This Act comes into effect on April 1, 1978; provided, however, that the provisions in Article 1 amending Article 34, paragraph (2), item (ii) of the Act on Special Measures Concerning Taxation, the provisions adding one item after Article 34-2, paragraph (2), item (iv) of that Act, the provisions amending item (vi) of the table in Article 37, paragraph (1) and Article 65-3, paragraph (1), item (ii) of that Act, the provisions adding one item after Article 65-4, paragraph (1), item (iv) of that Act, and the provisions amending item (vi) of the table in Article 65-7, paragraph (1) of that Act come into effect on the date of enforcement of the Act on Special Measures concerning Countermeasures against Aircraft Noise around Specified Airports (Act No. 26 of 1978).

Unless otherwise provided, the provisions of Chapter II of the Act on Special Measures Concerning Taxation as amended by the provisions of Article 1 (hereinafter referred to as the "New Act") apply to income tax for 1978 and subsequent years, and with regard to income tax for 1977 and earlier years, the provisions then in force continue to govern.

①The provisions of Article 7 of the New Act apply to interest prescribed in that Article paid on foreign currency denominated bonds prescribed in that Article that a domestic corporation issues on or after the date of enforcement of this Act (hereinafter referred to as the "Effective Date"), and with regard to interest prescribed in Article 7 of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 1 (hereinafter referred to as the "Former Act") paid on foreign currency denominated bonds prescribed in that Article that a domestic corporation issued before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 41-13 of the New Act apply to issue discounts prescribed in that Article that a nonresident receives on interest-bearing foreign currency bonds prescribed in that Article issued on or after the Effective Date, and with regard to issue discounts prescribed in Article 41-13 of the Former Act that a nonresident receives on interest-bearing foreign currency bonds prescribed in that Article issued before the Effective Date, the provisions then in force continue to govern.

①With regard to amounts deemed to be the amount of distribution of surplus prescribed in Article 9 of the Former Act that a resident or a domestic corporation receives as a result of a merger of an agricultural cooperative referred to in item (i) of that Article which, before the Effective Date, requested the certification prescribed in that item pursuant to the provisions of paragraph (2) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives (Act No. 48 of 1961) and obtained that certification, or of a fishery cooperative referred to in item (iii) of that Article which, before the Effective Date, requested the certification prescribed in that item pursuant to the provisions of paragraph (2) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives (Act No. 78 of 1967) and obtained that certification, the provisions then in force continue to govern.

②With regard to amounts deemed to be the amount of distribution of surplus prescribed in Article 9 of the Former Act that a resident or a domestic corporation receives as a result of a merger of a forestry cooperative referred to in item (ii) of that Article which obtained the certification prescribed in that item before the Effective Date, the provisions then in force continue to govern.

③With regard to amounts deemed to be the amount of distribution of surplus pursuant to the provisions of Article 25, paragraph (1), item (iv) of the Income Tax Act (Act No. 33 of 1965), out of the total of the amount of money and the value of assets other than money that a resident or a domestic corporation receives on or after the Effective Date as a result of a merger of a fishery cooperative filing a blue return that is specified by Cabinet Order and that, during the period from the Effective Date to March 31, 1985, requested the certification referred to in paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and obtained that certification on or after the Effective Date, the provisions of Article 9 of the Former Act remain in force. In this case, the phrase "fishery cooperative that" in item (iii) of that Article is deemed to be replaced with "fishery cooperative specified by Cabinet Order prescribed in Article 4, paragraph (3) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978; hereinafter referred to as the "1978 Amending Act") that".

④With regard to amounts deemed to be the amount of distribution of surplus pursuant to the provisions of Article 25, paragraph (1), item (iv) of the Income Tax Act, out of the total of the amount of money and the value of assets other than money that a resident or a domestic corporation receives as a result of a merger (limited to a merger carried out by March 31, 2001) of an agricultural cooperative filing a blue return (excluding one in liquidation) which, during the period from the date of enforcement of the Act Partially Amending the Act on Promotion of Merger of Agricultural Cooperatives (Act No. 5 of 1980; hereinafter referred to as "Act No. 5 of 1980") to March 31, 1982, requested the certification referred to in paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and obtained that certification on or after the date of enforcement of Act No. 5 of 1980, which, during the period from the date of enforcement of the Act Partially Amending the Act on Promotion of Merger of Agricultural Cooperatives (Act No. 10 of 1986; hereinafter referred to as "Act No. 10 of 1986") to March 31, 1992, requested the certification referred to in paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and obtained that certification on or after the date of enforcement of Act No. 10 of 1986, or which, during the period from the date of enforcement of the Act Partially Amending the Act on Promotion of Merger of Agricultural Cooperatives (Act No. 57 of 1992; hereinafter referred to as "Act No. 57 of 1992") to March 31, 2001, requested the certification referred to in Article 4, paragraph (2) of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of Article 2, paragraph (1) of that Act and obtained that certification on or after the date of enforcement of Act No. 57 of 1992; of a forestry cooperative filing a blue return (excluding one in liquidation) which, during the period from the date of enforcement of the Act Partially Amending the Forestry Cooperative Act and the Act on Promotion of Merger of Forestry Cooperatives (Act No. 76 of 1987; hereinafter referred to as "Act No. 76 of 1987") to March 31, 2001, requested the certification referred to in Article 4, paragraph (2) of the Act on Promotion of Merger of Forestry Cooperatives (Act No. 56 of 1963) pursuant to the provisions of Article 2 of that Act and obtained that certification on or after the date of enforcement of Act No. 76 of 1987; or of a fishery cooperative filing a blue return (excluding one in liquidation) which, during the period from the date of enforcement of the Act Partially Amending the Act on Promotion of Merger of Fishery Cooperatives (Act No. 15 of 1988; hereinafter referred to as "Act No. 15 of 1988") to March 31, 1993, requested the certification referred to in paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and obtained that certification on or after the date of enforcement of Act No. 15 of 1988, or which, during the period from the date of enforcement of the Act Partially Amending the Act on Promotion of Merger of Fishery Cooperatives (Act No. 24 of 1993; hereinafter referred to as "Act No. 24 of 1993") to March 31, 2001, requested the certification referred to in Article 4, paragraph (2) of the Act on Promotion of Merger of Fishery Cooperatives (Act No. 78 of 1967) pursuant to the provisions of Article 2 of that Act and obtained that certification on or after the date of enforcement of Act No. 24 of 1993, the provisions of Article 9 of the Act on Special Measures Concerning Taxation prior to the amendment by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 9 of 1980; hereinafter referred to as the "1980 Amendment Act") (hereinafter referred to as the "Act on Special Measures Concerning Taxation Before the 1980 Amendment") are to govern.

①The provisions of items (v) and (vi) of the table in Article 11, paragraph (1) of the New Act apply to depreciable assets listed in those items for which an individual carries out the acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies hereinafter in this Article) on or after the Effective Date and which the individual puts to use in the individual's business, and with regard to the case where an individual has put to use in the individual's business depreciable assets listed in item (vi) of the table in Article 11, paragraph (1) of the Former Act for which the individual carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

②With regard to depreciable assets specified by Cabinet Order prescribed in item (iv) of the table in Article 11, paragraph (1) of the Former Act before the Effective Date for which the acquisition, etc. is carried out within the period specified by Cabinet Order under that paragraph pertaining to those depreciable assets, the provisions then in force continue to govern.

③With regard to computers specified by Cabinet Order prescribed in item (viii) of the table in Article 11, paragraph (1) of the Former Act before the Effective Date that are acquired or manufactured within the period specified by Cabinet Order under that paragraph pertaining to those computers, the provisions then in force continue to govern.

