This Act comes into effect on April 1, 1985; provided, however, that the provisions set forth in the following items come into effect on the dates set forth in those items:

Unless otherwise provided for, 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 1985 and subsequent years, and the provisions then in force continue to govern income tax for 1984 and earlier years.

With regard to interest income prescribed in Article 3, paragraph (1), Article 3-2, paragraph (1) and Article 3-3, paragraph (1) 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") that is to be received by December 31, 1985, the provisions then in force continue to govern.

①With regard to interest on public bonds prescribed in Article 4, paragraph (1) of the Former Act that an individual prescribed in that paragraph is to receive on or before December 31, 1985, the provisions then in force continue to govern.

②If an individual prescribed in the preceding paragraph holds public bonds prescribed in that paragraph that the individual purchased on or before December 31, 1985 and that satisfy the requirements of Article 4, paragraphs (1) and (2) of the Former Act as of that date (hereinafter referred to as "old public bonds" in this Article), the provisions of Article 4 of the New Act apply to those old public bonds by deeming that individual to have purchased them on January 1, 1986 in accordance with the requirements of that Article.

③Beyond what is provided for in the preceding two paragraphs, matters concerning the application of the provisions of Article 4, paragraph (1) of the New Act with respect to a statement of special tax-exempt savings referred to in Article 4, paragraph (1) of the Former Act that was submitted on or before December 31, 1985, and other matters necessary for the application of the provisions of that Article with respect to old public bonds, are specified by Cabinet Order, following the example of the provisions of Article 28, paragraphs (4) through (6) of the Supplementary Provisions.

The provisions of Article 6 of the Former Act remain in force with respect to interest listed in the items of paragraph (1) of that Article that a nonresident or foreign corporation receives on or after the date on which this Act comes into effect (hereinafter referred to as "the Effective Date"). In this case, the phrase "大蔵省令" (Order of the Ministry of Finance, under the Ministry's former Japanese name) in paragraph (2) of that Article is deemed to be replaced with "財務省令" (Order of the Ministry of Finance, under the Ministry's present Japanese name).

①With regard to interest prescribed in Article 7 of the Former Act that a domestic corporation pays on foreign currency denominated bonds prescribed in that Article that it issued before the Effective Date, the provisions then in force continue to govern.

②With 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 that were issued before the Effective Date, the provisions then in force continue to govern.

①With regard to dividend income from distributions of proceeds of securities investment trusts prescribed in Article 8-2, paragraph (1) and Article 8-3, paragraph (1) of the Former Act that is to be received by December 31, 1985, the provisions then in force continue to govern.

②With regard to dividend income prescribed in Article 8-4, paragraph (1) and Article 8-5, paragraph (1) of the Former Act that is to be received from a domestic corporation by December 31, 1985, the provisions then in force continue to govern.

①The provisions of items (i) and (ii) of the table in Article 11, paragraph (1) of the New Act apply to machinery and other depreciable assets listed in those provisions that an individual makes an acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies in this Article) of on or after the Effective Date and puts to use for the individual's business, and with regard to cases where an individual has put to use for the individual's business machinery and other depreciable assets listed in item (i) or (ii) of the table in Article 11, paragraph (1) of the Former Act that the individual made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

②The provisions of item (iii) of the table in Article 11, paragraph (1) of the New Act apply to machinery and other equipment listed in that item that is put to use for business in place of a well prescribed in that item located in an area that has become a designated area prescribed in Article 3, paragraph (1) of the Industrial Water Act (Act No. 146 of 1956) on or after the Effective Date, and with regard to machinery and other equipment listed in item (iii) of the table in Article 11, paragraph (1) of the Former Act that is put to use for business in place of a well prescribed in that item located in an area that became such a designated area before the Effective Date, the provisions then in force continue to govern.

