This Act comes into effect on April 1, 1965.

Except as otherwise provided in these Supplementary Provisions, the provisions of the Income Tax Act as amended (hereinafter referred to as "the new Act") apply to income tax for 1965 and subsequent years, and the provisions then in force continue to govern income tax for 1964 and prior years.

Any approval or designation, or any return, application, claim, notification, or other disposition or procedure, made before the date on which this Act comes into effect (hereinafter referred to as "the effective date") pursuant to the provisions of the Income Tax Act before the amendment (hereinafter referred to as "the former Act") or an order based on it, for which the new Act or an order based on it has corresponding provisions, is deemed, except as otherwise provided in these Supplementary Provisions, to be the corresponding disposition or procedure made pursuant to the corresponding provisions of the new Act or an order based on it.

Article 9, paragraph (1), item (ii) (Nontaxable Income) of the new Act applies to interest on Deposits and Savings or distributions of proceeds from a Jointly Managed Trust as prescribed in that item which are to be received on or after the effective date, and the provisions then in force continue to govern such interest or distributions of proceeds which are to be received before that date.

Article 9, paragraph (1), items (iv), (v), and (xviii) of the new Act apply to money, valuables, or benefits set forth in those items which are to be received on or after the effective date, and the provisions then in force continue to govern such money, valuables, or benefits which are to be received before that date.

Article 9, paragraph (1), item (xiv) and paragraph (2), item (vi) of the new Act apply where an individual receives money or other assets as a distribution of residual assets from a corporation dissolved on or after the effective date, and the provisions then in force continue to govern where an individual receives money or other assets as a distribution of residual assets from a corporation dissolved before that date.

Article 10 (Nontaxability of Interest Income from Small Deposits and Similar Savings) of the new Act applies to Deposits and Savings, Jointly Managed Trusts, or Securities prescribed in paragraph (1) of that Article which are deposited, placed in trust, or purchased on or after the effective date.

If a Resident holds deposits, Jointly Managed Trusts, or Securities prescribed in the items of Article 6-2, paragraph (1) (Nontaxability of Interest Income from Small Deposits and Similar Savings) of the former Act which the Resident deposited, placed in trust, or purchased before the effective date and which, at the time the new Act comes into effect, satisfy the requirements prescribed in that Article, those deposits, Jointly Managed Trusts, or Securities, other than those prescribed in paragraph (1) of the preceding Article, are deemed to have been deposited, placed in trust, or purchased by that Resident on that date in accordance with the requirements of Article 10 of the new Act, and that Article applies to them.

Article 17 (Locality for Paying Over Withholding Tax) and Article 18, paragraph (2) (Designation of Locality for Paying Over Taxes) of the new Act apply to income tax on payments prescribed in those provisions which are made on or after the effective date, and the provisions then in force continue to govern income tax on payments made before that date.

Article 24 (Dividend Income) of the new Act applies to interest on foundation funds prescribed in paragraph (1) of that Article which is to be received on or after the effective date, and the provisions then in force continue to govern such interest on foundation funds which is to be received before that date.

Articles 42 through 44 (Exclusion of Government Subsidies and Their Equivalent from Gross Revenue and Related Matters) of the new Act apply where an individual receives, on or after the effective date, a government subsidy or its equivalent prescribed in Article 42, paragraph (1) of the new Act, a Fixed Asset prescribed in paragraph (2) of that Article, or a grant of an amount prescribed in Article 44, paragraph (1) of the new Act, and the provisions then in force continue to govern where such a grant was received before that date.

The amount of a bad debt reserve account, severance package reserve account, or special repair reserve account under the provisions of the former Act (including orders based on it; the same applies hereinafter in this Article) that an individual holds as of January 1, 1965 (excluding any amount already required to be reversed under the provisions of the former Act; hereinafter referred to as the "balance of former bad-debt and similar reserves" in this Article) is deemed to be, respectively, the amount of the bad debt reserve account, severance package reserve account, or special repair reserve account included in necessary expenses in calculating that individual's business income or real property income for each year pursuant to Article 52, paragraph (1) (Bad Debt Reserves), Article 54, paragraph (1) (Reserves for Severance Packages), or Article 55, paragraph (1) (Special Repair Reserves) of the new Act.