④With regard to the application of the provisions of Article 10-2, Articles 12-2 through 14, Article 16, Article 16-2, Article 28-3, Article 33-6 and Article 37-3 of the New Act in the case where the provisions of the preceding two paragraphs apply, the phrase "from the following Article" in Article 10-2, paragraph (1) of the New Act is deemed to be replaced with "from the following Article (including Article 5, paragraphs (2) and (3) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978; hereinafter referred to as the "1978 Amending Act"))", the phrase "the preceding two Articles" in Article 12-2, paragraph (1) of the New Act with "the preceding two Articles (including Article 5, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amending Act)", the phrase "the preceding three Articles" in Article 12-3, paragraph (1) of the New Act with "the preceding three Articles (including Article 5, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amending Act)", the phrase "Article 11" in Article 13, paragraph (1), Article 13-2, paragraph (1), Article 14, paragraph (2), Article 16, paragraph (1) and Article 16-2, paragraph (2) of the New Act with "Article 11 (including Article 5, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amending Act)", and the phrase "from Article 10-2" in Article 28-3, paragraph (11), Article 33-6, paragraph (2) and Article 37-3, paragraph (2) of the New Act with "from Article 10-2, Article 11 (including Article 5, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amending Act), and Article 12".

⑤With regard to the application of the provisions of Articles 10-2 and 12-4 of the Act on Special Measures Concerning Taxation as amended by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 15 of 1979; hereinafter referred to as the "1979 Amendment Act") (hereinafter referred to as the "Act on Special Measures Concerning Taxation as Amended in 1979" in this paragraph and Article 14, paragraph (5) of the Supplementary Provisions) in the case where the provisions of paragraph (2) apply, the phrase "from the following Article" in Article 10-2, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1979 is deemed to be replaced with "from the following Article (including Article 5, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978; referred to as the "1978 Amendment Act" in Article 12-4, paragraph (1)))", and the phrase "Article 11" in Article 12-4, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1979 with "Article 11 (including Article 5, paragraph (2) of the Supplementary Provisions of the 1978 Amendment Act)".

⑥With regard to the application of the provisions of Articles 12 through 12-3 of the Act on Special Measures Concerning Taxation as amended by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 9 of 1980) (hereinafter referred to as the "Act on Special Measures Concerning Taxation as Amended in 1980" in this paragraph, Article 14, paragraph (6) and Article 18, paragraph (6) of the Supplementary Provisions) in the case where the provisions of paragraph (2) apply, the phrase "the preceding Article" in Article 12, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1980 is deemed to be replaced with "the preceding Article (including Article 5, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978; referred to as the "1978 Amendment Act" in Articles 12-2 and 12-3))", the phrase "Article 11" in Article 12-2, paragraphs (1) and (2) of the Act on Special Measures Concerning Taxation as Amended in 1980 with "Article 11 (including Article 5, paragraph (2) of the Supplementary Provisions of the 1978 Amendment Act)", and the phrase "the preceding three Articles" in Article 12-3, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1980 with "Article 11 (including Article 5, paragraph (2) of the Supplementary Provisions of the 1978 Amendment Act), Article 12 and Article 12-2".

⑦The provisions of Article 12 of the New Act apply to pollution control facilities prescribed in paragraph (1) of that Article for which an individual carries out the acquisition, etc. on or after the Effective Date and which the individual puts to use in the individual's business, and with regard to the case where an individual has put to use in the individual's business pollution control facilities prescribed in Article 12, paragraph (1) of the Former Act for which the individual carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

⑧The provisions of item (i) of the table in Article 12-2, paragraph (1) of the New Act apply to industrial machinery, etc. prescribed in that paragraph for which an individual carries out the acquisition, etc. on or after the Effective Date and which the individual puts to use in the individual's business, and with regard to the case where an individual has put to use in the individual's business industrial machinery, etc. prescribed in Article 12-2, paragraph (1) of the Former Act for which the individual carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

⑨The provisions of Article 13, paragraph (1) of the New Act apply to machinery and equipment and factory buildings and their associated facilities prescribed in that paragraph for which an individual carries out the acquisition, etc. on or after the Effective Date, and with regard to machinery and equipment and factory buildings and their associated facilities prescribed in Article 13, paragraph (1) of the Former Act for which an individual carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

⑩Except in the case specified in the following paragraph, the provisions of Article 13-2, paragraph (1), item (i) of the New Act apply to the calculation of the amount of depreciation allowance for depreciable assets listed in that item held by a member of a commercial and industrial association, etc. prescribed in that item that obtains, on or after the Effective Date, the approval referred to in that item for a small and medium sized enterprise structural improvement plan prescribed in that item, and with regard to the calculation of the amount of depreciation allowance for depreciable assets listed in Article 13-2, paragraph (1), item (i) of the Former Act held by a member of a commercial and industrial association, etc. prescribed in that item that obtained, before the Effective Date, the approval referred to in that item for a small and medium sized enterprise structural improvement plan prescribed in that item, the provisions then in force continue to govern. In this case, with regard to the application of the provisions of that paragraph to depreciable assets listed in that item held by a member of a commercial and industrial association, etc. prescribed in (a) of Article 13-2, paragraph (1), item (i) of the New Act that is specified by Cabinet Order and that obtains, during the period from the Effective Date to March 31, 1979, the approval referred to in that item for a small and medium sized enterprise structural improvement plan relating to a rationalization project prescribed in that item, the phrase "two-fifths" in that paragraph is deemed to be replaced with "one-half".

⑪In the case where an individual who is a member of a commercial and industrial association, etc. prescribed in Article 13-2, paragraph (1), item (i) of the Former Act that obtained, within one year before the Effective Date, the approval referred to in that item for a small and medium sized enterprise structural improvement plan prescribed in that item, and who did not fall under the case listed in that item because the individual was a member of a commercial and industrial association, etc. that had obtained approval for another small and medium sized enterprise structural improvement plan prescribed in that item, implements that small and medium sized enterprise structural improvement plan, if the small and medium sized enterprise structural improvement plan so implemented falls under a small and medium sized enterprise structural improvement plan prescribed in Article 13-2, paragraph (1), item (i) of the New Act that is established for the business listed in (b) of that item, the provisions of that Article apply to depreciable assets listed in that item for which that individual carries out the acquisition, etc. on or after the Effective Date, deeming the approval for the small and medium sized enterprise structural improvement plan so implemented to have been given on the Effective Date.

⑫The provisions of Article 13-2, paragraph (1), item (ii) of the New Act apply to the calculation of the amount of depreciation allowance for depreciable assets listed in that item held by a member of a specified association prescribed in that item that obtains, on or after the Effective Date, the approval referred to in that item for a structural improvement project plan prescribed in that item, and with regard to the calculation of the amount of depreciation allowance for depreciable assets listed in Article 13-2, paragraph (1), item (ii) of the Former Act held by a member of a specified association prescribed in that item that obtained, before the Effective Date, the approval referred to in that item for a structural improvement project plan prescribed in that item, the provisions then in force continue to govern.

⑬The provisions of Article 13-2, paragraph (1), item (iii) of the New Act apply to the calculation of the amount of depreciation allowance for fishing vessels listed in that item held by a member of a fishery cooperative, etc. prescribed in that item that obtains, on or after the Effective Date, the certification referred to in that item for a small and medium sized fishery structural improvement plan prescribed in that item, and with regard to the calculation of the amount of depreciation allowance for fishing vessels listed in Article 13-2, paragraph (1), item (iii) of the Former Act held by a member of a fishery cooperative, etc. prescribed in that item that obtained, before the Effective Date, the certification referred to in that item for a small and medium sized fishery structural improvement plan prescribed in that item, the provisions then in force continue to govern.

