Supplementary Provisions

This Cabinet Order comes into effect on the date of promulgation; provided, however, that the provisions listed in the following items come into effect on the date specified in each of those items:

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 2008 and subsequent years, and the provisions then in force continue to govern income tax for 2007 and earlier years.

The provisions of Article 6, item (ix), (b) (Scope of Depreciable Assets) of the New Order apply to income tax for 2009 and subsequent years, and the provisions then in force continue to govern income tax for 2008 and earlier years.

The provisions of Article 33, paragraph (4), item (iii) (Scope of Deposits and Savings, etc. Exempt from Taxation on Interest Income, etc.) and Article 37, paragraph (2), item (i) (Records, etc. of Securities) of the New Order apply to interest on Securities prescribed in Article 10, paragraph (1) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Income Tax Act after amendment by the provisions of Article 1 (Partial Amendment of the Income Tax Act) of the Act Partially Amending the Income Tax Act, etc. (Act No. 23 of 2008; hereinafter referred to as the "Amending Act") (the Income Tax Act after that amendment is hereinafter referred to as the "New Act") that an individual prescribed in that paragraph is to receive payment of on or after October 1, 2008, and the provisions then in force continue to govern interest on Securities prescribed in Article 10, paragraph (1) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) 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") that an individual prescribed in that paragraph is to receive payment of before that date.

With regard to the application of Article 11 (Nontaxability of Public Corporations and Charitable Trusts) of the Former Act, which remains in force pursuant to the provisions of Article 2 (Transitional Measures Concerning Nontaxable Foreign Corporations) of the Supplementary Provisions of the Amending Act, the provisions of Articles 51 through 51-3 (Amounts, etc. of Interest, etc. on public and corporate bonds, etc. for the Period for Which a Public Corporation, etc. Continued to Hold Them) of the Order for Enforcement of the Income Tax Act prior to amendment (hereinafter referred to as the "Former Order") remain in force.

The provisions of Article 61, paragraph (1), item (x) (Method of Calculating the Amount of Stated Capital, etc. or Amount of Consolidated Individual Stated Capital, etc. Corresponding to Shares Held) of the New Order apply to acquisition due to an event listed in that item that arises on or after the day on which this Cabinet Order comes into effect (hereinafter referred to as the "Effective Date").

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

②The provisions of Article 74, paragraph (1) of the New Order apply to cases where a corporation referred to in that paragraph submits the written application under that paragraph on or after the date specified in Article 1, item (iii) of the Supplementary Provisions, and the provisions then in force continue to govern cases where a corporation referred to in Article 74, paragraph (1) (Approval of Specified Retirement Allowance Mutual Aid Organizations) of the Former Order submitted the written application under that paragraph before that date.

The provisions then in force continue to govern the money prescribed in Article 83, paragraph (3) (Treatment in Cases Where Only a Part of Shares or Other Assets Is Delivered to Shareholders, Members, or Other Investors of the Splitting Corporation, etc.) of the Former Order pertaining to a company split by split-off prescribed in that paragraph that was carried out before the Effective Date.

The provisions of Article 83-2 (Calculation of Income Where There Is a Fraction of Less Than One Share in Shares Delivered Through a Merger, etc.) of the New Order apply to a merger, company split by split-off (meaning the company split by split-off prescribed in paragraph (4), item (iii) of that Article) or share exchange carried out on or after the Effective Date.

The provisions of Article 167-2 (Inclusion in Necessary Expenses of Contributions to Cover Specified Losses, etc.) of the New Order apply to contributions prescribed in Article 167-2 of the New Order that an individual pays on or after the date specified in Article 1, item (iii) (Effective Date) of the Supplementary Provisions, and the provisions then in force continue to govern contributions prescribed in Article 167-2 (Inclusion in Necessary Expenses of Contributions to Cover Specified Losses, etc.) of the Former Order that an individual paid before that date.