The provisions of the preceding paragraph apply mutatis mutandis to the balance of former bad-debt and similar reserves where an individual has succeeded to the balance of former bad-debt and similar reserves from the decedent through an inheritance that commenced during the period from January 1, 1965 to the day before the effective date.

Articles 58 through 60 (Special Provisions on Capital Gains and Similar Income in the Case of an Exchange of Fixed Assets) of the new Act apply where an exchange prescribed in Article 58, paragraph (1) of the new Act, or a gift, inheritance, bequest, or transfer set forth in the items of Article 59, paragraph (1) or the items of Article 60, paragraph (1) of the new Act, takes place on or after the effective date, and the provisions then in force continue to govern where such an exchange, or such a gift, inheritance, bequest, or transfer, took place before that date.

Article 63 (Special Provisions on Necessary Expenses In the Event of a Business Closure) and Article 64 (Special Provisions on Calculation of Income If Payment for Transferred Assets Becomes Uncollectible) and Article 152 (Special Provisions on Requests for Reassessment If Income in Each Class Changes) (including as applied mutatis mutandis pursuant to Article 167 (Application Mutatis Mutandis to Nonresidents) of the new Act) of the new Act apply where the facts prescribed in those provisions arise on or after the effective date, and the provisions then in force continue to govern where such facts arose before that date.

Where Article 70, paragraph (1) or (2) (Deduction for Carryover of Net Loss) or Article 71, paragraph (1) (Deduction for Carryover of Casualty Loss) of the new Act is applied, if the Net Loss or Casualty Loss incurred in any year within the three years before the relevant year as prescribed in those provisions includes an amount deducted in calculating gross income, retirement income, or timber income for any year pursuant to Article 9-4, paragraph (1) or (3) (Deduction for Carryover of Net Loss or Casualty Loss) of the former Act, or an amount that served as the basis for calculating the amount to be refunded pursuant to Article 36 (Refund Based on Carryback of Net Loss) of the former Act, the amount obtained by deducting those amounts from the amount equivalent to that Net Loss or Casualty Loss is deemed to be that Net Loss or Casualty Loss.

With regard to a Resident's income tax for 1965, the Tax Prepayment calculation base prescribed in Article 104, paragraph (1) (Making Tax Prepayments) of the new Act (hereinafter referred to as the "Tax Prepayment calculation base") is to be the amount obtained by deducting the amount set forth in item (ii) from the amount set forth in item (i):

The Tax Prepayment calculation base for 1965 as determined under the preceding paragraph for a Resident who had, among the dependents who served as the basis for calculating the taxable aggregate income and similar amount for income tax for 1964, dependents who were 12 years of age as of December 31, 1964 is to be the amount obtained by deducting, from the amount calculated pursuant to that paragraph, the total of the amounts calculated by multiplying the per-person deduction amount set forth in column B of Appended Table 1 of the Supplementary Provisions according to that taxable aggregate income and similar amount by the number of those dependents.

The Tax Prepayment calculation base for 1965 as determined under paragraph (1) for a Resident to whom Article 11-2, paragraph (2) or (3) (Deduction for Relatives Employed Only in the Business) of the former Act was applied in calculating gross income for 1964 is to be the amount obtained by deducting, from the amount calculated pursuant to the preceding two paragraphs, the amount set forth in each of the following items according to the category of person set forth in that item:

The calculation of the Tax Prepayment calculation base for 1965 where Article 11-3 (Calculation of Income and Related Matters Where a Household Member Has Asset Income) of the former Act was applied to income tax for 1964 is specified by Cabinet Order.

The Tax Prepayment calculation base for a Nonresident's income tax for 1965 is to be calculated in accordance with the provisions of the preceding paragraphs.

