Supplementary Provisions, Article 3Transitional Measures Concerning the Nontaxability of Interest Income from Postal Savings Held by Persons with Disabilities and Other Eligible Persons

①The date specified by Cabinet Order prescribed in Article 35, paragraph (1) (Transitional Measures Concerning the Nontaxability of Interest Income from Postal Savings Held by Persons with Disabilities and Other Eligible Persons) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation, etc. (Act No. 15 of 2002; hereinafter referred to as the "Amending Act") is the day following the last day of the calculation period of interest on ordinary postal savings prescribed in that paragraph that includes January 1, 2006.

②The amount calculated as specified by Cabinet Order prescribed in Article 35, paragraph (2) of the Supplementary Provisions of the Amending Act is, for postal savings (excluding ordinary postal savings prescribed in that paragraph) other than postal time savings (meaning postal time savings prescribed in Article 7, paragraph (1), item (iv) (Types of Postal Savings) of the Postal Savings Act (Act No. 144 of 1947); the same applies hereinafter in this paragraph) (hereinafter referred to in this paragraph as "postal fixed-amount savings, etc."), the amount calculated by dividing the amount obtained by multiplying the amount of the interest on those postal fixed-amount savings, etc. that corresponds to the interest calculation period including January 1, 2006 by the number of months from the month in which the date of deposit of the postal fixed-amount savings, etc. to which that interest pertains falls to December 2005, by the number of months from the month in which that date of deposit falls to the month preceding the month in which the date of refund falls, and, for postal time savings, the amount calculated by dividing the amount obtained by multiplying the amount of the interest on those postal time savings that corresponds to the interest calculation period including January 1, 2006 by the number of days from the date of deposit of the postal time savings to which that interest pertains to December 31, 2005, by the number of days from that date of deposit to the day preceding the date of refund.

③An individual who falls under a Person with a Disability or other eligible person prescribed in Article 35, paragraph (3) of the Supplementary Provisions of the Amending Act and who seeks the confirmation referred to in that paragraph must, before January 1, 2006, submit to the handling post office prescribed in that paragraph pertaining to the postal savings referred to in that paragraph (hereinafter in this Article referred to as the "handling post office") a written application stating the individual's name, date of birth and domicile, a statement that the individual falls under a Person with a Disability or other eligible person (meaning a Person with a Disability or other eligible person prescribed in that paragraph; the same applies hereinafter in this Article), and other particulars specified by Ministry of Finance Order (hereinafter in this Article referred to as the "application for confirmation as a Person with a Disability or other eligible person"), and present the individual's paper confirming a disability or similar position (meaning the paper prescribed in that paragraph; the same applies hereinafter in this Article), and thereby be confirmed as falling under a Person with a Disability or other eligible person.

④In the case referred to in the preceding paragraph, the handling post office is to confirm, on the basis of the paper confirming a disability or similar position that it has been shown, the fact that the person falls under a Person with a Disability or other eligible person, and when it has confirmed that fact, it must enter, in the application for confirmation as a Person with a Disability or other eligible person submitted pursuant to the provisions of that paragraph, a statement to the effect that it has confirmed this and the name of the paper confirming a disability or similar position pertaining to that confirmation.

⑤A person who has submitted the application for confirmation as a Person with a Disability or other eligible person referred to in paragraph (3) may, at the time of that submission, present the passbook, etc. prescribed in Article 30-10, paragraph (1) (Stamping of Passbook, etc. to Indicate Confirmation) of the Order for Enforcement of the Income Tax Act prior to amendment (hereinafter referred to as the "Former Order") that pertains to the postal savings and was stamped pursuant to the provisions of that paragraph (hereinafter in this Article referred to as the "passbook, etc."), and have an indication made in that passbook, etc. that it has been confirmed that the person falls under a Person with a Disability or other eligible person. In this case, the handling post office is to make the indication of that confirmation in the passbook, etc. that it has been shown.

⑥A person who accepts postal savings must, where an application for confirmation as a Person with a Disability or other eligible person has been submitted pursuant to the provisions of paragraph (3), manage the postal savings by correcting the fact of falling under an elderly person or similar person stated in the application form for tax-exempt postal savings pertaining to the postal savings of the person who made that submission to the fact of falling under a Person with a Disability or other eligible person, or by another method.

⑦A person who accepts postal savings must, where it has been sent an application for confirmation as a Person with a Disability or other eligible person by a handling post office, retain that application as specified by Ministry of Finance Order.