This Act comes into effect on April 1, 1986; provided, however, that the provisions listed in the following items come into effect on the dates specified 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 1986 and subsequent years, and the provisions then in force continue to govern income tax for 1985 and prior years.

①With regard to income tax in the case where an individual prescribed in Article 10-2, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment (hereinafter referred to as "the Former Act") has put energy use efficiency improvement equipment, etc. prescribed in that paragraph that the individual made an acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies in the following Article and Article 5) of before the Effective Date of this Act (hereinafter referred to as "the Effective Date") to use for the business prescribed in that paragraph, the provisions of Article 10-2 of the Former Act remain in force. In this case, the phrase "if there is an amount to be deducted, that amount" in paragraph (4) of that Article is deemed to be replaced with "if there is an amount to be deducted, or if there is an amount to be deducted from the amount of income tax on the amount of gross income for that year pursuant to the provisions of Article 10-2, paragraph (3) 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. 4 of 1988; hereinafter referred to as the "1988 Amendment Act"), which remains in force pursuant to the provisions of Article 4, paragraph (1) of the Supplementary Provisions of the 1988 Amendment Act, or Article 10-2, paragraph (3) of the Act on Special Measures Concerning Taxation as amended by the 1988 Amendment Act, those amounts", and the phrase "Article 10-2, paragraph (3) of the Act on Special Measures Concerning Taxation" in paragraph (9) of that Article is deemed to be replaced with "Article 10-2, paragraph (3) 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. 13 of 1986; hereinafter referred to as the "1986 Amendment Act"), which remains in force pursuant to the provisions of Article 3, paragraph (1) of the Supplementary Provisions of the 1986 Amendment Act".

②With regard to the application of the provisions of Article 10-2 of the Act on Special Measures Concerning Taxation as amended by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 4 of 1988) (hereinafter referred to as the "Act on Special Measures Concerning Taxation as Amended in 1988") in the case where the provisions of the preceding paragraph apply, the phrase "if there is an amount to be deducted, that amount" in paragraph (4) of that Article is deemed to be replaced with "if there is an amount to be deducted, or if there is an amount to be deducted from the amount of income tax on the amount of gross income for that year pursuant to the provisions of Article 10-2, paragraph (4) 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. 13 of 1986; hereinafter referred to as the "1986 Amendment Act"), which remains in force pursuant to the provisions of Article 3, paragraph (1) of the Supplementary Provisions of the 1986 Amendment Act, or Article 10-2, paragraph (3) or (4) 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. 4 of 1988; hereinafter referred to as the "1988 Amendment Act"), which remains in force pursuant to the provisions of Article 4, paragraph (1) of the Supplementary Provisions of the 1988 Amendment Act, those amounts".

The provisions of Article 10-3 of the New Act apply to equipment utilizing electronic devices prescribed in paragraph (1) of that Article that an individual makes an acquisition, etc. of or leases on or after the Effective Date and puts to use for the individual's business, and with regard to cases where an individual has put to use for the individual's business equipment utilizing electronic devices prescribed in Article 10-3, paragraph (1) of the Former Act that the individual made an acquisition, etc. of or leased before the Effective Date, the provisions then in force continue to govern.

①The provisions of item (vi) of the table in Article 11, paragraph (1) of the New Act apply to depreciable assets listed in that item that an individual makes an acquisition, etc. of on or after the Effective Date and puts to use for the individual's business.

②The provisions of item (ii) of the table in Article 12, paragraph (1) of the New Act apply to depreciable assets listed in that item that an individual makes an acquisition, etc. of on or after the Effective Date and puts to use for the individual's business.

③The provisions of Article 13-2, paragraph (1) of the New Act apply to fishing vessels listed in item (iii) of that paragraph that are held by a member of a fishery cooperative, etc. prescribed in that item that obtains, on or after the Effective Date, the certification referred to in that item for a small and medium sized fishery structural improvement plan prescribed in that item, and with regard to fishing vessels listed in Article 13-2, paragraph (1), item (iii) of the Former Act that are held by a member of a fishery cooperative, etc. prescribed in that item that obtained, before the Effective Date, the certification referred to in that item for a small and medium sized fishery structural improvement plan prescribed in that item, the provisions then in force continue to govern.

