①Notwithstanding the provisions of Article 6 of the Act on Special Accounts (Act No. 23 of 2007), the total amount of special grants prescribed in Article 65, paragraph (3) of the Supplementary Provisions is to be transferred from the general account to the Special Account for Allocation Tax and Transfer Tax Distribution.

②In addition to what is provided for in Article 23 and Article 11 of the Supplementary Provisions of the Act on Special Accounts, the amount transferred from the general account pursuant to the provisions of the preceding paragraph is to be revenue of the Special Account for Allocation Tax and Transfer Tax Distribution in each fiscal year from fiscal year 2021 to fiscal year 2026, and the special grant is to be expenditure of that account in each such fiscal year.

With regard to the application of Article 14, paragraph (1) of the Local Allocation Tax Act in calculating the standard fiscal revenue amount used for calculating the amount of ordinary allocation tax to be paid to each prefecture and each municipality, during the period from fiscal year 2021 to fiscal year 2026, in that paragraph, "the ordinary taxes of the prefecture concerned" is deemed to be replaced with "the ordinary taxes of the prefecture concerned on the assumption that Article 63, paragraph (1) of the Supplementary Provisions of the Local Tax Act, Article 64 of the Supplementary Provisions of the Local Tax Act prior to amendment by Article 1 of the Act Partially Amending the Local Tax Act, etc. (Act No. 7 of 2021; hereinafter in this paragraph referred to as the "Local Tax Act Amendment Act"), for which the provisions then in force continue to govern pursuant to Article 12, paragraph (9) of the Supplementary Provisions of the Local Tax Act Amendment Act (hereinafter in this paragraph referred to as the "former Local Tax Act"), and Article 64 of the Supplementary Provisions of the Local Tax Act prior to amendment by Article 2 of the Local Tax Act Amendment Act, for which the provisions then in force continue to govern pursuant to Article 13, paragraph (1) of the Supplementary Provisions of the Local Tax Act Amendment Act (hereinafter in this paragraph referred to as the "five-year former Local Tax Act") do not apply", "the ordinary taxes of the municipality concerned" with "the ordinary taxes of the municipality concerned on the assumption that Article 63, paragraph (1) of the Supplementary Provisions of the Local Tax Act, Article 64 of the Supplementary Provisions of the former Local Tax Act, for which the provisions then in force continue to govern pursuant to Article 12, paragraph (9) of the Supplementary Provisions of the Local Tax Act Amendment Act, and Article 64 of the Supplementary Provisions of the five-year former Local Tax Act, for which the provisions then in force continue to govern pursuant to Article 13, paragraph (1) of the Supplementary Provisions of the Local Tax Act Amendment Act do not apply", and "the ordinary taxes of the designated city concerned" with "the ordinary taxes of the designated city concerned on the assumption that Article 63, paragraph (1) of the Supplementary Provisions of the Local Tax Act, Article 64 of the Supplementary Provisions of the former Local Tax Act, for which the provisions then in force continue to govern pursuant to Article 12, paragraph (9) of the Supplementary Provisions of the Local Tax Act Amendment Act, and Article 64 of the Supplementary Provisions of the five-year former Local Tax Act, for which the provisions then in force continue to govern pursuant to Article 13, paragraph (1) of the Supplementary Provisions of the Local Tax Act Amendment Act do not apply".

With regard to the application of Article 4-3, paragraph (1) of the Local Government Finance Act (Act No. 109 of 1948), during the period from fiscal year 2021 to fiscal year 2026, in that paragraph, "ordinary taxes" is deemed to be replaced with "ordinary taxes, the Special Grant for Compensating Fixed Assets Tax Revenue Shortfalls".

With regard to the application of Article 282, paragraph (2) of the Local Autonomy Act, during the period from fiscal year 2021 to fiscal year 2026, in that paragraph, "the amount pertaining to" is deemed to be replaced with "the amount pertaining to, and the amount of the Special Grant for Compensating Fixed Assets Tax Revenue Shortfalls to be paid pursuant to the provisions of Article 66, paragraph (3) of the Supplementary Provisions of the Local Tax Act".

The Minister for Internal Affairs and Communications must hear the opinion of the Local Finance Council when intending to draft the establishment, amendment or abolition of an order concerning the payment of the special grant, and when intending to determine the amount of the special grant to be paid to each prefecture or each municipality pursuant to the provisions of Article 68 of the Supplementary Provisions.

In addition to what is provided for in Article 65 of the Supplementary Provisions through the preceding Article, matters necessary for the calculation and payment of the special grant and for the application of these provisions are specified by order.