①The provisions of Article 10 of the New Act on Special Measures Concerning Taxation apply to the amount of experimental research expenses prescribed in paragraph (7), item (i) of that Article and the amount of special experimental research expenses prescribed in item (iii) of that paragraph that are included in necessary expenses in calculating the amount of business income for each year from 2007 onward, and the provisions then in force continue to govern the amount of experimental research expenses prescribed in Article 10, paragraph (8), item (i) of the Former Act on Special Measures Concerning Taxation, the amount of special experimental research expenses prescribed in item (iv) of that paragraph and the amount of special joint experimental research expenses prescribed in item (vi) of that paragraph that are included in necessary expenses in calculating the amount of business income for each year up to 2006.

②Necessary transitional measures concerning the enforcement of the provisions of Article 10, paragraph (3) or (5) of the New Act on Special Measures Concerning Taxation in the case where, of the amount of experimental research expenses prescribed in paragraph (1) of that Article that is included in necessary expenses in calculating the amount of business income for the year for which an individual prescribed in paragraph (3) or (5) of that Article seeks the application of those provisions or for each year preceding that year, there is an amount included in necessary expenses as the depreciation allowance for equipment for development research prescribed in Article 11-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation, are specified by Cabinet Order.