This Act comes into effect on April 1, 2024; provided, however, that the provisions set forth in the following items come into effect on the dates specified respectively in those items:

The provisions of Article 11, paragraph (2) (limited to the part concerning a public interest trust prescribed in that paragraph) of the Income Tax Act as amended by Article 1 (hereinafter referred to as "the new Income Tax Act") apply to a public interest trust prescribed in that paragraph (including a trust that has received transition authorisation as prescribed in Article 4, paragraph (1) of the Supplementary Provisions of the Act on Public Interest Trusts (hereinafter referred to as "transition authorisation")) that takes effect on or after the date specified in item (ix) of the preceding Article, and the provisions then in force continue to govern a charitable trust prescribed in Article 1 of the Act on Charitable Trust (Act No. 62 of 1922) prior to the amendment by the Act on Public Interest Trusts (excluding one that has received transition authorisation) that took effect before that date.

①With regard to money that an individual expends in order to make it the trust property of a specified charitable trust (excluding one that has received transition authorisation) as prescribed in Article 78, paragraph (3) of the Income Tax Act prior to the amendment by Article 1 (hereinafter referred to as "the former Income Tax Act"), the provisions of that paragraph remain in force. In this case, the phrase "specified charitable trust (meaning a charitable trust prescribed in Article 1 (Charitable Trust) of the Act on Charitable Trust, with regard to which it is certified pursuant to Cabinet Order that the trust property at the time of the termination of the trust will not vest in the settlor of the trust with a link to that trust property, and that the trust affairs are implemented in accordance with the requirements prescribed by Cabinet Order)" in that paragraph is deemed to be replaced with "specified charitable trust prescribed in Article 3, paragraph (1) (Transitional Measures Concerning the Donation Deduction) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2024)".

②For the purpose of applying the provisions of Article 4-5 and Articles 41-18 through 41-18-3 of the Act on Special Measures Concerning Taxation as amended by Article 13 (hereinafter referred to as "the new Act on Special Measures Concerning Taxation") in the case where the provisions of the preceding paragraph apply, the phrase "specified donation (" in Article 4-5, paragraph (2) of the new Act on Special Measures Concerning Taxation is deemed to be replaced with "specified donation (the provisions of Article 78, paragraph (3) of the Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2024) (referred to as the "former Income Tax Act" in paragraph (9)), which remain in force pursuant to the provisions of Article 3, paragraph (1) of the Supplementary Provisions of that Act, or", the phrase "provisions and" in paragraph (9) of that Article is deemed to be replaced with "provisions, the provisions of Article 78, paragraph (3) of the former Income Tax Act, and", the phrase "that Act" is deemed to be replaced with "the Income Tax Act", and the phrase 'excluding", and' is deemed to be replaced with 'excluding", and the phrase "money expended" in Article 78, paragraph (3) of the former Income Tax Act is deemed to be replaced with "money expended (excluding the portion equivalent to the amount of interest or similar income prescribed in Article 4-5, paragraph (1) of the Act on Special Measures Concerning Taxation to which the provisions of that paragraph have been applied)", and', the phrase "and the preceding paragraph" in Article 41-18, paragraph (2) of the new Act on Special Measures Concerning Taxation is deemed to be replaced with "and the provisions of Article 78, paragraph (3) of the Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2024), which remain in force pursuant to the provisions of Article 3, paragraph (1) of the Supplementary Provisions of that Act, or the preceding paragraph", the phrase "and paragraph (1) of the preceding Article" in Article 41-18-2, paragraph (2) of the new Act on Special Measures Concerning Taxation is deemed to be replaced with "and the provisions of Article 78, paragraph (3) of the Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2024), which remain in force pursuant to the provisions of Article 3, paragraph (1) of the Supplementary Provisions of that Act, or paragraph (1) of the preceding Article", and the phrase "Article 41-18, paragraph (1) or" in Article 41-18-3, paragraph (1) of the new Act on Special Measures Concerning Taxation is deemed to be replaced with "the provisions of Article 78, paragraph (3) of the Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2024), which remain in force pursuant to the provisions of Article 3, paragraph (1) of the Supplementary Provisions of that Act, or Article 41-18, paragraph (1) or".

The provisions of Article 204, paragraph (1) (limited to the part concerning item (iii)) of the new Income Tax Act apply to medical fees set forth in that item that are to be paid on or after the date on which this Act comes into effect (hereinafter referred to as "the effective date"), and the provisions then in force continue to govern medical fees set forth in Article 204, paragraph (1), item (iii) of the former Income Tax Act that are to be paid before the effective date.

The provisions then in force continue to govern the application of penal provisions to conduct engaged in before this Act (or, for the provisions set forth in the items of Article 1 of the Supplementary Provisions, those provisions; the same applies hereinafter in this Article) comes into effect and to conduct engaged in after this Act comes into effect in the cases in which prior laws are to continue to govern pursuant to the provisions of these Supplementary Provisions and in the cases in which provisions are to remain in force pursuant to the provisions of these Supplementary Provisions.

Beyond what is provided for in these Supplementary Provisions, transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.

After the promulgation of this Act, with regard to the tax system for securing the stable financial resources necessary for the fundamental reinforcement of Japan's defense capabilities and for the maintenance of the fundamentally reinforced defense capabilities, in order to implement tax measures to secure financial resources for strengthening defense capabilities based on the Outline of the Fiscal 2023 Tax Reform decided by the Cabinet on December 23, 2022, which provided that those measures would be implemented in stages over multiple years toward fiscal 2027, and the Outline of the Fiscal 2024 Tax Reform decided by the Cabinet on December 22, 2023, the government is to conduct the necessary review of the income tax, the corporation tax, and the tobacco tax while taking into account the need to secure financial resources for strengthening defense capabilities in each fiscal year up to fiscal 2027, and is to take the necessary legislative measures at an appropriate time based on the results of that review.