①Notwithstanding the preceding Article, if a tax treaty (meaning a treaty as prescribed in the proviso to Article 2, paragraph (1), item (viii)-4 (Definitions); hereinafter the same applies in this Article) contains provisions on domestic source income which differ from the provisions of the preceding Article, the domestic source income of a person subject to that tax treaty is governed by that tax treaty, to the extent of the differing provisions. In such a case, if the tax treaty contains provisions on domestic source income that replace the provisions of items (vi) through (xvi) of paragraph (1) of that Article, income that the tax treaty treats as domestic source income is deemed to correspond to domestic source income set forth in those items as regards the application of the parts of this Act that involve the particulars prescribed in those items.

②If, in calculating the income set forth in paragraph (1), item (i) of the preceding Article of a Nonresident with a permanent establishment, a tax treaty applies (limited to one providing that tax may be imposed on the Nonresident's income set forth in that item, and excluding one providing that income arises from an internal dealing as prescribed in that item between the permanent establishment of the Nonresident and a place of business or similar place), the internal dealings prescribed in that item are not to include any fact equivalent to the payment of interest (including anything prescribed by Cabinet Order as equivalent thereto) between the permanent establishment of the Nonresident and a place of business or similar place, or any other fact prescribed by Cabinet Order.