This Act comes into effect on June 1, 1967; provided, however, that the provisions amending Article 31, Article 32, Article 33 (excluding paragraph (4)), Article 33-2, Article 34, Article 38-2, Article 38-12 and Articles 64 through 65-3 of the Act on Special Measures Concerning Taxation come into effect on the day on which the Act Partially Amending the Expropriation of Land Act (Act No. 74 of 1967) comes into effect.

Unless otherwise provided, 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 1967 and subsequent years, and with regard to income tax for 1966 and earlier years, the provisions then in force continue to govern.

①With regard to dividend income that was to be received before the Effective Date, the provisions then in force continue to govern.

②With regard to dividend income relating to distributions of proceeds of securities investment trusts that are to be received during the period from June 1, 1967 to June 30, 1967 (including, out of the amount of dividend income relating to distributions of proceeds whose calculation period is one year or more (excluding dividend income received upon the termination of a securities investment trust or the cancellation of part of a securities investment trust contract) whose payment date falls after June 30, 1967, the amount calculated, as specified by Cabinet Order, as the amount of the portion corresponding to the period up to that date), the provisions of Article 8-2 of the Former Act are to govern, with the phrase "May 31, 1967" in paragraphs (1) through (4) of that Article deemed to be replaced with "June 30, 1967".

③With regard to dividend income to be received during the period from June 1, 1967 to June 30, 1967 (excluding that relating to distributions of proceeds of securities investment trusts), the provisions of Article 8-3, paragraphs (1) and (2), Article 8-4, paragraph (1) and Article 9, paragraph (1) of the Former Act are to govern, with the phrase "May 31, 1967" in those provisions deemed to be replaced with "June 30, 1967".

④The provisions of Article 9-2 of the New Act apply to money or other assets received from a corporation listed in the items of that Article that has merged on or after the Effective Date, and with regard to money or other assets received from such a corporation that merged before that date, the provisions then in force continue to govern.

The provisions of Article 10, paragraph (1) of the New Act apply in the case where an individual has carried out a disposal of specified equipment prescribed in that paragraph on or after the Effective Date, and in the case where an individual carried out a disposal of specified equipment prescribed in Article 10, paragraph (1) of the Former Act before that date, the provisions then in force continue to govern.

①The provisions of Article 11 of the New Act apply to the calculation of the amount of depreciation allowance for rationalization machinery, etc. prescribed in paragraph (1) of that Article that an individual has acquired or manufactured and used for business on or after the Effective Date, and with regard to the calculation of the amount of depreciation allowance for rationalization machinery, etc. prescribed in Article 11, paragraph (1) of the Former Act in the case where an individual has used for business that rationalization machinery, etc. which the individual acquired or manufactured before that date, the provisions then in force continue to govern.

②With regard to the calculation of the amount of depreciation allowance for development research machinery, etc. prescribed in Article 12, paragraph (1) of the Former Act in the case where an individual has, by December 31, 1967, acquired or manufactured such development research machinery, etc. that has not been used for business since its manufacture and has used it for development research prescribed in that paragraph, the provisions of that Article are to govern, with the phrase "May 31, 1967" in that paragraph deemed to be replaced with "December 31, 1967".

③The provisions of Article 13-3 of the New Act (excluding paragraph (8)) apply to an individual's revenue prescribed in paragraph (1) of that Article that derives from overseas transactions, etc. prescribed in that paragraph on or after the Effective Date, and with regard to revenue prescribed in Article 13-3, paragraph (1) of the Former Act that derives from overseas transactions, etc. prescribed in that paragraph before that date, the provisions then in force continue to govern.

④With regard to the application of the provisions of Article 13, paragraph (1), Article 13-2, paragraph (1), Article 13-3, paragraph (1), 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 1967, the phrase "the preceding two Articles" in Article 13, paragraph (1) of the New Act is deemed to be replaced with "Article 6, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 24 of 1967) or the preceding two Articles", the phrase "the preceding three Articles" in Article 13-2, paragraph (1) of the New Act with ", Article 6, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation, the preceding three Articles", and the phrase "through Article 13" in Article 13-3, paragraph (1), Article 34, paragraph (4), Article 38-5, paragraph (2) and Article 39, paragraph (3) of the New Act with ", Article 6, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation, Article 12, Article 13".