Where Article 123 (Filing Tax Returns Showing Losses) (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the new Act) of the new Act is applied, if the Net Loss or Casualty Loss set forth in Article 123, paragraph (1), item (iii) of the new Act includes an amount deducted in calculating gross income, retirement income, or timber income for any year pursuant to Article 9-4, paragraph (1) or (3) (Deduction for Carryover of Net Loss or Casualty Loss) of the former Act, or an amount that served as the basis for calculating the amount to be refunded pursuant to Article 36 (Refund Based on Carryback of Net Loss) of the former Act, the amount obtained by deducting those amounts from the amount equivalent to that Net Loss or Casualty Loss is deemed to be that Net Loss or Casualty Loss.

For a person who received the approval referred to in Article 36-3, paragraph (1) (Special Provisions on the Treatment of Overpaid Tax) of the former Act before the effective date, that paragraph remains in force. In this case, the phrase "Article 38 or Article 40" in that paragraph is deemed to be replaced with "Article 183 or Article 190 of the Income Tax Act (Act No. 33 of 1965)".

Article 140, paragraph (1) (Claim to Be Issued a Refund Based on Carryback of Net Loss) (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the new Act) of the new Act applies to a Net Loss incurred in 1965 or any subsequent year, and the provisions then in force continue to govern a Net Loss incurred in 1964 or any prior year.

Article 140, paragraph (5) of the new Act (including as applied mutatis mutandis pursuant to Article 166 of the new Act; the same applies hereinafter in this Article) applies where the circumstances prescribed in that paragraph arise on or after January 1, 1965, and the provisions then in force continue to govern where such circumstances arose before that date.

Where Article 140, paragraph (5) of the new Act is applied, if the Net Loss prescribed in that paragraph includes an amount that served as the basis for calculating the amount to be refunded pursuant to Article 36 (Refund Based on Carryback of Net Loss) of the former Act, the amount obtained by deducting that amount from the amount equivalent to that Net Loss is deemed to be that Net Loss.

Article 141, paragraph (1) (Claim by an Heir or Other Person to Be Issued a Refund Based on Carryback of Net Loss) (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the new Act) of the new Act applies to a Net Loss incurred, in the year that includes the date of death, with respect to the income tax of a person who died on or after January 1, 1965, and the provisions then in force continue to govern a Net Loss incurred, in the year that includes the date of death, with respect to the income tax of a person who died before that date.

Article 141, paragraph (4) of the new Act (including as applied mutatis mutandis pursuant to Article 166 of the new Act; the same applies hereinafter in this Article) applies where the circumstances prescribed in Article 141, paragraph (4) of the new Act arise on or after January 1, 1965, and the provisions then in force continue to govern where such circumstances arose before that date.

Where Article 141, paragraph (4) of the new Act is applied, if the Net Loss prescribed in that paragraph includes an amount that served as the basis for calculating the amount to be refunded pursuant to Article 36 (Refund Based on Carryback of Net Loss) of the former Act, the amount obtained by deducting that amount from the amount equivalent to that Net Loss is deemed to be that Net Loss.

Article 148, paragraph (1) (Books and Documents of Blue Return Taxpayers) (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the new Act) of the new Act applies to books and documents prescribed in that paragraph relating to business prescribed in Article 143 (Blue Returns) of the new Act for 1966 and subsequent years, and the provisions then in force continue to govern such books and documents relating to such business for 1965 and prior years.

Article 153 (Special Provisions on Requests for Reassessment Accompanying Reassessment of a Previous Year's Income Tax and Similar Actions) (including as applied mutatis mutandis pursuant to Article 167 (Application Mutatis Mutandis to Nonresidents) of the new Act) of the new Act applies where an individual comes to fall under any of the cases set forth in the items of Article 153 of the new Act on or after the effective date.

Article 155 (Reassessments Involving Blue Returns) (including as applied mutatis mutandis pursuant to Article 168 (Application Mutatis Mutandis to Nonresidents) of the new Act) of the new Act applies where a Reassessment prescribed in Article 155 of the new Act is made for income tax for 1966 and subsequent years, and the provisions then in force continue to govern where such a Reassessment is made for income tax for 1965 and prior years.

