①Limited to individual prefectural inhabitant tax for fiscal year 2007, a prefecture is to reduce, with respect to a person liable for the income levy of that prefectural inhabitant tax whose total of the taxable gross income, taxable retirement income and taxable timber income prescribed in Article 35, paragraph (2) of the New Act pertaining to that person's individual prefectural inhabitant tax for that fiscal year (hereinafter in this paragraph referred to as "total taxable income amount") exceeds the amount listed in Article 37, item (i), (a) or item (ii), (a) of the New Act, and whose total of the total taxable income amount pertaining to that person's individual prefectural inhabitant tax for fiscal year 2008, the taxable long-term capital gains prescribed in Article 34, paragraph (1) of the Supplementary Provisions of the New Act, the taxable short-term capital gains prescribed in Article 35, paragraph (1) of the Supplementary Provisions of the New Act, the amount of taxable capital gains, etc. pertaining to shares, etc. prescribed in Article 35-2, paragraph (1) of the Supplementary Provisions of the New Act, the amount of taxable miscellaneous income, etc. pertaining to futures transactions prescribed in Article 35-4, paragraph (1) of the Supplementary Provisions of the New Act, the amount of interest, etc. subject to tax treaty application prescribed in Article 3-2-2, paragraph (4) of the Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties as amended by the provisions of Article 26 of the Supplementary Provisions (hereinafter in this Article referred to as the "New Tax Treaty Implementation Special Provisions Act") (where Article 34 of the New Act as applied with terms replaced pursuant to Article 3-2-2, paragraph (5), item (iv) of the New Tax Treaty Implementation Special Provisions Act applies, the amount after that application) and the amount of dividends, etc. subject to tax treaty application prescribed in Article 3-2-2, paragraph (6) of the New Tax Treaty Implementation Special Provisions Act (where Article 34 of the New Act as applied with terms replaced pursuant to Article 3-2-2, paragraph (8), item (iv) of the New Tax Treaty Implementation Special Provisions Act applies, the amount after that application) does not exceed the amount listed in Article 37, item (i), (a) or item (ii), (a) of the New Act, from the amount of the income levy (excluding the separately taxed income levy) of that person liable for tax where the provisions of the New Act and the New Tax Treaty Implementation Special Provisions Act concerning the income levy (excluding Article 37-3 of the New Act) are applied, the amount obtained by deducting the amount listed in item (ii) from the amount listed in item (i) (where the amount listed in Article 12, paragraph (1), item (i) of the Supplementary Provisions is less than the amount listed in item (ii) of that paragraph, the amount obtained by subtracting, from that deducted amount, the amount obtained by deducting the amount listed in item (i) of that paragraph from the amount listed in item (ii) of that paragraph (zero where that amount falls below zero)).

②In the application of the preceding paragraph in the case where Article 2, paragraph (5) of the Supplementary Provisions of the Act Partially Amending the Local Tax Act, etc. (Act No. 5 of 2005) applies, the phrase "zero))" in the preceding paragraph is deemed to be replaced with "zero)), an amount equivalent to two-thirds of that amount", and the phrase "the amount of the income levy (excluding the separately taxed income levy) of that person liable for tax where the provisions of the New Act and the New Tax Treaty Implementation Special Provisions Act concerning the income levy (excluding Article 37-3 of the New Act) are applied" in the preceding paragraph is deemed to be replaced with "the amount of the income levy under Article 2, paragraph (5) of the Supplementary Provisions of the Act Partially Amending the Local Tax Act, etc. (Act No. 5 of 2005)".

③The provisions of paragraph (1) apply only where, during the period from July 1, 2008 to July 31, 2008 (for a person who has become subject to the application of the provisions of that paragraph on or after July 1, 2008, the day before the day on which one month elapses from the day on which the person became subject to that application), a person liable for the income levy of prefectural inhabitant tax prescribed in that paragraph files with the mayor of the municipality of the place of domicile as of January 1, 2007, as provided by Order of the Ministry of Internal Affairs and Communications, a declaration to the effect that the person wishes to have the provisions of that paragraph applied.

