①Beyond what is provided for in the following paragraph through paragraph (6), the provisions of Articles 66-12 and 66-13 of the New Act on Special Measures Concerning Taxation apply to the case where a merger, company split or capital contribution in kind is carried out on or after April 1, 2001, and the provisions then in force continue to govern the case where a merger or capital contribution in kind was carried out before that date.

②The provisions then in force continue to govern the loss from equipment disposal prescribed in Article 66-12, paragraph (1) of the Former Act on Special Measures Concerning Taxation pertaining to a disposal of equipment that a corporation carried out before April 1, 2001.

③The provisions of Article 57, paragraph (5) of the Corporation Tax Act as applied with the replacement of terms pursuant to the provisions of Article 66-12, paragraph (5) of the New Act on Special Measures Concerning Taxation (referred to as the "Corporation Tax Act as Reworded" in the following paragraph) apply, in the case where there are a loss from equipment disposal, etc. (meaning a loss from equipment disposal, etc. prescribed in Article 66-12, paragraph (1) of the New Act on Special Measures Concerning Taxation; the same applies hereinafter in this paragraph) arising in a business year beginning on or after April 1, 2001 of a corporation that becomes a merging corporation, a successor corporation in a company split or a corporation receiving a capital contribution in kind prescribed in that paragraph in relation to a qualified merger, etc. prescribed in that paragraph, and an amount deemed, pursuant to the provisions of Article 57, paragraph (2) of the Corporation Tax Act as applied with the replacement of terms pursuant to the provisions of Article 66-12, paragraph (4) of the New Act on Special Measures Concerning Taxation, to be a loss from equipment disposal, etc. that arose in each business year of the merging corporation, etc. prescribed in that paragraph (referred to as a "deemed loss from equipment disposal, etc." in this paragraph and the following paragraph), to that deemed loss from equipment disposal, etc., and the provisions then in force continue to govern a loss from equipment disposal, etc. prescribed in Article 66-12, paragraph (2) of the Former Act on Special Measures Concerning Taxation that arose in a business year of a corporation that began before that date.

④Necessary matters concerning the application of the provisions of Article 57, paragraph (5) of the Corporation Tax Act as Reworded in the case where the corporation prescribed in the preceding paragraph carries out a qualified merger, etc. prescribed in Article 66-12, paragraph (4) of the New Act on Special Measures Concerning Taxation in a business year beginning on or after April 1, 2001, and that corporation has a deemed loss from equipment disposal, etc., are specified by Cabinet Order.

⑤The provisions of Article 57, paragraph (5) of the Corporation Tax Act as applied with the replacement of terms pursuant to the provisions of Article 66-13, paragraph (7) of the New Act on Special Measures Concerning Taxation (referred to as the "Corporation Tax Act as Reworded" in the following paragraph) apply, in the case where there are a special deficit amount (meaning a special deficit amount prescribed in Article 66-13, paragraph (1) or (2) of the New Act on Special Measures Concerning Taxation; the same applies hereinafter in this paragraph) arising in a business year beginning on or after April 1, 2001 of a corporation that becomes a merging corporation, a successor corporation in a company split or a corporation receiving a capital contribution in kind prescribed in that paragraph in relation to a qualified merger, etc. prescribed in that paragraph, and an amount deemed, pursuant to the provisions of Article 57, paragraph (2) of the Corporation Tax Act as applied with the replacement of terms pursuant to the provisions of Article 66-13, paragraph (6) of the New Act on Special Measures Concerning Taxation, to be a special deficit amount that arose in each business year of the merging corporation, etc. prescribed in that paragraph (referred to as a "deemed special loss amount" in this paragraph and the following paragraph), to that deemed special loss amount, and the provisions then in force continue to govern a special deficit amount prescribed in Article 66-13, paragraph (1) or (2) of the Former Act on Special Measures Concerning Taxation that arose in a business year of a corporation that began before that date.

⑥Necessary matters concerning the application of the provisions of Article 57, paragraph (5) of the Corporation Tax Act as Reworded in the case where the corporation prescribed in the preceding paragraph carries out a qualified merger, etc. prescribed in Article 66-13, paragraph (6) of the New Act on Special Measures Concerning Taxation in a business year beginning on or after April 1, 2001, and that corporation has a deemed special loss amount, are specified by Cabinet Order.

The provisions of Article 67-4 of the New Act on Special Measures Concerning Taxation apply to the case where a merger, company split, capital contribution in kind or post-formation acquisition of assets is carried out on or after April 1, 2001, and the provisions then in force continue to govern the case where a merger, capital contribution in kind or post-formation acquisition of assets was carried out before that date.

The provisions then in force continue to govern the amount deemed to be the amount of a distribution of surplus prescribed in Article 67-7 of the Former Act on Special Measures Concerning Taxation in the case where a domestic corporation has received a delivery of money or other assets through a merger listed in any of the items of that Article that was carried out before April 1, 2001.

