This Act comes into effect on the date of promulgation; provided, however, that the provisions amending Articles 13-2, 45-2 and 66-2 through 66-4 of the Act on Special Measures Concerning Taxation (excluding the provisions amending Article 66-2, paragraph (1), item (ii) and Article 66-4, paragraph (1), item (ii)) and the part of the provisions amending Article 81 of that Act concerning small and medium sized enterprise structural improvement plans come into effect on the date on which the Act Partially Amending the Small and Medium Sized Enterprise Modernization Promotion Act (Act No. 36 of 1969) comes into effect.

Unless otherwise specially provided for, the provisions of Chapter II of the Act on Special Measures Concerning Taxation as amended (hereinafter referred to as "the New Act") apply to income tax for 1969 and subsequent years, and the provisions then in force continue to govern income tax for 1968 and prior years.

①The provisions of Article 5, paragraph (1) of the New Act apply to interest referred to in that paragraph that is 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 that interest that was to be paid before that date.

②The provisions then in force continue to govern interest prescribed in Article 7-3 of the Act on Special Measures Concerning Taxation prior to amendment (hereinafter referred to as "the Former Act") that was paid by March 31, 1969.

①The provisions then in force continue to govern the calculation of the amount of depreciation allowances for depreciable assets prescribed in Article 13-2, paragraph (1) of the Former Act of members of a commercial and industrial association, etc. prescribed in that paragraph that obtained approval, during the period from April 1, 1968 to March 31, 1969, pursuant to the provisions of that paragraph for implementing a small and medium sized enterprise structural improvement promotion plan; provided, however, that where that commercial and industrial association, etc. has obtained the approval under Article 5-2, paragraph (1) of the Small and Medium Sized Enterprise Modernization Promotion Act as amended by the Act Partially Amending the Small and Medium Sized Enterprise Modernization Promotion Act, this does not apply in each year on or after the year that includes the date of that approval.

②With regard to the application of the provisions of Article 13-2, paragraph (1) of the New Act in the case where the commercial and industrial association, etc. prescribed in the preceding paragraph has obtained the approval prescribed in the proviso to that paragraph, the phrase "January 1 of that year" in that paragraph of the New Act is deemed to be replaced with "January 1 of the year that includes the date of the approval under Article 13-2, 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. 15 of 1969)".

①Where an individual who is a member of a specified commercial and industrial association prescribed in Article 12, paragraph (3) of the Supplementary Provisions has received the distributed amount referred to in that paragraph, with regard to the application of the provisions of Article 20, paragraph (1) of the New Act concerning the income tax of that individual for the year that includes the date on which the individual received that distribution, the phrase "amount calculated" in that paragraph is deemed to be replaced with "total of the amount calculated and the amount received as the distributed amount prescribed in Article 5, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 15 of 1969)".

②The provisions then in force continue to govern cases where an individual prescribed in Article 28 of the Former Act has paid the contributions prescribed in that Article during the period from January 1, 1969 to March 31 of that year.

The provisions of Article 21 of the New Act apply to revenue prescribed in paragraphs (1) and (2) of that Article on or after April 1, 1969, and the provisions then in force continue to govern revenue prescribed in Article 21, paragraphs (1) and (2) of the Former Act before that date.

①The provisions of Articles 33 through 33-4 and Article 38 of the New Act apply to income tax on transfers of assets falling under those provisions that are made on or after January 1, 1970 (including acts deemed to be transfers by expropriation, etc. pursuant to the provisions of Article 33, paragraph (3) of the New Act and any other acts that are included in transfers under those provisions; the same applies hereinafter up to the following Article).

②With regard to a person who has received the application of the provisions of Article 31, paragraph (2) (including as applied mutatis mutandis pursuant to Article 32, paragraph (2) of the Former Act), Article 35, paragraph (1) or (2), Article 38-3, paragraph (2) or Article 38-6, paragraph (1) or (3) of the Former Act, the provisions of Article 33-3, Article 36, paragraphs (2) through (5), Article 38-4 or Article 38-7 of the Former Act remain in force.

③The provisions then in force continue to govern substitute assets, etc., acquired property or replacement assets prescribed in Article 34, Article 37, Article 38-5 or Article 38-8 of the Former Act in relation to assets to which the provisions of Article 31, Article 32, paragraph (1) or (2), Article 35, paragraph (1) or (2), Article 36, paragraph (1), Article 38-3, paragraph (1) or (2) or Article 38-6, paragraphs (1) through (3) of the Former Act have been applied.

④After the City Planning Act comes into effect, a project that falls under the specified residential land development project referred to in Article 38-13, paragraph (4) of the Former Act when the phrase "Act on Residential Land Development Projects" in that paragraph is read as "former Act on Residential Land Development Projects, for which the provisions then in force continue to govern pursuant to the provisions of Article 7, paragraph (1) of the Act for Enforcement of the City Planning Act (Act No. 101 of 1968)" is deemed to fall under the project prescribed in Article 34-2, paragraph (2), item (v) of the New Act.

①Where an individual has transferred assets held by the individual during the period from January 1, 1969 to December 31 of that year, with regard to income tax on that transfer, the individual may, at the individual's option, follow either of the following items:

②Where the individual follows item (ii) of the preceding paragraph, the individual must state so in the final return.

③With regard to the application of the provisions of Articles 31 and 32 of the New Act where an individual has transferred land, etc. or buildings, etc. prescribed in Article 31, paragraph (1) of the New Act (hereinafter referred to as "land or buildings, etc." in this paragraph) held by the individual during the period from January 1, 1969 to the day on which two years have elapsed from the Effective Date, the following provisions apply:

The provisions of Article 41-2, paragraph (1) of the New Act apply to housing savings contracts prescribed in that paragraph that are concluded on or after the Effective Date, and the provisions then in force continue to govern those housing savings contracts concluded before that date.

Unless otherwise specially provided for, the provisions of Chapter III of the New Act apply to corporation tax of a corporation (including an association or foundation without juridical personality prescribed in Article 2, item (viii) of the Corporation Tax Act (Act No. 34 of 1965); the same applies hereinafter) for business years beginning on or after April 1, 1969, and the provisions then in force continue to govern corporation tax of a corporation for business years that began before that date.