①The amount of each reserve account under the provisions of Chapter II, Section 2, Subsection 2 of the Former Act that an individual holds as of January 1, 1967 (excluding the amount that has already become subject to reversal under the provisions of the Former Act) is deemed to be the amount set aside as a reserve under the corresponding provisions of Chapter II, Section 2, Subsection 2 of the New Act.

②The provisions of Article 28-3 of the New Act apply to amounts paid on the basis of levies imposed on or after the Effective Date by a specified weaving industry commercial and industrial association prescribed in that Article.

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

With regard to income tax on royalties that a person prescribed in Article 28, paragraph (1) of the Former Act receives by providing important foreign technology prescribed in paragraph (3) of that Article on the basis of a contract concluded before the Effective Date, and that are to be received within the contract period prescribed in paragraph (1) of that Article, the provisions of that Article remain in force.

①The provisions of Article 31, Article 32, Article 33 (excluding paragraph (4)), Article 33-2, Article 38-2 and Article 38-12 of the New Act (meaning the New Act after the enforcement of the amending provisions prescribed in the proviso to Article 1 of the Supplementary Provisions; the same applies in the following paragraph and in Article 18) apply to income tax on transfers of assets falling under those provisions carried out on or after the day on which the Act Partially Amending the Expropriation of Land Act comes into effect (hereinafter referred to as the "Effective Date of the Expropriation of Land Act Amendment") (including acts deemed to be transfers by expropriation, etc. under the provisions of Article 31, paragraph (3) of the New Act and other acts that are included in transfers under those provisions; the same applies in the following paragraph), and with regard to income tax on such transfers of assets carried out before that date, the provisions then in force continue to govern.

②The provisions of Article 34 of the New Act apply to substitute assets, etc. prescribed in Article 34, paragraph (1) of the New Act relating to assets transferred on or after the Effective Date of the Expropriation of Land Act Amendment to which the provisions of Article 31 or Article 32 of the New Act have been applied, and with regard to such substitute assets, etc. relating to assets transferred before that date to which the provisions of Article 31 or Article 32 of the Former Act were applied, the provisions then in force continue to govern.

③The provisions of Article 33, paragraph (4) of the New Act apply to interest tax prescribed in that paragraph that is to be paid on or after the Effective Date, and with regard to such interest tax that was to be paid before that date, the provisions then in force continue to govern.

Unless otherwise provided, the provisions of Chapter III of the New Act apply to corporation tax for business years of corporations (including associations or foundations without juridical personality prescribed in Article 2, item (viii) of the Corporation Tax Act (Act No. 34 of 1965); the same applies hereinafter) commencing on or after the Effective Date, and with regard to corporation tax for business years of corporations that commenced before that date, the provisions then in force continue to govern.

The provisions of Article 42-2, paragraph (4) of the New Act apply in the case where a domestic corporation prescribed in that paragraph that dissolved on or after the Effective Date has received the amount of dividends, etc. prescribed in that paragraph, and in the case where such a domestic corporation that dissolved before that date has received the amount of dividends, etc., the provisions then in force continue to govern.

The provisions of Article 42-4, paragraph (1) of the New Act apply in the case where a corporation has carried out a disposal of specified equipment prescribed in that paragraph on or after the Effective Date, and in the case where a corporation carried out a disposal of specified equipment prescribed in Article 42-4, paragraph (1) of the Former Act before that date, the provisions then in force continue to govern.