④Where a declaration under the preceding paragraph is filed after the period prescribed in that paragraph has elapsed, if the mayor of the municipality finds that there were unavoidable reasons why the declaration was not filed within that period, the mayor may apply the provisions of paragraph (1) to that person liable for tax.

⑤Where the mayor of the municipality has reduced the amount of the income levy pursuant to the provisions of paragraph (1), if the total of the amount of the income levy already collected, the amount deducted pursuant to the provisions of Article 37-3 of the New Act and the amount appropriated to individual prefectural inhabitant tax pursuant to the provisions of Article 314-8, paragraph (2) of the New Act exceeds the amount of the income levy after that reduction, the mayor must, without delay, refund an amount equivalent to the amount by which it exceeds.

⑥Where the mayor of the municipality is to make a refund pursuant to the provisions of the preceding paragraph, if there are unpaid local government levies of that municipality for the person liable for tax who is to receive the refund, the mayor must, notwithstanding the provisions of that paragraph, appropriate the amount to be refunded to those levies, as provided by Cabinet Order.

⑦The amount refunded or appropriated by the mayor of the municipality pursuant to the provisions of the preceding two paragraphs is deemed to be the amount prescribed in Article 47, paragraph (1), item (ii) of the New Act, and the provisions of that paragraph apply accordingly.

①Except as otherwise specially provided, the provisions of the New Act concerning corporate enterprise tax apply to corporate enterprise tax for business years beginning on or after the Effective Date, corporate enterprise tax for calculation periods beginning on or after the Effective Date, and enterprise tax on liquidation income arising from dissolution on or after the Effective Date (excluding dissolution by merger; the same applies hereinafter in this paragraph and paragraph (4)) (including corporate enterprise tax for business years in liquidation of a corporation subject to enterprise tax on liquidation income and corporate enterprise tax to be paid by reason of partial distribution of residual assets; the same applies hereinafter in this paragraph and paragraph (4)), and, for corporate enterprise tax for business years that began before the Effective Date, corporate enterprise tax for calculation periods that began before the Effective Date, and enterprise tax on liquidation income arising from dissolution before the Effective Date, the provisions then in force continue to govern.

②With respect to the application of the provisions of Article 72-2, paragraph (1) of the New Act to specified insurance business prescribed in Article 2 of the Supplementary Provisions of the Act Partially Amending the Insurance Business Act, etc. (Act No. 38 of 2005), for the time being, that specified insurance business is deemed to be a business listed in item (i) of that paragraph, notwithstanding the provisions of item (iii) of that paragraph.

③The provisions of Article 72-23, paragraph (1) and Article 72-49-8, paragraph (1) of the New Act apply to the social insurance medical services prescribed in those provisions that are provided on or after the Effective Date, and, for the benefits or medical care, nursing care, midwifery or services prescribed in Article 72-23, paragraph (1) or Article 72-49-8, paragraph (1) of the Former Act that were provided before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 72-24-7, paragraph (1), item (i), (c) and items (ii) and (iii) and paragraph (2) of the New Act, the provisions of Article 72-24-7, paragraph (3) of the New Act (limited to the part relating to tax rates), the provisions of Article 72-24-7, paragraph (4), item (i), (c) and (d), item (ii) and item (iii) of the New Act, and the provisions of Article 9-2 of the Supplementary Provisions of the New Act apply to corporate enterprise tax for business years beginning on or after April 1, 2007, corporate enterprise tax for calculation periods beginning on or after that date, and enterprise tax on liquidation income arising from dissolution on or after that date, and, for corporate enterprise tax for business years that began before that date, corporate enterprise tax for calculation periods that began before that date, and enterprise tax on liquidation income arising from dissolution before that date, the provisions then in force continue to govern.

⑤The provisions of Article 72-43, paragraph (4) of the New Act apply to acts or calculations carried out by a corporation on or after October 1, 2006, and, for acts or calculations carried out by a corporation before that date, the provisions then in force continue to govern.