This Act comes into effect on April 1, 2014; provided, however, that the provisions set forth in the following items come into effect on the dates specified in those items:

Except as otherwise provided, the provisions of Chapter II of the Act on Special Measures Concerning Taxation as amended by the provisions of Article 10 (hereinafter referred to as the "New Act on Special Measures Concerning Taxation") apply to income tax for 2014 and subsequent years, and with regard to income tax for 2013 and prior years, the provisions then in force continue to govern.

①The provisions of Article 3, paragraph (2) of the New Act on Special Measures Concerning Taxation apply to general interest and similar income prescribed in that paragraph that a nonresident with a permanent establishment referred to in that paragraph receives on or after January 1, 2017.

②With regard to general interest and similar income prescribed in Article 3, paragraph (2) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 (hereinafter referred to as the "Former Act on Special Measures Concerning Taxation") that a nonresident referred to in that paragraph receives on or before December 31, 2016, the provisions of that paragraph remain in force. In this case, the term "Income Tax Act" in that paragraph is deemed to be replaced with "Income Tax Act prior to the amendment by the provisions of Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014)".

With regard to the application of the provisions of Article 3-2 of the New Act on Special Measures Concerning Taxation during the period from January 1, 2016 to March 31 of that year, the phrase "a permanent establishment" in that Article is deemed to be replaced with "a permanent establishment in Japan".

①The provisions of Article 5-2, paragraph (5) of the New Act on Special Measures Concerning Taxation apply to interest on book-entry government bonds and book-entry municipal bonds prescribed in that paragraph that a nonresident with a permanent establishment referred to in that paragraph receives on or after January 1, 2017.

②With regard to interest on book-entry government bonds and book-entry municipal bonds prescribed in Article 5-2, paragraph (5) of the Former Act on Special Measures Concerning Taxation that a nonresident with a permanent establishment in Japan referred to in that paragraph receives on or before December 31, 2016, the provisions of that paragraph remain in force.

③With regard to the application of the provisions of Article 5-2, paragraph (6) of the Act on Special Measures Concerning Taxation in the case where the provisions of the preceding paragraph apply, the phrase "the preceding paragraph" in that paragraph is deemed to be replaced with "Article 5-2, paragraph (5) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014), which remains in force pursuant to the provisions of Article 45, paragraph (2) of the Supplementary Provisions of that Act", the phrase "the second sentence of paragraph (5) of that Article" with "the second sentence of Article 5-2, paragraph (5) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014), which remains in force pursuant to the provisions of Article 45, paragraph (2) (Transitional Measures Concerning Special Provisions, etc. on Taxation on Interest from Book-Entry Government Bonds, etc.) of the Supplementary Provisions of that Act", the phrase "paragraph (1) of that Article" with "Article 5-2, paragraph (1) of the Act on Special Measures Concerning Taxation", the phrase "or the second sentence of paragraph (5)" with "or the second sentence of Article 5-2, paragraph (5) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the 2014 Amendment Act, which remains in force pursuant to the provisions of Article 45, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014; referred to as the '2014 Amendment Act' in this Article and Article 8-5, paragraph (1))", the phrase "is deemed to be replaced with 'the interest'" with "is deemed to be replaced with 'the interest', and the phrase 'Article 225, paragraph (1) of that Act' is deemed to be replaced with 'Article 225, paragraph (1) of the Income Tax Act'", the phrase "the second sentence of Article 5-2, paragraph (5)" with "the second sentence of Article 5-2, paragraph (5) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the 2014 Amendment Act, which remains in force pursuant to the provisions of Article 45, paragraph (2) of the Supplementary Provisions of the 2014 Amendment Act", and the phrase "is deemed to be replaced with '…'" at the end of that paragraph with "is deemed to be replaced with '…', and the phrase 'Article 120 of that Act,' is deemed to be replaced with 'Article 120 of the Income Tax Act,'".

④With regard to the application of the provisions of Article 5-2, paragraph (6) of the New Act on Special Measures Concerning Taxation during the period from January 1, 2016 to March 31 of that year, the phrase "a permanent establishment" in that paragraph is deemed to be replaced with "a permanent establishment in Japan".

⑤The provisions of Article 5-3, paragraph (3) of the New Act on Special Measures Concerning Taxation apply to interest, etc. on specified book-entry corporate bonds, etc. prescribed in that paragraph that a nonresident with a permanent establishment referred to in that paragraph receives on or after January 1, 2017.

⑥With regard to interest, etc. on specified book-entry corporate bonds, etc. prescribed in Article 5-3, paragraph (3) of the Former Act on Special Measures Concerning Taxation that a nonresident with a permanent establishment in Japan referred to in that paragraph receives on or before December 31, 2016, the provisions of that paragraph remain in force.

⑦With regard to the application of the provisions of Article 5-3, paragraph (9) of the Act on Special Measures Concerning Taxation in the case where the provisions of the preceding paragraph apply, in the row for paragraph (6) of the preceding Article in the table in that paragraph, the phrase "and paragraph (3)" is deemed to be replaced with "and Article 5-3, paragraph (3) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014), which remains in force pursuant to the provisions of Article 45, paragraph (6) of the Supplementary Provisions of that Act", the phrase "the second sentence of paragraph (5) of that Article" with "paragraph (1) of that Article, if the provisions of the second sentence of paragraph (5) of that Article have been applied", the phrase "the second sentence of paragraph (3) of that Article" with "Article 5-3, paragraph (1) of the Act on Special Measures Concerning Taxation, if the provisions of the second sentence of Article 5-3, paragraph (3) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014), which remains in force pursuant to the provisions of Article 45, paragraph (6) (Transitional Measures Concerning Special Provisions, etc. on Taxation on Interest from Book-Entry Government Bonds, etc.) of the Supplementary Provisions of that Act, have been applied", the phrase "or the second sentence of paragraph (3)" with "or the second sentence of Article 5-3, paragraph (3) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the 2014 Amendment Act, which remains in force pursuant to the provisions of Article 45, paragraph (6) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014; hereinafter referred to as the '2014 Amendment Act')", the phrase "Article 8-2, paragraph (1)" with "the phrase 'Article 225, paragraph (1) of that Act' with 'Article 225, paragraph (1) of the Income Tax Act', and Article 8-2, paragraph (1)", and the phrase "the second sentence of Article 5-3, paragraph (3)" with "the second sentence of Article 5-3, paragraph (3) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the 2014 Amendment Act, which remains in force pursuant to the provisions of Article 45, paragraph (6) of the Supplementary Provisions of the 2014 Amendment Act".

①The provisions of Article 6, paragraphs (1) and (2) of the New Act on Special Measures Concerning Taxation apply to interest on bonds prescribed in paragraph (1) of that Article or foreign private bonds prescribed in paragraph (2) of that Article that a foreign corporation issues in a business year beginning on or after April 1, 2016, and with regard to interest on bonds prescribed in Article 6, paragraph (1) of the Former Act on Special Measures Concerning Taxation or foreign private bonds prescribed in paragraph (2) of that Article that a foreign corporation issued in a business year that began before that date, the provisions then in force continue to govern.

