This Act comes into effect on April 1, 1974.

Unless otherwise provided for in these Supplementary Provisions, the provisions of the Income Tax Act as amended by the provisions of Article 1 (hereinafter referred to as "the new Act") apply to income tax for 1974 and subsequent years, and the provisions then in force continue to govern income tax for 1973 and prior years.

The amount of salary income for 1974 is to be the amount equivalent to the amount of salary or other wages after the salary income deduction in the attached table to Appended Table V of the Supplementary Provisions, found using that table according to the amount of revenue for that year from the salary or other wages prescribed in Article 28, paragraph (1) (Salary Income) of the new Act (hereinafter referred to as "salary or other wages"), with that amount of revenue taken as the amount of salary or other wages in that table.

The amount of income tax on taxable gross income, taxable retirement income or taxable timber income for 1974, 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 each of the following items according to the category of tax set forth in that item:

The provisions of Article 10 (Nontaxability of Interest Income from Small Amounts of Deposits) of the new Act apply to Deposits and Savings, Jointly Managed Trusts or Securities prescribed in paragraph (1) of that Article that are deposited, placed in trust or purchased on or after the date on which this Act comes into effect (hereinafter referred to as "the effective date").

If an individual domiciled in Japan holds Deposits and Savings, Jointly Managed Trusts or Securities prescribed in Article 10, paragraph (1) of the Income Tax Act prior to the amendment by the provisions of Article 1 (hereinafter referred to as "the former Act") which the individual deposited, placed in trust or purchased before the effective date and which satisfy the requirements prescribed in that Article as of that date, those Deposits and Savings, Jointly Managed Trusts or Securities are deemed to have been deposited, placed in trust or purchased by the individual on that date in accordance with the requirements of Article 10 of the new Act, and the provisions of that Article apply to them.

If an individual prescribed in the preceding paragraph holds, on the effective date, Deposits and Savings, Jointly Managed Trusts or Securities prescribed in Article 10, paragraph (1) of the new Act which the individual deposited, placed in trust or purchased at a business office or other such place of a financial institution prescribed in that paragraph during the period from December 1, 1973 to the day before the effective date (excluding those to which the provisions of the preceding paragraph apply; hereinafter referred to as "former Deposits and Savings" in this Article), and the individual has submitted, by the day on which the individual first receives payment on or after the effective date of interest or distributions of proceeds on those former Deposits and Savings (limited to those to be received on or after the effective date) (or by December 31, 1974, if that day is after December 31, 1974, or, if on or after the effective date and before either of those days the individual deposits, places in trust or purchases at the business office or other such place of that financial institution Deposits and Savings, Jointly Managed Trusts or Securities prescribed in Article 10, paragraph (1) of the new Act to which the individual seeks to have that paragraph applied, by the day on which the individual first deposits, places in trust or purchases them), a statement of tax-exempt savings prescribed in paragraph (3) of that Article or a statement prescribed in paragraph (4) of that Article to the district director prescribed in those provisions via the business office or other such place of that financial institution, and an application to exempt savings from taxation prescribed in paragraph (1) of that Article concerning those former Deposits and Savings to the business office or other such place of that financial institution (if those former Deposits and Savings are a Loan Trust relating to bearer beneficiary certificates prescribed in item (ii) of that paragraph or Securities prescribed in item (iii) of that paragraph, limited to cases in which the entrustment for custody or the registration prescribed in those provisions is made at the time of that submission), then, with regard to that interest or those distributions of proceeds, those former Deposits and Savings are deemed to have been deposited, placed in trust or purchased at the business office or other such place of that financial institution on the effective date, those statements and that application are deemed to have been submitted on that date, and that entrustment for custody or registration is deemed to have been made on that date, and the provisions of that Article apply.

Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of Article 10 of the new Act to former Deposits and Savings are specified by Cabinet Order.

The provisions of Article 57, paragraph (2) (Special Provisions on Necessary Expenses If Relatives Work Exclusively for a Resident) and Article 144 (Application for Approval to File a Blue Return) of the new Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the new Act) (limited to the parts concerning cases in which the business or operations prescribed in those provisions are commenced) apply in cases in which such business or operations are commenced on or after the effective date, and the provisions then in force continue to govern cases in which such business or operations were commenced before that date.

With regard to a Resident's income tax for 1974, 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 cases in which 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 1974 of a Resident whose taxable aggregate income and similar amount for 1973 is 30,000,000 yen or more is to be the amount obtained by deducting 1,500,000 yen from the amount set forth in item (i) of the preceding paragraph for that Resident.

The calculation of the Tax Prepayment calculation base for 1974 in cases in which the provisions of Article 97, paragraph (1) (Amount of Tax Where There Are Household Members Subject to Aggregation) of the former Act applied to income tax for 1973 is specified by Cabinet Order.