⑭The provisions of Article 14, paragraph (2) of the New Act apply to facility buildings prescribed in that paragraph that an individual acquires or newly builds on or after the Effective Date, and with regard to specified buildings, etc. prescribed in Article 14, paragraph (2) of the Former Act that an individual acquired or newly built before the Effective Date, the provisions then in force continue to govern.

⑮With regard to the business operator's contributions prescribed in Article 18-2, paragraph (1) of the Former Act that an individual paid before the Effective Date, the provisions then in force continue to govern.

①With regard to the inclusion in gross revenue of the amount of the reserve for pollution control prescribed in Article 20-2, paragraph (2) of the Former Act that was carried over from 1977, as of January 1, 1978, of an individual who accumulates the reserve for pollution control referred to in paragraph (1) of that Article, the provisions then in force continue to govern.

②In the case where an individual filing a blue return who engages in a designated business prescribed in Article 20-2, paragraph (1) of the Former Act accumulates a reserve for pollution control, as a reserve to prepare for expenditures required for the prevention of pollution, in each year that includes a day within the period from January 1, 1978 to March 31, 1981 (excluding the year that includes the date on which the individual discontinued the business), the provisions of that Article are to govern, with the phrase "from April 1, 1972 to March 31, 1978" in that paragraph deemed to be replaced with "from January 1, 1978 to March 31, 1981", the phrase "1.5/1,000" with "1/1,000", the phrase "3/1,000" with "2/1,000", and the phrase "equivalent amount" with "equivalent amount (for 1978, the total of an amount equivalent to 1.5/1,000 (for business belonging to the type of business specified by that Cabinet Order, 3/1,000) of the amount specified by that Cabinet Order within the period from January 1 to March 31 of that year and an amount equivalent to 1/1,000 (for business belonging to the type of business specified by that Cabinet Order, 2/1,000) of the amount specified by that Cabinet Order within the period from April 1 to December 31 of that year)".

With regard to the application of the provisions of Article 21, paragraph (1) of the New Act in the case where the gross revenue pertaining to business income for 1978 of an individual prescribed in that paragraph includes revenue from overseas transactions involving technology, etc. prescribed in that paragraph, the phrase "35 percent of that revenue" in that paragraph is deemed to be replaced with "55 percent of that revenue within the period from January 1, 1978 to March 31 of that year (for revenue from the transactions listed in items (iii) and (iv) of the following paragraph, 20 percent) and the amount equivalent to 35 percent of that revenue within the period from April 1 to December 31 of that year", and the phrase "the total of the amounts equivalent to" with "the total of the amount equivalent to".

The provisions of Article 28-4 of the New Act apply to income tax on transfers, etc. of land prescribed in paragraph (1) of that Article that an individual carries out on or after the Effective Date, and with regard to income tax on such transfers, etc. of land that an individual carried out before the Effective Date, the provisions then in force continue to govern. In this case, with regard to such transfers, etc. of land that an individual carries out during the period from the Effective Date to December 31, 1978, only where the individual seeks to have the provisions of paragraph (2), items (i) through (vi) of that Article applied, the provisions of Article 28-4, paragraph (2) of the Former Act may, as provided by Cabinet Order, be followed in lieu of the application of the provisions of that paragraph.

①With regard to the application of the provisions of Article 140 or 141 of the Income Tax Act, as the terms thereof are deemed to be replaced pursuant to the provisions of Article 28-5, paragraph (1) of the New Act (including as applied mutatis mutandis pursuant to paragraph (2) of that Article; the same applies hereinafter in this Article), in the case where the year of refundable income prescribed in that paragraph is 1974, the amount of income tax that serves as the basis for calculating the refund under those provisions is the amount of income tax calculated in accordance with the provisions of Article 7 of the Supplementary Provisions of the Act Partially Amending the Income Tax Act and the Act on Reduction or Release, Deferment of Collection and Other Measures Related to Tax Imposed on Disaster Victims (Act No. 15 of 1974).

②With regard to a claim for a refund of income tax under the provisions of Article 140 or 141 of the Income Tax Act, as the terms thereof are deemed to be replaced pursuant to the provisions of Article 28-5, paragraph (1) of the New Act, relating to the amount of net loss prescribed in that paragraph incurred in 1977 by a resident who falls under the category of certified small and medium sized enterprises referred to in that paragraph, notwithstanding those provisions, the claim for refund may be made by the day on which four months have elapsed from the Effective Date.

③In the case referred to in the preceding paragraph, with regard to the amount of net loss incurred in 1977 by a resident prescribed in that paragraph, the provisions of the preceding paragraph may be applied to a resident (including an heir prescribed in Article 28-5, paragraph (2) of the New Act; the same applies in the following paragraph) who has already made a claim for a refund of income tax under the provisions of Article 140 or 141 of the Income Tax Act, deeming that claim for refund not to have been made.

④If a resident who falls under the provisions of the preceding paragraph and to whom the provisions of paragraph (2) are applied has received a refund based on the claim for a refund prescribed in the preceding paragraph, the amount of that refund up to the amount of the refund based on the claim for a refund prescribed in paragraph (2) is deemed to be a partial payment of the refund based on the claim for a refund prescribed in that paragraph.

①The provisions of Article 29, paragraph (1) of the New Act apply to economic benefits in the case where a salary income earner, etc. prescribed in that paragraph (hereinafter referred to as a "salary income earner, etc." in this Article) acquires housing, etc. prescribed in that paragraph for low consideration on or after the Effective Date, and with regard to economic benefits in the case where a salary income earner, etc. acquired such housing, etc. for low consideration before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 29, paragraph (2) of the New Act apply to economic benefits pertaining to the period on or after the Effective Date in the case where a salary income earner, etc. has received a loan of the funds prescribed in that paragraph interest-free or with interest at a low rate, and with regard to economic benefits pertaining to the period before the Effective Date in the case where a salary income earner, etc. has received a loan of those funds interest-free or with interest at a low rate, the provisions then in force continue to govern.

③The provisions of Article 29, paragraph (3) of the New Act apply to the amount received prescribed in that paragraph in the case where a salary income earner, etc. receives a payment of money to be appropriated for the interest prescribed in that paragraph on or after the Effective Date, and with regard to the amount received prescribed in Article 29, paragraph (3) of the Former Act in the case where a salary income earner, etc. received a payment of money to be appropriated for such interest before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 32, paragraph (3) of the New Act apply to income tax on transfers of land, etc. prescribed in that paragraph that an individual carries out on or after the Effective Date and for which the certification prescribed in that paragraph has been made, and with regard to income tax on transfers of land, etc. prescribed in Article 32, paragraph (3) of the Former Act that an individual carried out before the Effective Date and for which the certification prescribed in that paragraph has been made, the provisions then in force continue to govern. In this case, with regard to transfers of land, etc. prescribed in Article 32, paragraph (1) of the New Act to which the provisions of that paragraph apply that an individual carries out during the period from the Effective Date to December 31, 1978, only where the individual seeks to have the provisions of paragraph (3) of that Article applied, the provisions of Article 32, paragraph (3) of the Former Act may, as provided by Cabinet Order, be followed in lieu of the application of the provisions of that paragraph.

The provisions of Articles 41 and 41-2 of the New Act apply to the case where a resident has used a house prescribed in Article 41, paragraph (1) of the New Act as the resident's own residence on or after January 1, 1978 as prescribed in that paragraph, and with regard to the case where a resident used a house prescribed in Article 41, paragraph (1) of the Former Act as the resident's own residence on or before December 31, 1977 as prescribed in that paragraph, 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 the Effective Date, the provisions then in force continue to govern.