③The provisions of item (vi) of the table in Article 11, paragraph (1) of the New Act apply to vessels listed in that item that an individual makes an acquisition, etc. of on or after the Effective Date and puts to use for the individual's business, and with regard to cases where an individual has put to use for the individual's business vessels listed in item (vi) of the table in Article 11, paragraph (1) of the Former Act that the individual made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 11-2, paragraph (1) of the New Act apply to assets for emergency earthquake disaster countermeasures prescribed in that paragraph that an individual makes an acquisition, etc. of on or after the Effective Date and puts to use for the individual's business, and with regard to cases where an individual has put to use for the individual's business assets for emergency earthquake disaster countermeasures prescribed in Article 11-2, paragraph (1) of the Former Act that the individual made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 12, paragraph (1) of the New Act apply to industrial machinery, etc. prescribed in that paragraph that an individual makes an acquisition, etc. of on or after the Effective Date and puts to use for the individual's business, and with regard to cases where an individual has put to use for the individual's business industrial machinery, etc. prescribed in Article 12, paragraph (1) of the Former Act that the individual made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

⑥If an individual prescribed in Article 12-2, paragraph (2) of the Former Act has, before the Effective Date, acquired or manufactured machinery and equipment prescribed in that paragraph and put it to use for the individual's business, the provisions then in force continue to govern that machinery and equipment.

⑦With regard to the application of the provisions of Article 12-2, paragraphs (1) through (3) of the New Act during the period from the Effective Date to the day before the date listed in Article 1, item (ii) of the Supplementary Provisions, the phrase "Articles 11 through the preceding Article" in paragraphs (1) and (2) of that Article is deemed to be replaced with "the preceding three Articles", and the phrase "the main clause of Article 12-3, paragraph (1)" in paragraph (3) of that Article is deemed to be replaced with "the main clause of Article 12-2, paragraph (1)".

⑧The provisions of Article 12-2, paragraph (2) of the New Act apply to medical equipment prescribed in that paragraph that an individual acquires or manufactures on or after the Effective Date and puts to use for the individual's business, and with regard to cases where an individual has put to use for the individual's business medical equipment prescribed in Article 12-2, paragraph (4) of the Former Act that the individual acquired or manufactured before the Effective Date, the provisions then in force continue to govern.

⑨If a small and medium sized enterprise prescribed in Article 12-3, paragraph (1) of the Former Act that obtained, before the Effective Date, the approval prescribed in that paragraph for a business rationalization plan prescribed in that paragraph acquires, or manufactures or constructs, machinery, etc. for business rationalization prescribed in that paragraph within the period prescribed in that paragraph and puts it to use for its business, the provisions of that Article remain in force with respect to that machinery, etc. for business rationalization.

⑩With regard to the application of the provisions of Articles 10 through 10-3, Articles 13 through 16, Article 28-3, Article 33-6 and Article 37-3 (including as applied mutatis mutandis pursuant to Article 37-5, paragraph (2) of the New Act) of the New Act in the case where the provisions of the preceding paragraph apply, the phrase "or Article 16" in Article 10, paragraph (4), item (ii) of the New Act is deemed to be replaced with ", Article 16 or Article 12-3 of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 1 of the Act Partially Amending the Act on Special Measures Concerning Taxation and the Income Tax Act (Act No. 7 of 1985; hereinafter referred to as the "1985 Amendment Act"), which remains in force pursuant to the provisions of Article 8, paragraph (9) of the Supplementary Provisions of the 1985 Amendment Act (hereinafter referred to as "Article 12-3 of the 1985 Former Act" in this Chapter)"; the phrase "or Article 16" in Article 10-2, paragraphs (1) and (3) and Article 10-3, paragraphs (1) and (3) of the New Act is deemed to be replaced with ", Article 16 or Article 12-3 of the 1985 Former Act"; the phrase "or Articles 14 through 16" in Article 13, paragraph (1) of the New Act is deemed to be replaced with ", Articles 14 through 16 or Article 12-3 of the 1985 Former Act"; the phrase "or the following Article through Article 16" in Article 13-2, paragraph (1) of the New Act is deemed to be replaced with ", the following Article through Article 16 or Article 12-3 of the 1985 Former Act"; the phrase "the depreciation allowance for that rental housing" in Article 14, paragraph (1) of the New Act is deemed to be replaced with "the depreciation allowance for that rental housing (excluding rental housing for which the provisions of Article 12-3 of the 1985 Former Act are applied with regard to the calculation of the amount of the depreciation allowance to be included in necessary expenses in calculating the amount of real estate income for that year)"; the phrase "Article 17" in Article 14, paragraph (2) of the New Act is deemed to be replaced with "Article 17 or Article 12-3 of the 1985 Former Act"; the phrase "or Article 12-2" in Article 15, paragraph (1) of the New Act is deemed to be replaced with ", Article 12-2 or Article 12-3 of the 1985 Former Act"; the phrase "through Article 12-3" in Article 16, paragraph (1) of the New Act is deemed to be replaced with "through Article 12-3 or Article 12-3 of the 1985 Former Act"; and the phrase "and Articles 14 through 16" in Article 28-3, paragraph (11), Article 33-6, paragraph (2) and Article 37-3, paragraph (2) of the New Act is deemed to be replaced with ", Articles 14 through 16 and Article 12-3 of the 1985 Former Act".

