This Act comes into effect on April 1, 1975; provided, however, that the provisions listed in the following items come into effect on the dates listed respectively in those items:

Unless otherwise provided, 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 1975 and subsequent years, and with regard to income tax for 1974 and earlier years, the provisions then in force continue to govern.

①With regard to interest income prescribed in Article 3, paragraph (1) or Article 3-3, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment (hereinafter referred to as the "Former Act") that is to be received by March 31, 1975, the provisions then in force continue to govern.

②The provisions of Article 7 of the New Act apply to interest on foreign currency denominated bonds prescribed in that Article that a domestic corporation issues on or after the date of enforcement of this Act (hereinafter referred to as the "Effective Date"), and with regard to interest on foreign currency denominated bonds prescribed in Article 7 of the Former Act that a domestic corporation issued before the Effective Date, the provisions then in force continue to govern.

With regard to dividend income prescribed in Article 8-2, paragraph (1) of the Former Act and dividend income prescribed in Article 8-4, paragraph (1) of the Former Act that is to be received by March 31, 1975, the provisions then in force continue to govern.

The provisions of items (i), (iv) and (vi) of the table in Article 11, paragraph (1) of the New Act and of Article 11-2, paragraph (1) of the New Act apply to specified equipment, etc. prescribed in Article 11, paragraph (1) of the New Act or pollution control facilities prescribed in Article 11-2, paragraph (1) of the New Act for which an individual makes an acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies hereinafter in this Article) on or after the Effective Date and which the individual provides for use in the individual's business, and in the case where an individual has provided for use in the individual's business specified equipment, etc. prescribed in Article 11, paragraph (1) of the Former Act or pollution control facilities prescribed in Article 11-2, paragraph (1) of the Former Act for which the individual made an acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

With regard to the application, to income tax for 1975 and 1976 of an individual prescribed in Article 19, paragraph (1) of the New Act who, as of December 31, 1974, holds, out of the amount of the reserve for price fluctuations under Article 19, paragraph (1) of the Former Act (including Article 4, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 16 of 1973) prior to the amendment by Article 23 of the Supplementary Provisions (hereinafter referred to as the "1973 Amendment Act Before the Amendment")), the amount calculated pursuant to the provisions of Cabinet Order as the portion pertaining to the provisions of Article 19, paragraph (1), item (i) of the Former Act (hereinafter referred to as the "amount of the special reserve for price fluctuations" in this Article) (excluding an individual to whom the provisions of Article 4, paragraph (1) or (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 5 of 1976; hereinafter referred to as the "1976 Amendment Act") have been applied), of the provisions of Article 19, paragraph (1) of the Act on Special Measures Concerning Taxation as amended by the 1976 Amendment Act, notwithstanding the provisions of that paragraph, the amount calculated under the provisions of that paragraph is to be the total of that amount and the amount equivalent to two-thirds (or one-third, for income tax for 1976) of the amount of the special reserve for price fluctuations.

①The provisions of Article 29-2, paragraph (3), item (ii) of the New Act apply to public pensions or retirement packages prescribed in that item (hereinafter referred to as "public pension or retirement package" in this Article) that are to be paid on or after the Effective Date, and with regard to public pensions or retirement packages that are to be paid before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 29-2, paragraph (3), item (iii) of the New Act apply in the case where the last day of payment of public pensions or retirement packages that are to be paid during 1975 falls on or after the Effective Date, and in the case where that last day of payment falls before the Effective Date, the provisions then in force continue to govern.

①The provisions of Article 37-4 of the New Act apply in the case where an individual carries out an exchange falling under the provisions of that Article on or after the Effective Date, and in the case where an individual carried out an exchange falling under the provisions of Article 37-4 of the Former Act before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 39, paragraph (1) of the New Act apply in the case where property acquired through an inheritance or bequest prescribed in that paragraph that commenced on or after January 1, 1975 has been transferred, and in the case where property acquired through such an inheritance or bequest that commenced before that date has been transferred, the provisions then in force continue to govern.

③In the case where property has been paid in kind with the permission under Article 70-4, paragraph (10) of the Former Act, which remains in force pursuant to the provisions of Article 20, paragraph (2) of the Supplementary Provisions, the provisions of Article 40-3 of the Former Act are to govern.

