The provisions of Article 25-2, paragraphs (5) and (6) of the New Act on Special Measures Concerning Taxation apply to income tax for 1988, and the provisions then in force continue to govern income tax for 1987 and prior years.

The provisions then in force continue to govern the collection and payment of income tax under the provisions of Article 183, paragraph (1) of the Former Income Tax Act pertaining to pensions and annuities prescribed in Article 29-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation that are to be paid on or before December 31, 1987, and the submission of salary income earners' returns for deduction for Dependents, etc. prescribed in Article 194, paragraph (4) of the Former Income Tax Act.

①The provisions of Article 31-2, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (3) of that Article) and Article 31-3, paragraph (1) of the New Act on Special Measures Concerning Taxation also apply to income tax for 1987 on capital gains from transfers in the case where an individual has, during the period from January 1, 1987 to September 30, 1987, transferred land, etc. prescribed in Article 31-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation or land, etc. prescribed in Article 31-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation that the individual holds and whose holding period prescribed in Article 31, paragraph (2) of the Former Act on Special Measures Concerning Taxation exceeds 10 years as of January 1, 1987, and all or part of that transfer falls under a transfer for a superior residential area, etc. prescribed in Article 31-2, paragraph (2) of the Former Act on Special Measures Concerning Taxation, a transfer for a determined site for constructing a superior residential area, etc. prescribed in paragraph (3) of that Article, or a transfer of specified farmland, etc. in an urbanization promotion area prescribed in Article 31-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation.

②The provisions of Article 37, paragraphs (1) and (3) and Article 37-3, paragraph (1) of the New Act on Special Measures Concerning Taxation apply in the case where an individual transfers assets prescribed in Article 37, paragraph (1) of the New Act on Special Measures Concerning Taxation on or after October 1, 1987, and the provisions then in force continue to govern the case where an individual transferred assets prescribed in Article 37, paragraph (1) of the Former Act on Special Measures Concerning Taxation before that date.

①The provisions then in force continue to govern compensation for periodic deposits or similar amounts prescribed in Article 41-11, paragraph (1) of the New Act on Special Measures Concerning Taxation that is to be received before April 1, 1988.

②The provisions then in force continue to govern the portion of compensation for periodic deposits or similar amounts prescribed in Article 41-11, paragraph (1) of the New Act on Special Measures Concerning Taxation (hereinafter referred to as "compensation for periodic deposits or similar amounts" in this paragraph) that is to be received on or after April 1, 1988 and that corresponds to a period specified by Cabinet Order as a calculation period for compensation for periodic deposits or similar amounts that includes that date, which is equivalent to the amount calculated pursuant to Cabinet Order as the amount corresponding to the period from the first day of that period until March 31 of that year.

③The provisions then in force continue to govern the portion of compensation for periodic deposits or similar amounts prescribed in Article 41-11, paragraph (3) of the New Act on Special Measures Concerning Taxation (hereinafter referred to as "compensation for periodic deposits or similar amounts" in this paragraph) that is to be paid on or after April 1, 1988 and that corresponds to a period specified by Cabinet Order as a calculation period for compensation for periodic deposits or similar amounts that includes that date, which is equivalent to the amount calculated pursuant to Cabinet Order as the amount corresponding to the period from the first day of that period until March 31 of that year.

The provisions then in force continue to govern profit from redemption prescribed in Article 41-12, paragraph (1) of the Former Act on Special Measures Concerning Taxation that is to be received on discount bonds prescribed in that paragraph issued on or before March 31, 1988.

Unless otherwise specially provided for in the New Act on Special Measures Concerning Taxation or these Supplementary Provisions, the provisions of Chapter III of the New Act on Special Measures Concerning Taxation apply to corporation tax on income for business years of a corporation ending on or after October 1, 1987 and corporation tax on liquidation income resulting from a dissolution or merger on or after that date (including corporation tax on income for business years during liquidation of a corporation subject to corporation tax on liquidation income and corporation tax to be paid upon a partial distribution of residual assets; the same applies hereinafter in this Article), and the provisions then in force continue to govern corporation tax on income for business years of a corporation that ended before that date and corporation tax on liquidation income resulting from a dissolution or merger before that date.

①The provisions of Article 65-4, paragraph (1), item (viii) or (xv) of the New Act on Special Measures Concerning Taxation apply to corporation tax pertaining to a transfer of land, etc. prescribed in that paragraph that a corporation makes on or after October 1, 1987 and that falls under the case set forth in item (viii) or (xv) of that paragraph, and the provisions then in force continue to govern corporation tax pertaining to a transfer of land, etc. prescribed in Article 65-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation that a corporation made before that date and that falls under the case set forth in item (viii) of that paragraph.

②The provisions of items (x) and (xvi) of the table in Article 65-7, paragraph (1) of the New Act on Special Measures Concerning Taxation apply to corporation tax pertaining to a transfer of assets set forth in the left-hand column of those provisions that a corporation makes on or after October 1, 1987, and the provisions then in force continue to govern corporation tax pertaining to a transfer of assets set forth in the left-hand column of items (x) and (xvi) of the table in Article 65-7, paragraph (1) of the Former Act on Special Measures Concerning Taxation that a corporation made before that date.

With regard to how income tax should be imposed on interest income, including the question of a shift to comprehensive taxation, a review is to be conducted as necessary once five years have elapsed after this Act comes into effect.