①The provisions of items (v), (vi) and (ix) of the table in Article 43, paragraph (1) of the New Act apply to depreciable assets listed in those items for which a corporation carries out the acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies hereinafter in this Article) on or after the Effective Date and which it puts to use in its business, and with regard to the case where a corporation has put to use in its business depreciable assets listed in items (vi) and (xiii) of the table in Article 43, paragraph (1) of the Former Act for which it carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

②With regard to depreciable assets specified by Cabinet Order prescribed in item (iv) of the table in Article 43, paragraph (1) of the Former Act before the Effective Date for which the acquisition, etc. is carried out within the period specified by Cabinet Order under that paragraph pertaining to those depreciable assets, the provisions then in force continue to govern.

③With regard to computers specified by Cabinet Order prescribed in item (viii) of the table in Article 43, paragraph (1) of the Former Act before the Effective Date that are acquired or manufactured within the period specified by Cabinet Order under that paragraph pertaining to those computers, the provisions then in force continue to govern.

④With regard to the application of the provisions of Articles 45 through 47, Articles 49 through 51-2, Articles 64 through 65, Article 65-7, Article 65-8, Article 66-5 and Article 67-4 of the New Act in the case where the provisions of the preceding two paragraphs apply, the phrase "the preceding two Articles" in Article 45, paragraph (1) of the New Act is deemed to be replaced with "the preceding two Articles (including Article 14, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amending Act)", the phrase "the preceding three Articles" in Article 45-2, paragraph (1) of the New Act with "the preceding three Articles (including Article 14, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amending Act)", and the phrase "Article 43" in Article 45-3, paragraph (1), Article 46, paragraph (1), Article 47, paragraph (2), Article 49, paragraph (1), Article 50, paragraph (1), Article 51, paragraph (2), Article 51-2, paragraph (2), Article 64, paragraph (6) (including as applied mutatis mutandis pursuant to Article 64-2, paragraph (6) and Article 65, paragraph (6)), Article 65-7, paragraph (7) (including as applied mutatis mutandis pursuant to Article 65-8, paragraph (7)), Article 66-5, paragraph (1) and Article 67-4, paragraph (6) of the New Act with "Article 43 (including Article 14, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amending Act)".

⑤With regard to the application of the provisions of Articles 42-4 and 45-4 of the Act on Special Measures Concerning Taxation as Amended in 1979 in the case where the provisions of paragraph (2) or (3) apply, the phrase "from the following Article" in Article 42-4, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1979 is deemed to be replaced with "from the following Article (including Article 14, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978; referred to as the "1978 Amendment Act" in Article 45-4, paragraph (1)))", and the phrase "Article 43" in Article 45-4, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1979 with "Article 43 (including Article 14, paragraphs (2) and (3) of the Supplementary Provisions of the 1978 Amendment Act)".

⑥With regard to the application of the provisions of Articles 42-4, 45 and 45-2 of the Act on Special Measures Concerning Taxation as Amended in 1980 in the case where the provisions of paragraph (2) apply, the phrase "(the following Article" in Article 42-4, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1980 is deemed to be replaced with "(the following Article (including Article 14, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978; referred to as the "1978 Amendment Act" in Article 45, paragraph (1), Article 45-2, paragraph (1), Article 61, paragraph (1) and Article 63, paragraph (1), item (iv)))", and the phrase "Article 43" in Article 45, paragraph (1) and Article 45-2, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1980 with "Article 43 (including Article 14, paragraph (2) of the Supplementary Provisions of the 1978 Amendment Act)".

⑦With regard to equipment listed in items (ix) through (xi) of the table in Article 43, paragraph (1) of the Former Act that is acquired or constructed in connection with the execution of construction work specified by Cabinet Order prescribed in the provisions of items (ix) through (xi) of that table before the Effective Date, the provisions then in force continue to govern.

⑧The provisions of Article 44 of the New Act apply to pollution control facilities prescribed in paragraph (1) of that Article for which a corporation carries out the acquisition, etc. on or after the Effective Date and which it puts to use in its business, and with regard to the case where a corporation has put to use in its business pollution control facilities prescribed in Article 44, paragraph (1) of the Former Act for which it carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

⑨The provisions of item (i) of the table in Article 45, paragraph (1) of the New Act apply to industrial machinery, etc. prescribed in that paragraph for which a corporation carries out the acquisition, etc. on or after the Effective Date and which it puts to use in its business, and with regard to the case where a corporation has put to use in its business industrial machinery, etc. prescribed in Article 45, paragraph (1) of the Former Act for which it carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

⑩Except in the case specified in the following paragraph, the provisions of Article 45-3, paragraph (1), item (i) of the New Act apply to the calculation of the depreciation limit for depreciable assets listed in that item held by a member of a commercial and industrial association, etc. prescribed in that item that obtains, on or after the Effective Date, the approval referred to in that item for a small and medium sized enterprise structural improvement plan prescribed in that item, and with regard to the calculation of the depreciation limit for depreciable assets listed in Article 45-3, paragraph (1), item (i) of the Former Act held by a member of a commercial and industrial association, etc. prescribed in that item that obtained, before the Effective Date, the approval referred to in that item for a small and medium sized enterprise structural improvement plan prescribed in that item, the provisions then in force continue to govern. In this case, with regard to the application of the provisions of that paragraph to depreciable assets listed in that item held by a member of a commercial and industrial association, etc. prescribed in (a) of Article 45-3, paragraph (1), item (i) of the New Act that is specified by Cabinet Order and that obtains, during the period from the Effective Date to March 31, 1979, the approval referred to in that item for a small and medium sized enterprise structural improvement plan relating to a rationalization project prescribed in that item, the phrase "two-fifths" in that paragraph is deemed to be replaced with "one-half".

⑪In the case where a corporation that is a member of a commercial and industrial association, etc. prescribed in Article 45-3, paragraph (1), item (i) of the Former Act that obtained, within one year before the Effective Date, the approval referred to in that item for a small and medium sized enterprise structural improvement plan prescribed in that item, and that did not fall under the case listed in that item because it was a member of a commercial and industrial association, etc. that had obtained approval for another small and medium sized enterprise structural improvement plan prescribed in that item, implements that small and medium sized enterprise structural improvement plan, if the small and medium sized enterprise structural improvement plan so implemented falls under a small and medium sized enterprise structural improvement plan prescribed in Article 45-3, paragraph (1), item (i) of the New Act that is established for the business listed in (b) of that item, the provisions of that Article apply to depreciable assets listed in that item for which that corporation carries out the acquisition, etc. on or after the Effective Date, deeming the approval for the small and medium sized enterprise structural improvement plan so implemented to have been given on the Effective Date.

⑫The provisions of Article 45-3, paragraph (1), item (ii) of the New Act apply to the calculation of the depreciation limit for depreciable assets listed in that item held by a member of a specified association prescribed in that item that obtains, on or after the Effective Date, the approval referred to in that item for a structural improvement project plan prescribed in that item, and with regard to the calculation of the depreciation limit for depreciable assets listed in Article 45-3, paragraph (1), item (ii) of the Former Act held by a member of a specified association prescribed in that item that obtained, before the Effective Date, the approval referred to in that item for a structural improvement project plan prescribed in that item, the provisions then in force continue to govern.

⑬The provisions of Article 45-3, paragraph (1), item (iii) of the New Act apply to the calculation of the depreciation limit for fishing vessels listed in that item held by a member of a fishery cooperative, etc. prescribed in that item that obtains, on or after the Effective Date, the certification referred to in that item for a small and medium sized fishery structural improvement plan prescribed in that item, and with regard to the calculation of the depreciation limit for fishing vessels listed in Article 45-3, paragraph (1), item (iii) of the Former Act held by a member of a fishery cooperative, etc. prescribed in that item that obtained, before the Effective Date, the certification referred to in that item for a small and medium sized fishery structural improvement plan prescribed in that item, the provisions then in force continue to govern.