With regard to redemption gains prescribed in Article 41-12, paragraph (1) of the Former Act that are to be received on discount bonds prescribed in that paragraph issued by March 31, 1975, the provisions then in force continue to govern.

With regard to consideration for the lease of ships prescribed in Article 41-13 of the Former Act that a nonresident or a foreign corporation is to receive under a contract concluded during the period from April 1, 1971 to March 31, 1975, the provisions of that Article are to govern, with the word "during" in that Article deemed to be replaced with "under a contract concluded during".

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) commencing on or after the Effective Date, and with regard to corporation tax for business years of corporations that commenced before the Effective Date, the provisions then in force continue to govern.

The provisions of Articles 42 and 42-2 of the New Act apply to corporation tax for business years of a domestic corporation prescribed in Article 2, paragraph (2), item (i) of the New Act ending on or after the Effective Date, and with regard to corporation tax for business years of that domestic corporation that ended before the Effective Date, the provisions then in force continue to govern.

①The provisions of items (i), (iv) and (vi) of the table in Article 43, paragraph (1) of the New Act and of Article 43-2, paragraph (1) of the New Act apply to specified equipment, etc. prescribed in Article 43, paragraph (1) of the New Act or pollution control facilities prescribed in Article 43-2, paragraph (1) of the New Act for which a corporation makes an acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies hereinafter in this Article) on or after the Effective Date and which it provides for use in its business, and in the case where a corporation has provided for use in its business specified equipment, etc. prescribed in Article 43, paragraph (1) of the Former Act or pollution control facilities prescribed in Article 43-2, paragraph (1) of the Former Act for which it made an acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 45-3, paragraph (1), item (i) of the New Act apply to depreciable assets listed in that item that a corporation holds at the end of the business year ending on or after the Effective Date, and with regard to depreciable assets listed in Article 45-3, paragraph (1), item (i) of the Former Act that a corporation holds at the end of the business year that ended before the Effective Date, the provisions then in force continue to govern.

③The provisions of item (i) of the table in Article 48, paragraph (1) of the New Act apply to specified stockpiling facilities, etc. prescribed in that paragraph for which a corporation makes an acquisition, etc. in a business year commencing on or after the Effective Date and which it provides for use in its business, and in the case where a corporation has provided for use in its business specified stockpiling facilities, etc. prescribed in Article 48, paragraph (1) of the Former Act for which it made an acquisition, etc. in a business year that commenced before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 51, paragraph (1) of the New Act apply to jointly used facilities prescribed in that paragraph that a corporation provides for use in its business on or after the Effective Date, and with regard to jointly used facilities prescribed in Article 51, paragraph (1) of the Former Act that a corporation provided for use in its business before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 52 of the New Act apply in the case where a corporation pays expenses or contributions prescribed in paragraph (1) of that Article on or after the Effective Date, and in the case where a corporation paid expenses or contributions prescribed in Article 52, paragraph (1) of the Former Act before the Effective Date, the provisions then in force continue to govern.

①With regard to the application of the provisions of the items of Article 53, paragraph (1) of the Act on Special Measures Concerning Taxation as amended by the 1976 Amendment Act in each business year commencing on or after the Effective Date (limited to each business year commencing before April 1, 1977) of a corporation prescribed in Article 53, paragraph (1) of the New Act that, at the end of the business year immediately preceding the business year commencing first on or after the Effective Date, holds, out of the amount of the reserve for price fluctuations under Article 53, paragraph (1) of the Former Act (including Article 12, paragraph (2) of the Supplementary Provisions of the 1973 Amendment Act Before the Amendment), the amount calculated pursuant to the provisions of Cabinet Order as the portion pertaining to inventory assets prescribed in Article 53, paragraph (1), item (i) of the Former Act (hereinafter referred to as the "amount of the special reserve for price fluctuations" in this paragraph) (excluding a corporation to which the provisions of Article 11, paragraph (1) or (2) of the Supplementary Provisions of the 1976 Amendment Act have been applied), notwithstanding the provisions of the items of that paragraph, the amount calculated under the provisions of the items of that paragraph is to be the total of that amount and the amount calculated by multiplying the amount of the special reserve for price fluctuations by the number obtained by deducting from 36 the number equivalent to the number of months in the period from the first day of that first business year to the end of the business year concerned (or 36, if that number exceeds 36), and dividing the product by 36.

