This Act comes into effect on April 1, 1965.

Unless otherwise provided, the provisions of the national tax laws as amended by the provisions of Chapter I (limited to the parts concerning income tax and corporation tax) apply to income tax and corporation tax to which the provisions of the Income Tax Act (Act No. 33 of 1965) or the Corporation Tax Act (Act No. 34 of 1965) apply pursuant to the provisions of the Supplementary Provisions of those Acts, and the provisions then in force continue to govern income tax and corporation tax to which the provisions of the former Income Tax Act (Act No. 27 of 1947) or the former Corporation Tax Act (Act No. 28 of 1947) apply.

①If the period of exemption from income tax under the provisions of Article 20, paragraph (1) of the former Income Tax Act for a person who commenced the business of manufacturing or mining a new important product prescribed in that paragraph, or expanded the facilities therefor, within the period specified by order prescribed in that paragraph has not expired as of December 31, 1964, that new important product and the period specified by order are deemed to be the new important product and the period specified by Cabinet Order prescribed in Article 23-2, paragraph (1) of the Act on Special Measures Concerning Taxation as amended by Article 7 (hereinafter referred to as the "New Act" in this Article), and the income exempted from income tax for that new important product under the provisions of Article 20, paragraph (1) of the former Income Tax Act is deemed to be income exempted from income tax under the provisions of Article 23-2, paragraph (1) of the New Act, and the provisions of that Article apply.

②With regard to the application of the provisions of Article 15 of the Supplementary Provisions of the Income Tax Act in the case where the provisions of Article 23-2, paragraph (1) of the New Act have been applied to income tax for 1965, the phrase "for income tax" in paragraph (1), item (i) of that Article is deemed to be replaced with "for income tax, Article 23-2 (Tax Exemption for Income from Manufacture, etc. of New Important Products) of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957) or", and the phrase "the provisions of that Article" with "those provisions".

③The amount of the drought reserve account, the reserve account for compensation for losses due to breach of contract or the reserve for abnormal risks under the provisions of the former Corporation Tax Act and orders based thereon that a corporation (including an association or foundation without juridical personality prescribed in Article 2, item (viii) of the Corporation Tax Act; the same applies hereinafter in this Article) holds on the first day of the business year that includes the Effective Date (excluding the amount that has already become subject to reversal under the provisions of the former Corporation Tax Act and orders based thereon; referred to as the "amount of the former drought reserve account, etc." in the following paragraph) is deemed to be the amount of the drought reserve account, the reserve account for compensation for losses due to breach of contract or the reserve for abnormal risks, respectively, included in deductible expenses in calculating the amount of income for each business year of that corporation under the corresponding provisions of Article 57-2, paragraph (1), Article 57-3, paragraph (1), or Article 57-4, paragraph (1), Article 57-5, paragraph (1) or Article 57-6, paragraph (1) of the New Act.

④The provisions of the preceding paragraph apply mutatis mutandis to the amount of the former drought reserve account, etc. in the case where a corporation has taken over the amount of the former drought reserve account, etc. from a corporation that ceased to exist as a result of a merger carried out by the corporation during the period from the first day of the business year that includes the Effective Date to the day before the Effective Date.

⑤If the period of exemption from corporation tax under the provisions of Article 6, paragraph (1) of the former Corporation Tax Act for a corporation that commenced the business of manufacturing or mining a new important product prescribed in that paragraph, or expanded the facilities therefor, within the period specified by order prescribed in that paragraph has not expired by the day before the first day of the first business year ending on or after the Effective Date, that new important product and the period specified by order are deemed to be the new important product and the period specified by Cabinet Order prescribed in Article 58-4, paragraph (1) of the New Act, and the income exempted from corporation tax for that new important product under the provisions of Article 6, paragraph (1) of the former Corporation Tax Act is deemed to be income exempted from corporation tax under the provisions of Article 58-4, paragraph (1) of the New Act, and the provisions of that Article apply.

⑥The provisions of Articles 64 through 65 and Articles 65-4 through 65-9 of the New Act apply in the case where a corporation, on or after the first day of the business year that includes the Effective Date, acquires the compensation, consideration or settlement money prescribed in Article 64, paragraph (1) or Article 65, paragraph (1) of that Act or the assets prescribed in the items of Article 65, paragraph (1) of that Act, makes a transfer prescribed in Article 65-4, paragraph (1) of that Act, makes a capital contribution prescribed in Article 65-7, paragraph (1) of that Act, or makes a refund of capital contribution prescribed in Article 65-9, paragraph (1) of that Act, and in the case where the corporation made that acquisition, transfer, capital contribution or refund before the first day of that business year, the provisions then in force continue to govern.

Beyond what is provided for in Article 1 through the preceding Article of the Supplementary Provisions, transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.

With regard to the application of penal provisions to acts committed before the Effective Date and to acts committed on or after that date with respect to national taxes for which the provisions then in force are to continue to govern pursuant to the provisions of these Supplementary Provisions, the provisions then in force continue to govern.