Supplementary Provisions, Article 3Transitional Measures Concerning Enterprise Tax

①Except as otherwise provided, the portion of the provisions of the New Act concerning corporate enterprise tax applies to corporate enterprise tax for business years ending on or after March 31, 2003 and corporate enterprise tax on liquidation income arising from a dissolution on or after that date (excluding dissolution by merger; the same applies hereinafter in this paragraph) (including corporate enterprise tax for business years in liquidation of a corporation subject to enterprise tax on liquidation income and corporate enterprise tax payable on a partial distribution of residual assets; the same applies hereinafter in this paragraph), and the provisions then in force continue to govern corporate enterprise tax for business years ending before that date and enterprise tax on liquidation income arising from a dissolution before that date.

②Except in the cases prescribed in paragraphs (3) through (5), the provisions of Article 72-13 of the New Act apply where the facts prescribed in paragraphs (5) through (24) of that Article arise on or after the Effective Date, and the provisions then in force continue to govern where the facts prescribed in Article 72-13, paragraphs (5) through (10) of the Local Tax Act before amendment (hereinafter referred to as the "Former Act") arise before the Effective Date.

③With regard to the domestic corporation prescribed in Article 3, paragraph (1) of the Supplementary Provisions of the Corporation Tax Act, etc. Amendment Act that receives approval under Article 4-2 of the Corporation Tax Act (Act No. 34 of 1965; hereinafter in this paragraph referred to as the "New Corporation Tax Act") as amended by the provisions of Article 1 of the Corporation Tax Act, etc. Amendment Act upon application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions of the Corporation Tax Act, etc. Amendment Act, the subsidiary corporation under the transitional measures (meaning the other domestic corporation prescribed in Article 3, paragraph (3) of the Supplementary Provisions of the Corporation Tax Act, etc. Amendment Act that receives approval under Article 4-2 of the New Corporation Tax Act upon application of the provisions of paragraph (1) of that Article; the same applies hereinafter in this Article) and the corporation joining during the transitional period (meaning the other domestic corporation prescribed in Article 4-2 of the New Corporation Tax Act that has come to have, with that domestic corporation, a full controlling interest held by that domestic corporation as prescribed in that Article, in the first consolidated business year in which corporation tax is imposed on the consolidated income (meaning the consolidated income prescribed in Article 2, item (xviii)-4 of the New Corporation Tax Act) of each consolidated business year (meaning a consolidated business year prescribed in Article 15-2 of the New Corporation Tax Act; the same applies hereinafter in this Article) of that domestic corporation; the same applies hereinafter in this Article), the provisions of Article 72-13 of the New Act (excluding paragraph (18) of that Article in the case of that domestic corporation) apply where the facts prescribed in paragraphs (5) through (24) of that Article arise on or after the day following the last day of that consolidated business year of that domestic corporation.

④With regard to the domestic corporation, the subsidiary corporation under the transitional measures and the corporation joining during the transitional period prescribed in the preceding paragraph, if the facts prescribed in Article 72-13, paragraphs (5) through (10) of the Former Act arise on or before the last day of the first consolidated business year of that domestic corporation prescribed in the preceding paragraph, the provisions of that Article remain in force.

⑤If the subsidiary corporation under the transitional measures or the corporation joining during the transitional period has a business year that begins before the last day of the first consolidated business year of the domestic corporation prescribed in paragraph (3) and ends after that day, the period from the first day of that business year to that last day and the period from the day following that last day to the last day of that business year are each deemed to be one business year of that subsidiary corporation under the transitional measures or corporation joining during the transitional period.

⑥The provisions of Article 72-23-3, paragraph (1) of the New Act apply to each business year ending on or after the date of a qualified merger (meaning a qualified merger prescribed in that paragraph; the same applies hereinafter in this Article) of the merging corporation (meaning a merging corporation prescribed in that paragraph; the same applies hereinafter in this Article) relating to that qualified merger, where a corporation conducting the business referred to in that paragraph is dissolved through the qualified merger on or after the Effective Date, and the provisions then in force continue to govern each business year ending on or after the date of a merger of the merging corporation relating to that merger, where that corporation was dissolved through a merger before the Effective Date.

⑦The provisions of Article 72-23-3, paragraph (3) of the New Act apply to the merging corporation relating to a qualified merger, where a reassessment prescribed in paragraph (1) or (2) of that Article is made after a corporation conducting the business referred to in paragraph (1) of that Article is dissolved through a qualified merger carried out on or after the Effective Date, and the provisions then in force continue to govern the merging corporation relating to a merger, where a reassessment prescribed in Article 72-23-3, paragraph (1) or (2) of the Former Act is made after that corporation was dissolved through a merger carried out before the Effective Date.

⑧The provisions of Article 72-23-4, paragraph (1) of the New Act apply to each business year ending on or after the date of a qualified merger of the merging corporation relating to that qualified merger, where a corporation conducting the business referred to in that paragraph is dissolved through the qualified merger on or after the Effective Date, and the provisions then in force continue to govern each business year ending on or after the date of a merger of the merging corporation relating to that merger, where that corporation ceased to exist through a merger before the Effective Date.

⑨The provisions of Article 72-23-4, paragraph (3) of the New Act apply to the merging corporation relating to a qualified merger, where a reassessment prescribed in paragraph (1) or (2) of that Article is made after a corporation conducting the business referred to in paragraph (1) of that Article is dissolved through a qualified merger carried out on or after the Effective Date, and the provisions then in force continue to govern the merging corporation relating to a merger, where a reassessment prescribed in Article 72-23-4, paragraph (1) or (2) of the Former Act is made after that corporation ceased to exist through a merger carried out before the Effective Date.

⑩The provisions of Article 72-26, paragraph (2) of the New Act apply to the corporate enterprise tax of a corporation for which an obligation of filing and payment arises under the provisions of paragraph (1) of that Article on or after the Effective Date, and the provisions then in force continue to govern the corporate enterprise tax of a corporation for which an obligation of filing and payment arose before the Effective Date under the provisions of Article 72-26, paragraph (1) of the Former Act.

⑪The provisions of Article 72-26, paragraph (7) of the New Act apply, in the case prescribed in Article 21, paragraph (2) of the Supplementary Provisions of the Corporation Tax Act, etc. Amendment Act, to each business year after the business year that includes the day on which six months have elapsed (meaning the day on which six months have elapsed prescribed in that paragraph; the same applies hereinafter in this paragraph) of the domestic corporation prescribed in that paragraph or of the other domestic corporation prescribed in that paragraph, and the provisions then in force continue to govern each business year on or before the business year that includes that day on which six months have elapsed.