The provisions of Article 167-3, paragraph (5) (Scope of Specific Expenses of Salary Income Earners) and Article 167-5 (Documents Certifying the Payment, etc. of Specific Expenses) of the New Order apply to income tax for tax year 2020 and subsequent years, and the provisions then in force continue to govern income tax for tax year 2019 and earlier years.

The provisions of Article 112, paragraph (2) (Acquisition Price of Shares, etc. Acquired Through a Merger) and Article 113, paragraph (2) (Acquisition Price of Shares, etc. Acquired Through a Company Split by Split-Off) of the New Order, as applied by reading replaced pursuant to the provisions of Article 170, paragraph (6) (Special Provisions on Capital Gains upon Departure from Japan) of the New Order (including where applied mutatis mutandis pursuant to Article 170-2, paragraph (3) (Special Provisions on Capital Gains upon Transfer of Assets to a Nonresident by Gift or Similar Transfer) of the New Order), apply to a merger without consideration prescribed in Article 112, paragraph (2) of the New Order and a company split by split-off without consideration prescribed in Article 113, paragraph (2) of the New Order that are carried out on or after the Effective Date, and the provisions then in force continue to govern a merger without consideration prescribed in Article 112, paragraph (2) (Acquisition Price of Shares, etc. Acquired Through a Merger) of the Former Order and a company split by split-off without consideration prescribed in Article 113, paragraph (2) (Acquisition Price of Shares, etc. Acquired Through a Company Split by Split-Off) of the Former Order that were carried out before the Effective Date.

①The provisions of Article 182-2, paragraph (6) (Inclusion in Necessary Expenses of Non-Deductible Consumption Tax Amounts, etc. Pertaining to Assets) of the New Order apply to taxable purchases prescribed in Article 2, paragraph (1), item (xii) (Definitions) of the Consumption Tax Act (Act No. 108 of 1988) that an individual makes on or after October 1, 2023 and taxable goods prescribed in item (xi) of that paragraph that an individual takes delivery of on or after that date from a bonded area prescribed in item (ii) of that paragraph, and the provisions then in force continue to govern taxable purchases prescribed in item (xii) of that paragraph that an individual made before that date and taxable goods prescribed in item (xi) of that paragraph that an individual took delivery of before that date from a bonded area prescribed in item (ii) of that paragraph.

②With regard to the application of the provisions of Article 182-2 of the New Order to taxable purchases prescribed in Article 2, paragraph (1), item (xii) of the Consumption Tax Act that an individual makes during the period from October 1, 2019 through September 30, 2023 and taxable goods prescribed in item (xi) of that paragraph that an individual takes delivery of during the period from October 1, 2019 through September 30, 2023 from a bonded area prescribed in item (ii) of that paragraph, the phrase "2.2 percent" in Article 182-2, paragraph (6) of the New Order is deemed to be replaced with "2.2 percent (1.76 percent where the taxable purchase prescribed in Article 2, paragraph (1), item (xii) of the Consumption Tax Act pertaining to that amount of tax on taxable purchases, etc. pertains to a 2019 reduced-rate transfer, etc. of assets prescribed in Article 34, paragraph (1) (Transitional Measures Concerning Tax Rates, etc. for 2019 Reduced-Rate Transfers, etc. of Assets) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016; hereinafter referred to as the "2016 Amendment Act" in this paragraph) received from another person, and where the taxable goods prescribed in item (xi) of that paragraph pertaining to that amount of tax on taxable purchases, etc. fall under the food and beverages prescribed in Article 34, paragraph (1), item (i) of the Supplementary Provisions of the 2016 Amendment Act)", and the phrase "that Act" is deemed to be replaced with "the Consumption Tax Act".

