The provisions of Article 40-3 of the New Act on Special Measures Concerning Taxation apply to payments in kind prescribed in that Article that an individual makes on or after the Effective Date, and the provisions then in force continue to govern payments in kind prescribed in Article 40-3 of the Former Act on Special Measures Concerning Taxation that an individual made before the Effective Date.

①The provisions of Article 40-4, paragraph (1) of the New Act on Special Measures Concerning Taxation apply in the case where there are dividends of surplus, etc. prescribed in that paragraph whose record date for payment is a day on or after the effective date of the Companies Act, and the provisions then in force continue to govern the case where there are dividends of profits or distributions of surplus prescribed in Article 40-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation whose record date for payment is a day before the effective date of the Companies Act.

②The provisions of Article 40-5, paragraph (1) of the New Act on Special Measures Concerning Taxation apply in the case where there are dividends of surplus and similar distributions prescribed in that paragraph whose record date for payment is a day on or after the effective date of the Companies Act, and the provisions then in force continue to govern the case where there are dividends of profits or distributions of surplus prescribed in Article 40-5, paragraph (1) of the Former Act on Special Measures Concerning Taxation whose record date for payment is a day before the effective date of the Companies Act.

The provisions of Article 40-8, paragraph (1) of the New Act on Special Measures Concerning Taxation apply in the case where there are dividends of surplus and similar distributions prescribed in that paragraph whose record date for payment is a day on or after the effective date of the Companies Act, and the provisions then in force continue to govern the case where there are dividends of profits or distributions of surplus prescribed in Article 40-8, paragraph (1) of the Former Act on Special Measures Concerning Taxation whose record date for payment is a day before the effective date of the Companies Act.

The provisions then in force continue to govern salary, etc. prescribed in Article 183, paragraph (1) of the Income Tax Act that is to be paid on or before December 31, 2006, in the case where Appended Tables 1 through 3 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. before its repeal by the provisions of Article 14, as read with the replacement of terms pursuant to the provisions of Article 41-16, paragraph (4) of the Former Act on Special Measures Concerning Taxation, are applied to that salary, etc.

With regard to an individual to whom, for income tax for 2006, the provisions of the second sentence of Article 3-3, paragraph (4), Article 8-3, paragraph (4), item (i), Article 9, Article 10, Article 10-2, paragraph (3) or (4), Article 10-3, paragraphs (3) through (5) or paragraph (11), Article 10-4, paragraphs (3) through (5) or paragraph (11), Article 10-5, paragraphs (3) through (5) or paragraph (11), Article 10-6, paragraphs (3) through (5) or paragraph (11), Article 10-7, Article 25, Article 28-4, Chapter II, Section 4, Subsections 2 through 8, Articles 37-10 through 37-13-3, Article 39, Article 40-2, paragraph (2), Section 5 of that Chapter, Article 41-7, paragraph (2), or Articles 41-14 through 41-19-2 of the New Act on Special Measures Concerning Taxation apply, the provisions of Article 42-3-2 of the Former Act on Special Measures Concerning Taxation remain in force. In this case, the phrase "Article 37-14" in paragraph (1) of that Article is deemed to be replaced with "Article 37-13-3"; the phrase "Article 41-19" with "Article 41-19-2"; and the phrase "Article 6 of the Income Tax and Corporation Tax Burden Reduction Act" with "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. (hereinafter referred to as the 'Income Tax and Corporation Tax Burden Reduction Act' in this Article)".

With 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. in the case where the provisions of Articles 79 through 82, Articles 89 through 91 or Article 93 of the Supplementary Provisions apply, the phrase "provisions, and" in Article 2, item (iii) of that Act is deemed to be replaced with "provisions, the provisions of Articles 79 through 82, Articles 89 through 91 and Article 93 of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc., and Other Matters (Act No. 10 of 2006), and".

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 (including an association or foundation without juridical personality prescribed in Article 2, item (viii) of the Corporation Tax Act; the same applies hereinafter up to Article 119 of the Supplementary Provisions) for business years beginning on or after the Effective Date and to corporation tax of a consolidated parent corporation, or of a consolidated subsidiary corporation having a consolidated full controlling interest with that consolidated parent corporation, for consolidated 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 and corporation tax of a consolidated parent corporation, or of a consolidated subsidiary corporation having a consolidated full controlling interest with that consolidated parent corporation, for consolidated business years that began before the Effective Date.

Necessary transitional measures for the enforcement of the provisions of Article 42-4, paragraph (3) or (7) of the New Act on Special Measures Concerning Taxation in the case where the amount of experimental research expenses prescribed in paragraph (1) of that Article that is included in deductible expenses in calculating the amount of income for the business year for which a corporation prescribed in paragraph (3) or (7) of that Article seeks to apply those provisions, or for the business year that includes the day before the first day of that business year (where the business year that includes the day before the first day of that business year falls under a consolidated business year, the amount of experimental research expenses prescribed in Article 68-9, paragraph (1) of the New Act on Special Measures Concerning Taxation that is included in deductible expenses in calculating the amount of consolidated income for that consolidated business year), includes an amount that was included in deductible expenses as a depreciation allowance for equipment for development research prescribed in Article 44-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation, are specified by Cabinet Order.

The provisions of Article 42-6 of the New Act on Special Measures Concerning Taxation apply to depreciable assets listed in the items of paragraph (1) of that Article that a corporation acquires or manufactures, or leases, on or after the Effective Date, and the provisions then in force continue to govern depreciable assets listed in the items of Article 42-6, paragraph (1) of the Former Act on Special Measures Concerning Taxation that a corporation acquired or manufactured, or leased, before the Effective Date.

The provisions of Article 42-11 of the New Act on Special Measures Concerning Taxation apply to information infrastructure enhancement equipment, etc. prescribed in paragraph (1) of that Article that a corporation acquires or manufactures, or leases, on or after the Effective Date.