Supplementary Provisions

This Act comes into effect on April 1, 1971; provided, however, that the provisions amending Article 3, paragraph (1) and Article 10 come into effect on January 1, 1972.

Except as otherwise provided in these Supplementary Provisions, the provisions of the Income Tax Act as amended (hereinafter referred to as "the New Act") apply to income tax for 1971 and subsequent years, and the provisions then in force continue to govern income tax for 1970 and earlier years.

①The provisions of Article 10 (Nontaxability of Interest Income and Similar Income from Small Deposits) of the New Act apply to Deposits and Savings, Jointly Managed Trusts, or Securities as prescribed in paragraph (1) of that Article that are deposited, entrusted, or purchased on or after January 1, 1972.

②If a Resident holds Deposits and Savings, Jointly Managed Trusts, or Securities as prescribed in Article 10, paragraph (1) of the Income Tax Act before the amendment (hereinafter referred to as "the Former Act") which were deposited, entrusted, or purchased before January 1, 1972 and which satisfy the requirements prescribed in that Article as of that date, the provisions of Article 10 of the New Act apply by deeming those Deposits and Savings, Jointly Managed Trusts, or Securities to have been deposited, entrusted, or purchased by that person on that date in accordance with the requirements of that Article.

①With regard to a Resident's income tax for 1971, the tax prepayment calculation base prescribed in Article 104, paragraph (1) (Making Tax Prepayments) of the New Act (hereinafter referred to as the "tax prepayment calculation base") is to be, except in the case where the provisions of the following paragraph apply, the amount calculated by multiplying the amount set forth in item (i) by the rate set forth in item (ii):

②The tax prepayment calculation base for income tax for 1971 of a Resident whose taxable aggregate income and similar amount for 1970 is 80 million yen or more is to be the amount arrived at when 580,000 yen is deducted from the amount set forth in item (i) of the preceding paragraph for that person.

③The calculation of the tax prepayment calculation base for 1971 in the case where Article 97, paragraph (1) (Amount of Tax If There Are Household Members Subject to Aggregation) of the Former Act was applied to income tax for 1970 is specified by Cabinet Order.

④The tax prepayment calculation base for income tax for 1971 of a Nonresident is as calculated in accordance with the provisions of the preceding three paragraphs.

The provisions of Article 138, paragraph (4) (Refund of Tax Withheld and Other Amounts) and Article 159, paragraph (5) (Refund of Tax Withheld and Other Amounts Based on Reassessment or Determination) of the New Act apply in the case where the Appropriation prescribed in those provisions is made on or after the date on which this Act comes into effect (hereinafter referred to as "the Effective Date").

The provisions of Article 176, paragraphs (2) and (3) (Special Provisions on Taxation of Interest and Similar Income from Trust Property) of the New Act apply to distributions of profits prescribed in paragraph (2) of that Article that are payable on or after the Effective Date, and the provisions then in force continue to govern such distributions of profits that are payable before that date.

①The provisions of Part IV, Chapter II, Section 1 (Obligation to Withhold Taxes from Salary Income and Amount Withheld) of the New Act and Appended Tables 4 through 6 of the New Act apply to salary or other wage payable on or after the Effective Date, and the provisions then in force continue to govern salary or other wage payable before that date.

②The provisions of Article 204, paragraph (1), item (i) (Obligation to Withhold Taxes from Remuneration and Fees) of the New Act apply to the remuneration or fees set forth in that item that are payable on or after the Effective Date, and the provisions then in force continue to govern such remuneration or fees payable before that date.

③The provisions of Part IV, Chapter V (Withholding from Income of Nonresidents or Corporations) of the New Act concerning the royalties or consideration set forth in Article 161, item (vii), (b) (Domestic Source Income) of the New Act apply to such royalties or consideration payable on or after the Effective Date, and the provisions then in force continue to govern such royalties or consideration payable before that date.

①The provisions of Article 225, paragraph (1), item (i) (Payment Reports) of the New Act (limited to the part concerning interest on bonds issued by a foreign government, a foreign local government, an international organization, or a Foreign Corporation) apply to interest on such bonds paid on or after the Effective Date.

②The provisions of Article 225, paragraph (1), item (iii) or item (vii) of the New Act (limited to the part concerning royalties or consideration set forth in Article 161, item (vii), (b) (Domestic Source Income) of the New Act or royalties for copyrights (including neighboring rights) prescribed in Article 204, paragraph (1), item (i) (Obligation to Withhold Taxes from Remuneration and Fees)) apply to such royalties or consideration payable on or after the Effective Date, and the provisions then in force continue to govern such royalties or consideration payable before that date.

The provisions of Article 233 (Public Notice of Returns) of the New Act apply in the case where public notice under that Article is given on or after the Effective Date.

①A person who, before the Effective Date, filed a return under Article 127 (Filing a Tax Return in the Case of Absence From Japan Partway Through the Year) of the Former Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the Former Act) with regard to income tax for 1971, and a person who, before that date, received a determination under Article 25 (Determination) of the Act on General Rules for National Taxes (Act No. 66 of 1962) with regard to income tax for that year, may, if the application of the provisions of the New Act results in a change to the matters stated in that return or the matters pertaining to that determination (or, if a Reassessment under Article 24 (Reassessment) or Article 26 (Reassessment of Previous Reassessment) of that Act was made with respect to those matters before that date, the matters as they stand after that Reassessment), file a request for Reassessment under Article 23, paragraph (1) (Request for Reassessment) of the Act on General Rules for National Taxes with the district director by March 31, 1972, with respect to the matters to which that change applies.

②If a Reassessment under Article 24 or Article 26 of the Act on General Rules for National Taxes is made based on a request for Reassessment under the preceding paragraph, when calculating the interest on refund prescribed in Article 58, paragraph (1) (Interest on Refund) of the Act on General Rules for National Taxes for a refund under Article 159, paragraph (2) (Refund of Tax Withheld and Other Amounts Based on Reassessment or Determination) of the New Act (including as applied mutatis mutandis pursuant to Article 168 (Application Mutatis Mutandis to Nonresidents) of the New Act), the period under that paragraph that forms the basis for that calculation is the period from the Effective Date until the day of the decision to pay the refund or the day on which Appropriation of the refund under Article 57, paragraph (1) (Appropriation) of that Act is made (or, if that Appropriation became possible before that day, the day on which it became possible to make that Appropriation).