③With regard to the application of the provisions of Article 182-2 of the New Order to income tax for a year for which an individual is subject to the application of the provisions of Article 52, paragraph (1) (Transitional Measures Concerning Tax Credit for Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016; hereinafter referred to as the "2016 Amendment Act" in the following paragraph) (including where applied by reading replaced pursuant to the provisions of Article 22, paragraph (3) or (4) (Transitional Measures Concerning the Calculation of Consumption Tax on Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the Cabinet Order Partially Amending the Order for Enforcement of the Consumption Tax Act, etc. (Cabinet Order No. 135 of 2018; hereinafter referred to as the "2018 Amending Order" in the following paragraph)), the phrase "Article 30, paragraph (2)" in Article 182-2, paragraph (5) of the New Order is deemed to be replaced with "Article 30, paragraph (2) (including where applied as deemed pursuant to the provisions of Article 52, paragraph (1) (Transitional Measures Concerning Tax Credit for Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016; hereinafter referred to as the "2016 Amendment Act" in this paragraph) (including where applied by reading replaced pursuant to the provisions of Article 22, paragraph (3) or (4) (Transitional Measures Concerning the Calculation of Consumption Tax on Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the Cabinet Order Partially Amending the Order for Enforcement of the Consumption Tax Act, etc. (Cabinet Order No. 135 of 2018; hereinafter referred to as the "2018 Amending Order" in the following paragraph); the same applies hereinafter in this paragraph); the same applies in the following paragraph)", the phrase "paragraph (1) of that Article" with "Article 30, paragraph (1) of the Consumption Tax Act (including where applied as deemed pursuant to the provisions of Article 52, paragraph (1) of the Supplementary Provisions of the 2016 Amendment Act; the same applies in the following paragraph)", and, in Article 182-2, paragraph (6) of the New Order, the phrase "1.76 percent where the taxable purchase prescribed in Article 2, paragraph (1), item (xii) of that Act pertaining to that amount of tax on taxable purchases, etc. pertains to a taxable transfer, etc. of assets subject to the reduced rate prescribed in item (ix)-2 of that paragraph received from another person, and where the taxable goods prescribed in item (xi) of that paragraph pertaining to that amount of tax on taxable purchases, etc. fall under taxable goods subject to the reduced rate prescribed in item (xi)-2 of that paragraph" with "1.76 percent where the taxable purchase prescribed in Article 2, paragraph (1), item (xii) of that Act pertaining to that amount of tax on taxable purchases, etc. pertains to a taxable transfer, etc. of assets subject to the reduced rate prescribed in item (ix)-2 of that paragraph received from another person, and where the taxable goods prescribed in item (xi) of that paragraph pertaining to that amount of tax on taxable purchases, etc. fall under taxable goods subject to the reduced rate prescribed in item (xi)-2 of that paragraph, 1 percent where the taxable purchase prescribed in item (xii) of that paragraph pertaining to that amount of tax on taxable purchases, etc. pertains to a transfer, etc. of assets under the 2014 transitional measures prescribed in Article 7, paragraph (2) (Transitional Measures Concerning the Calculation of Consumption Tax on Taxable Purchases Pertaining to Taxable Transfers, etc. of Assets to Which the Former Tax Rate Applied) of the Supplementary Provisions of the 2018 Amending Order received from another person, and 1.7 percent where the taxable purchase prescribed in that item pertaining to that amount of tax on taxable purchases, etc. pertains to a transfer, etc. of assets under the 2019 transitional measures prescribed in paragraph (3) of that Article received from another person".

④With regard to the application of the provisions of Article 182-2 of the New Order to income tax for a year for which an individual is subject to the application of the provisions of Article 53, paragraph (1) (Transitional Measures Concerning Tax Credit for Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the 2016 Amendment Act (including where applied by reading replaced pursuant to the provisions of Article 23, paragraph (3) or (4) (Transitional Measures Concerning the Calculation of Consumption Tax on Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the 2018 Amending Order), the phrase "Article 30, paragraph (2)" in Article 182-2, paragraph (5) of the New Order is deemed to be replaced with "Article 30, paragraph (2) (including where applied as deemed pursuant to the provisions of Article 53, paragraph (1) (Transitional Measures Concerning Tax Credit for Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016; hereinafter referred to as the "2016 Amendment Act" in this paragraph) (including where applied by reading replaced pursuant to the provisions of Article 23, paragraph (3) or (4) (Transitional Measures Concerning the Calculation of Consumption Tax on Taxable Purchases Made from Persons Other Than Qualified Invoice Issuers) of the Supplementary Provisions of the Cabinet Order Partially Amending the Order for Enforcement of the Consumption Tax Act, etc. (Cabinet Order No. 135 of 2018; hereinafter referred to as the "2018 Amending Order" in the following paragraph); the same applies hereinafter in this paragraph); the same applies in the following paragraph)", the phrase "paragraph (1) of that Article" with "Article 30, paragraph (1) of the Consumption Tax Act (including where applied as deemed pursuant to the provisions of Article 53, paragraph (1) of the Supplementary Provisions of the 2016 Amendment Act; the same applies in the following paragraph)", and, in Article 182-2, paragraph (6) of the New Order, the phrase "1.76 percent where the taxable purchase prescribed in Article 2, paragraph (1), item (xii) of that Act pertaining to that amount of tax on taxable purchases, etc. pertains to a taxable transfer, etc. of assets subject to the reduced rate prescribed in item (ix)-2 of that paragraph received from another person, and where the taxable goods prescribed in item (xi) of that paragraph pertaining to that amount of tax on taxable purchases, etc. fall under taxable goods subject to the reduced rate prescribed in item (xi)-2 of that paragraph" with "1.76 percent where the taxable purchase prescribed in Article 2, paragraph (1), item (xii) of that Act pertaining to that amount of tax on taxable purchases, etc. pertains to a taxable transfer, etc. of assets subject to the reduced rate prescribed in item (ix)-2 of that paragraph received from another person, and where the taxable goods prescribed in item (xi) of that paragraph pertaining to that amount of tax on taxable purchases, etc. fall under taxable goods subject to the reduced rate prescribed in item (xi)-2 of that paragraph, 1 percent where the taxable purchase prescribed in item (xii) of that paragraph pertaining to that amount of tax on taxable purchases, etc. pertains to a transfer, etc. of assets under the 2014 transitional measures prescribed in Article 7, paragraph (2) (Transitional Measures Concerning the Calculation of Consumption Tax on Taxable Purchases Pertaining to Taxable Transfers, etc. of Assets to Which the Former Tax Rate Applied) of the Supplementary Provisions of the 2018 Amending Order received from another person, and 1.7 percent where the taxable purchase prescribed in that item pertaining to that amount of tax on taxable purchases, etc. pertains to a transfer, etc. of assets under the 2019 transitional measures prescribed in paragraph (3) of that Article received from another person".

