This Act comes into effect on the date of promulgation.

The provisions of the Income Tax Act as amended (hereinafter referred to as "the new Act") apply, except as otherwise provided, to income tax for 1971 and subsequent years, and the provisions then in force continue to govern income tax for 1970 and earlier years.

The amount of salary income for 1971 is to be an amount equivalent to the amount of salary or other wage after the salary income deduction obtained under the annexed table to Appended Table 4 of the Supplementary Provisions according to the amount of revenue from salary or other wage as prescribed in Article 28, paragraph (1) (Salary Income) of the new Act (hereinafter referred to as "salary or other wage") during that year, taking that amount of revenue as the amount of salary or other wage in that table.

The amount of income tax on taxable gross income, taxable retirement income, or taxable timber income for 1971, or the amount of tax set forth in Article 90, paragraph (1), item (i) of the new Act, is to be the amount of tax set forth in the following items according to the category of tax amount set forth in each of those items:

With regard to a Resident's income tax for 1972, 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, except in the case where the provisions of the following paragraph apply, the amount calculated by multiplying the amount set forth in item (i) by the rate set forth in item (ii):

The Tax Prepayment calculation base for income tax for 1972 of a Resident whose taxable gross income, etc. for 1971 is 12 million yen or more is to be the amount arrived at when 100,000 yen is deducted from the amount set forth in item (i) of the preceding paragraph for that person.

The calculation of the Tax Prepayment calculation base for 1972 in the case where Article 97, paragraph (1) (Amount of Tax If There Are Household Members Subject to Aggregation) of the new Act was applied to income tax for 1971 is specified by Cabinet Order.

The Tax Prepayment calculation base for income tax for 1972 of a Nonresident is as calculated in accordance with the provisions of the preceding three paragraphs.

With regard to the application of Article 140, paragraph (1) (Claim to Be Issued a Refund Based on Carryback of Net Loss) or Article 141, paragraph (1) (Claim by an Heir to Be Issued a Refund Based on Carryback of Net Loss) of the new Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the new Act) in the case where there is a Net Loss in 1972, the amount of income tax that forms the basis for calculating the refund under those provisions is the amount of income tax calculated by applying Article 3, paragraph (3) (Special Provisions on Income Deductions, etc. and Calculation of Tax Amounts for Income Tax for 1971) of the Supplementary Provisions (including Article 90, paragraph (2) (Averaging Taxation on Fluctuating Income and Ad Hoc Income) of the new Act as deemed to be replaced pursuant to paragraph (2) of that Article).

The provisions of Part IV, Chapter II, Section 1 (Obligation to Withhold Taxes from Salary Income and Amount Withheld) of the new Act and Appended Tables 4 through 6 of the new Act (excluding the parts concerning salary or other wage set forth in Article 185, paragraph (1), item (iii) (Salary or Other Wage Paid for Each Day Worked) of the new Act) apply to salary or other wage payable on or after January 1, 1972, and the provisions then in force continue to govern salary or other wage payable before that date.

The provisions of Part IV, Chapter II, Section 1 of the new Act and column C of Table A of Appended Table 5 of the new Act concerning salary or other wage set forth in Article 185, paragraph (1), item (iii) of the new Act apply to such salary or other wage payable on or after the date on which this Act comes into effect (hereinafter referred to as "the effective date"), and the provisions then in force continue to govern such salary or other wage payable before that date.

The provisions of Article 190 (Year-End Adjustments) of the new Act as deemed to be replaced pursuant to Article 3, paragraph (2) (Special Provisions on Income Deductions, etc. and Calculation of Tax Amounts for Income Tax for 1971) of the Supplementary Provisions, and Appended Table 4 of the Supplementary Provisions and the annexed table to that Table, apply in the case where the last payment of salary or other wage payable during 1971 is made on or after the effective date, and the provisions then in force continue to govern in the case where that last payment is made before the effective date.

The provisions of Article 201 (Tax Withheld from Retirement Income) of the new Act as deemed to be replaced pursuant to Article 3, paragraph (2) of the Supplementary Provisions, and Appended Table 5 of the Supplementary Provisions and the annexed table to Appended Table 8 of the new Act, apply to severance pay or other such compensation as prescribed in Article 199 (Obligation to Withhold Taxes from Retirement Income) of the new Act (hereinafter referred to as "severance pay or other such compensation") that is payable during 1971 and is paid on or after the effective date, and the provisions then in force continue to govern severance pay or other such compensation payable during that year that was paid before that date.

