This Act comes into effect on April 1, 1985; provided, however, that the provisions set forth in the following items come into effect on the dates specified respectively in those items:

①Except as otherwise provided, the provisions of the Local Tax Act as amended by the provisions of Article 1 (hereinafter referred to as the "New Act") relating to individual prefectural inhabitant tax apply to individual prefectural inhabitant tax for fiscal year 1985 and thereafter, and for individual prefectural inhabitant tax up to fiscal year 1984, the provisions then in force continue to govern.

②The provisions of Article 34, paragraph (1), item (iii), and Articles 34-2 and 34-3 of the Supplementary Provisions of the New Act apply to individual prefectural inhabitant tax for fiscal year 1986 and thereafter, and for individual prefectural inhabitant tax up to fiscal year 1985, the provisions then in force continue to govern.

③The provisions of Article 4, paragraph (1) and Article 5, paragraph (3) of the Supplementary Provisions of the New Act apply to individual prefectural inhabitant tax for fiscal year 1987 and thereafter, and for individual prefectural inhabitant tax up to fiscal year 1986, the provisions then in force continue to govern.

④The provisions of Article 53, paragraph (4) of the New Act apply to corporate prefectural inhabitant tax for business years ending on or after April 1, 1985 (hereinafter referred to as the "Effective Date"), and for corporate prefectural inhabitant tax for business years ending before the Effective Date, the provisions then in force continue to govern.

①Except as otherwise provided, the provisions of the New Act relating to individual enterprise tax apply to individual enterprise tax for fiscal year 1985 and thereafter, and for individual enterprise tax up to fiscal year 1984, the provisions then in force continue to govern.

②The provisions of Article 72-4, paragraph (2) of the New Act (limited to the portion relating to individual enterprise tax) apply to individual enterprise tax imposed on income from business during 1986 and later years, and for individual enterprise tax imposed on income from business during 1985 and earlier years, the provisions then in force continue to govern. In this case, where an individual has continuously, since before January 1, 1986, carried on a business set forth in Article 72-4, paragraph (2), items (i) through (v) of the Local Tax Act prior to amendment by the provisions of Article 1 (hereinafter referred to as the "Former Act") (hereinafter in this Article referred to as a "formerly non-taxable business"), that formerly non-taxable business is deemed to have been newly commenced on that date, and the provisions of the New Act relating to individual enterprise tax apply.

③The business income that becomes the tax base of individual enterprise tax imposed on income from business of an individual carrying on a formerly non-taxable business during each year from 1986 through 1998 is, notwithstanding Articles 72-15, 72-17, 72-18 and 72-20 of the New Act, the amount obtained by deducting the greater of the amounts set out below from the individual's business income calculated by applying those provisions:

④In the case referred to in the preceding paragraph, where the period during which the individual carried on business is less than one year, the phrase "3,500,000 yen" in item (i) of that paragraph is deemed to be replaced with "the amount calculated by multiplying 3,500,000 yen by the number of months in which business was carried on in that year and dividing by 12", and where the number of months in which the individual carried on business differs from the number of months in which business was carried on in the previous year, the phrase "the individual's calculated amount for the previous year" in item (ii) of that paragraph is deemed to be replaced with "the amount calculated by multiplying the individual's calculated amount for the previous year by the number of months in which business was carried on in that year and dividing by the number of months in which business was carried on in the previous year". In this case, the number of months is calculated according to the calendar, and a fraction of less than one month is counted as one month.

⑤The provisions of Article 72-4, paragraph (2) of the New Act (limited to the portion relating to corporate enterprise tax) apply to corporate enterprise tax for business years beginning on or after the Effective Date, and for corporate enterprise tax for business years beginning before the Effective Date, the provisions then in force continue to govern. In this case, where a corporation has continuously, since before the start date of the first business year beginning on or after the Effective Date, carried on a formerly non-taxable business, that formerly non-taxable business is deemed to have been newly commenced on that start date, and the provisions of the New Act relating to corporate enterprise tax apply.

⑥The income that becomes the tax base of corporate enterprise tax for each business year, beginning during the period from the Effective Date to March 31, 1998, of a corporation carrying on a formerly non-taxable business is, notwithstanding Article 72-14, paragraph (1), Article 72-15 and Article 72-20 of the New Act, the amount obtained by deducting the greater of the amounts set out below from the income of that corporation for that business year calculated by applying those provisions:

⑦In the case of the preceding paragraph, if the business year of the corporation is less than one year, in item (i) of that paragraph the phrase "3,500,000 yen" is deemed to be replaced with "the amount calculated by dividing the amount obtained by multiplying 3,500,000 yen by the number of months in that business year by 12", and if the number of months in that business year of the corporation differs from the number of months in the previous business year, in item (ii) of that paragraph the phrase "calculated amount for the previous business year" is deemed to be replaced with "the amount calculated by dividing the amount obtained by multiplying the calculated amount for the previous business year by the number of months in that business year by the number of months in the previous business year". In this case, the number of months is calculated according to the calendar, and a fraction of less than one month is treated as one month.

⑧In addition to what is provided for in paragraph (2) through the preceding paragraph, matters necessary for the calculation of the tax base of enterprise tax relating to individuals or corporations that carry on formerly non-taxable businesses, and for the application of other provisions concerning enterprise tax, are specified by Cabinet Order.