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 by Article 1 (hereinafter referred to as the "New Order") apply to income tax for 2011 and subsequent years, and the provisions then in force continue to govern income tax for 2010 and earlier years.

The provisions of Article 20-2 (Commutation Allowances Treated as Nontaxable) of the New Order apply to commutation allowances prescribed in that Article that are to be received on or after January 1, 2012 (excluding those paid additionally as the difference of those commutation allowances to be received before that date), and the provisions then in force continue to govern commutation allowances prescribed in Article 20-2 (Commutation Allowances Treated as Nontaxable) of the Order for Enforcement of the Income Tax Act prior to amendment by Article 1 (hereinafter referred to as the "Former Order") that are to be received before that date (including those commutation allowances to be received on or after that date that are paid additionally as the difference of those to be received before that date).

①The provisions of Article 130 (Shortening of Useful Life) of the New Order apply to the calculation of depreciation allowances prescribed in paragraph (1) of that Article for Depreciable Assets pertaining to the approval where an individual receives the approval under that paragraph for any year on or after 2012, and the provisions then in force continue to govern the calculation, where an individual received the approval under Article 130, paragraph (1) (Shortening of Useful Life) of the Former Order for any year on or before 2011, of depreciation allowances prescribed in that paragraph for Depreciable Assets pertaining to that approval.

②The provisions then in force continue to govern the calculation, where an individual received the approval under Article 133-2, paragraph (1) (Special Provisions on Depreciation Allowances for Obsolete Depreciable Assets) of the Former Order for any year on or before 2011, of depreciation allowances prescribed in that paragraph for Depreciable Assets pertaining to that approval.

The provisions of Article 183, paragraph (4) (limited to the part pertaining to item (iii)) (Insurance Premiums, etc. Deducted in the Calculation of the Amount of Miscellaneous Income Pertaining to Annuities Based on Life Insurance Contracts, etc.) of the New Order (including the case where they apply mutatis mutandis under Article 185, paragraph (4) (Calculation of the Amount of Miscellaneous Income Pertaining to Annuities Based on Life Insurance Contracts, etc. Pertaining to Inheritance, etc.) of the New Order) apply to insurance premiums or installments pertaining to an annuity prescribed in Article 183, paragraph (1) of the New Order or a lump sum payment prescribed in paragraph (2) of that Article, based on a life insurance contract, etc. prescribed in paragraph (3) of that Article, that an individual is to receive payment of on or after the day on which this Cabinet Order comes into effect (hereinafter referred to as the "Effective Date").

The provisions of Article 184, paragraph (3) (Insurance Premiums, etc. Deducted in the Calculation of the Amount of Miscellaneous Income Pertaining to Annuities Based on Casualty Insurance Policies or Similar Contracts) of the New Order (including the case where they apply mutatis mutandis under Article 186, paragraph (3) (Calculation of the Amount of Miscellaneous Income Pertaining to Annuities Based on Casualty Insurance Policies or Similar Contracts Pertaining to Inheritance, etc.) of the New Order) apply to insurance premiums or installments pertaining to an annuity based on a casualty insurance policy or similar contract prescribed in Article 184, paragraph (1) of the New Order, or a maturity refund, etc. prescribed in paragraph (4) of that Article based on a casualty insurance policy or similar contract prescribed in paragraph (2) of that Article, that an individual is to receive payment of on or after the Effective Date, and the provisions then in force continue to govern insurance premiums or installments pertaining to an annuity based on a casualty insurance policy or similar contract prescribed in Article 184, paragraph (1) (Insurance Premiums, etc. Deducted in the Calculation of the Amount of Miscellaneous Income Pertaining to Annuities Based on Casualty Insurance Policies or Similar Contracts) of the Former Order, or a maturity refund, etc. prescribed in paragraph (4) of that Article based on a casualty insurance policy or similar contract prescribed in paragraph (2) of that Article, that an individual is to receive payment of before the Effective Date.

The provisions of Article 221, paragraph (3) (Scope of Foreign Income Tax) of the New Order apply to foreign income tax prescribed in paragraph (1) of that Article that a Resident is to pay on or after the Effective Date, and the provisions then in force continue to govern foreign income tax prescribed in Article 221, paragraph (1) (Scope of Foreign Income Tax) of the Former Order that a Resident was to pay before the Effective Date.

The provisions of Article 326, paragraph (3) (Withholding on Annuities Based on Life Insurance Contracts, etc.) of the New Order apply to annuities prescribed in Article 207 (Obligation to Withhold Taxes) 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. to Improve the Tax System in Response to the Current Severe Economic Situation and Employment Conditions (Act No. 82 of 2011; hereinafter in this Article referred to as the "Amending Act") that are payable on or after the Effective Date, and the provisions then in force continue to govern annuities prescribed in Article 207 (Obligation to Withhold Taxes) of the Income Tax Act prior to amendment by the provisions of Article 1 of the Amending Act that are payable before the Effective Date.