This Act comes into effect on the date of promulgation; provided, however, that the provisions set forth in the following items come into effect on the dates specified in those items:

Except as otherwise provided in these Supplementary Provisions, the provisions of the Income Tax Act as amended by the provisions of Article 1 (hereinafter referred to as "the new Income Tax Act") apply to income tax for tax year 1989 and subsequent tax years, and the provisions then in force continue to govern income tax for tax year 1988 and prior tax years.

The provisions of Article 9, paragraph (1), items (xi) through (xvii) and paragraph (2) of the new Income Tax Act apply to income set forth in items (xi) through (xvii) of paragraph (1) of that Article which relates to a distribution of proceeds from an Open-Ended Securities Investment Trust set forth in item (xi) of that paragraph, a benefit set forth in item (xii) of that paragraph, the provision of pensions or money and valuables set forth in item (xiii) of that paragraph, the provision of money and valuables set forth in item (xiv) of that paragraph, the inheritance, bequest, or gift of what is set forth in item (xv) of that paragraph, the payment of insurance benefits and compensation for damages set forth in item (xvi) of that paragraph, or the acquisition of money, goods, or other economic benefits set forth in item (xvii) of that paragraph, which takes place on or after April 1, 1989, or to shortfalls set forth in the items of paragraph (2) of that Article, and the provisions then in force continue to govern income set forth in item (xi) or items (xiii) through (xvi) of Article 9, paragraph (1) of the Income Tax Act prior to amendment by the provisions of Article 1 (hereinafter referred to as "the former Income Tax Act") which relates to a transfer of Securities prescribed in item (xi) of that paragraph, the termination of a Securities Investment Trust or the partial cancellation of a Securities Investment Trust prescribed in item (xiii) of that paragraph, a reduction of the capital or contributions of a corporation, the cancellation of shares, or withdrawal or secession from that corporation prescribed in item (xiv) of that paragraph, the dissolution of a Domestic Corporation prescribed in item (xv) of that paragraph, or the merger of a Domestic Corporation prescribed in item (xvi) of that paragraph, which took place on or before March 31, 1989, or shortfalls set forth in paragraph (2), items (iii) through (vii) of that Article.

①The provisions of Article 11 of the new Income Tax Act apply to interest or distributions of proceeds from public and corporate bonds or similar instruments prescribed in paragraph (1) or (2), or paragraph (3) of that Article which a Domestic Corporation or Foreign Corporation, or a charitable trust, prescribed in those provisions is to receive on or after April 1, 1989, and the provisions then in force continue to govern dividends and similar income or domestic source income, or income, prescribed in Article 11, paragraph (1) or (2), or paragraph (3) of the former Income Tax Act which that Domestic Corporation or Foreign Corporation, or that charitable trust, is to receive before that date.

②Notwithstanding the provisions of the preceding paragraph, the provisions then in force continue to govern, among distributions of proceeds from Securities Investment Trusts prescribed in Article 11, paragraph (1) of the new Income Tax Act which a Domestic Corporation or Foreign Corporation, or a charitable trust, prescribed in the preceding paragraph is to receive on or after April 1, 1989 and which correspond to a calculation period for those distributions of proceeds that includes that date, the part of those distributions of proceeds equivalent to the amount calculated pursuant to Cabinet Order as the amount corresponding to the period from the first day of that calculation period to March 31, 1989.

The provisions of Article 24, paragraph (2) of the new Income Tax Act apply to interest on debts incurred to acquire principal prescribed in that paragraph which is paid on or after April 1, 1989, and the provisions then in force continue to govern interest on debts incurred to acquire principal prescribed in Article 24, paragraph (2) of the former Income Tax Act which was paid before that date.

