This Act comes into effect on April 1, 1965.

Unless otherwise provided for, the provisions of Chapter II of the Act on Special Measures Concerning Taxation as amended (hereinafter referred to as "the New Act") apply to income tax for 1965 and subsequent years, and the provisions then in force continue to govern income tax for 1964 and prior years.

①The provisions then in force continue to govern interest income that was to have been received before April 1, 1965 (hereinafter referred to as "the Effective Date").

②The provisions then in force continue to govern the portion of the amount of interest income corresponding to the period up to the Effective Date, out of the amount of interest income pertaining to interest on public bonds, corporate bonds (including bonds issued by a corporation established under special laws or regulations) or deposits, profits of jointly managed trusts, or proceeds of bond investment trusts, prescribed in Article 3, paragraph (1) of the Act on Special Measures Concerning Taxation prior to amendment (hereinafter referred to as "the Former Act"), that are to be received on or after the Effective Date, whose calculation period is one year or more and the first day of whose calculation period falls before that date.

The provisions of Article 7-2, item (ii) of the New Act apply to interest prescribed in that item that is to be paid on or after the Effective Date, and the provisions then in force continue to govern such interest that was to have been paid before that date.

①Except in cases involving the application of the provisions of Article 8-4, paragraph (1) or paragraph (3) of the New Act, the provisions then in force continue to govern dividend income that was to have been received before the Effective Date.

②The provisions then in force continue to govern the amount calculated as specified by Cabinet Order as the portion corresponding to the period from April 1, 1964 to March 31, 1965, out of the amount of dividend income pertaining to the distribution of proceeds of a securities investment trust established (including additionally established) on or after April 1, 1964 as prescribed in Article 8-2, paragraph (1) of the Former Act, where the calculation period of those proceeds is one year or more.

①With regard to the application of the provisions of Article 13-2, paragraph (1) and Article 13-3, paragraph (1) of the New Act to income tax for 1965, the phrase "or Article 17" in Article 13-2, paragraph (1) of the New Act is deemed to be replaced with "or Article 17, or Article 6, paragraph (3) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 32 of 1965)", the phrase "or Article 17" in Article 13-3, paragraph (1) of the New Act with "or Article 17, or Article 6, paragraphs (3) through (5) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation", and the phrase ", that Act" with ", the Income Tax Act".

②The provisions of Article 13-3 of the New Act apply to revenue of an individual on or after the Effective Date prescribed in paragraph (1) of that Article that is derived from overseas transactions, etc. prescribed in that paragraph, and the provisions then in force continue to govern revenue before that date prescribed in Article 13-3, paragraph (1) of the Former Act that is derived from overseas transactions, etc. prescribed in that paragraph.

③The provisions then in force continue to govern the calculation of the amount of depreciation expenses of machinery and equipment for exploration prescribed in Article 15, paragraph (1) of the Former Act in the case where an individual uses that machinery and equipment for exploration, which the individual acquired or manufactured before the Effective Date, for the exploration of new mineral deposits prescribed in that paragraph.

④The provisions then in force continue to govern the inclusion in necessary expenses of the amount of expenditure prescribed in Article 15, paragraph (2) of the Former Act that an individual disbursed before the Effective Date.

⑤The provisions then in force continue to govern the calculation of the amount of depreciation expenses of mining rights pertaining to metal mining, etc. of an individual for each year within the designated period prescribed in Article 15, paragraph (3) of the Former Act.

The provisions of Article 21 of the New Act apply to revenue on or after the Effective Date prescribed in paragraph (1) or paragraph (2) of that Article, and the provisions then in force continue to govern revenue before that date prescribed in Article 21, paragraph (1) or paragraph (2) of the Former Act.

①The provisions of Article 31 of the New Act (including as applied mutatis mutandis pursuant to Article 32, paragraph (2) of the New Act) apply to income tax on the transfer (including extinction and decrease in value; the same applies hereinafter in this paragraph) of assets prescribed in those provisions by an individual who has come to fall under the provisions of Article 31, paragraph (1) or Article 32, paragraph (2) of the New Act on or after the Effective Date, and the provisions then in force continue to govern income tax on the transfer of assets prescribed in those provisions by an individual who came to fall under the provisions of Article 31, paragraph (1) or Article 32, paragraph (2) of the Former Act before that date.

②With regard to the application of the provisions of Article 34, paragraph (4), Article 38-5, paragraph (2) (including as applied mutatis mutandis pursuant to Article 38-8, paragraph (2) of the New Act) and Article 39, paragraph (3) of the New Act to income tax for 1965, the phrase "and Article 17" in those provisions is deemed to be replaced with "and Article 17, and Article 6, paragraphs (3) through (5) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation".

③The provisions of Article 33-2 of the New Act apply to income tax on a transfer, etc. prescribed in paragraph (3), item (i) of that Article of assets falling under the provisions of paragraph (1) of that Article that is made on or after January 1, 1966, and the provisions then in force continue to govern income tax on such a transfer, etc. of such assets made before that date.

The provisions then in force continue to govern the income tax of a person who has received a deduction under the provisions of Article 41-3, paragraph (1) of the Former Act.

Unless otherwise provided for, the provisions of Chapter III of the New Act apply to corporation tax of a corporation (including an association or foundation without juridical personality prescribed in Article 1, paragraph (2) of the Corporation Tax Act (Act No. 28 of 1947); the same applies hereinafter) for business years ending on or after the Effective Date, and the provisions then in force continue to govern corporation tax of a corporation for business years ending before that date.

