Supplementary Provisions

This Cabinet Order comes into effect on January 1, 2016; provided, however, that the provisions set out in the following items come into effect on the dates specified respectively in those items:

The provisions of Article 55, paragraph (2) (Locality for Paying Over Withholding Tax) of the Order for Enforcement of the Income Tax Act after the amendment (hereinafter referred to as the "New Order") apply to cases where income tax required to be withheld prescribed in Article 17 (Locality for Paying Over Withholding Tax) of the Income Tax Act after the amendment under the provisions of Article 1 (Partial Amendment of the Income Tax Act) of the Act Partially Amending the Income Tax Act, etc. (Act No. 5 of 2013; hereinafter referred to as the "Amending Act") (the Income Tax Act as so amended being hereinafter referred to as the "New Act") and income tax required to be withheld prescribed in Article 17 (Locality for Paying Over Withholding Tax) of the Income Tax Act before the amendment under the provisions of Article 1 of the Amending Act are paid on or after June 1, 2013, and the provisions then in force continue to govern cases where income tax required to be withheld prescribed in that Article was paid before that date.

The provisions of Article 58, paragraph (1) (Revenue Pertaining to Distribution of Proceeds of Investment Trusts, etc.) of the New Order (limited to the portion pertaining to interest income) apply to the termination of the trust or cancellation of part of the trust contract of an Investment Trust, etc. prescribed in that paragraph that occurs on or after the date of enforcement of this Cabinet Order (hereinafter referred to as the "Effective Date").

The provisions of Article 119 (Acquisition Price of Shares or Public and Corporate Bonds Through Margin Transactions, etc.) of the New Order apply to cases where, on or after the Effective Date, the settlement of margin transactions or when-issued transactions prescribed in that Article, or of transactions listed in Article 28, paragraph (8), item (iii), (a) (General Provisions) of the Financial Instruments and Exchange Act (Act No. 25 of 1948), is carried out through the sale and purchase of public and corporate bonds.

①In the case where there is an amount of Net Loss prescribed in Article 2, paragraph (1), item (xxv) (Definitions) of the New Act that arose in 2015 and Article 140, paragraph (5) (Claim to Be Issued a Refund Based on Carryback of Net Loss) or Article 141, paragraph (4) (Claim by an Heir to Be Issued a Refund Based on Carryback of Net Loss) of the New Act (including where these provisions are applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the New Act) applies, with regard to the application of the provisions of Article 272, paragraph (2) (Events Equivalent to Discontinuation of Business, etc.) of the New Order, the phrase "Part II, Chapter III, Section 1 (Tax Rates) of the Act" in that paragraph is deemed to be replaced with "Part II, Chapter III, Section 1 (Tax Rates) of the Act before the amendment under the provisions of Article 1 (Partial Amendment of the Income Tax Act) of the Act Partially Amending the Income Tax Act, etc. (Act No. 5 of 2013; hereinafter referred to as the "Amending Act")", the phrase "those Articles" is deemed to be replaced with "Article 140, paragraph (5) or Article 141, paragraph (4) of the Act", and the phrase "the preceding Article" is deemed to be replaced with "Article 6 (Special Provisions on Refunds by Carryback of a Net Loss for 2015) of the Supplementary Provisions of the Amending Act and the preceding Article".

②The required particulars of the claim for a refund under Article 142, paragraph (1) (Procedures for Issuing Refunds Based on Carryback of Net Loss) of the New Act in the case where the provisions of Article 6 (Special Provisions on Refunds by Carryback of a Net Loss for 2015) of the Supplementary Provisions of the Amending Act or the provisions of the preceding paragraph apply are specified by Ministry of Finance Order.

①The provisions of Article 336, paragraph (5) (Notice by a Person Receiving Interest, Dividends, etc. on Deposits and Savings, Shares, etc.) of the New Order apply to interest and similar income or dividends and similar income prescribed in paragraph (1) of that Article for which payment is determined on or after the Effective Date, and the provisions then in force continue to govern interest and similar income or dividends and similar income prescribed in Article 336, paragraph (1) (Notice by a Person Receiving Interest, Dividends, etc. on Deposits and Savings, Shares, etc.) of the Order for Enforcement of the Income Tax Act before the amendment (hereinafter referred to as the "Former Order") for which payment was determined before the Effective Date.

②In the case where an individual who, on December 31, 2015, holds specified public and corporate bonds, etc. (meaning the following public and corporate bonds or beneficial interests; the same applies hereinafter) other than bearer ones has, by the date on which payment of interest and similar income on those specified public and corporate bonds, etc. (meaning interest and similar income prescribed in Article 23, paragraph (1) (Interest Income) of the New Act or dividends and similar income prescribed in Article 24, paragraph (1) (Dividend Income) of the New Act; the same applies hereinafter in this paragraph and paragraph (3) of the following Article) is first determined on or after the Effective Date, given to the head of the business office of a financial institution or other such place prescribed in Article 336, paragraph (2), item (i) of the New Order pertaining to the interest and similar income on those specified public and corporate bonds, etc. the notice under paragraph (1) of that Article or a notice equivalent to that notice, or has given before the Effective Date a notice equivalent to a notice in the cases set out in the items of paragraph (2) of that Article, those cases are deemed to fall under the case set out in item (i) of that paragraph, and the interest and similar income on those specified public and corporate bonds, etc. is deemed to be the interest and similar income or dividends and similar income specified in that item, respectively, and the provisions of that Article and Article 346, paragraph (4) (Notice, etc. by a Person Receiving Redemption Money or a Similar Asset) of the New Order apply.

