Supplementary Provisions, Article 4Transitional Measures Concerning Enterprise Tax

①The provisions of the Local Tax Act as amended by Article 1 (excluding the amending provisions listed in Article 1, item (ii) of the Supplementary Provisions) relating to corporate enterprise tax apply to corporate enterprise tax for business years beginning on or after the Effective Date and enterprise tax on liquidation income due to dissolution on or after the Effective Date (excluding dissolution due to a merger) (including corporate enterprise tax for business years during liquidation of a corporation on which enterprise tax on liquidation income is imposed and corporate enterprise tax to be paid upon distribution or delivery of a part of residual assets; the same applies hereinafter in this paragraph and the following paragraph), and the provisions then in force continue to govern corporate enterprise tax for business years that began before the Effective Date and enterprise tax on liquidation income due to dissolution before the Effective Date (excluding dissolution due to a merger).

②Except as otherwise provided, the provisions of the Local Tax Act as amended by Article 1 (limited to the amending provisions listed in Article 1, item (ii) of the Supplementary Provisions) relating to corporate enterprise tax apply to corporate enterprise tax for each business year in the case where a merger, split, capital contribution in kind or distribution in kind (meaning a distribution in kind prescribed in Article 2, item (xii)-6 of the Corporation Tax Act as Amended for October; in the case of a distribution of residual assets, limited to one resulting from a dissolution on or after that date) is carried out on or after October 1, 2010, in the case where a dissolution (excluding dissolution due to a merger and dissolution due to an order commencing bankruptcy proceedings) or an order commencing bankruptcy proceedings is made on or after that date, or in the case where the residual assets of a corporation that dissolves on or after that date are finalized, and the provisions then in force continue to govern corporate enterprise tax for each business year in the case where a merger, split, capital contribution in kind or post-incorporation acquisition (meaning a post-incorporation acquisition prescribed in Article 2, item (xii)-6 of the Corporation Tax Act Before the October Changes) was carried out before that date, and enterprise tax on liquidation income due to dissolution (excluding dissolution due to a merger) before that date.

③The provisions of Article 72-13, paragraph (28) of the Local Tax Act as amended by Article 1 (limited to the amending provisions listed in Article 1, item (ii) of the Supplementary Provisions) apply to business years in the case where, on or after October 1, 2010, another domestic corporation prescribed in that paragraph comes to fall under the case prescribed in paragraph (11) or (12) of that Article.