Supplementary Provisions

This Cabinet Order comes into effect as of April 1, 2003; provided, however, that the provisions listed in the following items come into effect as of the date specified respectively in those items.

Except as otherwise provided, the provisions of the Order for Enforcement of the Income Tax Act after the amendment (hereinafter referred to as the "New Order") apply to the income tax for 2003 and thereafter, and for the income tax for 2002 and earlier, the provisions then in force continue to govern.

For the distributions of proceeds from beneficiary certificates listed in Article 33, paragraph (4), item (vii) (Scope of Deposits and Similar Savings That Are Tax-Exempt for Interest Income, etc.) of the Order for Enforcement of the Income Tax Act before the amendment (hereinafter referred to as the "Former Order") that an individual purchased before January 1, 2004, the provisions then in force continue to govern.

①The beneficiary certificates specified by Cabinet Order prescribed in Article 11, paragraph (1) (Nontaxability of Public Corporations and Charitable Trusts) of the Income Tax Act after the amendment by the provisions of Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2003; hereinafter referred to as the "Amending Act") (hereinafter referred to as the "New Act"), as applied with replacement of terms pursuant to the provisions of Article 2, paragraph (2) (Transitional Measures Concerning Nontaxability of Public Corporations and Charitable Trusts) of the Supplementary Provisions of the Amending Act, are the beneficiary certificates listed in the items of Article 50-2, paragraph (1) (Scope of Public and Corporate Bonds or Similar Interests) of the Former Order, and the investment units specified by Cabinet Order prescribed in Article 11, paragraph (1) of the New Act, as applied with replacement of terms pursuant to the provisions of Article 2, paragraph (2) of the Supplementary Provisions of the Amending Act, are the investment units prescribed in Article 50-2, paragraph (2) of the Former Order.

②Where the provisions of Article 2, paragraph (2) of the Supplementary Provisions of the Amending Act apply, in applying the provisions of Article 51-2 (Records, etc. of Securities Relating to Public and Corporate Bonds or Similar Interests) of the New Order, the phrase "each item of Article 50-2" in paragraph (1), item (i) of that Article is deemed to be replaced with "each item of Article 50-2, paragraph (1) of the Order for Enforcement of the Income Tax Act prior to amendment by the Cabinet Order Partially Amending the Order for Enforcement of the Income Tax Act (Cabinet Order No. 130 of 2003); the Order for Enforcement of the Income Tax Act prior to that amendment is hereinafter referred to in this paragraph as the "Former Order"", the phrase "Article 50-2, item (ii) or (iii)" in item (ii) of that paragraph is deemed to be replaced with "Article 50-2, paragraph (1), items (ii) through (iv) of the Former Order", and the phrase "beneficiary certificates" in item (iii) of that paragraph is deemed to be replaced with "beneficiary certificates and the investment units of the specified investment corporation prescribed in Article 50-2, paragraph (2) of the Former Order".

The provisions of Article 61, paragraph (2), items (ii) and (iii) (Method of Calculating the Amount of Stated Capital, etc. or the Amount of Consolidated Individual Stated Capital, etc. Corresponding to Shares Held, etc.) of the New Order apply to a company split by split-off listed in Article 25, paragraph (1), item (ii) (Amounts Deemed to Constitute Dividends) of the New Act, or a distribution of residual assets upon a reduction of capital or contribution or upon dissolution listed in item (iii) of that paragraph, that a corporation carries out 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 a company split by split-off listed in Article 25, paragraph (1), item (ii) (Amounts Deemed to Constitute Dividends) of the Income Tax Act prior to amendment by the provisions of Article 1 of the Amending Act (hereinafter referred to as the "Former Act"), or a distribution of residual assets upon a reduction of capital or contribution or upon dissolution listed in item (iii) of that paragraph, that a corporation carried out before the Effective Date.

①The provisions of Article 73, paragraph (1), item (vii), (b) (Requirements for Specified Retirement Allowance Mutual Aid Organizations) of the New Order apply to cases where, on or after the Effective Date, the approval referred to in that paragraph or the approval of a change under Article 74, paragraph (5) (Approval of a Specified Retirement Allowance Mutual Aid Organization) of the New Order is received.

