Supplementary Provisions

This Act comes into effect on the day following the date of promulgation; provided, however, that the provisions amending the provisions on amusement facility use tax, amusement, eating and drinking tax, electricity and gas tax, timber delivery tax and bathing tax (excluding the provision amending the provisions so as to add one Article after Article 78) come into effect on July 1, 1957.

Except as otherwise specially provided in these Supplementary Provisions, the provisions of the Local Tax Act as amended by this Act (hereinafter referred to as the "New Act") apply as follows: the portions relating to corporate prefectural inhabitant tax and corporate municipal inhabitant tax apply from the business year that includes April 1, 1957, and from the corporation tax levy whose tax base is the corporation tax amount on liquidation income arising from dissolution or merger on or after that date (including the corporation tax levy relating to corporation tax amounts for business years in liquidation of corporations on which a corporation tax levy with the corporation tax amount on liquidation income as its tax base is imposed, and corporation tax amounts to be paid by reason of distribution of part of residual assets) and the per capita levy imposed together with it; the portions relating to enterprise tax on business conducted by corporations apply from the business year that includes April 1, 1957, and from enterprise tax on liquidation income arising from dissolution or merger on or after that date (including enterprise tax for business years in liquidation of corporations other than corporations on which enterprise tax on liquidation income is not imposed under Article 72-6 of the New Act, and enterprise tax to be paid by reason of distribution of part of residual assets); and the other portions apply from local tax for fiscal year 1957.

Where the provisions of Article 11-4 of the New Act apply to property belonging to an association or foundation that is not a corporation but has a representative or administrator designated, on which a pledge or mortgage was established before the enforcement of this Act (excluding the portion relating to the proviso to Article 1 of the Supplementary Provisions; the same applies hereinafter in the following Article), notwithstanding Article 15, paragraph (8) of the New Act, if the holder of the pledge or mortgage proves that fact by a notarial deed, local tax is not to take priority over the claim secured by that pledge or mortgage, up to the value of that property.

The provisions of Article 73-27, paragraph (2) of the New Act (including as applied mutatis mutandis under Article 73-28, paragraph (2) of the New Act) and Article 700-22, paragraph (7) of the New Act apply to amounts to be refunded on or after the date of enforcement of this Act.

For an association or foundation that is not a corporation, has a representative or administrator designated, and is deemed to be a corporation under Article 1, paragraph (2) of the Corporation Tax Act, the provisions of the New Act apply to prefectural inhabitant tax of that association or foundation for business years beginning on or after April 1, 1957.

①The provisions of Article 32, paragraph (2) and Article 40, paragraph (3) of the New Act apply from individual prefectural inhabitant tax for fiscal year 1958.

②Only for individual prefectural inhabitant tax for fiscal year 1958, the phrase "8 percent" in Article 32, paragraph (2) of the New Act is deemed to be replaced with "7.5 percent".

In the case where a corporation files and pays under the main clause of Article 72-26, paragraph (1) of the New Act on or after April 1, 1957 (including the case where a return is deemed to have been filed under Article 72-26, paragraph (4) of the New Act), the amount of tax paid as enterprise tax for the previous business year prescribed in paragraph (1) of that Article, or the amount of tax finalized as payable, or the finalized enterprise tax amount of the merged corporation prescribed in paragraph (2) of that Article, is the amount calculated on the assumption that Article 72-22 of the New Act applied to the income for the business year concerned, or for the business year that formed the basis for calculating the finalized enterprise tax amount of the merged corporation, respectively.

In the case where a corporation conducting a local railway business or track business, whose business year exceeds six months (excluding a corporation to which Article 72-18, paragraph (2) of the Former Act applied with respect to enterprise tax for the business year immediately preceding the business year that includes April 1, 1957), files and pays enterprise tax under Article 72-26, paragraph (1) of the New Act for the first time on or after April 1, 1957, it must calculate its income under the proviso to Article 72-26, paragraph (1) of the New Act and file and pay the amount of enterprise tax on that income.

