Supplementary Provisions

This Cabinet Order comes into effect as of December 1, 1998.

①The provisions of Article 32 of the Order for Enforcement of the Income Tax Act after amendment by the provisions of Article 25 (hereinafter in this Article referred to as the "New Order for Enforcement of the Income Tax Act") apply to Securities prescribed in Article 10, paragraph (1) of the Income Tax Act (Act No. 33 of 1965) that are purchased on or after the Effective Date.

②The provisions of Article 33, paragraph (3), item (iii) of the New Order for Enforcement of the Income Tax Act apply to bonds listed in that item that are issued on or after the Effective Date, and the provisions then in force continue to govern bonds listed in Article 33, paragraph (3), item (iii) of the Order for Enforcement of the Income Tax Act before amendment by the provisions of Article 25 (hereinafter in this Article referred to as the "Former Order for Enforcement of the Income Tax Act") that were issued before the Effective Date.

③The provisions of Article 33, paragraph (3), item (vii) of the New Order for Enforcement of the Income Tax Act apply to beneficiary certificates listed in that item that are issued on or after the Effective Date, and the provisions then in force continue to govern beneficiary certificates listed in Article 33, paragraph (3), item (vii) of the Former Order for Enforcement of the Income Tax Act that were issued before the Effective Date.

④The provisions of Article 42, paragraph (1), item (i), (a) of the New Order for Enforcement of the Income Tax Act apply to a statement of tax-exempt savings listed in that item that is submitted on or after the Effective Date, and the provisions then in force continue to govern a statement of tax-exempt savings listed in Article 42, paragraph (1), item (i) of the Former Order for Enforcement of the Income Tax Act that was submitted before the Effective Date. In this case, with regard to the application of Article 42, paragraph (1), item (i) of the New Order for Enforcement of the Income Tax Act where the financial institution pertaining to the business office of a financial institution or other such place through which the statement of tax-exempt savings already submitted prescribed in Article 42, paragraph (1), item (i) of the Former Order for Enforcement of the Income Tax Act was submitted is a foreign exchange bank prescribed in Article 2, paragraph (1) of the Foreign Exchange Bank Act (Act No. 67 of 1954) before its repeal by the provisions of Article 12 of the Financial System Reform Act, the phrase "limited)" in sub-item (a) of that item is deemed to be replaced with "limited), and a foreign exchange bank prescribed in Article 2, paragraph (1) (Definitions) of the Foreign Exchange Bank Act (Act No. 67 of 1954) before its repeal by the provisions of Article 12 (Repeal of the Foreign Exchange Bank Act) of the Act on the Arrangement, etc. of Relevant Acts for the Reform of the Financial System".

⑤The provisions of Article 51-2, paragraph (1) of the New Order for Enforcement of the Income Tax Act apply to interest on public and corporate bonds, etc. prescribed in Article 11, paragraph (1) or (2), or paragraph (3) of the Income Tax Act, or distributions of proceeds from them, that a Domestic Corporation or Foreign Corporation prescribed in those provisions or a public interest trust is to be paid on or after the Effective Date, and the provisions then in force continue to govern interest on those public and corporate bonds, etc., or distributions of proceeds from them, that that Domestic Corporation or Foreign Corporation or public interest trust was to be paid before the Effective Date. In this case, with regard to the application of Articles 51-2 and 51-3 of the New Order for Enforcement of the Income Tax Act during the period until the day on which one year has elapsed counting from the Effective Date, the phrase "又は" (or) in Article 51-2, paragraph (1), item (i) of the New Order for Enforcement of the Income Tax Act is deemed to be replaced with "若しくは" (or, joining a smaller group of alternatives), the phrase "persons listed" in that item is deemed to be replaced with "persons listed, or a Securities Investment Trust management company (meaning a Securities Investment Trust management company prescribed in Article 2, paragraph (10) (Definitions) of the Act on Securities Investment Trusts and Securities Investment Corporations; the same applies in the following item and the following paragraph)", and the phrase "a Securities Investment Trust management company (meaning a Securities Investment Trust management company prescribed in Article 2, paragraph (10) (Definitions) of the Act on Securities Investment Trusts and Securities Investment Corporations; the same applies in the following paragraph)" in item (ii) of that paragraph is deemed to be replaced with "a Securities Investment Trust management company".

