①The provisions of Article 70-4 of the New Act on Special Measures Concerning Taxation apply to gift tax on a gift of farmland, etc. prescribed in paragraph (1) of that Article (excluding a gift that takes effect upon the death of the donor; the same applies hereinafter in this Article) made on or after the Effective Date.

②With regard to gift tax on a gift of farmland, etc. prescribed in Article 70-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation (hereinafter referred to as "farmland, etc." in this Article) made before the Effective Date, the provisions of Article 70-4 of the Former Act on Special Measures Concerning Taxation remain in force.

③In the case where a donee prescribed in Article 70-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation (hereinafter referred to as a "donee" through paragraph (15)) to whom the provisions of the main clause of that paragraph, which remain in force pursuant to the provisions of the preceding paragraph, apply has, during the period from the Effective Date to June 30, 2011 and before the day of the death of the donor prescribed in paragraph (1) of that Article, created, pursuant to the provisions of Cabinet Order, a right based on a loan for use with regard to all of the farmland, etc. to which the provisions of Article 70-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation apply (excluding the farmland, etc. subject to the special lease provision referred to in paragraph (5) pertaining to the borrowed substitute farmland, etc. referred to in that paragraph to which the provisions of that paragraph apply), in favor of an agricultural production corporation prescribed in Article 2, paragraph (3) of the Cropland Act (Act No. 229 of 1952) prior to the amendment by the provisions of Article 3 of the Act Partially Amending the Agricultural Co-operatives Act, etc., and Other Matters (Act No. 63 of 2015) that is specified by Cabinet Order (referred to as a "former specified agricultural production corporation" in paragraph (5)), if a written notification of that creation has been submitted, pursuant to the provisions of Order of the Ministry of Finance, to the district director with jurisdiction over the place for tax payment of that donee by the day on which two months have elapsed from the day on which that creation was made, that creation is deemed not to have been made with regard to the application of the provisions of the proviso to paragraph (1) and paragraph (4) of that Article to that donee.

④With regard to the application of the provisions of Article 70-4, paragraphs (1) and (4) of the Former Act on Special Measures Concerning Taxation to a donee who has created a right based on a loan for use to which the provisions of the preceding paragraph apply, in the case where, after that creation, the donee continues to have the farmland, etc. pertaining to that creation (including farmland prescribed in Article 2, paragraph (1) of the Cropland Act as applied by deeming the cultivation of crops to fall under cultivation pursuant to the provisions of Article 43, paragraph (1) of that Act; the same applies hereinafter in this Article) used by a qualified farmland-owning corporation prescribed in Article 2, paragraph (3) of that Act that is specified by Cabinet Order (hereinafter referred to as a "specified qualified farmland-owning corporation" in this Article), the following provisions apply:

⑤In the case where a donee to whom the provisions of Article 70-4, paragraph (8) of the Former Act on Special Measures Concerning Taxation, which remain in force pursuant to the provisions of paragraph (2), apply has, during the period from the Effective Date to June 30, 2011 and before the day of the death of the donor prescribed in paragraph (1) of that Article, created, pursuant to the provisions of Cabinet Order, a right based on a loan for use (hereinafter referred to as a "grant of loan for use over borrowed substitute farmland, etc." in this paragraph) with regard to all of the borrowed substitute farmland, etc. prescribed in paragraph (8) of that Article (hereinafter referred to as "borrowed substitute farmland, etc." in this Article) pertaining to the farmland, etc. subject to the special lease provision prescribed in that paragraph to which the provisions of that paragraph apply (hereinafter referred to as "farmland, etc. subject to the special lease provision" in this Article), in favor of a former specified agricultural production corporation (where the donee holds farmland, etc. to which the provisions of Article 70-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation apply (excluding that farmland, etc. subject to the special lease provision), limited to when the donee has created, pursuant to the provisions of Cabinet Order, a right based on a loan for use with regard to all of that farmland, etc. in favor of that former specified agricultural production corporation), if a written notification of having made that grant of loan for use over borrowed substitute farmland, etc. has been submitted, pursuant to the provisions of Order of the Ministry of Finance, to the district director with jurisdiction over the place for tax payment of that donee by the day on which two months have elapsed from the day on which that grant of loan for use over borrowed substitute farmland, etc. was made, then, with regard to the application of the provisions of paragraph (10) of that Article to that donee, that borrowed substitute farmland, etc. is deemed to be used for the agriculture of that donee, only while that borrowed substitute farmland, etc. is used for the agriculture of that former specified agricultural production corporation.