The Tax Prepayment calculation base for income tax for 1974 of a Nonresident is to be the amount calculated in accordance with the provisions of the preceding three paragraphs.

With regard to the application of the provisions 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 1975, the amount of income tax that serves as the basis for calculating a refund under those provisions is to be the amount of income tax calculated by applying the provisions of Article 3, paragraph (3) (Special Provisions on the Calculation of Deductions from Income and Tax Amounts for Income Tax for 1974) of the Supplementary Provisions (including the provisions of Article 90, paragraph (2) (Averaging Taxation on Fluctuating Income and Ad Hoc Income) of the new Act as read by replacing terms 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 of Tax Withheld) of the new Act and Appended Tables IV through VI of the new Act apply to salary or other wages payable on or after the effective date, and the provisions then in force continue to govern salary or other wages payable before that date.

The provisions of Article 190 (Year-End Adjustment) of the new Act as read by replacing terms pursuant to Article 3, paragraph (2) (Special Provisions on the Calculation of Deductions from Income and Tax Amounts for Income Tax for 1974) of the Supplementary Provisions, and Appended Table V of the Supplementary Provisions and the attached table to that Table, apply in cases in which the last payment of salary or other wages payable during 1974 is made on or after the effective date, and the provisions then in force continue to govern cases in which that last payment is made before the effective date.

The provisions of Article 201 (Tax Withheld from Retirement Income) of the new Act as read by replacing terms pursuant to Article 3, paragraph (2) of the Supplementary Provisions, and Appended Table VI of the Supplementary Provisions and the attached table to Appended Table VIII of the new Act, apply to severance pay or other such compensation 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") which is payable during 1974 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 which was paid before that date.

A person who, before the effective date, filed a return under Article 127 (Filing a Tax Return in the Case of Absence From Japan Partway Through the Year) of the former Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the former Act) for income tax for 1974, 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) for income tax for that year, may, if a change arises in the matters stated in that return or the matters pertaining to that determination (or, if a Reassessment under Article 24 (Reassessment) or Article 26 (Further Reassessment) of that Act was made with respect to those matters before that date, the matters as reassessed) as a result of the application of the provisions of the new Act, file with the district director, by March 31, 1975, a request for Reassessment under Article 23, paragraph (1) (Requests for Reassessment) of the Act on General Rules for National Taxes with respect to the matters in which that change arises.

If a Reassessment under Article 24 or Article 26 of the Act on General Rules for National Taxes has been made based on a request for Reassessment referred to in the preceding paragraph, and the interest on refund prescribed in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes is calculated for a refund under Article 159, paragraph (2) (Refunding Taxes Withheld, 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 referred to in that paragraph which serves as the basis for the calculation is to be the period beginning on the effective date and ending on the day on which the decision to pay the refund is made or on 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 there is a day before that day on which the refund became suitable for Appropriation, ending on that day).

If the amount of income tax collected pursuant to the provisions of Articles 199 through 202 (Withholding from Retirement Income) of the former Act on severance pay or other such compensation payable during 1974 which was paid before the effective date exceeds the amount of income tax that would result from applying the provisions of Articles 201 and 202 of the new Act, as read by replacing terms pursuant to Article 3, paragraph (2) (Special Provisions on the Calculation of Deductions from Income and Tax Amounts for Income Tax for 1974) of the Supplementary Provisions, to that severance pay or other such compensation, the Resident who received payment of that severance pay or other such compensation may, pursuant to the provisions of Cabinet Order, request the district director with jurisdiction over the place for tax payment to refund the excess amount by June 30 of that year.

If a request for a refund under the preceding paragraph has been made for severance pay or other such compensation prescribed in that paragraph, then, with regard to the application of the provisions on returns, Reassessment or determination, payment, collection (excluding withholding on severance pay or other such compensation) and refunds (excluding the refund to which the request pertains) concerning the Resident's income tax for 1974, and the application of the provisions of Article 201, paragraph (1), item (ii) of the new Act to severance pay or other such compensation payable during that year which is paid on or after the effective date, income tax is deemed to have been collected on the severance pay or other such compensation to which the request pertains in the amount obtained by deducting the amount to be refunded under the request from the amount of income tax collected on it pursuant to the provisions of Articles 199 through 202 of the former Act.

If the interest on refund prescribed in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes is calculated for a refund under paragraph (1), the period referred to in that paragraph which serves as the basis for the calculation is to be the period beginning on the day after the day on which one month elapses from the day on which the request for a refund under paragraph (1) was made, and ending on the day on which the decision to pay the refund is made or on the day on which Appropriation of the refund is made (or, if there is a day before that day on which the refund became suitable for Appropriation, ending on that day).