②The provisions of Article 6, paragraph (6) of the New Act on Special Measures Concerning Taxation apply to interest on foreign private bonds prescribed in that paragraph that a nonresident with a permanent establishment referred to in that paragraph receives on or after January 1, 2017.

③With regard to interest on foreign private bonds prescribed in Article 6, paragraph (6) of the Former Act on Special Measures Concerning Taxation that a nonresident with a permanent establishment in Japan referred to in that paragraph receives on or before December 31, 2016, the provisions of that paragraph remain in force. In this case, the phrase "the second sentence of Article 6, paragraph (6)" in that paragraph is deemed to be replaced with "the second sentence of Article 6, paragraph (6) of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014), which remains in force pursuant to the provisions of Article 46, paragraph (3) of the Supplementary Provisions of that Act", and the phrase "that Act" with "the Income Tax Act".

④The provisions of Article 6, paragraph (9) of the New Act on Special Measures Concerning Taxation apply to a written application for a tax exemption prescribed in Article 6, paragraph (4) of the New Act on Special Measures Concerning Taxation as applied mutatis mutandis pursuant to that paragraph that is submitted on or after the date specified in Article 1, item (xv) of the Supplementary Provisions, and with regard to a written application for a tax exemption prescribed in paragraph (4) of Article 6 of the Former Act on Special Measures Concerning Taxation as applied mutatis mutandis pursuant to paragraph (9) of that Article that was submitted before that date, the provisions then in force continue to govern.

①The provisions of Article 8-2, paragraphs (2) and (3) of the New Act on Special Measures Concerning Taxation apply to dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. prescribed in paragraph (1) of that Article that a nonresident with a permanent establishment prescribed in those provisions is to receive on or after January 1, 2017.

②With regard to dividends, etc. from distributions of proceeds of privately placed bond-based investment trusts, etc. prescribed in Article 8-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation that a nonresident referred to in paragraph (2) or (3) of that Article is to receive on or before December 31, 2016, the provisions of paragraphs (2) and (3) of that Article remain in force. In this case, the term "Income Tax Act" in paragraph (2) of that Article is deemed to be replaced with "Income Tax Act prior to the amendment by the provisions of Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014) (referred to as the 'Former Income Tax Act' in the following paragraph)", the term "Income Tax Act" in paragraph (3) of that Article with "Former Income Tax Act", and the phrase "that Act" with "the Income Tax Act".

The provisions of Article 9-4-2, paragraphs (1) and (2) of the New Act on Special Measures Concerning Taxation apply to the termination or partial cancellation, on or after April 1, 2016, of listed securities investment trusts, etc. prescribed in paragraph (1) of that Article, and with regard to the termination or partial cancellation, before that date, of listed securities investment trusts, etc. prescribed in Article 9-4-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation, the provisions then in force continue to govern.

With regard to distributions of profits of foreign special purpose trusts and distributions of proceeds of foreign special investment trusts prescribed in Article 9-6, paragraphs (1) through (4) of the Former Act on Special Measures Concerning Taxation that a nonresident or foreign corporation referred to in those provisions is to receive before April 1, 2016, the provisions then in force continue to govern.

The provisions of Article 10, paragraph (6) of the New Act on Special Measures Concerning Taxation apply to income tax for 2015 and subsequent years, and with regard to income tax for 2014 and prior years, the provisions then in force continue to govern.

With regard to depreciable assets listed in Article 10-2-2, paragraph (1), item (i), (c) of the Former Act on Special Measures Concerning Taxation that an individual acquired, or manufactured or constructed, before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 10-6, paragraph (1) of the New Act on Special Measures Concerning Taxation (excluding the part concerning items (v) and (x) of that paragraph) apply to income tax for 2015 and subsequent years, and with regard to income tax for 2014 and prior years, the provisions then in force continue to govern.

①With regard to industrial cluster assets prescribed in Article 11-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation for which an individual made an acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies in the following paragraph) before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 12, paragraph (1) of the New Act on Special Measures Concerning Taxation (limited to the part concerning items (ii) through (iv) of the table in that paragraph) apply to industrial machinery, etc. prescribed in that paragraph for which an individual makes an acquisition, etc. on or after the Effective Date, and with regard to industrial machinery, etc. prescribed in Article 12, paragraph (1) of the Former Act on Special Measures Concerning Taxation for which an individual made an acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

③During the period from the Effective Date until the day on which six months have elapsed from the Effective Date (or, if, by that day, an international logistics hub industrial cluster plan prescribed in Article 41, paragraph (1) of the Act on Special Measures for the Promotion and Development of Okinawa (Act No. 14 of 2002) as amended by the Act Partially Amending the Act on Special Measures for the Promotion and Development of Okinawa (Act No. 7 of 2014; hereinafter referred to as the "Okinawa Promotion Act Partial Amendment Act") (hereinafter referred to as the "New Act on Special Measures for the Promotion and Development of Okinawa") has been submitted pursuant to the provisions of paragraph (5) of that Article, the day preceding the day on which it was submitted), the districts listed in the first column of item (iii) of the table in Article 12, paragraph (1) of the Former Act on Special Measures Concerning Taxation are deemed to be districts listed in the first column of item (iii) of the table in Article 12, paragraph (1) of the New Act on Special Measures Concerning Taxation, and the provisions of that paragraph (limited to the part concerning that item) apply.

④The provisions of Article 12 of the New Act on Special Measures Concerning Taxation (limited to the part concerning item (iii) of the table in paragraph (3) of that Article) apply to industrial promotion machinery, etc. prescribed in that paragraph for which an individual makes an acquisition, etc. prescribed in that paragraph on or after the Effective Date.

⑤With regard to industrial promotion machinery, etc. prescribed in Article 12, paragraph (3) of the Former Act on Special Measures Concerning Taxation for which an individual made an acquisition, etc. prescribed in that paragraph before the Effective Date, the provisions of that Article (limited to the part concerning item (ii) of the table in that paragraph (limited to the part concerning the area specified by Cabinet Order prescribed in the left-hand column of that item)) remain in force.

⑥The provisions of Article 13 of the New Act on Special Measures Concerning Taxation apply to income tax for 2015 and subsequent years, and with regard to income tax for 2014 and prior years, the provisions then in force continue to govern.

⑦The provisions of Article 14-2 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (ii) of that Article (limited to the part concerning the area plan prescribed in that item)) apply to specified redevelopment buildings, etc. prescribed in Article 14-2, paragraph (1) of the New Act on Special Measures Concerning Taxation that an individual acquires or newly builds on or after the date specified in Article 1, item (xvii) of the Supplementary Provisions.