⑥With regard to the application of the provisions of Article 70-4, paragraph (1) or (4) of the Former Act on Special Measures Concerning Taxation to a donee who has created a right based on a loan for use to which the provisions of the preceding paragraph apply, in the case where, after that creation, the donee continues to have the borrowed substitute farmland, etc. pertaining to that creation used by a specified qualified farmland-owning corporation, the following provisions apply:

⑦In the case referred to in paragraph (5), if the duration of the right of lease, etc. with regard to the farmland, etc. subject to the special lease provision pertaining to that borrowed substitute farmland, etc. has expired and, by the day on which two months have elapsed from the day of the expiry of that duration, a right based on a loan for use has been created, pursuant to the provisions of Cabinet Order, in favor of the grantee with regard to the farmland, etc. that was that farmland, etc. subject to the special lease provision and that is specified by Cabinet Order, that farmland, etc. is deemed to be farmland, etc. to which the provisions of paragraph (3) apply, with regard to the application of the provisions of this Article.

⑧With regard to the application of the provisions of Article 70-4, paragraphs (10) and (11) of the Former Act on Special Measures Concerning Taxation in the case where a donee who has created a right based on a loan for use to which the provisions of paragraph (5) apply continues, after that creation, to have the borrowed substitute farmland, etc. pertaining to that creation used by a specified qualified farmland-owning corporation, the phrase "that donee" in paragraph (10), item (i) of that Article is deemed to be replaced with "the specified qualified farmland-owning corporation prescribed in Article 55, paragraph (4) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 21 of 2005) pertaining to a donee to whom the provisions of paragraph (5) of that Article apply (referred to as a "specified qualified farmland-owning corporation" in the following paragraph)"; the phrase "has come to fall under any of the cases listed in the items of the preceding paragraph" in paragraph (11) of that Article is deemed to be replaced with "falls under the case listed in item (ii) of the preceding paragraph"; the phrase "by the day on which two months have elapsed from the day specified in the relevant item of that paragraph, borrowed farmland or pasture land to be used for that donee's agriculture in substitution for that farmland, etc. subject to the special lease provision (limited to land that satisfies the requirement of having been borrowed based on the creation of a right of lease, etc. under the provisions of the agricultural land use consolidation plan prescribed in paragraph (8) and any other requirements specified by Cabinet Order; referred to as "re-borrowed substitute farmland, etc." hereinafter in this Article) (limited to the case where the ratio of the area of land pertaining to all of that re-borrowed substitute farmland, etc. and the borrowed substitute farmland, etc. pertaining to that farmland, etc. subject to the special lease provision to the area of land pertaining to that farmland, etc. subject to the special lease provision becomes 80 percent or more), or when that donee has, by that day," in that paragraph is deemed to be replaced with "by the day on which two months have elapsed from the day specified in that item,"; and the phrase ", the provisions of the preceding paragraph do not apply, only in the case where that donee has submitted, pursuant to the provisions of Cabinet Order, a written notification of a change to the written notification prescribed in paragraph (9) to the district director with jurisdiction over the place for tax payment. In this case, with regard to the application of the provisions of that paragraph, that re-borrowed substitute farmland, etc. and that borrowed substitute farmland, etc. are deemed to be borrowed substitute farmland, etc. pertaining to farmland, etc. subject to the special lease provision to which the provisions of paragraph (8) apply" in that paragraph is deemed to be replaced with " and has, by that day, created, pursuant to the provisions of Cabinet Order, a right based on a loan for use in favor of a specified qualified farmland-owning corporation that is specified by Cabinet Order with regard to the farmland, etc. that was that farmland, etc. subject to the special lease provision and that is specified by Cabinet Order, and only in that case, the provisions of that paragraph do not apply".

⑨In the case where a specified qualified farmland-owning corporation that has been granted a right based on a loan for use to which the provisions of paragraph (3) or (5) apply is extinguished by merger or has carried out a company split, if the donee who created that right has, pursuant to the provisions of Order of the Ministry of Finance, submitted a written notification to the effect that the merging corporation prescribed in Article 2, item (xii) of the Corporation Tax Act pertaining to that merger or the successor corporation in a company split prescribed in item (xii)-3 of that Article pertaining to that split has taken over all of that right based on a loan for use and falls under a specified qualified farmland-owning corporation, to the district director with jurisdiction over the place for tax payment of that donee by the day on which two months have elapsed from the day of that merger or that split, that merging corporation or that successor corporation in a company split is deemed to be a specified qualified farmland-owning corporation that has been granted a right based on a loan for use to which the provisions of paragraph (3) or (5) apply.