The provisions of Article 167-7, paragraph (5), items (iv) and (v) (Calculation, etc. of Acquisition Price of Shares, etc. Acquired Through Share Exchange, etc.) of the New Order apply to Securities listed in Article 167-7, paragraph (5), item (iv) or (v) of the New Order that an individual receives pursuant to a resolution to acquire prescribed in Article 57-4, paragraph (3), item (iii) (Special Provisions on Capital Gains Due to Share Exchange) of the New Act that is made on or after the Effective Date, and the provisions then in force continue to govern Securities listed in Article 167-7, paragraph (5), item (iv) or (v) (Calculation, etc. of Acquisition Price of Shares, etc. Acquired Through Share Exchange, etc.) of the Former Order that an individual received pursuant to a resolution to acquire prescribed in Article 57-4, paragraph (3), item (iii) (Special Provisions on Capital Gains Due to Share Exchange) of the Former Act that was made before the Effective Date.

①The provisions of Article 192 (Contracts for Construction Work) of the New Order apply to construction work prescribed in paragraph (1) of that Article that an individual commences on or after January 1, 2009 (excluding construction work under the transitional measures prescribed in Article 4, paragraph (2) (Transitional Measures regarding Periods to Which Revenue and Expenses Associated with Contracts for Construction Work Are Attributed) of the Supplementary Provisions of the Amending Act (hereinafter in this paragraph referred to as "construction work under the transitional measures")), and the provisions then in force continue to govern construction work prescribed in Article 192, paragraph (1) (Contracts for Construction Work) of the Former Order that an individual commenced before that date (including construction work under the transitional measures).

②The construction work specified by Cabinet Order as prescribed in Article 4, paragraph (2) of the Supplementary Provisions of the Amending Act is construction work prescribed in Article 66, paragraph (1) (Periods to Which Revenue and Expenses Associated with Contracts for Construction Work Are Attributed) of the New Act for which, on December 31, 2009 (if the individual dies in the middle of the year, at the time of the death), six months have not elapsed from the date of its commencement (including construction work for which the amount of consideration for the contract has not been determined), or for which the progress ratio prescribed in Article 192, paragraph (3) of the New Order is less than 20 percent.

③The provisions of Article 193 (Uncollected Amounts Under the Construction Progress Criteria Method) and Article 194, paragraph (1) (Periods to Which Revenue and Expenses Associated with Contracts for Construction Work Are Attributed in Case of Death) of the New Order apply to income tax for 2009 and subsequent years, and the provisions then in force continue to govern income tax for 2008 and earlier years.

①The provisions of Article 217, item (iii) (Scope of Corporations That Contribute Significantly to the Promotion of the Public Interest) of the New Order apply to specified donations prescribed in Article 78, paragraph (1) (Donation Deduction) of the New Act that an individual makes on or after the date specified in Article 1, item (iii) (Effective Date) of the Supplementary Provisions.

