①The provisions of Article 37-11-3, paragraph (1) of the New Act on Special Measures Concerning Taxation apply to transfers, made on or after January 1, 2003, of listed shares, etc. held in a specified account prescribed in Article 37-11-3, paragraph (1) of the New Act on Special Measures Concerning Taxation that pertain to a specified account prescribed in paragraph (3), item (i) of that Article (referred to as a "specified account" in this Article) opened on or after that date.

②The provisions of Article 37-11-3, paragraph (2) of the New Act on Special Measures Concerning Taxation apply to transfers of listed shares, etc. pertaining to margin transactions prescribed in that paragraph that pertain to settlement as referred to in that paragraph processed on or after January 1, 2003 in a specified account opened on or after that date.

③A resident or a nonresident who has a permanent establishment in Japan, as prescribed in Article 37-11-3, paragraph (3), item (i) of the New Act on Special Measures Concerning Taxation, who intends to open a specified account, and a securities company prescribed in that item with which that specified account is to be opened (referred to as a "securities company" in this Article) may, even before January 1, 2003, in the same manner as provided in that item, open an account for the custody of listed shares, etc. or for margin transactions in listed shares, etc. prescribed in that item for which the written notification for opening a specified account prescribed in that item is to be submitted, submit that written notification for opening a specified account, and carry out other necessary acts (excluding the acceptance of listed shares, etc. (meaning listed shares, etc. prescribed in Article 37-11, paragraph (1) of the New Act on Special Measures Concerning Taxation; the same applies hereinafter in this Article) (excluding acceptance pursuant to the provisions of the following paragraph) and the transfer of custody of margin transactions in listed shares, etc. (meaning margin transactions prescribed in that item; the same applies hereinafter in this Article) (excluding a transfer of custody pursuant to the provisions of paragraph (6))). In this case, the provisions of Articles 37-11-3 through 37-11-5 of the New Act on Special Measures Concerning Taxation apply by deeming the written notification for opening a specified account so submitted to have been submitted on that date, and the account for the custody of listed shares, etc. or for margin transactions in listed shares, etc. so opened that pertains to that written notification for opening a specified account (referred to as a "preparatory account" in this Article) to have been opened on that date, respectively.

④In a preparatory account to which the provisions of the second sentence of the preceding paragraph apply, listed shares, etc. that the resident or the nonresident who has a permanent establishment in Japan referred to in that paragraph holds on any one day during 2002 after the last business day in 2002 of the securities company that opens that preparatory account, and that are listed in the following items, may be accepted on that day:

⑤Listed shares, etc. accepted into a preparatory account pursuant to the provisions of the preceding paragraph are deemed to be listed shares, etc. accepted, in a manner falling under the provisions of Article 37-11-3, paragraph (3), item (i) of the New Act on Special Measures Concerning Taxation, on January 1, 2003 in the specified account pertaining to the preparatory account deemed pursuant to the provisions of the second sentence of paragraph (3) to have been opened on that date, and the provisions of paragraph (1) of that Article apply.

⑥In a preparatory account to which the provisions of the second sentence of paragraph (3) apply, on any one day during 2002 after the last business day in 2002 of the securities company that opens that preparatory account, a transfer of custody, as specified by Cabinet Order, may be made from the other margin trading account of margin transactions in listed shares, etc. that are processed in an account for contracts for margin transactions in securities, other than that preparatory account, of that resident or nonresident who has a permanent establishment in Japan, opened with the securities company that opens that preparatory account (referred to as the "other margin trading account" in this paragraph) (limited to those for which the settlement of that margin transaction is to be made on or after January 1, 2003 and that settlement is to be made in the specified account pertaining to that preparatory account deemed pursuant to the provisions of the second sentence of paragraph (3) to have been opened on that date).

⑦Margin transactions in listed shares, etc. prescribed in the preceding paragraph whose custody has been transferred to a preparatory account pursuant to the provisions of that paragraph are deemed to be margin transactions commenced, in a manner falling under the provisions of Article 37-11-3, paragraph (3), item (i) of the New Act on Special Measures Concerning Taxation, on January 1, 2003 in the specified account pertaining to the preparatory account deemed pursuant to the provisions of the second sentence of paragraph (3) to have been opened on that date, and the provisions of paragraph (2) of that Article apply.

⑧Beyond what is provided for in paragraph (5) and the preceding paragraph, special provisions on the determination of the acquisition cost and the time of acquisition of listed shares, etc. accepted pursuant to the provisions of paragraph (4), special provisions on necessary expenses pertaining to margin transactions in listed shares, etc. whose custody has been transferred pursuant to the provisions of paragraph (6), and other necessary matters concerning the application of the provisions of paragraphs (3), (4) and (6) are specified by Cabinet Order.

