This Act comes into effect on April 1, 1998.

The provisions of Article 20-5 of the Act on Special Measures Concerning Taxation as amended by the provisions of Article 3 (hereinafter referred to as the "New Act on Special Measures Concerning Taxation") apply to fixed assets listed in the items of paragraph (1) of that Article that an individual uses for business in each year from 1999 onward (excluding fixed assets for which an account of allowance for special repairs under Article 55 of the Former Income Tax Act, which remains in force pursuant to the provisions of Article 15, paragraph (2) of the Supplementary Provisions, has been established).

The provisions of Article 41-14 of the New Act on Special Measures Concerning Taxation apply to income tax for 1998 and subsequent years, and with regard to income tax for 1997 and earlier years, the provisions then in force continue to govern.

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

The provisions of Article 57-8 of the New Act on Special Measures Concerning Taxation apply to fixed assets listed in the items of paragraph (1) of that Article that a corporation uses for business in each business year beginning on or after the Effective Date (excluding fixed assets for which there is an amount in the account of allowance for special repairs prescribed in Article 7, paragraph (1) of the Supplementary Provisions pertaining to those fixed assets).

With regard to the calculation of the amount of income pertaining to shares acquired through a capital contribution prescribed in Article 66, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 3 (referred to as the "Former Act on Special Measures Concerning Taxation" in the following Article) that a corporation made before the Effective Date, the provisions then in force continue to govern.

With regard to foreign country's corporate tax prescribed in Article 68-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation imposed on the income of a foreign second-tier subsidiary prescribed in that paragraph pertaining to the amount of dividends, etc. prescribed in Article 69, paragraph (4) of the Former Corporation Tax Act that a corporation received from a foreign subsidiary prescribed in Article 68-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation in a business year that began before the Effective Date, the provisions then in force continue to govern.