①The provisions of Article 339, paragraph (7) (Submission, etc. of Paper-Based Notice, etc. Concerning Interest and Similar Income from Bearer Public and Corporate Bonds) of the New Order apply to interest and similar income from bearer public and corporate bonds, etc. prescribed in paragraph (1) of that Article that is received on or after the Effective Date, and the provisions then in force continue to govern interest and similar income from bearer public and corporate bonds, etc. prescribed in Article 339, paragraph (1) (Submission, etc. of Paper-Based Notice, etc. Concerning Interest and Similar Income from Bearer Public and Corporate Bonds) of the Former Order that was received before the Effective Date.

②In the case where an individual who, on December 31, 2015, has entrusted bearer specified public and corporate bonds, etc. to the custody of the business office of a financial institution or other such place prescribed in Article 339, paragraph (3) of the New Order (hereinafter in this Article referred to as the "business office of a financial institution or other such place") has, when concluding the contract pertaining to that custody (including a custody intermediation contract prescribed in that paragraph (hereinafter in this Article referred to as a "custody intermediation contract"); the same applies hereinafter in this Article) or during the period from the date of that conclusion until December 31 of that year, given to the head of the business office of a financial institution or other such place (where that custody pertains to a custody intermediation contract, the head of the business office of a financial institution or other such place specified by Ministry of Finance Order prescribed in that paragraph that intermediated the custody of those specified public and corporate bonds, etc. pursuant to that custody intermediation contract; the same applies hereinafter in this paragraph) a notice equivalent to the notice under Article 336, paragraph (1) or (3) (Notice by a Person Receiving Interest, Dividends, etc. on Deposits and Savings, Shares, etc.) of the New Order (limited to the case where the head of that business office of a financial institution or other such place maintains a book equivalent to the book of Article 339, paragraph (6) of the New Order in which the matters prescribed in that paragraph are entered or recorded), the contract pertaining to that custody is deemed to have been concluded on the date on which that notice was given, the giving of that notice is deemed to be the submission of the paper-based notice prescribed in Article 339, paragraph (3) of the New Order at the time of that conclusion, and that book is deemed to be the book of paragraph (6) of that Article, and the provisions of that Article and Article 346, paragraph (4) (Notice, etc. by a Person Receiving Redemption Money or a Similar Asset) of the New Order apply.

③In the case where an individual who, on December 31, 2015, has entrusted bearer specified public and corporate bonds, etc. (excluding those to which the provisions of the preceding paragraph apply) to the custody of the business office of a financial institution or other such place has, during the period from the Effective Date until the date on which the individual first receives, on or after the Effective Date, payment of interest and similar income on those specified public and corporate bonds, etc. in that custody, entered the matters specified by Ministry of Finance Order prescribed in Article 339, paragraph (3) of the New Order on the paper-based notice prescribed in paragraph (1) of that Article, and submitted it to the head of that business office of a financial institution or other such place (where that custody pertains to a custody intermediation contract, the head of the business office of a financial institution or other such place specified by Ministry of Finance Order prescribed in paragraph (3) of that Article that intermediated the custody of those specified public and corporate bonds, etc. pursuant to that custody intermediation contract), the contract pertaining to that custody is deemed to have been concluded on the date of that submission, and that paper-based notice is deemed to be the paper-based notice of paragraph (3) of that Article submitted at the time of that conclusion, and the provisions of that Article and Article 346, paragraph (4) of the New Order apply.

①In the case where a person who, on December 31, 2015, has had the following beneficial interests or public and corporate bonds (hereinafter referred to as "public and corporate bonds, etc.") entered or recorded, at the business office (meaning a business office or an office; the same applies hereinafter) of a financial instruments business operator or registered financial institution prescribed in Article 224-3, paragraph (1), item (ii) (Notice by a Person Receiving the Consideration for the Transfer of Shares, etc.) of the New Act (hereinafter referred to as a "financial instruments business operator or similar institution"), in the transfer account book of that financial instruments business operator or similar institution prescribed in the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001), or has entrusted them to its custody there, has, by the date on which the person first receives, on or after the Effective Date, payment (including the delivery prescribed in paragraph (4) of that Article; the same applies hereinafter) of the consideration for the transfer of those public and corporate bonds, etc. (including redemption money or a similar asset prescribed in paragraph (4) of that Article; the same applies hereinafter), given to the head of the business office of the financial instruments business operator or similar institution a notice equivalent to the notice under the items of Article 342, paragraph (2) (Notice by a Person Receiving the Consideration for the Transfer of Shares, etc.) of the New Order, this case is deemed to be a case where the notice under item (ii) of that paragraph has been given, and the consideration for the transfer of those public and corporate bonds, etc. is deemed to be the consideration for the transfer specified in that item, respectively, and the provisions of that Article apply.

②In the case where a person who, on December 31, 2015, holds public and corporate bonds, etc. receives payment of the consideration for the transfer of public and corporate bonds, etc. on or after the Effective Date, if the payer of that consideration prescribed in Article 224-3, paragraph (1) of the New Act has, as provided by Ministry of Finance Order, a book in which the name or title, domicile, and other matters of the person receiving the payment are entered (limited to one prepared upon the presentation by that person, before the Effective Date, of any of the documents provided for in the items of Article 337, paragraph (2) (Presentation of a Copy of Certificate of Residence and Other Documents in Connection with Notice) of the Former Order), that book is deemed to be the book of Article 343, paragraph (3) (Presentation of a Copy of Certificate of Residence and Other Documents in Connection with Notice by a Person Receiving the Consideration for the Transfer of Shares, etc.) of the New Order, and the provisions of that paragraph apply.