⑧The provisions of Article 14-2 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (iii) of that Article) apply to specified redevelopment buildings, etc. prescribed in Article 14-2, paragraph (1) of the New Act on Special Measures Concerning Taxation that an individual acquires or newly builds on or after the date specified in Article 1, item (xvi) of the Supplementary Provisions.

The provisions of Article 20, paragraph (4), Article 20-2, paragraph (4), Article 20-3, paragraph (6), Article 22, paragraph (5) and Article 24-2, paragraph (4) of the New Act on Special Measures Concerning Taxation apply to income tax for the year (limited to 2015 or a subsequent year) that includes the day on which the fact that gave rise to the revocation of the approval occurred or the day on which the written notification was submitted (or, if the day on which that written notification was submitted falls in the year following the year in which the individual discontinued filing returns by blue return, December 31 of the year in which the individual discontinued it; referred to as the "date of the event leading to cancellation on or after the effective date" in this Article) in the case where an individual has had the approval for filing blue returns revoked, or has submitted a written notification to the effect that the individual will discontinue filing returns by blue return, on or after the Effective Date, and with regard to income tax for the year that includes the day on which the fact that gave rise to the revocation of the approval occurred or the day on which the written notification was submitted (or, if the day on which that written notification was submitted falls in the year following the year in which the individual discontinued filing returns by blue return, December 31 of the year in which the individual discontinued it) in the case where an individual has had the approval for filing blue returns revoked, or has submitted a written notification to the effect that the individual will discontinue filing returns by blue return, before the Effective Date (including the year that includes the date of the event leading to cancellation on or after the effective date, if that year is 2014 or a prior year) and for the following year, the provisions then in force continue to govern.

The provisions of Article 24-3 of the New Act on Special Measures Concerning Taxation apply to agricultural land, etc. prescribed in Article 24-3, paragraph (1) of the New Act on Special Measures Concerning Taxation that an individual receives by transfer through a distribution in kind (meaning a distribution in kind prescribed in Article 2, item (xii)-6 of the Corporation Tax Act; the same applies hereinafter) made on or after the Effective Date, and with regard to agricultural land, etc. prescribed in Article 24-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation that an individual received by transfer through a distribution in kind made before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 26 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (vi) of that Article) apply to social insurance medical care prescribed in that paragraph that is provided on or after January 1, 2015.

With regard to premiums listed in Article 28, paragraph (1), item (iii) of the Former Act on Special Measures Concerning Taxation that an individual paid before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 28-2-2 of the New Act on Special Measures Concerning Taxation apply in the case where an individual referred to in paragraph (1) of that Article receives a release from debts based on a debt workout plan prescribed in that paragraph on or after the Effective Date.

①The provisions of Article 31-2 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (ix)-2 of that Article) apply to a transfer that falls under the category of a transfer for a superior residential area, etc. prescribed in Article 31-2, paragraph (1) of the New Act on Special Measures Concerning Taxation made by an individual on or after the date specified in Article 1, item (xix) of the Supplementary Provisions.

②The provisions of Article 34 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (iv) of that Article) apply to a transfer of land, etc. prescribed in paragraph (1) of that Article made by an individual on or after the Effective Date, and with regard to a transfer of land, etc. prescribed in Article 34, paragraph (1) of the Former Act on Special Measures Concerning Taxation made by an individual before the Effective Date, the provisions then in force continue to govern.

③The provisions of Article 34-2 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (x) of that Article) apply to a transfer of land, etc. prescribed in Article 34-2, paragraph (1) of the New Act on Special Measures Concerning Taxation made by an individual on or after the date specified in Article 1, item (xx) of the Supplementary Provisions, and with regard to a transfer of land, etc. prescribed in Article 34-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation made by an individual before that date, the provisions then in force continue to govern.

④The provisions of Article 34-2 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (xxii)-2 of that Article) apply to a transfer of land, etc. prescribed in Article 34-2, paragraph (1) of the New Act on Special Measures Concerning Taxation made by an individual on or after the date specified in Article 1, item (xix) of the Supplementary Provisions.

⑤The provisions of Article 34-2 of the New Act on Special Measures Concerning Taxation (limited to the part concerning paragraph (2), item (xxv) of that Article) apply to a transfer of land, etc. prescribed in Article 34-2, paragraph (1) of the New Act on Special Measures Concerning Taxation made by an individual on or after the date specified in Article 1, item (xviii) of the Supplementary Provisions, and with regard to a transfer of land, etc. prescribed in Article 34-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation made by an individual before that date, the provisions then in force continue to govern.

⑥The provisions of Article 36-2 of the New Act on Special Measures Concerning Taxation apply to a transfer of transferred assets prescribed in paragraph (1) of that Article made by an individual on or after January 1, 2014, and with regard to a transfer of transferred assets prescribed in Article 36-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation made by an individual before that date, the provisions then in force continue to govern.

⑦The provisions of Articles 37 through 37-3 of the New Act on Special Measures Concerning Taxation (limited to the part concerning Article 37, paragraph (1) of the New Act on Special Measures Concerning Taxation (excluding the part concerning the table in that paragraph)) apply to a transfer of assets listed in the left-hand column of each item of that table in the case where an individual receives by transfer the assets listed in the right-hand column of that item through a distribution in kind made on or after the Effective Date, and with regard to a transfer of assets listed in the left-hand column of each item of the table in Article 37, paragraph (1) of the Former Act on Special Measures Concerning Taxation in the case where an individual received by transfer the assets listed in the right-hand column of that item through a distribution in kind made before the Effective Date, the provisions then in force continue to govern.

⑧The provisions of Articles 37 through 37-4 of the New Act on Special Measures Concerning Taxation (limited to the part concerning items (i) through (iv), (vii), (viii) or (x) of the table in Article 37, paragraph (1) of the New Act on Special Measures Concerning Taxation) apply to a transfer of assets listed in the left-hand column of items (i) through (iv), (vii), (viii) or (x) of that table that an individual makes on or after the Effective Date, in the case where that individual acquires assets listed in the right-hand column of those items on or after the Effective Date, and with regard to transfers in the case where an individual transferred assets listed in the left-hand column of items (i) through (iii), (v), (vii), (viii) or (x) of the table in Article 37, paragraph (1) of the Former Act on Special Measures Concerning Taxation before the Effective Date and in the case where an individual transfers assets listed in the left-hand column of those items on or after the Effective Date and that individual acquired assets listed in the right-hand column of those items before the Effective Date, the provisions then in force continue to govern, except in the case prescribed in paragraph (12).