⑥Where a Domestic Corporation or Foreign Corporation or a public interest trust prescribed in the preceding paragraph, on or after the Effective Date, immediately after the end of the entrustment for custody (hereinafter in this paragraph referred to as the "immediately preceding entrustment for custody") of Securities relating to public and corporate bonds, etc. prescribed in Article 51-2, paragraph (1) of the New Order for Enforcement of the Income Tax Act, which had been entrusted for custody as provided in that Article at an office of a Securities Investment Trust management company (meaning an office of a Securities Investment Trust management company prescribed in Article 51-2, paragraph (1), item (ii) of the New Order for Enforcement of the Income Tax Act; the same applies in paragraph (10)), has entrusted those Securities for custody through that office of a Securities Investment Trust management company by the method listed in that item, then, with regard to the application of Article 51 of the New Order for Enforcement of the Income Tax Act to interest on those public and corporate bonds, etc. or distributions of proceeds from them that are to be paid on or after the day on which that entrustment for custody (hereinafter in this paragraph referred to as the "specified entrustment for custody") was made (limited to those for which that specified entrustment for custody is made for the Securities relating to those public and corporate bonds, etc. throughout the period from the day on which that specified entrustment for custody was made to the last day of the calculation period of that interest or distribution of proceeds, and the day on which that specified entrustment for custody was made is included in that calculation period), the Securities relating to those public and corporate bonds, etc. are deemed to have been entrusted for custody, by the method listed in that item, to the business office of a financial institution or other such place prescribed in that item throughout the period from the day on which that immediately preceding entrustment for custody was made to the last day of that calculation period.

⑦The provisions of Article 51-3 of the New Order for Enforcement of the Income Tax Act apply to interest on public and corporate bonds, etc. prescribed in Article 11, paragraph (1) or (2), or paragraph (3) of the Income Tax Act, or distributions of proceeds from them, that a Domestic Corporation or Foreign Corporation prescribed in those provisions or a public interest trust is to be paid on or after the Effective Date, and the provisions then in force continue to govern interest on those public and corporate bonds, etc., or distributions of proceeds from them, that that Domestic Corporation or Foreign Corporation or public interest trust was to be paid before the Effective Date.

⑧The provisions of Article 300, paragraph (2) of the New Order for Enforcement of the Income Tax Act apply to distributions of proceeds prescribed in that paragraph that are paid on or after the Effective Date, and the provisions then in force continue to govern distributions of proceeds prescribed in Article 300, paragraph (2) of the Former Order for Enforcement of the Income Tax Act that were paid before the Effective Date.

⑨The provisions of Article 339, paragraph (3) of the New Order for Enforcement of the Income Tax Act apply to interest and similar income prescribed in paragraph (1) of that Article from bearer public and corporate bonds, etc. prescribed in that paragraph that is received on or after the Effective Date, and the provisions then in force continue to govern that interest and similar income received before the Effective Date.

⑩Where a person who is to receive payment of interest and similar income prescribed in Article 339, paragraph (1) of the New Order for Enforcement of the Income Tax Act (hereinafter in this paragraph referred to as "interest and similar income") from bearer public and corporate bonds, etc. prescribed in Article 339, paragraph (1) of the New Order for Enforcement of the Income Tax Act (hereinafter in this paragraph referred to as "bearer public and corporate bonds, etc."), on or after the Effective Date, immediately after the end of the entrustment for custody (hereinafter in this paragraph referred to as the "immediately preceding entrustment for custody") of those bearer public and corporate bonds, etc. at an office of a Securities Investment Trust management company, entrusts them for custody (hereinafter in this paragraph referred to as the "specified entrustment for custody") through an intermediation based on the custody intermediation contract prescribed in Article 339, paragraph (3) of the New Order for Enforcement of the Income Tax Act that has been concluded with that office of a Securities Investment Trust management company, and when making the contract for that immediately preceding entrustment for custody, has stated the particulars prescribed in Article 339, paragraph (3) in the paper-based notice prescribed in Article 339, paragraph (1) and submitted it to the head of that office of a Securities Investment Trust management company, then, with regard to the application of Article 339 to interest and similar income from bearer public and corporate bonds, etc. to be received on or after the day on which that specified entrustment for custody was made (limited to interest and similar income received during the period in which custody has continued from the day on which that specified entrustment for custody was made, for which the head of that office of a Securities Investment Trust management company handles the payment), the paper-based notice so submitted is deemed to be the paper-based notice prescribed in Article 339, paragraph (3) that the person who receives payment of that interest and similar income submitted when concluding the custody intermediation contract prescribed in Article 339, paragraph (3).