①The provisions of Articles 188 through 191 (Timing for Attributing Revenue and Expenses Pertaining to Sale on Deferred Payment Terms) of the Former Order (excluding the provisions of Article 188, paragraphs (2) and (3), Article 189, and Article 191, paragraphs (5) through (8) of the Former Order) and Article 292, paragraph (1) (limited to the part pertaining to item (xii)) (Calculation of the Tax Base, etc. of Income Taxes Imposed on Aggregate Income on Income Attributable to a Permanent Establishment) of the Former Order, which are based on the provisions of Article 65 (Timing for Attributing Revenue and Expenses Pertaining to Sale on Deferred Payment Terms) of the Former Act (including where calculated in accordance with Article 165, paragraph (1) (Calculation of the Tax Base, Tax Amount, etc. of Income Taxes Imposed on Aggregate Income) of the Former Act; the same applies hereinafter in this Article) that remains in force pursuant to the provisions of Article 8, paragraph (1) (Transitional Measures Concerning the Timing for Attributing Revenue and Expenses from Transfers under a Lease) of the Supplementary Provisions of the Amending Act, remain in force.

②With regard to the application of the provisions of Article 19 (Special Provisions on Taxation of Business Income, etc. Pertaining to Transfers, etc. of Land) of the Order for Enforcement of the Act on Special Measures Concerning Taxation where the provisions of Article 65 of the Former Act that remain in force pursuant to the provisions of Article 8, paragraph (1) of the Supplementary Provisions of the Amending Act apply, the phrase "or paragraph (2)" in Article 19, paragraph (4) of that Order is deemed to be replaced with "or paragraph (2), or Article 65, paragraph (1) of the Income Tax Act prior to its amendment by the provisions of Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 7 of 2018) that remains in force pursuant to the provisions of Article 8, paragraph (1) of the Supplementary Provisions of that Act (hereinafter referred to as the "Former Income Tax Act Remaining in Force" in this paragraph)", and the phrase "of that Article" is deemed to be replaced with "of Article 65 of the Income Tax Act or Article 65 of the Former Income Tax Act Remaining in Force".

③Where an individual, before the Effective Date, enters into a contract for a specified sale of assets prescribed in Article 8, paragraph (1) of the Supplementary Provisions of the Amending Act (hereinafter referred to as a "specified sale of assets" in this paragraph and paragraph (6)) that falls under a sale on deferred payment terms prescribed in Article 65, paragraph (3) of the Former Act (referred to as a "sale on deferred payment terms" in paragraph (6)), and delivers or provides the subject matter or services pertaining to that specified sale of assets on or after the Effective Date, then for the purpose of applying the provisions of Article 8, paragraph (1) of the Supplementary Provisions of the Amending Act, that specified sale of assets is deemed to have been carried out before the Effective Date.

④Where an individual who is subject to the application of the provisions of Article 8, paragraph (3) of the Supplementary Provisions of the Amending Act dies and an heir succeeds to that individual's business, in calculating the amount of business income of that heir for each year on or after the year that includes the date of that death, the provisions of Article 8, paragraph (3) of the Supplementary Provisions of the Amending Act apply by deeming the entry made by that individual under paragraph (4) of that Article to have been made by that heir. In this case, for the application of the provisions of paragraph (3) of that Article to that heir for the years set forth in the following items, the provisions of the relevant item govern.

⑤The number of months referred to in the preceding paragraph is calculated according to the calendar, and where a fraction of less than one month arises, it is discarded.

⑥Where an individual who is subject to the application of the provisions of the main clause of Article 65, paragraph (1) of the Former Act that remain in force pursuant to the provisions of Article 8, paragraph (1) of the Supplementary Provisions of the Amending Act with regard to the revenue and expenses pertaining to a specified sale of assets that falls under a sale on deferred payment terms dies, and an heir succeeds to that individual's business and was not subject to the application of the provisions of the main clause of Article 65, paragraph (1) of the Former Act with regard to the revenue and expenses pertaining to that specified sale of assets, the provisions of Article 8, paragraphs (2) and (3) of the Supplementary Provisions of the Amending Act apply by deeming that heir (excluding one who falls under the individual prescribed in Article 8, paragraphs (2) and (3) of the Supplementary Provisions of the Amending Act) to be the individual prescribed in those provisions. In this case, where that heir has accounted for the revenue and expenses pertaining to that specified sale of assets by the deferred payment basis method prescribed in paragraph (2), item (i) of that Article in each year from 2018 through 2023, that heir is deemed not to have accounted for them by the deferred payment basis method prescribed in that item.