⑨If the Effective Date is before the date specified in Article 1, item (xviii) of the Supplementary Provisions, with regard to the application of the provisions of Articles 37 through 37-4 of the New Act on Special Measures Concerning Taxation (limited to the part concerning items (ii) and (vii) of the table in Article 37, paragraph (1) of the New Act on Special Measures Concerning Taxation) during the period from the Effective Date to the day preceding the date specified in that item, the phrase "agriculture of … or of an individual who has obtained the certification referred to in Article 14-4, paragraph (1) of that Act for a farming plan for young persons, etc. prescribed in that paragraph (referred to as a 'certified new farmer' in that item)" in the right-hand column of item (ii) of that table is deemed to be replaced with "agriculture of …", and the phrase "certified farmer or certified new farmer", in both places where it appears in the right-hand column of item (vii) of that table, with "certified farmer".

⑩With regard to a transfer of assets listed in the left-hand column of item (iv) of the table in Article 37, paragraph (1) of the Former Act on Special Measures Concerning Taxation made by an individual before the Effective Date, the provisions then in force continue to govern.

⑪The provisions of Articles 37 through 37-4 of the New Act on Special Measures Concerning Taxation (limited to the part concerning item (v) of the table in Article 37, paragraph (1) of the New Act on Special Measures Concerning Taxation) apply to a transfer of assets listed in the left-hand column of item (v) of that table that an individual makes on or after the date specified in Article 1, item (xx) of the Supplementary Provisions, in the case where that individual acquires assets listed in the right-hand column of that item on or after that date.

⑫With regard to a transfer of assets listed in the left-hand column of item (viii) of the table in Article 37, paragraph (1) of the Former Act on Special Measures Concerning Taxation in the case where an individual acquires, on or after the Effective Date, assets listed in the right-hand column of that item in connection with the implementation of an urban plan concerning a disaster prevention block improvement project under the Act on Promotion of Improvement of Disaster Control Districts in Populated Urban Districts (Act No. 49 of 1997) whose implementation was authorized before the Effective Date, the provisions of that Article through Article 37-4 of the Former Act on Special Measures Concerning Taxation (limited to the part concerning that item) remain in force. In this case, the phrase "December 31, 2014" in Article 37, paragraphs (1) and (4) of the Former Act on Special Measures Concerning Taxation and the phrase "December 31, 2013" in paragraph (10) of that Article are deemed to be replaced with "March 31, 2016", the phrase "the provisions of … and Article 13-2" in Article 37-3, paragraph (2) of the Former Act on Special Measures Concerning Taxation with "the provisions of …", and the phrase "December 31, 2014" in Article 37-4 of the Former Act on Special Measures Concerning Taxation with "March 31, 2016".

⑬With regard to the application of the provisions of Article 31-2, Article 31-3, Articles 34 through 34-3, Article 35, Article 35-2, Article 36-2, Article 36-5, Article 37-5 and Article 37-9-5 of the New Act on Special Measures Concerning Taxation in the case where the provisions of the preceding paragraph apply, the phrase "or Article 37-9-5" in Article 31-2, paragraph (4) of the New Act on Special Measures Concerning Taxation is deemed to be replaced with "or Article 37-9-5, or Article 37 or Article 37-4 of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 10 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014), which remains in force pursuant to the provisions of Article 59, paragraph (12) of the Supplementary Provisions of that Act (hereinafter referred to as the 'Former Act on Special Measures Concerning Taxation Kept in Force')", the phrase "Article 37-9-5" in Article 31-3, paragraph (1) of the New Act on Special Measures Concerning Taxation with "the provisions of Article 37-9-5 or Article 37 or Article 37-4 of the Former Act on Special Measures Concerning Taxation Kept in Force", the phrase "or Article 37-9-5" in Article 34, paragraph (1), Article 34-2, paragraph (1) and Article 34-3, paragraph (1) of the New Act on Special Measures Concerning Taxation with "or Article 37-9-5, or Article 37 or Article 37-4 of the Former Act on Special Measures Concerning Taxation Kept in Force", the phrase "Article 37-9-5" in Article 35, paragraph (1) of the New Act on Special Measures Concerning Taxation with "the provisions of Article 37-9-5 or Article 37 or Article 37-4 of the Former Act on Special Measures Concerning Taxation Kept in Force", the phrase "or Article 37-9-4" in Article 35-2, paragraph (1) of the New Act on Special Measures Concerning Taxation with "or Article 37-9-4, or Article 37 or Article 37-4 of the Former Act on Special Measures Concerning Taxation Kept in Force", the phrase "or Article 37-9-5" in Article 36-2, paragraph (1) of the New Act on Special Measures Concerning Taxation with "or Article 37-9-5, or Article 37 or Article 37-4 of the Former Act on Special Measures Concerning Taxation Kept in Force", the phrase "or Article 37" in Article 37-5, paragraph (1) of the New Act on Special Measures Concerning Taxation with "or Article 37 or Article 37 of the Former Act on Special Measures Concerning Taxation Kept in Force", and the phrase "Article 37-7" in Article 37-9-5, paragraph (1) of the New Act on Special Measures Concerning Taxation with "Article 37-7 and Article 37 of the Former Act on Special Measures Concerning Taxation Kept in Force", and the phrase "that Act" with "the Income Tax Act".

With regard to the application of the provisions of Article 37-11-4, paragraph (5) of the New Act on Special Measures Concerning Taxation during the period from the Effective Date to March 31, 2016, the phrase "a permanent establishment" in that paragraph is deemed to be replaced with "a permanent establishment in Japan".

①The provisions of Article 37-14, paragraph (5) and paragraphs (14) through (22) of the New Act on Special Measures Concerning Taxation apply to a written notification of change of financial instruments business operator, etc. prescribed in paragraph (14) of that Article or a written notification of closure of a tax-exempt account prescribed in paragraph (17) of that Article that is submitted on or after January 1, 2015.

②With regard to the application of the provisions of Article 37-14, paragraph (5), items (iv) and (v), paragraph (14), paragraph (16), paragraph (17) and paragraphs (19) through (22) of the New Act on Special Measures Concerning Taxation during the period from January 1, 2015 to March 31, 2016, the phrase "a permanent establishment" in those provisions is deemed to be replaced with "a permanent establishment in Japan".

③The provisions of Article 37-14, paragraph (23) of the New Act on Special Measures Concerning Taxation apply to matters to be provided prescribed in that paragraph that are provided on or after January 1, 2015.

④If the head of a business office of a financial instruments business operator, etc. prescribed in Article 37-14, paragraph (5), item (i) of the Former Act on Special Measures Concerning Taxation provides, during the period from the Effective Date to December 31, 2014, the matters required to be provided pursuant to the provisions of paragraph (9) or (13) of that Article (referred to as "matters to be provided" in this paragraph) to the competent district director prescribed in those provisions (referred to as the "competent district director" in this paragraph) and has obtained the approval of the competent district director as specified by Cabinet Order, the head of the business office of that financial instruments business operator, etc. may, notwithstanding those provisions, provide those matters to be provided to the district director specified by Order of the Ministry of Finance by any of the methods listed in the items of paragraph (9) of that Article. In this case, the head of the business office of that financial instruments business operator, etc. is deemed to have provided those matters to be provided to the competent district director, and the provisions of Article 9-8 and Article 37-14 of the Former Act on Special Measures Concerning Taxation apply.