With regard to the application of the provisions of Article 95, paragraphs (2) and (3) of the new Income Tax Act concerning the credit against a Resident's income tax for each of tax years 1989 through 1993, the phrase "any of the three years prior to the relevant year" in paragraph (2) of that Article is deemed to be replaced with "any of the five years prior to the relevant year", the phrase "the last three years" in that paragraph with "the last five years", and the phrase "the last three years" in paragraph (3) of that Article with "the last five years"; provided, however, that with regard to the application of the provisions of paragraphs (2) and (3) of that Article concerning the credit against income tax for tax year 1993, the maximum credit under paragraph (2) of that Article and the amount of foreign income taxes under paragraph (3) of that Article for tax year 1989 are deemed not to exist.

①For a Resident's income tax for tax year 1989, the Tax Prepayment calculation base prescribed in Article 104, paragraph (1) of the new Income Tax Act (hereinafter referred to as the "Tax Prepayment calculation base" in this Article) is the amount calculated by multiplying the amount set forth in item (i) by the rate set forth in item (ii):

②The calculation of the Tax Prepayment calculation base for tax year 1989 in a case where the provisions of Article 97, paragraph (1) of the former Income Tax Act were applied to income tax for tax year 1988 is specified by Cabinet Order.

③The Tax Prepayment calculation base for a Nonresident's income tax for tax year 1989 is the amount calculated in a manner equivalent to that provided for in the preceding two paragraphs.

With regard to the application of the provisions of Article 140, paragraph (1) or Article 141, paragraph (1) of the new Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 of the new Income Tax Act) if there is a Net Loss for 1989, the amount of income tax that forms the basis for calculating the refund under those provisions is the amount of income tax calculated by applying the provisions of Part II, Chapter III, Section 1 or Article 165 of the former Income Tax Act as read with the replacement of terms pursuant to the provisions of Article 3 or Article 4 of the Act on Temporary Special Provisions for Income Tax for Tax Year 1988 (Act No. 85 of 1988).

①The provisions of Part IV, Chapter II, Section 1 of the new Income Tax Act and Appended Tables II through IV of the new Income Tax Act apply to salary or other wages prescribed in Article 183, paragraph (1) of the new Income Tax Act (hereinafter referred to as "salary or other wages" in this paragraph) which are to be paid on or after January 1, 1989, and the provisions then in force continue to govern salary or other wages which are to be paid before that date.

②The provisions of Article 194, paragraph (1) of the new Income Tax Act apply to salary income earners' returns for deduction for Dependents, etc. which are submitted on or after January 1, 1989.

The provisions of Article 201 of the new Income Tax Act and Appended Table VI of the new Income Tax Act apply to severance pay or other such compensation prescribed in Article 199 of the new Income Tax Act (hereinafter referred to as "severance pay or other such compensation" in this Article) which is to be paid on or after January 1, 1989, and the provisions then in force continue to govern severance pay or other such compensation which is to be paid before that date.

①The provisions of Article 203-3 of the new Income Tax Act apply to public pensions or retirement packages prescribed in Article 203-2 of the new Income Tax Act (hereinafter referred to as "public pensions or retirement packages" in this paragraph) which are to be paid on or after January 1, 1989, and the provisions then in force continue to govern public pensions or retirement packages which are to be paid before that date.

②The provisions of Article 203-5, paragraph (1) of the new Income Tax Act apply to returns for Dependents, etc. by recipients of public pensions or retirement packages which are submitted on or after January 1, 1989.

The provisions of Article 224-3 of the new Income Tax Act apply to transfers of shares or similar interests prescribed in paragraph (2) of that Article (referred to as "shares or similar interests" in the following Article) which take place on or after April 1, 1989.

The provisions of Article 225, paragraph (1) of the new Income Tax Act apply to transfers of shares or similar interests which take place on or after April 1, 1989, and the provisions then in force continue to govern transfers of shares or similar interests which took place before that date.

With regard to how income tax should be imposed on gains from the transfer of shares or similar interests, a review is to be conducted, including the question of a shift to comprehensive taxation, together with the review of how income tax should be imposed on interest income based on the provisions of Article 51 of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 96 of 1987), while giving consideration to the state of development of an environment for ascertaining income, such as the question of introducing a taxpayer identification number system, to how the overall tax rate structure, including the level of the top tax rate, should be, and to the relationship with an appropriate withholding system.