②The number of months referred to in the preceding paragraph is calculated in accordance with the calendar, and any fraction of less than one month is counted as one month.

③The calculation of the amount of the special reserve for price fluctuations referred to in paragraph (1) in the case where a corporation prescribed in that paragraph has carried out a merger on or after the Effective Date, and other necessary matters concerning the application of the provisions of that paragraph, are specified by Cabinet Order.

④The provisions of Article 55 of the New Act apply to specified shares, etc. prescribed in paragraph (1) of that Article that a corporation acquires on or after the Effective Date, and with regard to specified shares, etc. prescribed in Article 55, paragraph (1) of the Former Act that a corporation acquired before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 57-6 of the Former Act remain in force with regard to corporation tax for business years commencing on or before April 30, 1975 of a corporation prescribed in paragraph (1) of that Article.

⑥With regard to the inclusion in gross profit of the amount of the reserve for abnormal risks prescribed in Article 57-6, paragraph (1), item (ii) of the Former Act that a corporation which has set aside the reserve for abnormal risks under paragraph (1) of that Article holds at the end of a business year commencing on or after May 1, 1975, the provisions of paragraphs (2), (3) and (5) through (10) of that Article are to govern, with the phrase "the amount specified by Cabinet Order out of that amount" in paragraph (6) of that Article deemed to be replaced with "the amount that it has set aside pursuant to the provisions of Cabinet Order".

①The provisions of Article 64 and Articles 65 through 65-6 of the New Act apply to corporation tax on transfers of assets falling under those provisions (including acts deemed to be transfers by expropriation, etc. under the provisions of Article 64, paragraph (2) of the New Act) that a corporation carries out on or after January 1, 1975, and with regard to corporation tax on transfers of assets falling under the provisions of Article 64 and Articles 65 through 65-6 of the Former Act (including acts deemed to be transfers by expropriation, etc. under the provisions of Article 64, paragraph (2) of the Former Act) that a corporation carried out before that date, the provisions then in force continue to govern.

②With regard to the application of the provisions of Article 65, paragraph (1), item (v) of the New Act up to the day before the date listed in Article 1, item (ii) of the Supplementary Provisions, the phrase "type 1 urban redevelopment project" in that item is deemed to be replaced with "urban redevelopment project".

③The provisions of Article 65-9 of the New Act apply to corporation tax in the case where a corporation carries out an exchange falling under the provisions of that Article on or after the Effective Date, and with regard to corporation tax in the case where a corporation carried out an exchange falling under the provisions of Article 65-9 of the Former Act before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 66, paragraph (1), item (ii) and Article 66-3, paragraph (1), item (ii) of the New Act apply to corporation tax in the case where a corporation carries out a merger or makes a capital contribution pertaining to an approval of a small and medium sized enterprise structural improvement plan prescribed in those provisions that is given on or after the Effective Date, and with regard to corporation tax in the case where a corporation carried out a merger or made a capital contribution pertaining to an approval of a small and medium sized enterprise structural improvement plan prescribed in Article 66, paragraph (1), item (ii) or Article 66-3, paragraph (1), item (ii) of the Former Act that was given before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 66-4 of the New Act apply to corporation tax for business years of corporations ending on or after the Effective Date, and with regard to corporation tax for business years of corporations that ended before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 66-5, paragraph (1), item (ii) of the New Act apply to assets for experimental research prescribed in Article 66-5, paragraph (1) of the New Act that a corporation acquires or manufactures, on or after the date listed in Article 1, item (i) of the Supplementary Provisions, with amounts that it levies based on the standards for levies (meaning the standards for levies listed in Article 4, paragraph (3), item (iv) of the Act on Promotion of Modernization of Small and Medium-Sized Enterprises (including as applied mutatis mutandis pursuant to Article 5, paragraph (4) of that Act)) set forth in a small and medium sized enterprise structural improvement plan or a small and medium sized enterprise new field entry plan prescribed in Article 66-5, paragraph (1), item (ii) of the New Act.