⑤If the head of a business office of a financial instruments business operator, etc. prescribed in the preceding paragraph has obtained the approval under the provisions of that paragraph, that approval is deemed to be the approval of the competent district director prescribed in Article 37-14, paragraph (23) of the New Act on Special Measures Concerning Taxation obtained on January 1, 2015, and the provisions of that paragraph apply.

⑥Necessary matters concerning the application of the provisions of Article 37-14, paragraphs (19) through (22) of the New Act on Special Measures Concerning Taxation to a resident or a nonresident with a permanent establishment in Japan referred to in Article 37-14, paragraph (5), item (i) of the Former Act on Special Measures Concerning Taxation who closed a tax-exempt account before January 1, 2015 are specified by Cabinet Order.

①The provisions of Article 37-14-3 of the New Act on Special Measures Concerning Taxation apply in the case where a nonresident receives, on or after January 1, 2017, shares of a foreign parent corporation of a merging corporation prescribed in paragraph (1) of that Article, shares of a foreign parent corporation of a successor corporation in a company split prescribed in paragraph (2) of that Article, or shares of a foreign corporation fully controlling the parent in a share exchange prescribed in paragraph (3) of that Article.

②In the case where a nonresident receives, on or before December 31, 2016, shares of a foreign parent corporation of a merging corporation prescribed in Article 37-14-3, paragraph (1) of the Former Act on Special Measures Concerning Taxation, shares of a foreign parent corporation of a successor corporation in a company split prescribed in paragraph (2) of that Article, or shares of a foreign corporation fully controlling the parent in a share exchange prescribed in paragraph (3) of that Article, the provisions of that Article remain in force. In this case, in paragraph (7) of that Article, the phrase "Income Tax Act" is deemed to be replaced with "Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014)"; the phrase "the phrase 'excluding)' in paragraph (1) is deemed to be replaced with 'excluding; and of that nonresident, Article 164, paragraph (1), item (iv), (a) of that Act'" is deemed to be replaced with "the phrase 'excluding)' in paragraph (1) is deemed to be replaced with 'excluding; and of that nonresident, Article 164, paragraph (1), item (iv), (a) of the Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014) (referred to as the "Former Income Tax Act" in the following paragraph)'"; and the phrase "the phrase 'excluding)' in paragraph (2) is deemed to be replaced with 'excluding; and of that nonresident, Article 164, paragraph (1), item (iv), (a) of that Act'" is deemed to be replaced with "the phrase 'excluding)' in paragraph (2) is deemed to be replaced with 'excluding; and of that nonresident, Article 164, paragraph (1), item (iv), (a) of the Former Income Tax Act'".

①The provisions of Article 39 of the New Act on Special Measures Concerning Taxation apply to the transfer of assets prescribed in paragraph (1) of that Article in the case where an individual acquires property prescribed in that paragraph through an inheritance or bequest (including a gift that takes effect upon the death of the donor; the same applies hereinafter in this paragraph and in Article 128 of the Supplementary Provisions) that commences on or after January 1, 2015, and the provisions then in force continue to govern the transfer of assets prescribed in Article 39, paragraph (1) of the Former Act on Special Measures Concerning Taxation in the case where an individual acquired property prescribed in that paragraph through an inheritance or bequest that commenced before that date.

②With regard to the application of the provisions of Article 39, paragraph (1) of the New Act on Special Measures Concerning Taxation during the period from January 1, 2015 to December 31, 2016, the phrase "Article 31, paragraph (1)" in that paragraph is deemed to be replaced with "Article 33, paragraph (3), item (i)".

①The provisions of Article 40, paragraphs (11) through (13) of the New Act on Special Measures Concerning Taxation apply in the case where a public interest merger corporation prescribed in paragraph (11) of that Article, or a successor corporation, a recipient public interest corporation, etc. or a transferee corporation prescribed in paragraph (12) of that Article, submits, on or after the Effective Date, the document prescribed in paragraph (11) of that Article (including as applied mutatis mutandis pursuant to paragraph (12) of that Article).

②The provisions of Article 40, paragraphs (16) and (17) of the New Act on Special Measures Concerning Taxation apply in the case where a public interest corporation, etc. prescribed in paragraph (16) of that Article requests confirmation pursuant to the provisions of that paragraph on or after the Effective Date.

The provisions of Article 40-2 of the New Act on Special Measures Concerning Taxation apply to transfers, made by an individual on or after the Effective Date, of assets prescribed in paragraph (1) of that Article or Important Tangible Folk Cultural Properties prescribed in paragraph (2) of that Article, and the provisions then in force continue to govern transfers, made by an individual before the Effective Date, of assets prescribed in Article 40-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation or Important Tangible Folk Cultural Properties prescribed in paragraph (2) of that Article.

①The provisions of Article 40-3-3 of the New Act on Special Measures Concerning Taxation apply to income tax of nonresidents for 2017 and subsequent years.

②The provisions of Article 40-3-4 of the New Act on Special Measures Concerning Taxation apply to a grace period for tax payment under paragraph (1) of that Article that is applied for with respect to income tax of nonresidents for 2017 and subsequent years.

The provisions of Article 41, paragraph (24) of the New Act on Special Measures Concerning Taxation apply in the case where a resident makes an acquisition prescribed in paragraph (1) of that Article of a house requiring seismic retrofitting prescribed in paragraph (24) of that Article on or after the Effective Date.

①The provisions of Article 41-10, paragraph (2) of the New Act on Special Measures Concerning Taxation apply to compensation for periodic deposits, etc. prescribed in that paragraph that is received on or after January 1, 2017 by a nonresident who has a permanent establishment referred to in that paragraph.

②With regard to compensation for periodic deposits, etc. prescribed in Article 41-10, paragraph (2) of the Former Act on Special Measures Concerning Taxation that is received on or before December 31, 2016 by a nonresident referred to in that paragraph, the provisions of that paragraph remain in force. In this case, the phrase "Income Tax Act" in that paragraph is deemed to be replaced with "Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014)".

The provisions of Article 41-12-2, paragraph (6), item (iii), (a) of the New Act on Special Measures Concerning Taxation apply to discount bonds listed in (a) of that item that are issued by a foreign corporation in a business year beginning on or after April 1, 2016, and the provisions then in force continue to govern discount bonds listed in Article 41-12-2, paragraph (6), item (iii), (a) of the Former Act on Special Measures Concerning Taxation that were issued by a foreign corporation in a business year that began before that date.

①The provisions of Article 41-13, paragraph (5) of the New Act on Special Measures Concerning Taxation apply to such profit from redemption prescribed in paragraphs (1) through (3) of that Article or amount of loss prescribed in paragraph (4) of that Article as, on or after January 1, 2017, is received by a nonresident who has a permanent establishment referred to in paragraph (5) of that Article or arises for a nonresident who has a permanent establishment referred to in that paragraph.

