment Calculation Base for Income Tax for 1974) of the Supplementary Provisions of the Amending Act, as those provisions are read with replacements.

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, 1974, and the provisions then in force continue to govern those lump-sum payments payable before that date.

The provisions of Article 322 (Amount to Be Deducted from the Amount Paid) of the New Order (limited to the portion pertaining to remuneration or fees for the business of judicial scriveners, land and house investigators or maritime procedure agents listed in Article 204, paragraph (1), item (ii) (Obligation to Withhold Taxes on Remuneration, Fees, etc.) of the New Act) apply to those remuneration or fees payable on or after June 1, 1974, and the provisions then in force continue to govern those remuneration or fees payable before that date.

①A claim for a refund under the provisions of Article 10, paragraph (1) (Refund of Amount of Tax Withheld on Retirement Income Paid Before the Effective Date) of the Supplementary Provisions of the Amending Act may be made, in the case where a Resident who is entitled to make it files, between the Effective Date and June 30, 1974, with regard to other severance pay or other such compensation prescribed in that paragraph (hereinafter in this Article referred to as "severance pay or other such compensation") relating to payment during that year, a declaration on receipt of retirement income prescribed in Article 203, paragraph (4) (Declaration on Receipt of Retirement Income) of the New Act, only until the day before the day on which that declaration is filed.

②A Resident who wishes to make a claim for a refund under Article 10, paragraph (1) of the Supplementary Provisions of the Amending Act must submit a written claim stating the following matters, attaching documents certifying the matters prescribed in items (iii) and (iv), to the competent district director with jurisdiction over the place for tax payment; provided, however, that where the district director finds that there are unavoidable circumstances, it is not necessary to attach those documents.

③A Resident who has made a claim for a refund under the provisions of Article 10, paragraph (1) of the Supplementary Provisions of the Amending Act must, where the Resident files, after making the claim, a declaration on receipt of retirement income prescribed in Article 203, paragraph (4) of the New Act or a Tax Return with regard to severance pay or other such compensation relating to payment during 1974, enter as a note in that declaration or Tax Return, in addition to the matters to be stated therein, the fact that the Resident has made the claim for the refund and the amount listed in item (vi) of the preceding paragraph.

④With regard to the application of the provisions of the Order for Enforcement of the Act on Fund for Smooth Management of National Tax Revenue (Cabinet Order No. 51 of 1954), a refund pertaining to a claim under Article 10, paragraph (1) of the Supplementary Provisions of the Amending Act is deemed to be a refund listed in Article 2, item (i) (Designation of Payments) of that Order.