⑪With regard to the application of the provisions of Article 12-3, paragraphs (1) and (2) of the New Act in the case where the provisions of paragraph (9) apply, the phrase "or Article 37, paragraph (1)" in those provisions is deemed to be replaced with ", Article 37, paragraph (1)", and the phrase "including the cases …)" is deemed to be replaced with "including the cases …) or Article 12-3 of the 1985 Former Act".

⑫The provisions of Article 13, paragraph (1) of the New Act apply to machinery and equipment, buildings for factory use and their associated facilities, and vehicles and transport equipment prescribed in that paragraph that an individual makes an acquisition, etc. of on or after the Effective Date, and with regard to machinery and equipment, buildings for factory use and their associated facilities, and vehicles and transport equipment prescribed in Article 13, paragraph (1) of the Former Act that an individual made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

⑬The provisions of Article 13-2 of the New Act apply to depreciable assets listed in paragraph (1), item (i) or (ii) of that Article that are held by a member of a commercial and industrial association, etc. or a specified association referred to in those provisions that obtains, on or after the Effective Date, approval for a small and medium sized enterprise structural improvement plan or structural improvement project plan prescribed in those provisions, and with regard to depreciable assets listed in Article 13-2, paragraph (1), item (i) or (ii) of the Former Act that are held by a member of a commercial and industrial association, etc. or a specified association referred to in those provisions that obtained, before the Effective Date, approval for a small and medium sized enterprise structural improvement plan or structural improvement project plan prescribed in those provisions, the provisions then in force continue to govern.

⑭The provisions of Article 14, paragraph (1) of the New Act apply to rental housing prescribed in that paragraph that an individual acquires or newly builds on or after the Effective Date, and with regard to rental housing prescribed in Article 14, paragraph (1) 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 facility buildings 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.

⑯With regard to contributions listed in Article 18, paragraph (1), item (iv) of the Former Act that an individual pays to a production area association prescribed in that item that obtained the approval referred to in that item before the Effective Date for a promotion plan prescribed in that item, the provisions of that Article remain in force. In this case, the phrase "March 31, 1985" in that paragraph is deemed to be replaced with "the day before the date on which the Act on Temporary Measures for Small and Medium Sized Enterprises in Production Areas (Act No. 53 of 1979) ceases to be effective".

①With regard to the application of the provisions of Article 20, paragraph (1) of the New Act concerning income tax for 1985 in the case where an individual's gross revenue pertaining to business income for 1984 includes revenue from overseas transactions prescribed in that paragraph, the phrase "classified, the total of the amounts calculated by multiplying the respective revenues by the ratios listed in the respective items, by the number of months in the designated period within the period during which the individual engaged in business in that year" in that paragraph is deemed to be replaced with "classified, the amount obtained by adding the total of the amount equivalent to 12.2/1,000 of the amount calculated by multiplying the revenue pertaining to the transactions listed in item (i) of the following paragraph by the number of months in the period from January 1, 1985 to March 31 of that year within the period during which the individual engaged in business in that year (referred to as the "designated period for the former reserve rate" in this paragraph) and dividing the product by the number of months in the period during which the individual engaged in that business (referred to as the "number of months in that year" in this paragraph) and the amount equivalent to 10.4/1,000 of the amount calculated by multiplying the revenue pertaining to those transactions by the number of months obtained by deducting the number of months in the designated period for the former reserve rate from the number of months in that year and dividing the product by the number of months in that year, to the total of the amount equivalent to 16.6/1,000 of the amount calculated by multiplying the revenue pertaining to the transactions listed in items (ii) through (viii) of the following paragraph by the number of months in the designated period for the former reserve rate and dividing the product by the number of months in that year and the amount equivalent to 14.1/1,000 of the amount calculated by multiplying the revenue pertaining to those transactions by the number of months obtained by deducting the number of months in the designated period for the former reserve rate from the number of months in that year and dividing the product by the number of months in that year, by the number of months in that year".

