Supplementary Provisions, Article 3Application of Provisions on Prefectural Inhabitant Tax

①The provisions of Article 51, paragraph (1) of the New Act apply to prefectural inhabitant tax for business years of corporations that began on or after January 1, 1966 and end on or after the Effective Date, and business years that began before January 1, 1966 and end on or after June 30, 1966, and to prefectural inhabitant tax on the corporation tax amount relating to liquidation income from dissolution or merger on or after the Effective Date (including prefectural inhabitant tax on the corporation tax amount for business years in liquidation of corporations subject to corporation tax on liquidation income and on the corporation tax amount to be paid upon the distribution of part of residual assets; the same applies hereinafter), and the provisions then in force continue to govern prefectural inhabitant tax for business years of corporations that began before January 1, 1966 and ended before June 30, 1966, and business years that began on or after January 1, 1966 and ended before the Effective Date, and prefectural inhabitant tax on the corporation tax amount relating to liquidation income from dissolution or merger before the Effective Date. In this case, in applying the provisions of that paragraph to prefectural inhabitant tax on the corporation tax amount on income for a business year of a corporation that began before January 1, 1966 and ends on or after June 30, 1966, the phrase "5.8 percent" in that paragraph is deemed to be replaced with "5.65 percent", and the phrase "7 percent" with "6.8 percent".

②Where the deadline for filing a return relating to prefectural inhabitant tax under Article 53, paragraph (1) of the New Act for a business year of a corporation that began before January 1, 1966 and ends on or after June 30, 1966 (limited to a return relating to the return under Article 71, paragraph (1) of the Corporation Tax Act (Act No. 34 of 1965) (including as applied mutatis mutandis under Article 145, paragraph (1) of that Act); the same applies hereinafter) is before the Effective Date, notwithstanding the provisions of the preceding paragraph, the provisions then in force continue to govern the prefectural inhabitant tax paid, or that should have been paid, as the prefectural inhabitant tax relating to that return of that corporation.

③Where the deadline for filing a return relating to prefectural inhabitant tax under Article 53, paragraph (1) of the New Act for a business year of a corporation that began on or after January 1, 1966, ends on or after the Effective Date and includes June 30, 1966, or for a business year that began before January 1, 1966 and ends on or after June 30, 1966 (limited to a return relating to the return under Article 71, paragraph (1) of the Corporation Tax Act (including as applied mutatis mutandis under Article 145, paragraph (1) of that Act) (excluding one stating the matters listed in the items of Article 72, paragraph (1) of that Act)) is on or after the Effective Date, notwithstanding the provisions of paragraph (1), the provisions then in force continue to govern the application of Article 51, paragraph (1) of the New Act to the prefectural inhabitant tax relating to that return of that corporation.

④The provisions of the New Act concerning individual prefectural inhabitant tax apply from individual prefectural inhabitant tax for fiscal year 1966, and the provisions then in force continue to govern individual prefectural inhabitant tax through fiscal year 1965.

⑤In applying Article 32, paragraph (8) or (9) of the New Act, a return filed before the Effective Date under the provisions of the Local Tax Act prior to amendment by Article 1 (hereinafter referred to as the "Former Act") for which the New Act has a corresponding provision is deemed to be a return filed under the corresponding provision of the New Act.

⑥In applying Article 32, paragraph (8) or (9) of the New Act, where the amount of net loss or the amount of casualty loss arising in each year of the three years preceding the previous year prescribed in those provisions includes an amount deducted under Article 32, paragraph (7) or (8) of the Former Act in calculating the amount of gross income, the amount of retirement income or the amount of timber income for each year, the amount obtained by deducting the deducted amount from the amount equivalent to that net loss or casualty loss is deemed to be that net loss or casualty loss.

⑦Only for individual prefectural inhabitant tax for fiscal year 1966 through fiscal year 1968, in applying Article 32, paragraph (8) of the New Act, a return under Article 26-3 of the Former Income Tax Act (Act No. 27 of 1947; hereinafter referred to as the "Former Income Tax Act") (including as applied mutatis mutandis under Article 29, paragraph (4) of that Act) (limited to one relating to the year in which an amount of net loss arose) that was filed before the Effective Date is deemed to be a blue return prescribed in Article 2, paragraph (1), item (xxxix) of the Income Tax Act (Act No. 33 of 1965) that was filed within its deadline for filing.

⑧Only for individual prefectural inhabitant tax for fiscal year 1967 through fiscal year 1969, where there is an amount of net loss prescribed in Article 32, paragraph (8) of the New Act that arose in calculating the amount of gross income, the amount of retirement income or the amount of timber income for 1965, the phrase "files by the deadline for filing (or, where the national tax office finds that there are unavoidable circumstances, after the deadline for filing)" in that paragraph is deemed to be replaced with "files".