②With regard to such profit from redemption prescribed in Article 41-13, paragraphs (1) through (3) of the Former Act on Special Measures Concerning Taxation or amount of loss prescribed in paragraph (4) of that Article as, on or before December 31, 2016, is received by a nonresident who has a permanent establishment in Japan referred to in paragraph (5) of that Article or arises for a nonresident who has a permanent establishment in Japan referred to in that paragraph, the provisions of that paragraph remain in force.

The provisions of Article 41-13-2, paragraph (1) of the New Act on Special Measures Concerning Taxation apply to profit from redemption prescribed in that paragraph of discount bonds prescribed in that paragraph that a foreign corporation issues in a business year beginning on or after April 1, 2016, and the provisions then in force continue to govern profit from redemption prescribed in Article 41-13-2, paragraph (1) of the Former Act on Special Measures Concerning Taxation of discount bonds prescribed in that paragraph that a foreign corporation issued in a business year that began before that date.

①The provisions of Article 41-13-3, paragraph (5) of the New Act on Special Measures Concerning Taxation apply to such profit from redemption prescribed in paragraph (2) of that Article or amount of loss prescribed in paragraph (3) of that Article as, on or after January 1, 2017, is received by a nonresident who has a permanent establishment referred to in paragraph (5) of that Article or arises for a nonresident who has a permanent establishment referred to in that paragraph.

②With regard to such profit from redemption prescribed in Article 41-13-3, paragraph (2) of the Former Act on Special Measures Concerning Taxation or amount of loss prescribed in paragraph (3) of that Article as, on or before December 31, 2016, is received by a nonresident who has a permanent establishment in Japan referred to in paragraph (5) of that Article or arises for a nonresident who has a permanent establishment in Japan referred to in that paragraph, the provisions of that paragraph remain in force.

The provisions of Article 41-19-5 of the New Act on Special Measures Concerning Taxation apply to the calculation of the amount of foreign-source income prescribed in paragraph (1) of that Article of a resident for 2017 and subsequent years.

①The provisions of Article 41-21, paragraph (1) of the New Act on Special Measures Concerning Taxation apply to domestic source income prescribed in Article 161, paragraph (1) of the New Income Tax Act that a nonresident referred to in that paragraph has in each year from 2017 onward, or to domestic source income listed in Article 161, paragraph (1), items (iv) through (xi) or items (xiii) through (xvi) of the New Income Tax Act that a foreign corporation referred to in Article 41-21, paragraph (1) of the New Act on Special Measures Concerning Taxation is to receive on or after April 1, 2016.

②With regard to income tax for 2016 and earlier years of a nonresident who has a permanent establishment in Japan referred to in Article 41-21, paragraph (1) of the Former Act on Special Measures Concerning Taxation and who has domestic source income prescribed in Article 161 of the Former Income Tax Act in any year up to and including 2016, the provisions of that Article remain in force. In this case, in paragraph (1) of that Article, the phrase "those, the Income Tax Act" is deemed to be replaced with "those, the Income Tax Act prior to the amendment by Article 1 of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014) (hereinafter referred to as the 'Former Income Tax Act' in this Article)", and the phrase "the Income Tax Act and other" is deemed to be replaced with "the Former Income Tax Act and other"; in item (v) of that paragraph, the phrase "Income Tax Act" is deemed to be replaced with "Former Income Tax Act"; and in paragraphs (3), (7) and (9) of that Article, the phrases "Income Tax Act" and "that Act" are deemed to be replaced with "Former Income Tax Act".

③The provisions then in force continue to govern domestic source income listed in Article 161, items (i)-2 through (vii) or items (ix) through (xii) of the Former Income Tax Act that a foreign corporation referred to in Article 41-21, paragraph (1) of the Former Act on Special Measures Concerning Taxation is to receive before April 1, 2016.

The provisions of Article 42, paragraph (3) of the New Act on Special Measures Concerning Taxation apply to interest prescribed in paragraph (1) of that Article that is received on or after April 1, 2016 by a foreign corporation that has a permanent establishment referred to in paragraph (3) of that Article, and the provisions then in force continue to govern interest prescribed in paragraph (1) of that Article that was received before that date by a foreign corporation that has a permanent establishment in Japan referred to in Article 42, paragraph (3) of the Former Act on Special Measures Concerning Taxation.

The provisions of Article 42-2, paragraph (3) of the New Act on Special Measures Concerning Taxation apply to specified interest prescribed in paragraph (1) of that Article that is received on or after April 1, 2016 by a foreign corporation that has a permanent establishment referred to in paragraph (3) of that Article, and the provisions then in force continue to govern specified interest prescribed in paragraph (1) of that Article that was received before that date by a foreign corporation that has a permanent establishment in Japan referred to in Article 42-2, paragraph (3) of the Former Act on Special Measures Concerning Taxation.

①The provisions of Article 42-2-2, paragraph (3) of the New Act on Special Measures Concerning Taxation apply to the matters to be stated prescribed in paragraph (1) of that Article in reports, etc. prescribed in that paragraph that are provided on or after the Effective Date.

②With regard to the application of the provisions of Article 42-2-2, paragraph (3) of the New Act on Special Measures Concerning Taxation during the period from the Effective Date to December 31, 2014, the phrase "Article 37-14, paragraph (25)" in that paragraph is deemed to be replaced with "Article 37-14, paragraph (15)".

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) beginning on or after the Effective Date, and to corporation tax for consolidated business years, beginning on or after the Effective Date, of a consolidated parent corporation or of a consolidated subsidiary corporation with which that consolidated parent corporation has a consolidated full controlling interest, and the provisions then in force continue to govern corporation tax for business years of a corporation that began before the Effective Date and corporation tax for consolidated business years, which began before the Effective Date, of a consolidated parent corporation or of a consolidated subsidiary corporation with which that consolidated parent corporation has a consolidated full controlling interest.

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

①The provisions of Article 42-6 of the New Act on Special Measures Concerning Taxation (limited to the part pertaining to specified productivity-improving equipment, etc. (meaning specified productivity-improving equipment, etc. prescribed in paragraphs (2) through (4), (8) and (10) of that Article; the same applies hereinafter in this paragraph)) apply to corporation tax for business years ending on or after the Effective Date of a corporation that, on or after the date on which the Act on Strengthening Industrial Competitiveness (Act No. 98 of 2013) comes into effect, acquires or manufactures specified productivity-improving equipment, etc. or receives a transfer of specified productivity-improving equipment, etc.

②With regard to the application of the provisions of Chapter III, Sections 1-2 through 8 of the New Act on Special Measures Concerning Taxation during the period from the Effective Date to March 31, 2016, the phrase "Article 72, paragraph (1), item (i) or Article 144-4, paragraph (1), item (i) or (ii) or paragraph (2), item (i)" in Article 42-6, paragraph (5) of the New Act on Special Measures Concerning Taxation is deemed to be replaced with "Article 72, paragraph (1), item (i)", and the phrase "Article 72, paragraph (1) or Article 144-4, paragraph (1) or (2) of that Act" is deemed to be replaced with "that paragraph".