Article 169 (Income Tax Base for Separate Taxation) and Article 178 (Tax Base for a Foreign Corporation's Income Taxes) of the new Act apply to domestic source income prescribed in those provisions which a Nonresident or Foreign Corporation is to receive on or after the effective date, and the provisions then in force continue to govern such domestic source income which is to be received before that date.

Part IV, Chapter I (Withholding on Interest Income and Dividend Income) of the new Act applies to interest and similar income or dividends and similar income prescribed in Article 181, paragraph (1) (Obligation to Withhold Taxes) of the new Act which are to be paid on or after the effective date, and the provisions then in force continue to govern such interest and similar income or dividends and similar income which are to be paid before that date.

Part IV, Chapter II, Section 1 (Obligation to Withhold Tax on Salary Income and Amount of Tax Withheld) of the new Act and Appended Tables 4 through 6 of the new Act apply to salary or other wages prescribed in Article 183, paragraph (1) (Obligation to Withhold Taxes) of the new Act (hereinafter referred to as "salary or other wages" in this Article) which are to be paid on or after the effective date, and the provisions then in force continue to govern salary or other wages which are to be paid before that date.

Article 190 (Year-End Adjustment) of the new Act as replaced pursuant to Article 4 (Special Provisions on Deductions from Income and Related Matters for Income Tax for 1965) of the Supplementary Provisions, Appended Table 7 of the new Act (excluding its annexed table) as replaced pursuant to Article 4 of the Supplementary Provisions, and Appended Table 3 of the Supplementary Provisions apply to salary or other wages which are to be paid in 1965 and whose final payment date falls on or after the effective date, and the provisions then in force continue to govern where the final payment date falls before the effective date.

Articles 199 through 202 (Withholding on Retirement Income) of the new Act apply to severance pay or other such compensation prescribed in Article 199 of the new Act which is to be paid on or after the effective date, and the provisions then in force continue to govern such severance pay or other such compensation which is to be paid before that date.

Part IV, Chapter IV, Section 1 (Withholding on Compensation, Fees, Contract Money, or Prize Money) and Section 2 (Withholding on Pensions Based on Life Insurance Contracts and Similar Contracts) of the new Act apply to compensation, fees, contract money, or prize money prescribed in Article 204, paragraph (1) (Obligation to Withhold Taxes) of the new Act or pensions prescribed in Article 207 (Obligation to Withhold Taxes) of the new Act which are to be paid on or after June 1, 1965, and the provisions then in force continue to govern such compensation, fees, contract money, or prize money, or such pensions, which are to be paid before that date.

Part IV, Chapter IV, Section 3 (Withholding on Distributions of Profits under Silent Partnership Agreements and Similar Agreements) of the new Act applies to distributions of profits prescribed in Article 210 (Obligation to Withhold Taxes) of the new Act which are to be paid on or after the effective date, and the provisions then in force continue to govern such distributions of profits which are to be paid before that date.

Part IV, Chapter V (Withholding from the Income of Nonresidents or Corporations) of the new Act applies to domestic source income prescribed in Article 212, paragraph (1) (Obligation to Withhold Taxes) of the new Act (excluding that prescribed in the following paragraph), or to interest and similar income, dividends and similar income, distributions of profits, or compensation or fees prescribed in paragraph (3) of that Article, which are to be paid on or after the effective date, and the provisions then in force continue to govern such domestic source income, or such interest and similar income, dividends and similar income, distributions of profits, or compensation or fees, which are to be paid before that date.

Part IV, Chapter V of the new Act (limited to the portion of the domestic source income set forth in Article 161, item (iii) (Consideration for the Rental of Real Property and Similar Property) of the new Act that relates to consideration for the rental of a vessel or aircraft) applies where a contract for the rental of such a vessel or aircraft is concluded on or after the effective date (including, where the contract period of such a rental contract concluded before that date is renewed on or after that date, that renewal).