②In the case where an individual has made a donation to a former Civil Code corporation (meaning a corporation established pursuant to the provisions of Article 34 (Establishment of Public Interest Corporations) of the Civil Code (Act No. 89 of 1896) prior to its amendment by the provisions of Article 38 (Partial Amendment of the Civil Code) of the Act on the Arrangement of Related Acts upon the Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 50 of 2006; hereinafter in this paragraph referred to as the "Arrangement Act")) by the day before the transition registration date of that former Civil Code corporation (meaning the date of the registration under Article 106, paragraph (1) (Registration of Transition) of the Arrangement Act (including the case where it applies mutatis mutandis with replaced terms under Article 121, paragraph (1) (Mutatis Mutandis Application of Provisions on Authorization) of the Arrangement Act)), with regard to the money expended for that donation, the provisions of Article 217, paragraph (1), items (ii) and (iii) (Scope of Corporations That Contribute Significantly to the Promotion of the Public Interest) of the Former Order and paragraphs (2) and (3) of that Article remain in force. In this case, in Article 217, paragraph (1), item (ii) of the Former Order, the phrase "a corporation established pursuant to the provisions of Article 34 (Establishment of Public Interest Corporations) of the Civil Code (" is deemed to be replaced with "a corporation established pursuant to the provisions of Article 34 (Establishment of Public Interest Corporations) of the Civil Code prior to its amendment by the provisions of Article 38 (Partial Amendment of the Civil Code) of the Act on the Arrangement of Related Acts upon the Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 50 of 2006; hereinafter in this item referred to as the "Arrangement Act"), which continues to exist as a general incorporated association or general incorporated foundation pursuant to the provisions of Article 40, paragraph (1) (Continuation of Incorporated Associations and Incorporated Foundations) of the Arrangement Act, and which, among such corporations, has not completed the registration under Article 106, paragraph (1) (Registration of Transition) of the Arrangement Act (including the case where it applies mutatis mutandis with replaced terms under Article 121, paragraph (1) (Mutatis Mutandis Application of Provisions on Authorization) of the Arrangement Act) (excluding one whose authorization under Article 45 (Transition to Ordinary General Incorporated Association or General Incorporated Foundation) of the Arrangement Act has been rescinded pursuant to Article 131, paragraph (1) (Rescission of Authorization) of the Arrangement Act", the phrase "Article 53, paragraph (1)" in sub-item (e) of that item is deemed to be replaced with "Article 167, paragraph (1)", and the phrase "pursuant to the provisions of Article 84-2 (Handling of Affairs of Competent Authorities by Executive Organs of Prefectures) of the Civil Code and other laws and regulations, the" in item (iii) of that paragraph is deemed to be replaced with "the".

①The provisions of Article 290 (Agents, etc. Appointed by Nonresidents) of the New Order apply to domestic source income on or after April 1, 2008 listed in each item of Article 164, paragraph (1) and each item of paragraph (2) (How Nonresidents Are Taxed) of the New Act, and the provisions then in force continue to govern domestic source income before that date listed in each item of Article 164, paragraph (1) and each item of paragraph (2) (How Nonresidents Are Taxed) of the Former Act.

②In the case where a Nonresident who has domestic source income listed in Article 164, paragraph (1), item (iii) of the New Act that arose during the period from April 1, 2008 until before the Effective Date would, if the provisions of Article 290 (Agents, etc. Appointed by Nonresidents) of the Former Order were applied, fall under a Nonresident listed in Article 164, paragraph (1), item (iii) of the Former Act (limited to the case where the Nonresident does not fall under a Nonresident listed in Article 164, paragraph (1), item (iii) of the New Act pursuant to the provisions of Article 290 of the New Order), at the election of that Nonresident, notwithstanding the provisions of the preceding paragraph, the Nonresident may, for the period from April 1 of that year until before the Effective Date, treat the Nonresident as falling under a Nonresident listed in Article 164, paragraph (1), item (iii) of the New Act and calculate, with respect to that domestic source income, the tax base of income taxes imposed on aggregate income and the amount of income tax prescribed in Article 165 (Calculation of the Tax Base and Amount of Income Taxes Imposed on Aggregate Income) of the New Act pursuant to the provisions of that Article. In this case, where that Nonresident applies the provisions of that Article to that domestic source income, the Nonresident must apply the provisions of that Article to all of that domestic source income.

The corporation specified by Cabinet Order as prescribed in Article 8, paragraph (2) (Transitional Measures regarding the Scope of Public Corporations, etc.) of the Supplementary Provisions of the Amending Act is a corporation that, with regard to the retirement allowance mutual aid business it conducts, received the approval prescribed in Article 73, paragraph (1) (Requirements for Specified Retirement Allowance Mutual Aid Organizations) of the Former Order before the date specified in Article 1, item (iii) (Effective Date) of the Supplementary Provisions.