⑭The provisions of Article 46, paragraph (1) of the New Act apply to machinery and equipment and factory buildings and their associated facilities prescribed in that paragraph for which a corporation carries out the acquisition, etc. on or after the Effective Date, and with regard to machinery and equipment and factory buildings and their associated facilities prescribed in Article 46, paragraph (1) of the Former Act for which a corporation carried out the acquisition, etc. before the Effective Date, the provisions then in force continue to govern.

⑮The provisions of Article 47, paragraph (2) of the New Act apply to facility buildings prescribed in that paragraph that a corporation acquires or newly builds on or after the Effective Date, and with regard to specified buildings, etc. prescribed in Article 47, paragraph (2) of the Former Act that a corporation acquired or newly built before the Effective Date, the provisions then in force continue to govern.

⑯With regard to the business operator contributions prescribed in Article 52-2, paragraph (1) of the Former Act that a corporation paid before the Effective Date, the provisions then in force continue to govern.

①The provisions of Article 55 of the New Act apply to specified shares, etc. prescribed in paragraph (1) of that Article that a corporation acquires on or after the Effective Date, and with regard to specified shares, etc. prescribed in Article 55, paragraph (1) of the Former Act that a corporation acquired before the Effective Date, the provisions then in force continue to govern, except in the case provided for in the following paragraph. In this case, with regard to shares (including capital contributions) or claims specified by Cabinet Order that a corporation acquires during the period from the Effective Date to March 31, 1979, the phrase "15 percent" in items (i) and (ii) of the table in Article 55, paragraph (1) of the New Act is deemed to be replaced with "30 percent", the phrase "corporation (limited to one whose purpose is to engage mainly in manufacturing, construction business or any other business specified by Cabinet Order)" in paragraph (3), item (i) of that Article is deemed to be replaced with "corporation", the phrase "62.5 percent" in paragraph (5), item (iii), (a) of that Article is deemed to be replaced with "62.5 percent (or 25 percent, if it has come to fall thereunder on or before March 31, 1979)", and the phrase "85 percent" in (b) of that item is deemed to be replaced with "85 percent (or 70 percent, if it has come to fall thereunder on or before March 31, 1979)".

②In the case where a corporation acquired, before the Effective Date, specified shares, etc. prescribed in Article 55, paragraph (1) of the Former Act that are specified by Cabinet Order and received the application of the provisions of that paragraph, if, on or after the Effective Date, the case comes to fall under any of the cases listed in the items of Article 55, paragraph (5) of the New Act, the provisions of that paragraph govern. In this case, if, within the period from the Effective Date to March 31, 1979, a corporation listed in the left-hand column of item (iv) or (v) of the table in paragraph (1) of that Article in relation to those specified shares, etc. comes to fall under the case listed in paragraph (5), item (iii), (a) of that Article, the phrase "62.5 percent" in (a) of that item is deemed to be replaced with "25 percent", and if, within that period, a corporation listed in the left-hand column of item (vi) or (vii) of that table comes to fall under the case listed in item (iii), (b) of that paragraph, the phrase "85 percent" in (b) of that item is deemed to be replaced with "70 percent".

③The provisions of Article 56-4 of the New Act apply to railway facility expenditure (meaning the amount expended for the acquisition or construction of the specified railway facilities prescribed in paragraph (2) of that Article) relating to construction work specified on or after the Effective Date by Cabinet Order as prescribed in paragraph (2) of that Article, and with regard to such railway facility expenditure relating to construction work specified before the Effective Date by Cabinet Order as prescribed in item (ix) of the table in Article 43, paragraph (1) of the Former Act, the provisions then in force continue to govern.

④The provisions of Article 56-5 of the New Act apply to power generation facility expenditure (meaning the amount expended for the acquisition or construction of the specified power generation facilities prescribed in paragraph (2) of that Article) relating to construction work specified on or after the Effective Date by Cabinet Order as prescribed in paragraph (2) of that Article, and with regard to such power generation facility expenditure relating to construction work specified before the Effective Date by Cabinet Order as prescribed in item (x) of the table in Article 43, paragraph (1) of the Former Act, the provisions then in force continue to govern.

⑤The provisions of Article 56-6 of the New Act apply to supply facility expenditure (meaning the amount expended for the acquisition or construction of the specified supply facilities prescribed in paragraph (2) of that Article) relating to construction work specified on or after the Effective Date by Cabinet Order as prescribed in paragraph (2) of that Article, and with regard to such supply facility expenditure relating to construction work specified before the Effective Date by Cabinet Order as prescribed in item (xi) of the table in Article 43, paragraph (1) of the Former Act, the provisions then in force continue to govern.

⑥With regard to the inclusion in gross profit of the amount of the reserve for pollution control prescribed in Article 56-8, paragraph (2) of the Former Act (including the amount included in deductible expenses pursuant to the provisions of paragraph (1) of that Article in that immediately preceding business year) as of the end of the business year immediately preceding the business year that includes the Effective Date, of a corporation that has accumulated the reserve for pollution control under Article 56-8, paragraph (1) of the Former Act, the provisions then in force continue to govern.

⑦If a corporation that files a blue return and engages in the designated business prescribed in Article 56-8, paragraph (1) of the Former Act accumulates a reserve for pollution control, as a reserve to prepare for the expenditure of costs required for the prevention of pollution, in each business year that includes any day within the period from the Effective Date to March 31, 1981 (excluding the business year that includes the day of dissolution (excluding dissolution due to a merger) and each business year during liquidation), the provisions of that Article govern, with the phrase "from April 1, 1972 to March 31, 1978" in that paragraph deemed to be replaced with "from the first day of the business year that includes March 31, 1978 (referred to as the "transitional business year" in this paragraph) to March 31, 1981", the phrase "1.5/1,000" with "1/1,000", the phrase "3/1,000" with "2/1,000", and the phrase "equivalent amount" with "equivalent amount (if that business year is the transitional business year, the total of the amount equivalent to 1.5/1,000 (or 3/1,000, for a business belonging to the type of business specified by that Cabinet Order) of the amount specified by that Cabinet Order within the period from the first day of that transitional business year to March 31, 1978 and the amount equivalent to 1/1,000 (or 2/1,000, for a business belonging to the type of business specified by that Cabinet Order) of the amount specified by that Cabinet Order within the period from April 1 of that year to the last day of that transitional business year)".

⑧The inclusion in gross profit of the amount of the reserve for compensation for losses due to breach of contract prescribed in Article 57-3, paragraph (1), item (ii) of the Former Act (including the amount included in deductible expenses pursuant to the provisions of that paragraph in that immediately preceding business year) as of the end of the business year immediately preceding the first business year commencing on or after the Effective Date, of a corporation that has accumulated the reserve for compensation for losses due to breach of contract under Article 57-3, paragraph (1) of the Former Act, is specified by Cabinet Order.

The provisions of Article 58 of the New Act apply to corporation tax on income for business years of corporations ending on or after the Effective Date, and with regard to corporation tax on income for business years of corporations ending before the Effective Date, the provisions then in force continue to govern. In this case, with regard to the application of the provisions of paragraph (1) of that Article in the case where a corporation has revenue from overseas transactions involving technology, etc. prescribed in that paragraph in a business year that commenced before the Effective Date and ends on or after the Effective Date, the phrase "35 percent of that revenue" in that paragraph is deemed to be replaced with "55 percent of that revenue within the period from the first day of that business year to March 31, 1978 (for revenue from the transactions listed in items (iii) and (iv) of the following paragraph, 20 percent) and the amount equivalent to 35 percent of that revenue within the period from April 1 of that year to the end of that business year", and the phrase "the total of the amounts equivalent to" with "the total of the amount equivalent to".