⑨The provisions of Article 37-11-3, paragraphs (4) and (5) of the New Act on Special Measures Concerning Taxation apply in the case where the written notification for opening a specified account prescribed in paragraph (3), item (i) of that Article is submitted on or after January 1, 2003 (including the case where that written notification for opening a specified account is submitted before that date pursuant to the provisions of paragraph (3)).

The provisions of Article 37-11-4 of the New Act on Special Measures Concerning Taxation apply to the consideration for the transfer of listed shares, etc. held in a specified account prescribed in paragraph (1) of that Article and the amount equivalent to the gain from cash settlement prescribed in that paragraph, which are to be paid on or after January 1, 2003, and to the loss arising from cash settlement prescribed in that paragraph carried out on or after that date.

The provisions of Article 37-11-5 of the New Act on Special Measures Concerning Taxation apply to the amounts listed in the items of paragraph (1) of that Article for 2003 and each subsequent year.

①The provisions of Article 37-15, paragraph (1) of the New Act on Special Measures Concerning Taxation (limited to the part concerning item (i)) apply to income from transfers of public and corporate bonds prescribed in that item carried out on or after the Effective Date.

②With regard to the application of the provisions of Article 37-15, paragraph (1) of the New Act on Special Measures Concerning Taxation (limited to the part concerning item (i)) in the case where the provisions of Article 7, paragraph (1) of the Supplementary Provisions of the Commercial Code, etc. Amendment Act apply, the public and corporate bonds prescribed in that item are to include convertible bonds or bonds with subscription rights for new shares for which the provisions then in force continue to govern pursuant to the provisions of Article 7, paragraph (1) of the Supplementary Provisions of the Commercial Code, etc. Amendment Act.

③With regard to a transfer of beneficiary certificates of a specified stock investment trust prescribed in Article 37-15, paragraph (3) of the Former Act on Special Measures Concerning Taxation through an exchange prescribed in that paragraph that an individual carried out before the Effective Date, the provisions then in force continue to govern.

With regard to redemption gains prescribed in Article 41-12, paragraph (7) of the Former Act on Special Measures Concerning Taxation that are to be received on discount bonds prescribed in that paragraph issued before the Effective Date, the provisions then in force continue to govern.

①With regard to the application of the provisions of Article 6 of the Act on Measures to Reduce the Burden of Income Tax and Corporation Tax to Be Taken Promptly in Response to Changes in the Economy and Society, etc. (Act No. 8 of 1999; hereinafter referred to as the "Income Tax and Corporation Tax Burden Reduction Act") in the case where the provisions of Article 5, 6, 11 or 12 of the Supplementary Provisions apply, the phrase "provisions, and" in Article 2, item (iii) of the Income Tax and Corporation Tax Burden Reduction Act is deemed to be replaced with "provisions, the provisions of Articles 5, 6, 11 and 12 of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation, etc. (Act No. 15 of 2002), and".

②With regard to the application of the provisions of Article 6 of the Income Tax and Corporation Tax Burden Reduction Act in the case where the provisions of Article 13, paragraph (1) or (2), Article 14 or Article 15 of the Supplementary Provisions apply, the phrase "provisions, and" in Article 2, item (iii) of the Income Tax and Corporation Tax Burden Reduction Act is deemed to be replaced with "provisions, the provisions of Article 13, paragraphs (1) and (2), Article 14 and Article 15 of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation, etc. (Act No. 15 of 2002), and".

③With regard to the application of the provisions of Article 6 of the Income Tax and Corporation Tax Burden Reduction Act in the case where the provisions of Article 13, paragraphs (3) through (9) of the Supplementary Provisions apply, the phrase "provisions, and" in Article 2, item (iii) of the Income Tax and Corporation Tax Burden Reduction Act is deemed to be replaced with "provisions, the provisions of Article 13, paragraphs (3) through (9) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation, etc. (Act No. 15 of 2002), and".

Unless otherwise provided, the provisions of Chapter III of the New Act on Special Measures Concerning Taxation 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; the same applies hereinafter) commencing on or after the Effective Date, and with regard to corporation tax for business years of a corporation that commenced before the Effective Date, the provisions then in force continue to govern.

With regard to depreciable assets listed in Article 42-5, paragraph (1), item (v) of the Former Act on Special Measures Concerning Taxation that a corporation acquired, manufactured or constructed before the Effective Date, the provisions then in force continue to govern.