Supplementary Provisions

This Cabinet Order comes into effect on April 1, 2017; provided, however, that the provisions set out in the following items come into effect on the dates 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 income tax for 2017 and subsequent years, and the provisions then in force continue to govern income tax for 2016 and earlier years.

Where, on or after the date of enforcement of this Cabinet Order (hereinafter referred to as the "Effective Date"), an individual makes a transfer, prescribed in Article 17, paragraph (1) (Scope of Taxable Income of Non-Permanent Residents) of the New Order, of Securities for which the date of acquisition falls within the period prescribed in that paragraph pertaining to those Securities, and that date is before the Effective Date, those Securities are deemed to fall under the specified Securities prescribed in that paragraph, and the provisions of that Article apply.

①The provisions of Article 61, paragraph (1) (limited to the portion pertaining to item (x)) (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 the events listed in that item that occur on or after October 1, 2017.

②With regard to the application of Article 61, paragraph (4) of the New Order during the period from the Effective Date to September 30, 2017, the phrase "Article 2, item (xii)-5-2" in item (ix) of that paragraph is deemed to be replaced with "Article 2, item (xii)-6".

The provisions of Article 69, paragraph (1) (Calculation of Years of Service for the Retirement Income Deduction) of the New Order apply to the lump-sum retirement payment, etc. prescribed in item (ii) of that paragraph that is to be received on or after the Effective Date, and the provisions then in force continue to govern the lump-sum retirement payment, etc. prescribed in Article 69, paragraph (1), item (ii) (Calculation of Years of Service for the Retirement Income Deduction) of the Order for Enforcement of the Income Tax Act before the amendment (hereinafter referred to as the "Former Order") that is to be received before the Effective Date.

The provisions of Article 83 (Treatment Where Only Part of the Assets as a Consideration for a Split Are Delivered to the Shareholders, Members, or Other Investors of the Splitting Corporation) of the New Order apply to a split of a corporation that takes place on or after the Effective Date, and the provisions then in force continue to govern a split of a corporation that took place before the Effective Date.

①The provisions of Article 83-2, paragraph (3) (Calculation of Income Where There Is a Fraction of Less Than One in Shares Delivered Through a Merger, etc.) of the New Order apply to a share distribution prescribed in paragraph (5), item (vi) of that Article that takes place on or after the Effective Date.

②With regard to the application of Article 83-2, paragraph (5) of the New Order during the period from the Effective Date to September 30, 2017, the phrase "Article 2, item (xii)-5-2" in item (vii) of that paragraph is deemed to be replaced with "Article 2, item (xii)-6".

The provisions of Article 93 (Unavoidable Grounds Similar to Expropriation) of the New Order apply to the unavoidable grounds prescribed in that Article that arise on or after January 1, 2017, and the provisions then in force continue to govern the unavoidable grounds prescribed in Article 93 (Unavoidable Grounds Similar to Expropriation) of the Former Order that arose before that date.

The provisions of Article 113-2 (Acquisition Price of Shares, etc. Acquired Through a Share Distribution) of the New Order apply to a share distribution prescribed in paragraph (2) of that Article that takes place on or after the Effective Date.

The provisions of Article 132, paragraph (1) (Special Provisions on Depreciation Allowance for Depreciable Assets, etc. Put into Use for Business in the Middle of a Year) of the New Order apply to Depreciable Assets that an individual acquires on or after the Effective Date, and the provisions then in force continue to govern Depreciable Assets that an individual acquired before the Effective Date.

The provisions of Article 170, paragraph (5) (limited to the portion pertaining to item (x)-2) and paragraph (6) (Special Provisions on Capital Gains, etc. in the Case of Departure from Japan) of the New Order (including where these provisions are applied mutatis mutandis pursuant to Article 170-2, paragraphs (2) and (3) (Special Provisions on Capital Gains, etc. in the Case Where Assets Are Transferred to a Nonresident by a Gift or Similar Transfer) of the New Order) apply to a share distribution prescribed in Article 170, paragraph (5), item (x)-2 of the New Order that takes place on or after the Effective Date.

①The provisions of Article 281, paragraph (7) (limited to the portion pertaining to item (ii)) (Income Arising from the Transfer of Assets Located in Japan) of the New Order apply to a share distribution prescribed in item (ii) of that paragraph that takes place on or after the Effective Date.

②With regard to the application of Article 281, paragraph (7) (limited to the portion pertaining to item (ii)) of the New Order during the period from the Effective Date to September 30, 2017, the phrase "Article 2, item (xii)-5-2" in item (ii), (b) of that paragraph is deemed to be replaced with "Article 2, item (xii)-6".

The provisions of Article 345, paragraph (1) (limited to the portion pertaining to item (iii)) (Notice, etc. by a Person Receiving Delivered Money, etc.) of the New Order apply to a share distribution prescribed in item (iii) of that paragraph that takes place on or after the Effective Date.