A person who, before the effective date, filed a return under Article 125 (Filing a Tax Return If the Taxpayer Has Died Partway Through the Year) or Article 127 (Filing a Tax Return If the Taxpayer Will Become Absent from Japan Partway Through the Year) of the Income Tax Act before the amendment (hereinafter referred to as "the former Act") (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the former Act) with regard to income tax for 1971, and a person who, before that date, received a determination under Article 25 (Determination) of the Act on General Rules for National Taxes (Act No. 66 of 1962) with regard to income tax for that year, may, if the application of the provisions of the new Act results in a change to the matters stated in that return or the matters pertaining to that determination (or, if a Reassessment under Article 24 (Reassessment) or Article 26 (Reassessment of Previous Reassessment) of that Act was made with respect to those matters before that date, the matters as they stand after that Reassessment), file a request for Reassessment under Article 23, paragraph (1) (Request for Reassessment) of the Act on General Rules for National Taxes with the district director within one year from the effective date, with respect to the matters to which that change applies (excluding, for a person who falls under Article 11, paragraph (1) (Request for Reassessment Concerning a Person Whose Absence From Japan Began before the Effective Date) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act (Act No. 18 of 1971), the matters for which a request for Reassessment may be filed pursuant to that paragraph).

If a Reassessment under Article 24 or Article 26 of the Act on General Rules for National Taxes is made based on a request for Reassessment under the preceding paragraph, when calculating the interest on refund prescribed in Article 58, paragraph (1) (Interest on Refund) of the Act on General Rules for National Taxes for a refund under Article 159, paragraph (2) (Refund of Tax Withheld and Other Amounts Based on 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 under that paragraph that forms the basis for that calculation is the period from the effective date until the day of the decision to pay the refund or the day on which Appropriation of the refund under Article 57, paragraph (1) (Appropriation) of that Act (hereinafter referred to as "Appropriation") is made (or, if Appropriation became possible before that day, the day on which it became possible to make the Appropriation).

If the amount of income tax collected pursuant to the provisions of Articles 199 through 202 (Withholding from Retirement Income) of the former Act from severance pay or other such compensation payable during 1971 that was paid before the effective date exceeds the amount of income tax that would result if Article 201 and Article 202 of the new Act, as deemed to be replaced pursuant to Article 3, paragraph (2) (Special Provisions on Income Deductions, etc. and Calculation of Tax Amounts for Income Tax for 1971) of the Supplementary Provisions, were applied to that severance pay or other such compensation, the Resident who received payment of that severance pay or other such compensation may, pursuant to Cabinet Order, request the competent district director for the locality in which the Resident pays taxes to refund the excess amount by December 31 of that year.

If a request for a refund under the preceding paragraph has been made with respect to the severance pay or other such compensation prescribed in that paragraph, with regard to the application of the provisions concerning the filing of returns, Reassessment or determination, payment, collection (excluding withholding from severance pay or other such compensation), and refunds (excluding the refund pertaining to that request) for that Resident's income tax for 1971, and the application of Article 201, paragraph (1), item (ii) of the new Act, as deemed to be replaced pursuant to Article 3, paragraph (2) of the Supplementary Provisions, to severance pay or other such compensation payable during that year that is paid on or after the effective date, income tax is deemed to have been collected, with respect to the severance pay or other such compensation pertaining to that request, in the amount arrived at when the amount to be refunded pursuant to that request is deducted from the amount of income tax collected pursuant to the provisions of Articles 199 through 202 of the former Act.

When calculating the interest on refund prescribed in Article 58, paragraph (1) (Interest on Refund) of the Act on General Rules for National Taxes for a refund under paragraph (1), the period under that paragraph that forms the basis for that calculation is the period from the day following the day on which one month has elapsed from the day on which the request for a refund under paragraph (1) was made, until the day of the decision to pay the refund or the day on which Appropriation of the refund is made (or, if Appropriation became possible before that day, the day on which it became possible to make the Appropriation).