For the purpose of applying Article 221 (Collection of Income Tax Subject to Withholding) of the new Act, income tax that the provisions then in force continue to govern pursuant to the provisions of Article 24 through the preceding Article of the Supplementary Provisions is deemed to be the income tax prescribed in Article 221 of the new Act.

Except as otherwise provided, Articles 225 through 228 (Payment Reports and Similar Documents) of the new Act apply where facts falling under those provisions arise on or after January 1, 1965, and the provisions then in force continue to govern where such facts arose before that date.

Article 225, paragraph (1), item (ii) or (vii) or paragraph (2) of the new Act (limited to the portions concerning dividends of profits or of interest on bearer shares or distributions of proceeds relating to bearer beneficiary certificates of a Securities Investment Trust) applies to such dividends of profits or of interest or distributions of proceeds which are paid on or after January 1, 1966, and the provisions then in force continue to govern such dividends of profits or of interest or distributions of proceeds which are paid before that date.

Article 225, paragraph (1), item (viii) of the new Act (limited to the portion concerning consideration for the rental or transfer of an aircraft prescribed in that item) applies to such consideration which is to be paid on or after the effective date.

Article 230 (Notification of the Opening of an Office Paying Salary or Other Wages and Similar Events) of the new Act applies where an office, place of business, or other equivalent facility prescribed in that Article is established, relocated, or closed on or after the effective date, and the provisions then in force continue to govern where a report under Article 60 (Reports by Payers of Salary) of the former Act became required before that date.

A person who, before the effective date, filed a return under Article 29, paragraph (2) or the second sentence of paragraph (3) (Returns in the Case of Absence From Japan) of the former Act for income tax for 1965, or who, before that date, received a determination with respect to income tax for that year, may, if the particulars stated in that return or the particulars concerning that determination (or, if a Reassessment of those particulars was made before that date, the particulars after that Reassessment) come to change as a result of the application of the provisions of the new Act, make a request for Reassessment under Article 23, paragraph (1) (Requests for Reassessment) of the Act on General Rules for National Taxes to the district director by June 30 of that year with respect to the particulars that come to change.

Where a Reassessment is made based on a request for Reassessment under the preceding paragraph, when interest on refund is calculated for a refund under Article 159, paragraph (2) (Refund of Withheld Tax and Similar Amounts upon Reassessment or Determination) of the new Act (including as applied mutatis mutandis pursuant to Article 168 (Application Mutatis Mutandis to Nonresidents) of the new Act), the period referred to in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes which serves as the basis for that calculation is the period from the effective date to the date on which the decision to pay out that refund is made or the date on which an Appropriation of that refund is made (or, if there is a date before that date on which the refund became suitable for Appropriation, that date).

Beyond what is provided for in Article 1 through the preceding Article of the Supplementary Provisions, transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.

The arrangement of related laws and regulations accompanying the enforcement of this Act is provided for separately by an Act.

The provisions then in force continue to govern the application of penal provisions to conduct engaged in before the effective date and to conduct engaged in on or after that date with respect to income tax that prior laws are to continue to govern pursuant to the provisions of these Supplementary Provisions.

A federation of agricultural co-operatives that has undergone an entity conversion under Article 12 (Entity Conversion of Continuing Prefectural Central Unions into Federations of Agricultural Co-operatives) of the Supplementary Provisions of the Act Partially Amending the Agricultural Co-operatives Act, etc., and Other Matters (Act No. 63 of 2015) from a continuing prefectural central union prescribed in that Article, and that, pursuant to Article 18 (Special Provisions on Business and Other Matters of Federations of Agricultural Co-operatives after Entity Conversion) of the Supplementary Provisions of that Act, continues to use the words "central union of agricultural co-operatives" in its name, is deemed to be a corporation listed in Appended Table 1, and the provisions of this Act and the provisions of other laws and regulations specified by Cabinet Order apply to it.