①The provisions of Article 42-9 of the New Act on Special Measures Concerning Taxation (limited to the part pertaining to items (ii) through (v) of the table in paragraph (1)) apply to industrial machinery, etc. prescribed in that paragraph that a corporation acquires, manufactures or constructs on or after the Effective Date, and the provisions then in force continue to govern industrial machinery, etc. prescribed in Article 42-9, paragraph (1) of the Former Act on Special Measures Concerning Taxation that a corporation acquired, manufactured or constructed before the Effective Date.

②The districts listed in the first column of item (ii) of the table in Article 42-9, paragraph (1) of the Former Act on Special Measures Concerning Taxation are deemed to be districts listed in the first column of item (ii) of the table in Article 42-9, paragraph (1) of the New Act on Special Measures Concerning Taxation during the period from the Effective Date until the day on which six months have elapsed from the Effective Date (or, if an information and communications industry promotion plan prescribed in Article 28, paragraph (1) of the New Act on Special Measures for the Promotion and Development of Okinawa has been submitted under the provisions of paragraph (5) of that Article by that day, the day before the date of that submission), and the provisions of that Article (limited to the part pertaining to that item) apply.

③The districts listed in the first column of item (iv) of the table in Article 42-9, paragraph (1) of the Former Act on Special Measures Concerning Taxation are deemed to be districts listed in the first column of item (iv) of the table in Article 42-9, paragraph (1) of the New Act on Special Measures Concerning Taxation during the period from the Effective Date until the day on which six months have elapsed from the Effective Date (or, if an international logistics hub industrial cluster plan prescribed in Article 41, paragraph (1) of the New Act on Special Measures for the Promotion and Development of Okinawa has been submitted under the provisions of paragraph (5) of that Article by that day, the day before the date of that submission), and the provisions of that Article (limited to the part pertaining to that item) apply.

①The provisions of Article 42-10 of the New Act on Special Measures Concerning Taxation apply to specified machinery and equipment, etc. prescribed in paragraph (1) of that Article that a corporation acquires, manufactures or constructs on or after the date specified in Article 1, item (xvii) of the Supplementary Provisions.

②With regard to the application of the provisions of Article 42-10, paragraphs (2) and (12) of the New Act on Special Measures Concerning Taxation during the period from the date specified in Article 1, item (xvii) of the Supplementary Provisions to March 31, 2015, the phrase "through Article 70-2, Article 144 and Article 144-2" in paragraph (2) of that Article is deemed to be replaced with "through Article 70-2"; in paragraph (12) of that Article, the phrase "and Part III, Chapter II" is deemed to be replaced with "(including as Articles 72 and 74 of that Act are applied mutatis mutandis pursuant to Article 145, paragraph (1) of that Act)"; and the phrase "; in Article 144 of that Act, the phrase ',' is deemed to be replaced with ', the phrase "amount of corporation tax" is deemed to be replaced with "amount of corporation tax (if there is any amount to be deducted pursuant to the provisions of Article 42-10, paragraph (3) (Special Corporation Tax Credit Where Machinery, etc. Is Acquired in a National Strategic Special Zone) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting that amount)",'; in Article 144-2, paragraph (1) of that Act, the phrase 'amount of corporation tax on' is deemed to be replaced with 'amount of corporation tax on (if there is any amount to be deducted pursuant to the provisions of Article 42-10, paragraph (3) (Special Corporation Tax Credit Where Machinery, etc. Is Acquired in a National Strategic Special Zone) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting that amount; the same applies in the following paragraph and paragraph (3) of that Article)'; in Article 144-4, paragraph (1), item (iii) of that Act, the phrase 'the provisions of' is deemed to be replaced with 'and the provisions of Article 42-10, paragraph (3) (Special Corporation Tax Credit Where Machinery, etc. Is Acquired in a National Strategic Special Zone) of the Act on Special Measures Concerning Taxation'; in item (iv) of that paragraph and paragraph (2), item (ii) of that Article, the phrase 'the preceding Section' is deemed to be replaced with 'the preceding Section and Article 42-10, paragraph (3) of the Act on Special Measures Concerning Taxation'; in Article 144-6, paragraph (1), item (iii) of that Act, the phrase 'the provisions of' is deemed to be replaced with 'and the provisions of Article 42-10, paragraph (3) (Special Corporation Tax Credit Where Machinery, etc. Is Acquired in a National Strategic Special Zone) of the Act on Special Measures Concerning Taxation'; and in item (iv) of that paragraph and paragraph (2), item (ii) of that Article, the phrase 'the preceding Section' is deemed to be replaced with 'the preceding Section and Article 42-10, paragraph (3) of the Act on Special Measures Concerning Taxation'" is deemed to be omitted.

③With regard to the application of the provisions of Article 42-10, paragraph (13) of the New Act on Special Measures Concerning Taxation during the period from the date specified in Article 1, item (xvii) of the Supplementary Provisions to the day before the date specified in item (xii) of that Article, the phrase "Corporation Tax Act and the Local Corporation Tax Act" in that paragraph is deemed to be replaced with "Corporation Tax Act", the phrase ", the Corporation Tax Act" is deemed to be replaced with ", that Act", and the phrase "that Act and the Local Corporation Tax Act" is deemed to be replaced with "that Act".

①The provisions of Article 42-12-4 of the New Act on Special Measures Concerning Taxation apply to corporation tax for business years of a corporation ending on or after the Effective Date, and the provisions then in force continue to govern corporation tax for business years of a corporation that ended before the Effective Date.