⑩In the case where a donee who has created a right based on a loan for use to which the provisions of paragraph (3) apply has, with regard to all or part of the farmland, etc. pertaining to that creation, extinguished that right based on a loan for use in order to use the farmland, etc. as land temporarily used for roads, etc. prescribed in Article 70-4, paragraph (16) of the Former Act on Special Measures Concerning Taxation (hereinafter referred to as "land temporarily used for roads, etc." through paragraph (13)), and has lent it, for that use, based on the creation of a superficies right, a right of lease or a right based on a loan for use (excluding the creation of a superficies right referred to in Article 269-2, paragraph (1) of the Civil Code; hereinafter referred to as the "creation of a superficies right, etc." through paragraph (12)), when the donee has obtained the approval of the district director with jurisdiction over the place for tax payment, pursuant to the provisions of Cabinet Order, for the expectation of creating, without delay after the arrival of the term relating to that lending (hereinafter referred to as the "lease term" in this paragraph), a right based on a loan for use in favor of a specified qualified farmland-owning corporation that is specified by Cabinet Order with regard to the farmland, etc. that had been used as that land temporarily used for roads, etc., then, with regard to the application of the provisions of paragraph (3), notwithstanding the provisions of paragraph (4), the following provisions apply:

⑪The donee to whom the provisions of the preceding paragraph apply must, by each day on which a period of one year elapses, counting from the day following the day on which the donee obtained the approval referred to in that paragraph, submit to the district director with jurisdiction over the place for tax payment, pursuant to the provisions of Cabinet Order, a written notification stating matters concerning the creation of a superficies right, etc. relating to that farmland, etc. used as that land temporarily used for roads, etc. and other matters specified by Order of the Ministry of Finance (referred to as a "written notification of continued lending" in the following paragraph).

⑫In the case where the written notification of continued lending prescribed in the preceding paragraph has not been submitted to the district director with jurisdiction over the place for tax payment by its submission deadline, the provisions of the proviso to Article 70-4, paragraph (1) and paragraph (4) of the Former Act on Special Measures Concerning Taxation apply on the assumption that a creation of a superficies right, etc. with regard to the farmland, etc. used as land temporarily used for roads, etc. relating to that written notification of continued lending took place on the day on which two months have elapsed from the day following that submission deadline; provided, however, that this does not apply if, even in the case where that written notification of continued lending has not been submitted by that submission deadline, the district director with jurisdiction over the place for tax payment finds that there were unavoidable circumstances for the failure to submit it by that submission deadline and that written notification of continued lending has been submitted to the district director with jurisdiction over the place for tax payment pursuant to the provisions of Cabinet Order.

⑬Beyond what is provided for in the preceding two paragraphs, matters concerning the application of the provisions of Article 70-4, paragraph (5) of the Former Act on Special Measures Concerning Taxation in the case where the farmland, etc. used as land temporarily used for roads, etc. to which the provisions of paragraph (10) apply is farmland, etc. for urban farming prescribed in Article 70-4, paragraph (2), item (iv) of the Former Act on Special Measures Concerning Taxation, and other necessary matters concerning the application of the provisions of paragraph (10), are specified by Cabinet Order.

⑭With regard to the application of the provisions of Article 70-4, paragraph (22) of the Former Act on Special Measures Concerning Taxation to a donee who has submitted the written notification prescribed in paragraph (3) or (5), the phrase "and matters concerning the agricultural management relating to the farmland, etc. to which the provisions of that paragraph apply" in that paragraph is deemed to be replaced with ", and matters concerning the agricultural management of the grantee prescribed in Article 55, paragraph (4), item (i) or paragraph (6), item (i) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 21 of 2005) relating to the farmland, etc. or borrowed substitute farmland, etc. to which the provisions of paragraph (3) or (5) of that Article apply and the details of the facts showing that the grantee falls under a specified qualified farmland-owning corporation prescribed in paragraph (4) of that Article".

⑮Necessary matters concerning the application of the provisions of Article 70-4 of the Former Act on Special Measures Concerning Taxation to a donee to whom the provisions of paragraph (1) of that Article apply and to whom the provisions of paragraph (3) or (5) have applied, in the case where, after creating a right based on a loan for use with regard to the farmland, etc. or the borrowed substitute farmland, etc., that donee continues to have that farmland, etc. or that borrowed substitute farmland, etc. used by a specified qualified farmland-owning corporation, are specified by Cabinet Order.

⑯The provisions of paragraph (3) through the preceding paragraph apply to the persons listed below by deeming them to be donees prescribed in Article 70-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation. In this case, necessary matters concerning the application of those provisions to those donees are specified by Cabinet Order.

⑰The provisions of Article 70-6 of the New Act on Special Measures Concerning Taxation apply to inheritance tax on special farmland, etc. prescribed in paragraph (1) of that Article acquired on or after the Effective Date by inheritance or bequest (including a gift that takes effect upon the death of the donor; hereinafter the same applies in this paragraph), and the provisions then in force continue to govern inheritance tax on special farmland, etc. prescribed in Article 70-6, paragraph (1) of the Former Act on Special Measures Concerning Taxation acquired before the Effective Date by inheritance or bequest.