This Act comes into effect on April 1, 1966.

The provisions of Article 13-3 of the New Act (limited to the part relating to paragraph (4) of that Article) apply to an individual's revenue prescribed in paragraph (1) of that Article that derives from overseas transactions, etc. prescribed in that paragraph on or after April 1, 1966 (hereinafter referred to as the "Effective Date"), and with regard to revenue prescribed in Article 13-3, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment (hereinafter referred to as the "Former Act") that derives from overseas transactions, etc. prescribed in that paragraph before that date, the provisions then in force continue to govern.

The provisions of Article 21 of the New Act apply to revenue prescribed in paragraph (1) or (2) of that Article on or after the Effective Date, and with regard to revenue prescribed in Article 21, paragraph (1) or (2) of the Former Act before that date, the provisions then in force continue to govern.

①The provisions of Article 23-2 of the Former Act remain in force with regard to the exemption from income tax under the provisions of paragraph (1) of that Article for an individual who commenced the business of manufacturing or mining a new important product prescribed in that paragraph, or expanded the facilities therefor, within the period specified by Cabinet Order prescribed in that paragraph.

②With regard to the application of the provisions of Article 21 of the New Act to an individual to whom the provisions of Article 23-2, paragraph (1) of the Former Act, which remain in force pursuant to the provisions of the preceding paragraph, apply in each year from 1966 onward, the phrase "revenue within the designated period" in paragraph (1) of that Article is deemed to be replaced with "revenue within the designated period (excluding revenue relating to the application of the provisions of Article 23-2, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 35 of 1966), which remain in force pursuant to the provisions of Article 6, paragraph (1) of the Supplementary Provisions of that Act; the same applies hereinafter in this Article)".

Unless otherwise provided, the provisions of Chapter III of the New Act apply to corporation tax for business years of corporations (including associations or foundations without juridical personality prescribed in Article 2, item (viii) of the Corporation Tax Act (Act No. 34 of 1965); the same applies hereinafter) ending on or after the Effective Date, and with regard to corporation tax for business years of corporations that ended before that date, the provisions then in force continue to govern.

The provisions of Article 42 of the New Act apply to corporation tax on income for business years of a domestic corporation that commence on or after January 1, 1966 and end on or after the Effective Date, and for business years that commence before January 1 of that year and end on or after June 30 of that year, and with regard to corporation tax on income for business years of a domestic corporation that commenced before January 1 of that year and ended before June 30 of that year, and for business years that commenced on or after January 1 of that year and ended before the Effective Date, the provisions then in force continue to govern. In this case, with regard to the application of the provisions of that Article to corporation tax on income for the relevant business year of an ordinary corporation prescribed in Article 2, item (ix) of the Corporation Tax Act that is a domestic corporation and whose amount of capital or amount of contributions at the end of the business year that commences before January 1 of that year and ends on or after June 30 of that year exceeds 100 million yen, the phrase "whose amount of capital or amount of contributions is 100 million yen or less" in Article 42, paragraph (1) of the New Act is deemed to be replaced with "whose amount of capital or amount of contributions exceeds 100 million yen", and the phrase "22 percent" with "24 percent".

①If there is an amount deemed to be an insufficient depreciation amount under the provisions of Article 43, paragraph (3) of the Former Act in a business year of a corporation that ended before the Effective Date, the provisions of that paragraph remain in force with regard to that amount.

②The provisions of Article 46, paragraph (1), item (i) (excluding the part concerning designated industries), Article 46-2 and Article 47, paragraph (2) of the New Act apply to corporation tax on income for business years of corporations commencing on or after the Effective Date, and with regard to corporation tax on income for business years of corporations that commenced before that date, the provisions then in force continue to govern. In this case, with regard to the application of the provisions of Article 46-2 of the New Act, revenue from overseas transactions, etc. prescribed in paragraph (1) of that Article that derives from the transactions listed in paragraph (3), item (viii) of that Article is limited to the corporation's revenue from those transactions on or after the Effective Date.

①With regard to the application of the provisions of Article 53, paragraph (4) of the New Act to the amount calculated as specified by Cabinet Order as the amount of the portion relating to shares held on that day, out of the amount of the account for the reserve for price fluctuations prescribed in paragraph (1) of that Article (limited to the amount included in deductible expenses in calculating the amount of income for that immediately preceding business year under the provisions of that paragraph) that a corporation prescribed in Article 56-3, paragraph (1) of the New Act that exists on the Effective Date (including its merging corporation) holds as of the end of the business year immediately preceding the business year that includes the Effective Date, notwithstanding the provisions of that paragraph, that amount is, as specified by Cabinet Order, included in gross profit in calculating the amount of income for each business year of that corporation that includes any day within the period from the Effective Date to March 31, 1970.

②The provisions of Article 54 of the New Act apply to corporation tax on income for business years of corporations commencing on or after the Effective Date, and with regard to corporation tax on income for business years of corporations that commenced before that date, the provisions then in force continue to govern.

③The provisions of Article 56, paragraph (1) of the New Act apply in the case where a domestic corporation prescribed in that paragraph acquires specified shares, etc. prescribed in that paragraph on or after the Effective Date, and in the case where it acquired those specified shares, etc. before that date, the provisions then in force continue to govern.

The provisions of Article 58 of the New Act apply to corporation tax on income for business years of corporations commencing on or after the Effective Date, and with regard to corporation tax on income for business years of corporations that commenced before that date, the provisions then in force continue to govern.

①The provisions of Article 58-4 of the Former Act remain in force with regard to the exemption from corporation tax under the provisions of paragraph (1) of that Article for a corporation that commenced the business of manufacturing or mining a new important product prescribed in that paragraph, or expanded the facilities therefor, within the period specified by Cabinet Order prescribed in that paragraph.

②With regard to the application of the provisions of Article 58 of the New Act to a corporation to which the provisions of Article 58-4, paragraph (1) of the Former Act, which remain in force pursuant to the provisions of the preceding paragraph, apply in a business year of the corporation ending on or after the Effective Date, the phrase "revenue within the designated period" in paragraph (1) of that Article is deemed to be replaced with "revenue within the designated period (excluding revenue relating to the application of the provisions of Article 58-4, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment by the Act Partially Amending the Act on Special Measures Concerning Taxation, which remain in force pursuant to the provisions of Article 12, paragraph (1) of the Supplementary Provisions of that Act; the same applies hereinafter in this Article)".

The provisions of Article 66-3 of the New Act apply to corporation tax in the case where a corporation has carried out a merger relating to an approval, certification, recommendation or authorization prescribed in the items of Article 66-2, paragraph (1) of the New Act that was given on or after the Effective Date, and with regard to corporation tax in the case where a corporation has carried out a merger relating to an approval, certification, recommendation or authorization prescribed in the items of Article 66-2, paragraph (1) of the Former Act that was given before that date, the provisions then in force continue to govern.

The provisions of Articles 70-4 and 70-5 of the New Act apply to gift tax or inheritance tax in the case where facts falling under those provisions have occurred on or after January 1, 1966, and with regard to gift tax or inheritance tax in the case where facts falling under the provisions of Articles 70-4 and 70-5 of the Former Act occurred before that date, the provisions then in force continue to govern.

The provisions of Article 75-2, paragraph (2) of the New Act apply to registration tax on the registration of the acquisition of a superficies right for the purpose of owning land or buildings, or of a right of lease of land, acquired on or after the Effective Date as a refund of capital contribution prescribed in that paragraph (including a distribution of residual assets due to dissolution).