①The provisions of Article 63 of the New Act apply to corporation tax on a transfer, etc. of land prescribed in paragraph (1) of that Article that a corporation carries out on or after the Effective Date, and with regard to corporation tax on such a transfer, etc. of land that a corporation carried out before the Effective Date, the provisions then in force continue to govern. In this case, with regard to any such transfer, etc. of land carried out on or after the Effective Date, out of those a corporation carries out in a business year that commenced before the Effective Date and ends on or after the Effective Date, the corporation may, only if it is a transfer for which the corporation seeks the application of the provisions of paragraph (3), items (i) through (vi) of that Article, and as specified by Cabinet Order, follow the provisions of Article 63, paragraph (3) of the Former Act in lieu of the application of the provisions of that paragraph.

②The provisions of Article 63, paragraph (6), item (ii) of the New Act apply to the calculation of the amount of corporation tax in the case where a corporation receives the application of the provisions of Article 66-5 of the New Act in each business year ending on or after the Effective Date.

③With regard to corporation tax on a transfer of land, etc. prescribed in Article 65-4, paragraph (1) of the Former Act that a corporation carried out before January 1, 1978 and that falls under the case listed in item (iii) of that paragraph, the provisions then in force continue to govern.

①With regard to corporation tax in the case where a corporation prescribed in Article 66, paragraph (1), item (i), (b) of the Former Act carried out a merger before the Effective Date after receiving the approval prescribed in that paragraph, the provisions then in force continue to govern.

②With regard to corporation tax in the case where an agricultural cooperative under Article 66, paragraph (1), item (iii) of the Former Act that sought, before the Effective Date, the certification prescribed in that item pursuant to the provisions of paragraph (2) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives, or a fishery cooperative under paragraph (1), item (vi) of that Article that sought, before the Effective Date, the certification prescribed in that item pursuant to the provisions of paragraph (2) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives, carries out a merger after receiving the certification prescribed in paragraph (1), item (iii) or (vi) of that Article, the provisions then in force continue to govern.

③With regard to corporation tax in the case where a forestry cooperative under Article 66, paragraph (1), item (iv) of the Former Act that received, before the Effective Date, the certification prescribed in that item carries out a merger, the provisions then in force continue to govern.

④With regard to corporation tax in the case where a fishery cooperative that files a blue return and is specified by Cabinet Order seeks, during the period from the Effective Date to March 31, 1985, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out a merger on or after the Effective Date, the provisions of Articles 66 and 66-2 of the Former Act remain in force. In this case, the phrase "a fishery cooperative that" in Article 66, paragraph (1), item (vi) of the Former Act is deemed to be replaced with "a fishery cooperative, among those specified by Cabinet Order as prescribed in Article 18, paragraph (4) of the Supplementary Provisions of the 1978 Amendment Act, that".

⑤With regard to the application of the provisions of Article 61 of the New Act in the case where the provisions of the preceding paragraph apply, the phrase "certification" in paragraph (1) of that Article is deemed to be replaced with "certification (including the certification prescribed in Article 66, paragraph (1), item (vi) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 1 of the 1978 Amendment Act, which is deemed to remain in force pursuant to the provisions of Article 18, paragraph (4) of the Supplementary Provisions of the 1978 Amendment Act)", and the phrase "Article 66, paragraph (1)" in Article 63, paragraph (1), item (iv) of the New Act is deemed to be replaced with "Article 66, paragraph (1) (including Article 18, paragraph (4) of the Supplementary Provisions of the 1978 Amendment Act)".

⑥With regard to the application of the provisions of Articles 61 and 63 of the Act on Special Measures Concerning Taxation as Amended in 1980 in the case where the provisions of paragraph (4) apply, the phrase "business year exceeding 25 million yen" in Article 61, paragraph (1) of the Act on Special Measures Concerning Taxation as Amended in 1980 is deemed to be replaced with "business year exceeding 25 million yen (excluding a business year that falls under any business year ending within five years from the first day of the business year that includes the date of the merger, in the case where that corporation falls under a merging corporation that, after receiving the certification prescribed in Article 66, paragraph (1), item (vi) of the Act on Special Measures Concerning Taxation prior to the amendment by Article 1 of the 1978 Amendment Act, which is deemed to remain in force pursuant to the provisions of Article 18, paragraph (4) of the Supplementary Provisions of the 1978 Amendment Act, carried out the merger prescribed in that paragraph)", and the phrase "by a merger" in Article 63, paragraph (1), item (iv) of the Act on Special Measures Concerning Taxation as Amended in 1980 is deemed to be replaced with "by a merger (excluding one to which the provisions of Article 18, paragraph (4) of the Supplementary Provisions of the 1978 Amendment Act apply)".

⑦With regard to corporation tax in the case where an agricultural cooperative that files a blue return (excluding one in liquidation; the same applies hereinafter in this paragraph) seeks, during the period from the effective date of Act No. 5 of 1980 to March 31, 1982, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out a merger on or after the effective date of Act No. 5 of 1980, the provisions of Articles 66 and 66-2 of the Act on Special Measures Concerning Taxation Before the 1980 Amendment govern. The same applies to corporation tax in the case where an agricultural cooperative that files a blue return seeks, during the period from the effective date of Act No. 10 of 1986 to March 31, 1992, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out a merger on or after the effective date of Act No. 10 of 1986, and in the case where it seeks, during the period from the effective date of Act No. 57 of 1992 to March 31, 2001, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of Article 2, paragraph (1) of that Act and, after receiving that certification, carries out a merger on or after the effective date of Act No. 57 of 1992 (limited to the case where it carries out that merger by March 31, 2001), in the case where a forestry cooperative that files a blue return (excluding one in liquidation; the same applies hereinafter in this Article) seeks, during the period from the effective date of Act No. 76 of 1987 to March 31, 2001, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Forestry Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out a merger on or after the effective date of Act No. 76 of 1987 (limited to the case where it carries out that merger by March 31, 2001), and in the case where a fishery cooperative that files a blue return (excluding one in liquidation; the same applies hereinafter in this Article) seeks, during the period from the effective date of Act No. 15 of 1988 to March 31, 1993, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out a merger on or after the effective date of Act No. 15 of 1988, and in the case where it seeks, during the period from the effective date of Act No. 24 of 1993 to March 31, 2001, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out a merger on or after the effective date of Act No. 24 of 1993 (limited to the case where it carries out that merger by March 31, 2001).

⑧With regard to the application of the provisions of Articles 61 and 63 of the Act on Special Measures Concerning Taxation as amended by the 1980 Amendment Act in the case where the provisions of the first sentence of the preceding paragraph apply, the phrase "business year exceeding" in Article 61, paragraph (1) of that Act is deemed to be replaced with "business year exceeding (excluding a business year that falls under any business year ending within five years from the first day of the business year that includes the date of the merger, in the case where that corporation falls under a merging corporation that, after receiving the certification prescribed in Article 66, paragraph (1), item (i) of the Act on Special Measures Concerning Taxation prior to the amendment by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 9 of 1980) (referred to as the "Act on Special Measures Concerning Taxation Before the 1980 Amendment" in Article 63, paragraph (1), item (iv)), which governs pursuant to the provisions of Article 18, paragraph (7) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978; referred to as the "1978 Amendment Act" in Article 63, paragraph (1), item (iv)), carried out the merger prescribed in that paragraph)", and the phrase "by a merger" in Article 63, paragraph (1), item (iv) of that Act is deemed to be replaced with "by a merger (excluding one to which the provisions of Article 66, paragraph (1) of the Act on Special Measures Concerning Taxation Before the 1980 Amendment, which govern pursuant to the provisions of Article 18, paragraph (7) of the Supplementary Provisions of the 1978 Amendment Act, apply)". The same applies to the application of the provisions of Article 61 of the Act on Special Measures Concerning Taxation as amended by Article 1 of the Act Partially Amending the Act on Special Measures Concerning Taxation, etc. (Act No. 23 of 1998; referred to as the "1998 Amendment Act" in the following paragraph) in the case where the provisions of the second sentence of the preceding paragraph apply, and in the case where an agricultural cooperative that files a blue return seeks, during the period from the effective date of Act No. 57 of 1992 to March 31, 2001, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of Article 2, paragraph (1) of that Act and, after receiving that certification, carries out a merger during the period from April 1 of that year to March 31, 2002, in the case where a forestry cooperative that files a blue return seeks, during the period from the effective date of Act No. 76 of 1987 to March 31, 2002, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Forestry Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out a merger on or after April 1, 2001, and in the case where a fishery cooperative that files a blue return seeks, during the period from the effective date of Act No. 24 of 1993 to March 31, 2003, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out a merger on or after April 1, 2001.