With respect to an association or foundation that is not a corporation, that has a provision for a representative or administrator and that conducts a profit-making business, and a fishery production cooperative and a forestry cooperative that are not special corporations under Article 72-22, paragraph (4) of the New Act, the provisions of the New Act apply to enterprise tax for business years of those associations or foundations that are not corporations, or of those corporations, beginning on or after April 1, 1957, and to enterprise tax on liquidation income from dissolution or merger on or after that date, and with respect to enterprise tax for business years of those corporations that began before that date and enterprise tax on liquidation income from dissolution or merger before that date, the provisions then in force continue to govern.

In the case where Article 8 of the Supplementary Provisions applies to the enterprise tax of an export fisheries cooperative for the business year that includes April 1, 1957, Article 72-25 of the New Act is not applied, and Article 72-28 of the New Act is applied, to the enterprise tax of that corporation for that business year.

The provisions of Article 72-5-2 of the New Act apply to enterprise tax for business years ending during the liquidation of corporations listed in the items of Article 72-5, paragraph (1) of the New Act, and of foreign corporations prescribed in Article 16-6, paragraph (2) of the New Act, that are dissolved after the enforcement of this Act, and with respect to enterprise tax for business years ending during the liquidation of those corporations that were dissolved before the enforcement of this Act, the provisions then in force continue to govern.

The provisions of Article 72-45, paragraph (2) of the New Act apply to the amount of delinquency charge relating to the amount of enterprise tax to be paid by filing an amended return under Article 72-33 of the New Act after the enforcement of this Act, and with respect to the amount of delinquency charge relating to the amount of enterprise tax to be paid by filing an amended return under Article 72-33 of the Former Act before the enforcement of this Act, the provisions then in force continue to govern.

For enterprise tax of a corporation that, in a business year on or before the business year immediately preceding the business year that includes April 1, 1957, conducted a local railway business or track business, the provisions of the New Act apply on the deeming that income had been calculated in accordance with the rules for calculating income that is the tax base of corporation tax.

With respect to an association or foundation that is not a corporation, that has a provision for a representative or administrator and that is deemed a corporation under Article 1, paragraph (2) of the Corporation Tax Act, the provisions of the New Act apply to the municipal inhabitant tax of that association or foundation that is not a corporation for business years beginning on or after April 1, 1957.

①The provisions of Article 292, items (ii), (iv) and (vii) and Article 313, paragraphs (1) and (2) of the New Act (including the part of Article 734, paragraph (3) relating to Article 313, paragraphs (1) and (2)) apply from individual municipal inhabitant tax for fiscal year 1958.

②Only for individual municipal inhabitant tax for fiscal year 1958, the phrase "50,000 yen" in Article 292, item (vii) of the New Act is deemed to be replaced with "47,500 yen", the phrase "20 percent" in Article 313, paragraph (1) of the New Act with "18.5 percent", and the phrase "24 percent" with "22 percent".

①The provisions of Article 349-5 of the New Act also apply to fixed assets tax for fiscal year 1957 and after on depreciable assets used for a factory or power station constructed before the enforcement of this Act, for which the number of fiscal years from the fiscal year that includes April 1 of the year following the year that includes the date on which that factory or power station was constructed (or, where that date is January 1, the year that includes that date) through fiscal year 1957 does not exceed five. In this case, if the provisions of Article 349-5 of the New Act were applied to those depreciable assets, for those whose first application year under paragraph (1) of that Article is fiscal year 1953, fiscal year 1957 is deemed to be the fifth application year; for those whose first application year is fiscal year 1954, fiscal year 1957 is deemed to be the fourth application year; for those whose first application year is fiscal year 1955, fiscal year 1957 is deemed to be the third application year; for those whose first application year is fiscal year 1956, fiscal year 1957 is deemed to be the second application year; and for those whose first application year is fiscal year 1957, that fiscal year is deemed to be the first application year.

②The provisions of paragraphs (25) and (26) of the Supplementary Provisions of the Act Partially Amending the Local Tax Act (Act No. 112 of 1955) do not apply to depreciable assets used for a hydroelectric power station to which the provisions of Article 349-5 of the New Act apply (including those depreciable assets to which the provisions of the preceding paragraph apply).

Beyond what is provided for in the preceding 28 Articles, necessary transitional measures for the enforcement of this Act are specified by Cabinet Order.