The provisions of Article 66-7 of the New Act apply to contributions prescribed in paragraph (1) of that Article that a corporation pays on or after the Effective Date.

①The provisions of Article 70-4 of the New Act apply to gift tax on gifts of farmland and pasture land, and quasi-farmland, prescribed in paragraph (1) of that Article that fall under the provisions of that Article and that are made on or after January 1, 1975 (excluding gifts that take effect upon the death of the donor; the same applies in the following paragraph).

②With regard to gift tax on gifts of farmland, etc. prescribed in Article 70-4, paragraph (1) of the Former Act that were made on or before December 31, 1974 and to which the provisions of that Article were applied, the provisions of that Article remain in force. In this case, with regard to the application of the provisions of Article 70-4 of the Former Act to that gift tax (excluding gift tax subject to the application of the provisions of the main clause of paragraph (1) of that Article in the case where the donor prescribed in the main clause of that paragraph in relation to that gift tax died on or before that date, gift tax subject to the application of the proviso to that paragraph or of paragraph (6) of that Article in the case where those provisions were applied before the Effective Date, and gift tax pertaining to an acceleration of the due date for payment under the provisions of paragraph (7) of that Article or a demand for payment under the provisions of Article 38, paragraph (1) of the Act on General Rules for National Taxes (Act No. 66 of 1962) in the case where that acceleration or demand was made before the Effective Date), the phrase "), in the case where there has been (transfer, creation or extinguishment under Articles 33 through 33-3" in paragraph (1), item (i) of that Article is deemed to be replaced with "), in the case where there has been (transfer by expropriation or exchange, etc. prescribed in Article 33-4, paragraph (1) or other transfer or creation specified by Cabinet Order", the phrase "in the case where there has been (excluding the case where there has been a transfer, creation or extinguishment under Articles 33 through 33-3), its" with "(excluding transfer by expropriation or exchange, etc. prescribed in Article 33-4, paragraph (1) or other transfer or creation specified by Cabinet Order) in the case where there has been, that", the phrase "including the area" with "the area obtained by adding the area", and the phrase "the area of land provided for" with "the area of land provided for (if there has been a transfer, etc. of that farmland, etc. before that time, the area obtained by adding the area of the land pertaining to that transfer, etc.)"; the word "donor" in paragraph (9) of that Article is deemed to be replaced with "when the donor has died or the donor", and the phrase "of that death" with "on which the donor died or on which the donee died"; and the provisions of paragraphs (10) and (11) of that Article do not apply.

③The provisions of Article 70-4, paragraph (15) of the New Act apply mutatis mutandis in the case where the Minister of Agriculture and Forestry, or a prefectural governor, the mayor of a municipality or an agricultural committee, has come to know, through an act prescribed in Article 70-4, paragraph (15) of the New Act that it performed on or after the Effective Date, that a fact prescribed in that paragraph has occurred with regard to farmland, etc. prescribed in Article 70-4, paragraph (1) of the Former Act pertaining to gift tax to which the provisions of paragraph (1) of that Article, which remain in force pursuant to the provisions of the preceding paragraph, apply and to which the provisions of the second sentence of the preceding paragraph apply.

④The provisions of Article 70-5 of the New Act apply to inheritance tax on an inheritance or bequest (including a gift that takes effect upon the death of the donor; the same applies hereinafter in this Article) resulting from the death of a donor in the case where, on or after January 1, 1975, the donor of farmland, etc. prescribed in Article 70-4, paragraph (1) of the New Act pertaining to gift tax to which the provisions of that paragraph apply has died, or where, on or after that date, the donor of farmland, etc. prescribed in Article 70-4, paragraph (1) of the Former Act, which remains in force pursuant to the provisions of paragraph (2), pertaining to gift tax to which the provisions of that paragraph apply (hereinafter referred to as the "donor of farmland, etc. under the Former Act" up to the following paragraph) has died, and with regard to inheritance tax on an inheritance or bequest resulting from the death of a donor of farmland, etc. under the Former Act in the case where that donor died before that date, the provisions then in force continue to govern.