①The provisions of Article 43 of the New Act apply to the calculation of the allowable depreciation amount of rationalization machinery, etc. prescribed in paragraph (1) of that Article that a corporation has acquired or manufactured and used for business on or after the Effective Date, and the provisions then in force continue to govern the calculation of the allowable depreciation amount of rationalization machinery, etc. prescribed in Article 43, paragraph (1) of the Former Act in the case where a corporation uses for business that rationalization machinery, etc. which it acquired or manufactured before that date.

②With regard to the application of the provisions of Article 46, paragraph (1) and Article 46-2, paragraph (1) of the New Act for business years beginning before the Effective Date and ending on or after that date, the phrase "or Article 51" in Article 46, paragraph (1) of the New Act is deemed to be replaced with "or Article 51, or Article 12, paragraph (4) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation", and the phrase "or Articles 49 through 51" in Article 46-2, paragraph (1) of the New Act with "or Articles 49 through 51, or Article 12, paragraphs (4) through (6) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation".

③The provisions of Article 46-2 of the New Act apply to revenue of a corporation on or after the Effective Date prescribed in paragraph (1) of that Article that is derived from overseas transactions, etc. prescribed in that paragraph, and the provisions then in force continue to govern revenue before that date prescribed in Article 46-2, paragraph (1) of the Former Act that is derived from overseas transactions, etc. prescribed in that paragraph.

④The provisions then in force continue to govern the calculation of the allowable depreciation amount of machinery and equipment for exploration prescribed in Article 48, paragraph (1) of the Former Act in the case where a corporation uses that machinery and equipment for exploration, which it acquired or manufactured before the Effective Date, for the exploration of new mineral deposits prescribed in that paragraph.

⑤The provisions then in force continue to govern the inclusion in deductible expenses of the amount of expenditure prescribed in Article 48, paragraph (2) of the Former Act that a corporation disbursed before the Effective Date.

⑥The provisions then in force continue to govern the calculation of the allowable depreciation amount of mining rights pertaining to metal mining, etc. of a corporation for the designated period within the period of the business year concerned prescribed in Article 48, paragraph (3) of the Former Act.

In the case where the gross revenue for the base year prescribed in Article 46-2, paragraph (1) of the New Act pertaining to a business year of a corporation beginning before the Effective Date and ending on or after that date includes revenue from transactions that, as a result of the amendment of the provisions of Article 46-2, paragraph (2) of the Former Act by this Act, no longer fall under the overseas transactions prescribed in Article 46-2, paragraph (1) of the New Act on or after that date, with regard to the application of the provisions of Article 54, paragraph (1) of the New Act, the phrase "hereinafter the same applies in this Article and the following Article" in that paragraph is deemed to be replaced with "including transactions listed in paragraph (3), item (iii) or item (vii) of that Article; hereinafter the same applies in this Article", and the phrase "the total of the amounts, multiplied by the number of months in the designated period of that business year, which is then" with "out of the amounts, the sum of the amount calculated by multiplying the amount pertaining to the revenue of that corporation from transactions listed in paragraph (3), item (iii) or item (vii) of that Article by the number of months in the period from the first day of that business year to March 31, 1965, and the amount calculated by multiplying the amount pertaining to the revenue of that corporation other than that from transactions listed in item (iii) or item (vii) of that paragraph by the number of months in the designated period of that business year, which is then".

The provisions of Article 58 of the New Act apply to revenue on or after the Effective Date prescribed in paragraph (1) or paragraph (2) of that Article, and the provisions then in force continue to govern revenue before that date prescribed in Article 58, paragraph (1) or paragraph (2) of the Former Act.

The provisions of Article 62 of the New Act apply to entertainment expenses, etc. prescribed in paragraph (1) of that Article that a corporation disburses in a business year beginning on or after the Effective Date, and the provisions then in force continue to govern entertainment expenses, etc. prescribed in Article 62, paragraph (1) of the Former Act that a corporation disbursed in a business year that began before that date.

①The provisions of Article 64 of the New Act (including as applied mutatis mutandis pursuant to Article 65, paragraph (3) of the New Act) apply to corporation tax on the transfer (including extinction and decrease in value; the same applies hereinafter in this paragraph) of assets prescribed in those provisions by a corporation that has come to fall under the provisions of Article 64, paragraph (1) or Article 65, paragraph (3) of the New Act on or after the Effective Date, and the provisions then in force continue to govern corporation tax on the transfer of assets prescribed in those provisions by a corporation that came to fall under the provisions of Article 64, paragraph (1) or Article 65, paragraph (3) of the Former Act before that date.

②With regard to the application of the provisions of Article 64, paragraph (5) (including as applied mutatis mutandis pursuant to Article 64-2, paragraph (6) or Article 65, paragraph (6) of the New Act), Article 65-4, paragraph (5) (including as applied mutatis mutandis pursuant to Article 65-5, paragraph (7) of the New Act) and Article 66, paragraph (3) of the New Act for business years beginning before the Effective Date and ending on or after that date, the phrase "and Articles 49 through 51" in those provisions is deemed to be replaced with ", Articles 49 through 51 and Article 12, paragraphs (4) through (6) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation".

③The provisions of Article 65-3 of the New Act apply to corporation tax on a transfer, etc. prescribed in paragraph (2), item (i) of that Article of assets falling under the provisions of paragraph (1) of that Article that is made on or after January 1, 1966, and the provisions then in force continue to govern corporation tax on such a transfer, etc. of such assets made before that date.