⑨Beyond what is provided for in the preceding paragraph, with regard to the application of the provisions of Article 61 of the Act on Special Measures Concerning Taxation as amended by Article 1 of the 1998 Amendment Act in the case where the provisions of the second sentence of paragraph (7) apply, and in the case where an agricultural cooperative that files a blue return seeks, during the period from the effective date of Act No. 57 of 1992 to March 31, 2001, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of Article 2, paragraph (1) of that Act and, after receiving that certification, carries out a merger during the period from April 1 of that year to March 31, 2002, in the case where a forestry cooperative that files a blue return seeks, during the period from the effective date of Act No. 76 of 1987 to March 31, 2002, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Forestry Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out a merger on or after April 1, 2001, and in the case where a fishery cooperative that files a blue return seeks, during the period from the effective date of Act No. 24 of 1993 to March 31, 2003, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out a merger on or after April 1, 2001, the phrase "each business year (with regard to each business year after the business year that includes the day on which five years have elapsed from the date of establishment of that corporation (or, for a corporation established by a merger, the earliest of the dates of establishment of the respective merged corporations), limited to each such business year in which the total amount of capital contributions as of the end of that business year is 100 million yen or less)" in paragraph (1) of that Article is deemed to be replaced with "each business year".

The provisions of Article 66-12, paragraph (1), item (ii) of the New Act apply to the premiums prescribed in that item that a corporation pays on or after the Effective Date.

The provisions of Article 68 of the New Act apply to issue discounts prescribed in that Article that a foreign corporation receives with respect to interest-bearing foreign currency bonds prescribed in that Article that are issued on or after the Effective Date, and with regard to issue discounts prescribed in Article 68 of the Former Act that a foreign corporation receives with respect to interest-bearing foreign currency bonds prescribed in that Article that were issued before the Effective Date, the provisions then in force continue to govern.

①With regard to a claim for a refund of corporation tax under Article 81, paragraph (1) of the Corporation Tax Act, as read with the replacement of terms pursuant to the provisions of Article 68-2 of the New Act, relating to the amount of loss prescribed in Article 2, item (xx) of the Corporation Tax Act incurred in a business year, ending during the period from June 1, 1977 to the day on which one month has elapsed from the Effective Date, of a domestic corporation prescribed in Article 68-2 of the New Act, notwithstanding the provisions of that paragraph, the claim for a refund may be made by the day on which four months have elapsed from the Effective Date.

②In the case referred to in the preceding paragraph, if the domestic corporation prescribed in that paragraph has already made a claim for a refund of corporation tax under Article 81, paragraph (1) of the Corporation Tax Act with regard to the amount of loss referred to in that paragraph, the provisions of the preceding paragraph may be applied by deeming that claim for a refund not to have been made.

③If a domestic corporation that falls under the provisions of the preceding paragraph and receives the application of the provisions of paragraph (1) has received a refund based on the claim for a refund prescribed in the preceding paragraph, that refund is deemed to be a partial payment of the refund based on the claim for a refund prescribed in paragraph (1).

①The provisions of Article 70-4, paragraphs (3), (4) and (19) of the New Act apply to gift tax on farmland, etc. in the case where, on or after the Effective Date, a right based on a loan for use prescribed in paragraph (3) of that Article is created on the farmland, etc. referred to in paragraph (1) of that Article to which the provisions of the main clause of that paragraph apply, and with regard to gift tax on farmland, etc. in the case where, before the Effective Date, a right based on a loan for use prescribed in item (i) of Article 70-4, paragraph (1) of the Former Act was created on the farmland, etc. referred to in that paragraph to which the provisions of the main clause of that paragraph applied, the provisions then in force continue to govern.

②The provisions of Article 70-6, paragraph (8) of the New Act apply to inheritance tax on inheritance or bequest relating to a farming heir referred to in Article 70-6, paragraph (1) of the New Act who, on or after the Effective Date, has acquired farmland, pasture land or quasi-farmland prescribed in paragraph (1) of that Article (referred to as "farmland, etc." in this paragraph) that is deemed to have been acquired by inheritance or bequest pursuant to the provisions of Article 70-5, paragraph (1) of the New Act, and with regard to inheritance tax on inheritance or bequest relating to a farming heir referred to in Article 70-6, paragraph (1) of the Former Act who, before the Effective Date, acquired such farmland, etc. that was deemed to have been acquired by inheritance or bequest pursuant to the provisions of Article 70-5, paragraph (1) of the Former Act, the provisions then in force continue to govern.

①The provisions of Article 75-2 of the New Act apply to registration and license tax on the registration of preservation of ownership or registration of transfer of ownership of a house falling under the provisions of that Article that a founder of a public medical institution or a social welfare corporation prescribed in that Article newly builds or acquires on or after the Effective Date, and with regard to registration and license tax on these registrations for such a house that those persons newly built or acquired before the Effective Date, the provisions then in force continue to govern.

②The provisions of Article 76, paragraphs (1) and (3) of the New Act apply to registration and license tax on the registration of preservation of ownership or registration of transfer of ownership of land received by sale or by gratuitous transfer as prescribed in those provisions on or after the Effective Date, and with regard to registration and license tax on these registrations for land received by sale or by gratuitous transfer as prescribed in Article 76, paragraphs (1) and (3) of the Former Act before the Effective Date, the provisions then in force continue to govern.

③The provisions of Article 77 of the New Act apply to registration and license tax on the registration of transfer of ownership of land falling under the provisions of that Article that is acquired through an exchange carried out on or after the Effective Date, and with regard to registration and license tax on that registration for land falling under the provisions of Article 77 of the Former Act that was acquired through an exchange carried out before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 77-3 of the New Act apply to registration and license tax on the registration of transfer or creation of ownership or a right of lease of land falling under the provisions of that Article that a corporation prescribed in that Article purchases or borrows on or after the Effective Date, and with regard to registration and license tax on these registrations for such land that the corporation purchased or borrowed before the Effective Date, the provisions then in force continue to govern.

⑤The part of the provisions of Article 77-4 of the New Act that concerns quasi-farmland applies to registration and license tax on the registration of transfer of ownership of quasi-farmland prescribed in paragraph (1) of that Article that is received on or after the Effective Date. In this case, with regard to the application of the provisions of that Article in the case where the acquisition of that quasi-farmland relates to the consultation, conciliation or mediation prescribed in paragraph (1) of that Article, or the public notice prescribed in paragraph (2) of that Article, carried out before the Effective Date, the phrase "the date on which that recommendation, conciliation or mediation was made" in paragraph (1) of that Article is deemed to be replaced with "the Effective Date of the 1978 Amendment Act", and the phrase "the date on which the public notice was given, pursuant to the provisions of Article 99, paragraph (12) of the Land Improvement Act as applied mutatis mutandis pursuant to Article 13-4 of that Act, of the exchange and consolidation plan prescribed in Article 13-2, paragraph (2) of that Act relating to that exchange and consolidation" in paragraph (2) of that Article is deemed to be replaced with "the Effective Date of the 1978 Amendment Act".