⑤The necessary technical replacement of terms in applying the provisions of Article 70-5 of the New Act to inheritance tax on an inheritance or bequest resulting from the death of a donor of farmland, etc. under the former Act in the case where that donor has died on or after January 1, 1975 is specified by Cabinet Order.

⑥The provisions of Article 70-6 of the New Act apply to inheritance tax on an inheritance or bequest in the case where the property acquired, as prescribed in paragraph (1) of that Article, through an inheritance or bequest on or after January 1, 1975 includes farmland, pasture land or quasi-farmland prescribed in that paragraph.

⑦The provisions of Article 70-7 of the New Act apply to inheritance tax on standing timber prescribed in paragraph (1) of that Article acquired through an inheritance or bequest on or after January 1, 1975, and with regard to inheritance tax on standing timber prescribed in Article 70-6, paragraph (1) of the Former Act acquired through an inheritance or bequest before that date, the provisions then in force continue to govern.

①The provisions of Article 76-2 of the New Act apply to registration and license tax on registrations prescribed in that Article that are obtained on or after the Effective Date, and with regard to registration and license tax on registrations prescribed in Article 76-2 of the Former Act that were obtained before the Effective Date, the provisions then in force continue to govern.

②With regard to registration and license tax on the registration of transfer of ownership of land acquired through an exchange prescribed in Article 77, paragraph (2) of the Former Act carried out on or before March 31, 1975, which is obtained within one year after that exchange, the provisions then in force continue to govern.

③The provisions of Article 77-4, paragraph (1) of the New Act apply to registration and license tax on the registration of transfer of ownership of land acquired through consultation, conciliation or mediation prescribed in that paragraph that takes place on or after the Effective Date, and with regard to registration and license tax on that registration for land acquired through consultation, conciliation or mediation prescribed in Article 77-4 of the Former Act that took place before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 78-3, paragraph (2) of the New Act apply to registration and license tax on the registration of transfer of ownership of land prescribed in that paragraph that is acquired on or after the Effective Date, and with regard to registration and license tax on that registration for such land acquired before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 79 of the New Act apply to registration and license tax on the registration of preservation of ownership or the registration of creation of a mortgage for ships prescribed in paragraph (1) of that Article that are newly built on or after the Effective Date, and with regard to registration and license tax on those registrations for such ships newly built before the Effective Date, the provisions then in force continue to govern.

①With regard to commodity tax on passenger motor vehicles listed in item (vii) of Class 2 of the Appended Table of the Commodity Tax Act that were shipped from the manufacturing site where they were manufactured within the period prescribed in Article 88-4, paragraph (1) or (2) of the Former Act and that fall under those provisions, the provisions then in force continue to govern.

②With regard to the application of penal provisions to acts committed before the enforcement of this Act and to acts committed after the enforcement of this Act with respect to commodity tax for which the provisions then in force are to govern pursuant to the provisions of the preceding paragraph, the provisions then in force continue to govern.

①The provisions of Article 3, paragraphs (3) and (4) of the Supplementary Provisions of the 1973 Amendment Act as Amended apply in the case where an individual provides for use in the individual's business depreciable assets prescribed in paragraph (3) of that Article for which the individual makes an acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies hereinafter in this paragraph and paragraph (3)) on or after the Effective Date, and in the case where an individual has provided for use in business such depreciable assets for which the individual made an acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 4, paragraph (2) of the Supplementary Provisions of the 1973 Amendment Act as Amended apply to income tax for 1975 and subsequent years, and with regard to income tax for 1974 and earlier years, the provisions then in force continue to govern.

③The provisions of Article 11, paragraphs (4) and (5) of the Supplementary Provisions of the 1973 Amendment Act as Amended apply in the case where a corporation provides for use in its business depreciable assets prescribed in paragraph (4) of that Article for which it makes an acquisition, etc. on or after the Effective Date, and in the case where a corporation has provided for use in its business such depreciable assets for which it made an acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 12, paragraph (2) of the Supplementary Provisions of the 1973 Amendment Act as Amended 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 the Effective Date, the provisions then in force continue to govern.