①Where a resident or a nonresident who has a permanent establishment receives, with respect to shares held by the person, shares of a foreign parent corporation of a merging corporation (meaning shares of a foreign parent corporation of a merging corporation prescribed in paragraph (6), item (ii) of the preceding Article; the same applies hereinafter in this paragraph) through a specified non-qualified merger (meaning a Specified Merger prescribed in paragraph (6), item (i) of the preceding Article that does not fall under the category of qualified merger prescribed in Article 2, item (xii)-8 of the Corporation Tax Act) by the domestic corporation that issued the shares, and the shares of a foreign parent corporation of a merging corporation fall under the category of shares of a specified foreign corporation with less tax burden, etc. (meaning a specified foreign corporation with less tax burden, etc. prescribed in Article 68-2-2, paragraph (5), item (i); the same applies hereinafter in this Article), the amount equivalent to the value of the shares of a foreign parent corporation of a merging corporation received (excluding the amount of the portion that falls under the provisions of Article 25, paragraph (1) of the Income Tax Act) is deemed to be revenue pertaining to capital gains, etc. on general shares, etc. if the shares held by the person fall under the category of general shares, etc., or revenue pertaining to capital gains, etc. on listed shares, etc. if the shares held by the person fall under the category of listed shares, etc., and the provisions of that Act and this Chapter apply.

②Where a resident or a nonresident who has a permanent establishment receives, with respect to shares held by the person, shares of a foreign parent corporation of a successor in a company split (meaning shares of a foreign parent corporation of a successor in a company split prescribed in paragraph (6), item (iv) of the preceding Article; the same applies hereinafter in this paragraph) through a specified non-qualified company split by split-off (meaning a specified company split by split-off prescribed in paragraph (6), item (iii) of the preceding Article that is a company split prescribed in Article 68-2-2, paragraph (2), item (i) and does not fall under the category of qualified company split by split-off prescribed in Article 2, item (xii)-12 of the Corporation Tax Act) carried out by the domestic corporation that issued the shares, and the shares of a foreign parent corporation of a successor in a company split fall under the category of shares of a specified foreign corporation with less tax burden, etc., the amount equivalent to the value of the shares of a foreign parent corporation of a successor in a company split received (excluding the amount of the portion that falls under the provisions of Article 25, paragraph (1) of the Income Tax Act) is deemed to be revenue pertaining to capital gains, etc. on general shares, etc. if the shares held by the person fall under the category of general shares, etc., or revenue pertaining to capital gains, etc. on listed shares, etc. if the shares held by the person fall under the category of listed shares, etc., and the provisions of that Act and this Chapter apply.

③Where a resident or a nonresident who has a permanent establishment has, with respect to shares held by the person (hereinafter referred to as "old shares" in this paragraph), transferred the old shares to the wholly owning parent corporation in a share exchange prescribed in Article 2, item (xii)-6-3 of the Corporation Tax Act through a specified non-qualified share exchange (meaning a specified share exchange prescribed in paragraph (6), item (vii) of the preceding Article that does not fall under the category of qualified share exchange, etc. prescribed in Article 2, item (xii)-17 of the Corporation Tax Act) carried out by the domestic corporation that issued the old shares, and has received shares of a foreign corporation fully controlling the parent in a share exchange (meaning shares of a foreign corporation fully controlling the parent in a share exchange prescribed in paragraph (6), item (viii) of the preceding Article; the same applies hereinafter in this paragraph), and the shares of a foreign corporation fully controlling the parent in a share exchange fall under the category of shares of a specified foreign corporation with less tax burden, etc., the provisions of Article 57-4, paragraph (1) of the Income Tax Act (including the case where a calculation is made in accordance with that paragraph pursuant to the provisions of Article 165, paragraph (1) of that Act) do not apply to the transfer of the old shares.

④Where the provisions of the preceding three paragraphs apply, the following provisions apply:

⑤The provisions of paragraphs (1) through (3) and the preceding paragraph (limited to the part of item (ii) pertaining to Article 37-14, paragraph (1)) apply mutatis mutandis where a nonresident who does not have a permanent establishment receives shares of a foreign parent corporation of a merging corporation prescribed in paragraph (1) that fall under the category of shares of a specified foreign corporation with less tax burden, etc., shares of a foreign parent corporation of a successor in a company split prescribed in paragraph (2) that fall under the category of shares of a specified foreign corporation with less tax burden, etc., or shares of a foreign corporation fully controlling the parent in a share exchange prescribed in paragraph (3) that fall under the category of shares of a specified foreign corporation with less tax burden, etc., through a specified non-qualified merger prescribed in paragraph (1), a specified non-qualified company split by split-off prescribed in paragraph (2), or a specified non-qualified share exchange prescribed in paragraph (3). In this case, in paragraph (1), the phrase "excluding the amount of the portion that falls under the provisions of Article 25, paragraph (1) of the Income Tax Act" is deemed to be replaced with "excluding the amount of the portion that falls under the provisions of Article 25, paragraph (1) of the Income Tax Act, and limited to that which falls under the domestic source income of the nonresident listed in Article 164, paragraph (1), item (ii) of that Act", the phrase "capital gains, etc. on general shares, etc." is deemed to be replaced with "domestic source income from the transfer of general shares, etc. (meaning domestic source income from the transfer of general shares, etc. prescribed in Article 37-12, paragraph (1); the same applies in the following paragraph)", and the phrase "capital gains, etc. on listed shares, etc." is deemed to be replaced with "domestic source income from the transfer of listed shares, etc. (meaning domestic source income from the transfer of listed shares, etc. prescribed in Article 37-12, paragraph (3); the same applies in the following paragraph)", and in paragraph (2), the phrase "excluding the amount of the portion that falls under the provisions of Article 25, paragraph (1) of the Income Tax Act" is deemed to be replaced with "excluding the amount of the portion that falls under the provisions of Article 25, paragraph (1) of the Income Tax Act, and limited to that which falls under the domestic source income of the nonresident listed in Article 164, paragraph (1), item (ii) of that Act", the phrase "capital gains, etc. on general shares, etc." is deemed to be replaced with "domestic source income from the transfer of general shares, etc.", and the phrase "capital gains, etc. on listed shares, etc." is deemed to be replaced with "domestic source income from the transfer of listed shares, etc.".

⑥Special provisions for the calculation of the acquisition cost of shares received in the case where the provisions of paragraphs (1) through (3) apply, and other necessary matters concerning the application of the provisions of paragraphs (1) through (3) and the preceding paragraph are specified by Cabinet Order.