②Among the provisions of Articles 64, 65, 72, 76 and 82-2 (Treatment of Income Tax on Premiums, etc. Under a Retirement Allowance Mutual Aid System) of the New Order, the portions pertaining to the premiums paid under a system relating to retirement allowance mutual aid operated by a specified retirement allowance mutual aid organization prescribed in Article 73, paragraph (1) of the New Order and to the benefits provided by that organization apply to those premiums to be paid on or after the Effective Date and those benefits to be paid on or after the Effective Date (excluding benefits for which the premiums to be paid before the Effective Date that correspond to those benefits include premiums listed in Article 76, paragraph (1), item (ii), (d) (Lump-Sum Payments Under Retirement Allowance Mutual Aid Systems, etc. Not Deemed Severance Pay and Other Such Compensation) of the Former Order), and the provisions then in force continue to govern premiums to be paid before the Effective Date and those benefits to be paid before the Effective Date (including benefits to be paid on or after the Effective Date for which the premiums to be paid before the Effective Date that correspond to those benefits include premiums listed in Article 76, paragraph (1), item (ii), (d) of the Former Order).

①The provisions of Article 89, items (i), (ii), and (iv) through (vii) (Scope of Government Subsidy or Its Equivalent) of the New Order apply to grants, benefits, or subsidies listed in items (i), (ii), and (iv) through (vii) of that Article that an individual receives on or after October 1, 2003, and the provisions then in force continue to govern grants, benefits, or subsidies listed in Article 89, items (i), (ii), and (iv) through (vii) (Scope of Government Subsidy or Its Equivalent) of the Former Order that an individual received before that date.

②The provisions of Article 89, item (iii) of the New Order apply to grants listed in that item that an individual receives on or after March 1, 2004, and the provisions then in force continue to govern grants listed in Article 89, item (iii) of the Former Order that an individual received before that date.

In applying the provisions of Article 133-2, paragraph (1) (Special Provision on Depreciation Allowance of Obsolete Depreciable Assets) of the New Order to an individual to whom the provisions of Article 72, paragraph (13), (15) or (17) (Transitional Measures Concerning Depreciation of Individuals) of the Supplementary Provisions of the Amending Act apply, in Article 133-2, paragraph (1) of the New Order, ")又は" (or) is deemed to be replaced with ")若しくは" (or, joining a smaller group of alternatives), and the phrase ") provisions" is deemed to be replaced with ") or the provisions of Article 13-3 (limited to the portion pertaining to paragraph (1), item (i)), Article 14 (limited to the portion pertaining to paragraph (2)) or Article 14-2 (Special Depreciation, etc. of Machinery, etc. of Individuals Implementing a Farm Management Improvement Plan, etc.) of the Act on Special Measures Concerning Taxation as it remains in force pursuant to the provisions of Article 72, paragraph (13), (15) or (17) (Transitional Measures Concerning Depreciation of Individuals) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2003), prior to amendment by the provisions of Article 12 of that Act".

①The provisions of Article 217, paragraph (1), item (i)-2 and item (iii), (gg), (hh) and (jj) (Scope of Corporations That Contribute Significantly to the Promotion of the Public Interest) of the New Order apply to donations that an individual makes on or after October 1, 2003, and the provisions then in force continue to govern donations that an individual made before that date.

②The provisions of Article 217, paragraph (1), item (iii), (kk) and item (iv) of the New Order apply to donations that an individual makes on or after the Effective Date, and the provisions then in force continue to govern donations that an individual made before the Effective Date.

①In the case where a person who has had shares, etc. (meaning shares or similar interests prescribed in Article 224-3, paragraph (2) (Notice by a Person Receiving the Consideration for the Transfer of Shares, etc.) of the Former Act; the same applies hereinafter in this Article) held in custody continuously since before April 1, 2003 at the business office of a securities company, etc. prescribed in Article 342, paragraph (2), item (ii) (Notice by a Person Receiving the Consideration for the Transfer of Shares, etc.) of the New Order has given, by the day on which the person first receives, on or after that date, payment of the consideration for the transfer of the shares, etc. held in custody, a notice corresponding to the notice referred to in that item, that notice is deemed to be the notice referred to in that item, and that Article applies.

②In the case where a person who has had beneficiary certificates of a publicly offered Securities Investment Trust (meaning a Securities Investment Trust other than a Bond Investment Trust for which the solicitation of the beneficiary certificates pertaining to its establishment was carried out by a public offering prescribed in Article 2, paragraph (1), item (xv)-3 (Definitions) of the New Act (excluding a specified stock Investment Trust prescribed in Article 336, paragraph (2), item (v) (Notice by a Person Receiving Interest, Dividends, etc. on Deposits and Savings, Shares, etc.) of the New Order); the same applies hereinafter in this paragraph) held in custody continuously since before January 1, 2004 at the business office of a securities company, etc. prescribed in Article 342, paragraph (2), item (ii) of the New Order has given, by the day on which the person first receives, on or after that date, payment of the consideration for the transfer of the beneficiary certificates of the publicly offered Securities Investment Trust held in custody, a notice corresponding to the notice referred to in that item, that notice is deemed to be the notice referred to in that item, and that Article applies.