⑥The provisions of Article 77-7 of the New Act apply to registration and license tax on the registration of creation of a mortgage received to secure a claim relating to a loan falling under the provisions of that Article that is made on or after the Effective Date to a person engaged in agriculture, forestry or fisheries or an organization prescribed in that Article, and with regard to registration and license tax on the registration of creation of a mortgage received to secure a claim relating to such a loan made to those persons before the Effective Date, the provisions then in force continue to govern.

⑦The part of the provisions of Article 78-3, paragraph (1) of the New Act that concerns land applies to registration and license tax on the registration of transfer of ownership of land prescribed in that paragraph that a business cooperative, etc. prescribed in that paragraph acquires on or after the Effective Date, in the case where a small and medium sized enterprise prescribed in that paragraph that is a member or affiliated member of that business cooperative, etc. acquires that land from that business cooperative, etc., and with regard to registration and license tax on the registration of transfer of ownership of such land that the business cooperative, etc. acquired before the Effective Date, in the case where that small and medium sized enterprise acquires that land from that business cooperative, etc., the provisions then in force continue to govern.

⑧The part of the provisions of Article 78-3, paragraph (1) of the New Act that concerns buildings applies to registration and license tax on the registration of transfer of ownership of a building prescribed in paragraph (1) of that Article that the small and medium sized enterprise referred to in the preceding paragraph receives on or after the Effective Date. In this case, with regard to the application of the provisions of that paragraph to registration and license tax on the registration of transfer of ownership received for such a building that the small and medium sized enterprise acquired before the Effective Date, notwithstanding the provisions of that paragraph, the provisions specified by Cabinet Order govern.

⑨The provisions of Article 78-4, paragraph (3), item (iv) of the New Act apply to registration and license tax on the registration or recording of the creation of a mortgage to secure a claim relating to the business listed in that item that the central federation listed in that item receives on or after the Effective Date.

⑩The provisions of Article 81, item (iii) of the New Act apply to registration and license tax on registration received for the matters listed in that item relating to a recommendation or instruction, or a certification or approval, prescribed in that Article that is given on or after the Effective Date, and with regard to registration and license tax on registration for those matters relating to such a recommendation or instruction, or certification or approval, given before the Effective Date, the provisions then in force continue to govern.

⑪With regard to registration and license tax on the registration prescribed in Article 81-2, paragraph (1) of the Former Act in the case where an agricultural cooperative under paragraph (1) of that Article that sought, before the Effective Date, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act, or a fishery cooperative under paragraph (1) of that Article that sought, before the Effective Date, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act, carries out a merger after receiving the respective certification, the provisions then in force continue to govern.

⑫With regard to registration and license tax on the registration prescribed in Article 81-2, paragraph (1) of the Former Act in the case where a forestry cooperative under Article 81-2, paragraph (1) of the Former Act that received, before the Effective Date, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Forestry Cooperatives (Act No. 56 of 1963) carries out a merger, the provisions then in force continue to govern.

⑬With regard to registration and license tax on the registration prescribed in Article 81-2, paragraph (1) of the Former Act in the case where a fishery cooperative specified by Cabinet Order seeks, during the period from the Effective Date to March 31, 1985, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out a merger on or after the Effective Date, the provisions of that paragraph remain in force. In this case, the phrase "or a fishery cooperative" in that paragraph is deemed to be replaced with "or a fishery cooperative, among those specified by Cabinet Order as prescribed in Article 23, paragraph (13) of the Supplementary Provisions of the 1978 Amendment Act,", and the phrase "1/1,000" is deemed to be replaced with "1/1,000 (or 2/1,000, if that fishery cooperative, on or after the Effective Date of the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 9 of 1980), sought the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carried out a merger)".

⑭The provisions of Article 82, item (i) and Article 84 of the New Act apply to registration and license tax on registration received for an increase in capital prescribed in those provisions that is carried out on or after the Effective Date, and with regard to registration and license tax on registration received for an increase in capital prescribed in Article 82, item (i) and Article 84 of the Former Act that was carried out before the Effective Date, the provisions then in force continue to govern.

⑮With regard to registration and license tax on the registration of transfer of rights to real property that an agricultural cooperative surviving a merger, or an agricultural cooperative established by a merger, acquires through that merger, in the case where an agricultural cooperative seeks, during the period from the effective date of Act No. 5 of 1980 to March 31, 1982, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out the merger on or after the effective date of Act No. 5 of 1980, the provisions of Article 81-2, paragraph (1) of the Act on Special Measures Concerning Taxation as amended by the 1980 Amendment Act govern.

⑯With regard to registration and license tax on the registration of transfer of rights to real property that an agricultural cooperative surviving a merger, or an agricultural cooperative established by a merger, acquires through that merger, in the case where an agricultural cooperative seeks, during the period from the effective date of Act No. 10 of 1986 to March 31, 1992, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out the merger on or after the effective date of Act No. 10 of 1986, or in the case where it seeks, during the period from the effective date of Act No. 57 of 1992 to March 31, 2001, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Agricultural Cooperatives pursuant to the provisions of Article 2, paragraph (1) of that Act and, after receiving that certification, carries out the merger on or after the effective date of Act No. 57 of 1992, of rights to real property that a forestry cooperative surviving a merger, or a forestry cooperative established by a merger, acquires through that merger, in the case where a forestry cooperative seeks, during the period from the effective date of Act No. 76 of 1987 to March 31, 2002, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Forestry Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out the merger on or after the effective date of Act No. 76 of 1987, or of rights to real property or fishing vessels that a fishery cooperative surviving a merger, or a fishery cooperative established by a merger, acquires through that merger, in the case where a fishery cooperative seeks, during the period from the effective date of Act No. 15 of 1988 to March 31, 1993, the certification under paragraph (3) of the Supplementary Provisions of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of paragraph (2) of the Supplementary Provisions of that Act and, after receiving that certification, carries out the merger on or after the effective date of Act No. 15 of 1988, or in the case where it seeks, during the period from the effective date of Act No. 24 of 1993 to March 31, 2003, the certification under Article 4, paragraph (2) of the Act on Promotion of Merger of Fishery Cooperatives pursuant to the provisions of Article 2 of that Act and, after receiving that certification, carries out the merger on or after the effective date of Act No. 24 of 1993, the provisions of Article 81-2, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 11 of 1983) govern.

⑰With regard to the application of the provisions of Article 71, paragraph (2) of the Act on Special Measures Concerning Taxation as amended by Article 9 of the Act Partially Amending the Income Tax Act, etc. in the case of the registration prescribed in Article 81-2, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment by the Act Partially Amending the Act on Special Measures Concerning Taxation, whose provisions govern pursuant to the provisions of the preceding paragraph, the phrase "Article 82" in that Article is deemed to be replaced with "Article 82 (including Article 23, paragraph (16) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue (Act No. 11 of 1978))".

With regard to gasoline tax and local road tax on gasoline that was shipped from a gasoline manufacturing site before the Effective Date with the application of the provisions of Article 90, paragraph (1) of the Former Act, or that was taken out of a bonded area before the Effective Date with the approval under Article 90-2, paragraph (1) of the Former Act, the provisions then in force continue to govern.

①The provisions of Article 5 of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue, as amended by the preceding Article, apply to income tax for 1978 and subsequent years, and with regard to income tax for 1977, the provisions then in force continue to govern.

②The provisions of Article 10 of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Act on Fund for Smooth Management of National Tax Revenue, as amended by the preceding Article, apply to corporation tax for business years of corporations commencing on or after the Effective Date, and with regard to corporation tax for business years of corporations that commenced before the Effective Date, the provisions then in force continue to govern.