①The provisions of Article 43 of the New Act apply to 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 in the case where a corporation has used for business rationalization machinery, etc. prescribed in Article 43, paragraph (1) of the Former Act that it acquired or manufactured before that date, the provisions then in force continue to govern. In this case, the method of calculating the depreciation amount of rationalization machinery, etc. prescribed in Article 43, paragraph (1) of the New Act that a corporation has acquired or manufactured and used for business during the period from the Effective Date to the day before the first day of the first business year of that corporation commencing on or after that date is to be governed by the provisions of Article 43 of the Former Act.

②The provisions of Article 46, paragraph (1), item (ii) of the New Act apply to a corporation that comes to fall under the case listed in that item on or after the Effective Date. In this case, the method of calculating the depreciation amount of the fishing vessels listed in that item for a business year of that corporation that commenced before the Effective Date is to be governed by the provisions of Article 46 of the Former Act.

③The provisions of Article 46-2 of the New Act (excluding paragraph (7)) apply to a corporation's revenue prescribed in paragraph (1) of that Article that derives from overseas transactions, etc. prescribed in that paragraph on or after the Effective Date, and with regard to a corporation's revenue prescribed in Article 46-2, paragraph (1) of the Former Act that derives from overseas transactions, etc. prescribed in that paragraph before that date, the provisions then in force continue to govern.

④With regard to the calculation of the allowable depreciation amount prescribed in Article 44, paragraph (1) of the Former Act for development research machinery, etc. for the business year in which it was used for development research, in the case where a corporation has, by the day before the first day of the first business year of that corporation commencing on or after the Effective Date, acquired or manufactured development research machinery, etc. prescribed in that paragraph that has not been used for business since its manufacture, and has used it for development research prescribed in that paragraph, the provisions of that Article are to govern, with the phrase "May 31, 1967" in that paragraph deemed to be replaced with "the day before the first day of the first business year commencing on or after June 1, 1967".

①The amount of each reserve account under the provisions of Chapter III, Section 2 of the Former Act that a corporation holds as of the first day of its first business year commencing on or after the Effective Date is deemed to be the amount set aside as a reserve by the method of accounting as an expense or loss under the corresponding provisions of Chapter III, Section 2 of the New Act.

②The provisions of Article 56-3 of the New Act apply to amounts paid on the basis of levies imposed on or after the Effective Date by a specified weaving industry commercial and industrial association prescribed in paragraph (1) of that Article.

③The provisions of Article 56-4 of the New Act apply to amounts that a corporation prescribed in paragraph (1) of that Article disburses on or after the Effective Date for the acquisition of the equipment prescribed in that paragraph.

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

The provisions of Article 61 of the New Act apply to corporation tax for business years of corporations ending on or after the Effective Date, and with regard to corporation tax for business years of corporations that ended before that date, the provisions then in force continue to govern.

The provisions of Articles 64 through 65-3 of the New Act apply to corporation tax on transfers of assets falling under those provisions carried out on or after the Effective Date of the Expropriation of Land Act Amendment (including acts deemed to be transfers by expropriation, etc. under the provisions of Article 64, paragraph (2) of the New Act and other acts that are included in transfers under those provisions), and with regard to corporation tax on such transfers of assets carried out before that date, the provisions then in force continue to govern.

①The provisions of Articles 66-2 and 66-4 of the New Act apply in the case where a corporation has come to fall under the cases prescribed in those provisions on or after the Effective Date.

②With regard to the imposition of corporation tax on liquidation income in the case where a corporation prescribed in Article 66-2, paragraph (1) of the New Act carried out a merger before the Effective Date, the provisions of Articles 66-3 and 66-4 of the Former Act remain in force.

The provisions of Article 66-11 of the New Act apply in the case where a corporation receives a principal and interest subsidy prescribed in paragraph (1) of that Article on or after the Effective Date.

With regard to sugar excise tax that was imposed, or that should have been imposed, before the enforcement of this Act, the provisions then in force continue to govern.

With regard to travel tax on aircraft passenger fares received on or before June 30, 1967, the provisions then in force continue to govern.

Beyond what is provided for in Article 2 through the preceding Article of the Supplementary Provisions, the 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 enforcement of this Act and to acts committed after the enforcement of this Act 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.