④The provisions of Article 15, paragraph (1) of the New Act apply to specified stockpiling facilities, etc. prescribed in that paragraph that an individual acquires or constructs on or after the Effective Date, and with regard to specified stockpiling facilities, etc. prescribed in Article 15, paragraph (1) of the Former Act that an individual acquired or constructed before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 17 of the New Act apply to depreciable assets prescribed in that Article that an individual makes an acquisition, etc. of on or after the Effective Date, and with regard to depreciable assets prescribed in Article 17 of the Former Act that an individual made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

With regard to the calculation of the amount of business income for each year up to and including 1986 of an individual who holds the reserve for price fluctuations prescribed in Article 19, paragraph (1) of the Former Act, the provisions of that Article remain in force.

①With regard to the application of the provisions of Article 21, paragraph (1) of the New Act in the case where an individual's gross revenue pertaining to business income for 1986 includes revenue from overseas transactions involving technology, etc. prescribed in that paragraph, the phrase "25 percent of that revenue (for revenue from the transactions listed in item (iii) of the following paragraph" in that paragraph is deemed to be replaced with "28 percent of that revenue within the period from January 1, 1986 to March 31 of that year (for revenue from the transactions listed in item (iii) of the following paragraph, 16 percent) and the amount equivalent to 25 percent of that revenue within the period from April 1 to December 31 of that year (for revenue from the transactions listed in item (iii) of that paragraph", and the phrase "the total of the amounts equivalent to" with "the total of the amount equivalent to".

②The provisions of Article 21, paragraph (2) of the New Act apply to overseas transactions involving technology, etc. referred to in that paragraph that an individual carries out on or after the Effective Date, and with regard to overseas transactions involving technology, etc. referred to in Article 21, paragraph (2) of the Former Act that an individual carried out before the Effective Date, the provisions then in force continue to govern.

The provisions of item (iv) of the table in Article 37, paragraph (1) of the New Act apply to income tax on the transfer of assets listed in the left-hand column of that item that an individual makes on or after the Effective Date.

①The provisions of Article 37-10, paragraph (1), item (iii) or (iv) of the New Act apply to income from the transfer of public and corporate bonds prescribed in item (iii) of that paragraph or national government bonds prescribed in item (iv) of that paragraph carried out on or after the Effective Date.

②The provisions of Article 37-10, paragraph (3) of the New Act apply to the record prescribed in that paragraph in the case where the consideration for the transfer of national government bonds prescribed in that paragraph comes to be payable on or after the Effective Date.

①With regard to income tax for each year up to 1987 of a resident who, on or before December 31, 1985, used a house for residential use or existing housing prescribed in Article 41, paragraph (1) of the Former Act as the resident's own residence as provided in that paragraph, the provisions of Articles 41 through 41-3 of the Former Act are to govern.

②In the case where a resident, during the period from October 1, 1985 to December 31 of that year, commenced the work of newly building a house for residential use prescribed in Article 41, paragraph (1) of the Former Act, or acquired (excluding acquisition by gift) such a house for residential use that had not been used since its construction or existing housing prescribed in that paragraph, within the area where the Income Tax Act is in force, and used it as the resident's own residence within that period, if the resident has continued to use it as the resident's own residence on and after January 1, 1986, the resident may, with regard to income tax for 1986 and 1987, notwithstanding the provisions of the preceding paragraph, receive the application of the provisions of Articles 41 through 41-3 of the New Act at the resident's choice. In this case, in Article 41, paragraph (1) of the New Act, the phrase "a resident," is deemed to be replaced with "a resident, during the period from October 1, 1985 to December 31 of that year,", the phrase "newly builds" is deemed to be replaced with "commences the work of newly building", and the phrase "during the period from January 1, 1986 to December 31, 1987" is deemed to be replaced with "within that period".

Unless otherwise provided, the provisions of Chapter III of the New Act apply to corporation tax for business years 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) beginning on or after the Effective Date, and with regard to corporation tax for business years of a corporation that began before the Effective Date, the provisions then in force continue to govern.