①With regard to the calculation of the amount of business income for each tax year from 2018 through 2023 of an individual that, before the effective date, made a sale or other disposition of assets as prescribed in Article 65, paragraph (1) of the Former Income Tax Act (excluding a transfer under a lease as prescribed in Article 65, paragraph (1) of the New Income Tax Act; hereinafter referred to as a "specified sale of assets" in this Article) that falls under a sale on deferred payment terms as prescribed in Article 65, paragraph (3) of the Former Income Tax Act (hereinafter referred to as a "sale on deferred payment terms" in this Article) (including an individual that received a transfer of a contract for a specified sale of assets falling under a sale on deferred payment terms that was made before the effective date), the provisions of Article 65 of the Former Income Tax Act (limited to the part concerning specified sales of assets, and including where the calculation is made in accordance with that Article pursuant to the provisions of Article 165, paragraph (1) of the Former Income Tax Act) remain in force.

②If the amount of revenue and the amount of expenses from a specified sale of assets falling under a sale on deferred payment terms of an individual subject to the provisions of the main clause of Article 65, paragraph (1) of the former Income Tax Act that remains in force pursuant to the provisions of the preceding paragraph (referred to as the "former Income Tax Act remaining in force" in item (i), the following paragraph, and paragraph (7)) (including where the calculation is made in accordance with that paragraph pursuant to the provisions of Article 165, paragraph (1) of the former Income Tax Act; the same applies in the following paragraph and paragraph (7)) fall under any of the cases set forth in the following items, that amount of revenue and amount of expenses (excluding those included in gross revenue and necessary expenses in calculating the amount of business income for the tax years of the years before the year specified in the relevant item; referred to respectively as the "unrecorded revenue amount" and the "unrecorded expense amount" in the following paragraph) are included in gross revenue and necessary expenses in calculating the amount of business income for the tax year of the year specified in the relevant item (referred to as the "reference year" in the following paragraph and paragraph (4)):

③In the case where the amount of revenue and the amount of expenses from a specified sale of assets falling under a sale on deferred payment terms of an individual subject to the provisions of the main clause of Article 65, paragraph (1) of the former Income Tax Act remaining in force fall under any of the cases set forth in the items of the preceding paragraph, if the unrecorded revenue amount relating to that specified sale of assets exceeds the unrecorded expense amount relating to that specified sale of assets, notwithstanding the provisions of that paragraph, the amount set forth in item (i) (or, for the year that includes the date on which the business was discontinued and for a year in which the amount set forth in item (i) exceeds the amount set forth in item (ii), the amount set forth in item (ii)) is included in gross revenue and necessary expenses in calculating the amount of business income for each tax year from the reference year onward:

④The provisions of the preceding paragraph apply only if the Tax Return for income tax for the tax year of the reference year contains a statement to the effect that the provisions of that paragraph are to be applied.

⑤Even if no Tax Return as referred to in the preceding paragraph is filed or if a Tax Return is filed that is not filled out as referred to in that paragraph, the district director may apply the provisions of paragraph (3) on finding there to be unavoidable circumstances for the failure to file the Tax Return or fill it out in that manner.

⑥The number of months referred to in paragraph (3), item (i) is calculated in accordance with the calendar, and any fraction of less than one month is rounded down.

⑦Special provisions on the handling of the amount of revenue and the amount of expenses from a specified sale of assets falling under a sale on deferred payment terms in the case of the death or Absence From Japan of an individual subject to the provisions of the main clause of Article 65, paragraph (1) of the Former Income Tax Act Remaining in Force, and other necessary particulars concerning the application of the provisions of paragraphs (1) through (3), are specified by Cabinet Order.