②If a business year of a corporation that began on or after April 1, 2013 and ended before the Effective Date (limited to a business year that falls under each business year prescribed in Article 42-12-4, paragraph (1) of the Former Act on Special Measures Concerning Taxation, and excluding a business year to which the provisions of that paragraph apply and a business year for which the provisions of Articles 17-3 through 17-3-3 of the Act on Temporary Special Provisions of the Acts on National Taxes for Victims, etc. of the Great East Japan Earthquake prior to the amendment by Article 13 (hereinafter referred to as the "Former Earthquake Tax Special Provisions Act") have been applied; referred to as a "transitional year" in this paragraph) is an eligible transitional year (meaning that transitional year in the case where, if the provisions of Article 42-12-4 of the New Act on Special Measures Concerning Taxation were applied by deeming the transitional year to be the applicable year prescribed in paragraph (2), item (iii) of that Article, the case would fall under the case prescribed in the main clause of paragraph (1) of that Article), with regard to the application of the provisions of that paragraph to corporation tax for the first business year of that corporation ending on or after the Effective Date, the phrase "an amount equivalent to (" in that paragraph is deemed to be replaced with "the total of an amount equivalent to and the transitional year maximum credit (meaning the amount equivalent to 10 percent of the total of the transitional increases in salaries, etc. paid to employees (meaning the increase in salaries, etc. paid to employees in the case where that transitional year is deemed to be the applicable year prescribed in item (iii) of the following paragraph) pertaining to each transitional year (meaning a transitional year prescribed in Article 82, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014); the same applies hereinafter in this paragraph) that is an eligible transitional year prescribed in that paragraph) (", the phrase "equivalent to 10 percent (or 20 percent if the corporation is a small and medium sized enterprise, etc. (meaning a small and medium sized enterprise or an agricultural cooperative, etc. prescribed in Article 42-4, paragraph (6))) of" is deemed to be replaced with "calculated by multiplying by the credit ceiling ratio (meaning the ratio calculated by multiplying 10 percent (or 20 percent if the corporation is a small and medium sized enterprise or an agricultural cooperative, etc. prescribed in Article 42-4, paragraph (6)) by the number obtained by dividing the total number of months of that business year and each of those transitional years by the number of months of that business year (or, if that number has a fraction below the second decimal place, the number obtained by rounding down that fraction))", the phrase "that amount equivalent to 10 percent" is deemed to be replaced with "that calculated amount", and the phrase "the preceding paragraph" in paragraph (3) of that Article is deemed to be replaced with "the preceding two paragraphs".

③If a business year of the corporation referred to in the preceding paragraph that began on or after April 1, 2013 and ended before the Effective Date falls under a consolidated business year, and that consolidated business year falls under a transitional year prescribed in Article 112, paragraph (2) of the Supplementary Provisions and is an eligible transitional year prescribed in that paragraph, that consolidated business year is deemed to be a transitional year prescribed in the preceding paragraph that is an eligible transitional year prescribed in that paragraph.

④With regard to the application of the provisions of Article 42-13 of the New Act on Special Measures Concerning Taxation in the case where the provisions of paragraph (2) apply, the phrase "Article 42-12-4, paragraph (1)" in paragraph (1), item (xii) of that Article is deemed to be replaced with "Article 42-12-4, paragraph (1) (including as applied with the replacement of terms pursuant to Article 82, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014); the same applies hereinafter in this item)", and the phrase "in that paragraph" is deemed to be replaced with "in Article 42-12-4, paragraph (1)".

⑤With regard to the application of the provisions of Article 17-2, paragraph (13), Article 17-2-2, paragraph (10) and Article 17-2-3, paragraph (10) of the Act on Temporary Special Provisions of the Acts on National Taxes for Victims, etc. of the Great East Japan Earthquake as amended by Article 13 (hereinafter referred to as the "New Special Provisions Law for Earthquake Victims") in the case where the provisions of paragraph (2) apply, the phrase "through Article 42-12-5" in those provisions is deemed to be replaced with "through Article 42-12-5 (including where the provisions of Article 42-12-4 of that Act are applied with the replacement of terms pursuant to Article 82, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 10 of 2014))", and the phrase "Article 42-4, paragraph (1) of that Act" is deemed to be replaced with "Article 42-4, paragraph (1) of the Act on Special Measures Concerning Taxation".

①The provisions of Article 42-12-5 of the New Act on Special Measures Concerning Taxation apply to corporation tax for business years ending on or after the Effective Date of a corporation that, on or after the date on which the Act on Strengthening Industrial Competitiveness comes into effect, makes an acquisition, etc. prescribed in paragraph (1) of that Article of specified productivity-improving equipment, etc. (meaning specified productivity-improving equipment, etc. prescribed in paragraphs (1), (3), (4) and (9) of that Article; the same applies hereinafter in this paragraph) or receives a transfer of specified productivity-improving equipment, etc.

②If the date on which the provisions listed in Article 1, item (i) of the Supplementary Provisions of the National Strategic Special Zones Act come into effect falls after the Effective Date, with regard to the application of the provisions of Article 42-12-5, paragraph (7) of the New Act on Special Measures Concerning Taxation during the period from the Effective Date to the day before the date on which the provisions listed in that item come into effect, the phrase "Article 42-9, Article 42-10, paragraphs (2), (3) and (5)" in that paragraph is deemed to be replaced with "Article 42-9".

③With regard to the application of the provisions of Article 42-12-5, paragraph (7) of the New Act on Special Measures Concerning Taxation during the period from the Effective Date to March 31, 2015, the phrase "through Article 70-2, Article 144 and Article 144-2" in that paragraph is deemed to be replaced with "through Article 70-2", and with regard to the application of the provisions of paragraph (15) of that Article during the period from the Effective Date to March 31, 2016, in that paragraph, the phrase "and Part III, Chapter II" is deemed to be replaced with "(including as Articles 72 and 74 of that Act are applied mutatis mutandis pursuant to Article 145, paragraph (1) of that Act)", and the phrase "; in Article 144 of that Act, the phrase ',' is deemed to be replaced with ', the phrase "amount of corporation tax" is deemed to be replaced with "amount of corporation tax (if there is any amount to be deducted pursuant to the provisions of Article 42-12-5, paragraph (7) (Special Corporation Tax Credit Where Productivity-Improving Equipment, etc. Is Acquired) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting that amount)",'; in Article 144-2, paragraph (1) of that Act, the phrase 'amount of corporation tax on' is deemed to be replaced with 'amount of corporation tax on (if there is any amount to be deducted pursuant to the provisions of Article 42-12-5, paragraph (7) (Special Corporation Tax Credit Where Productivity-Improving Equipment, etc. Is Acquired) of the Act on Special Measures Concerning Taxation, the amount remaining after deducting that amount; the same applies in the following paragraph and paragraph (3))'; in Article 144-4, paragraph (1), item (iii) of that Act, the phrase 'the provisions of' is deemed to be replaced with 'and the provisions of Article 42-12-5, paragraph (7) (Special Corporation Tax Credit Where Productivity-Improving Equipment, etc. Is Acquired) of the Act on Special Measures Concerning Taxation'; in item (iv) of that paragraph and paragraph (2), item (ii) of that Article, the phrase 'the preceding Section' is deemed to be replaced with 'the preceding Section and Article 42-12-5, paragraph (7) of the Act on Special Measures Concerning Taxation'; in Article 144-6, paragraph (1), item (iii) of that Act, the phrase 'the provisions of' is deemed to be replaced with 'and the provisions of Article 42-12-5, paragraph (7) (Special Corporation Tax Credit Where Productivity-Improving Equipment, etc. Is Acquired) of the Act on Special Measures Concerning Taxation'; and in item (iv) of that paragraph and paragraph (2), item (ii) of that Article, the phrase 'the preceding Section' is deemed to be replaced with 'the preceding Section and Article 42-12-5, paragraph (7) of the Act on Special Measures Concerning Taxation'" is deemed to be omitted.