The provisions then in force continue to govern the amount of the portion corresponding to the shares not cancelled prescribed in Article 67-8, paragraph (1) of the Former Act on Special Measures Concerning Taxation in the case where a listed company, etc. prescribed in that paragraph has cancelled shares using profits before April 1, 2001.

The provisions of Article 68-3-9, paragraph (1) of the New Act on Special Measures Concerning Taxation apply to the facts listed in the items of that paragraph that arise on or after April 1, 2001 with respect to a specified foreign subsidiary, etc. or a foreign affiliated company prescribed in that paragraph, and the provisions then in force continue to govern the facts listed in the items of Article 68-3-9, paragraph (1) of the Former Act on Special Measures Concerning Taxation that arose before that date with respect to a specified foreign subsidiary, etc. or a foreign affiliated company prescribed in that paragraph.

①The provisions of Article 69-4 of the New Act on Special Measures Concerning Taxation apply to inheritance tax on small-scale residential land, etc. prescribed in Article 69-4, paragraph (1) of the New Act on Special Measures Concerning Taxation acquired by inheritance or bequest (including a gift that takes effect upon the death of the donor; the same applies hereinafter in this Article) on or after January 1, 2001, and the provisions then in force continue to govern inheritance tax on small-scale residential land, etc. prescribed in Article 69-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation acquired by inheritance or bequest before that date.

②The provisions of Article 70, paragraph (10) of the New Act on Special Measures Concerning Taxation apply to inheritance tax on property acquired by inheritance or bequest on or after October 1, 2001.

③The provisions of Article 70-3 of the New Act on Special Measures Concerning Taxation (including as applied pursuant to the provisions of Article 69, paragraph (4) of the New Act on Special Measures Concerning Taxation) apply to gift tax on funds for housing acquisition prescribed in Article 70-3, paragraph (1) of the New Act on Special Measures Concerning Taxation or funds for housing extension or reconstruction prescribed in paragraph (5) of that Article that are acquired by gift (excluding a gift that takes effect upon the death of the donor; the same applies hereinafter in this Article) on or after January 1, 2001.

④With regard to gift tax in the case where an individual to whom the provisions of Article 70-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation applied has acquired property by gift within four years from the year following the year that includes the day on which the individual acquired by gift the funds for housing acquisition prescribed in that paragraph to which that application pertains (limited to the case where the individual acquired that property on or after January 1, 2001), the provisions of that Article remain in force. In this case, the phrase "the provisions of Article 21-7 of the Inheritance Tax Act" in paragraph (2), item (i) of that Article is deemed to be replaced with "the provisions of Article 21-7 of the Inheritance Tax Act (including the provisions of Article 70-2 of the Act on Special Measures Concerning Taxation as amended by Article 1 of the Act Partially Amending the Act on Special Measures Concerning Taxation, etc. (Act No. 7 of 2001))".

⑤The provisions of Article 70-4 of the New Act on Special Measures Concerning Taxation apply to gift tax on farmland, etc. in the case where, on or after the Effective Date, all or part of the farmland, etc. prescribed in paragraph (1) of that Article to which the provisions of that paragraph apply is lent based on the creation of a superficies right, etc. prescribed in paragraph (15) of that Article.

⑥The provisions of paragraphs (15) through (18) of Article 70-4, Article 70-5, paragraph (1) and Article 70-6, paragraph (25) of the New Act on Special Measures Concerning Taxation apply to the following persons by deeming them to be donees prescribed in Article 70-4, paragraph (1) of the New Act on Special Measures Concerning Taxation. In this case, necessary matters concerning the application of those provisions in relation to those donees are specified by Cabinet Order.

⑦The provisions of Article 70-5, paragraph (1) of the New Act on Special Measures Concerning Taxation apply to inheritance tax on an inheritance or bequest arising from the death of a donor of farmland, etc. prescribed in Article 70-4, paragraph (1) of the New Act on Special Measures Concerning Taxation pertaining to gift tax to which the provisions of that paragraph apply, in the case where that donor dies on or after the Effective Date, and the provisions then in force continue to govern inheritance tax on an inheritance or bequest arising from the death of a donor of farmland, etc. prescribed in Article 70-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation pertaining to gift tax to which the provisions of that paragraph apply, in the case where that donor died before the Effective Date.

⑧The provisions of Article 70-6 of the New Act on Special Measures Concerning Taxation apply to inheritance tax on special farmland, etc. in the case where, on or after the Effective Date, all or part of the special farmland, etc. prescribed in paragraph (1) of that Article to which the provisions of that paragraph apply is lent based on the creation of a superficies right, etc. prescribed in paragraph (20) of that Article.

⑨The provisions of paragraphs (20) through (24) of Article 70-6 of the New Act on Special Measures Concerning Taxation apply to the following persons by deeming them to be farming heirs prescribed in paragraph (1) of that Article. In this case, necessary matters concerning the application of those provisions in relation to those farming heirs are specified by Cabinet Order.