②With regard to the calculation of the amount of business income for each year up to and including 1986 of an individual who holds the reserve for exhibiting at the International Science and Technology Exposition prescribed in Article 20-5, paragraph (1) of the Former Act, the provisions of that Article remain in force. In this case, the phrase "an individual" in paragraph (4) of that Article is deemed to be replaced with "an individual, by December 31, 1985,".

The provisions of Article 34-2, paragraph (2), item (iii) of the New Act apply to the transfer of land, etc. prescribed in paragraph (1) of that Article that an individual makes on or after the Effective Date, and with regard to the transfer of land, etc. prescribed in Article 34-2, paragraph (1) of the Former Act that an individual made before the Effective Date, the provisions then in force continue to govern.

①The provisions of Article 40-4, paragraphs (1), (3) and (6) of the New Act apply to the amount of applicable retained income for business years of a specified foreign subsidiary, etc. prescribed in paragraph (1) of that Article ending on or after the Effective Date and the taxable retained amount prescribed in that paragraph pertaining to that amount of applicable retained income, and with regard to the amount of applicable retained income prescribed in Article 40-4, paragraph (1) of the Former Act for business years of a specified foreign subsidiary, etc. prescribed in that paragraph that ended before the Effective Date and the taxable retained amount prescribed in that paragraph pertaining to that amount of applicable retained income, the provisions then in force continue to govern.

②In the case where, in a business year ending on or after the Effective Date of a specified foreign subsidiary, etc. prescribed in Article 40-4, paragraph (3) of the New Act, there is an amount of dividends of profit or distributions of surplus prescribed in the proviso to Article 40-4, paragraph (3) of the Former Act that the specified foreign subsidiary, etc. received before the Effective Date from another specified foreign subsidiary, etc. prescribed in that proviso (including the case where there is an amount of dividends of profit or distributions of surplus pertaining to a business year of that other specified foreign subsidiary, etc. that ended before the Effective Date which was received on or after the Effective Date), the provisions of the proviso to Article 40-4, paragraph (3) of the Former Act remain in force with respect to the amount of applicable retained income prescribed in Article 40-4, paragraph (1) of the New Act for that business year of that specified foreign subsidiary, etc. and the taxable retained amount prescribed in that paragraph pertaining to that amount of applicable retained income.

③The provisions of Article 40-4, paragraph (4) of the New Act apply to business years of a foreign affiliated company prescribed in that paragraph ending on or after the Effective Date, and with regard to business years of that foreign affiliated company that ended before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 40-5 of the New Act apply to facts listed in the items of paragraph (1) of that Article that arise on or after the Effective Date with regard to a specified foreign subsidiary, etc. or a foreign affiliated company prescribed in that paragraph (with regard to the facts listed in item (i) of that paragraph, limited to those facts pertaining to business years of that specified foreign subsidiary, etc. ending on or after the Effective Date), and with regard to facts listed in the items of Article 40-5, paragraph (1) of the Former Act that arose before the Effective Date with regard to a specified foreign subsidiary, etc. prescribed in that paragraph (with regard to the facts listed in item (i) of that paragraph, including those facts pertaining to business years of that specified foreign subsidiary, etc. that ended before the Effective Date which arise on or after the Effective Date), the provisions then in force continue to govern.

①With regard to the extension of the due date for payment under the provisions of Article 41-9, paragraph (1) of the Former Act in the case where an individual made, on or before December 31, 1985, a capital contribution of farmland, etc. prescribed in Article 41-9, paragraph (1) of the Former Act to an agricultural production corporation prescribed in Article 2, paragraph (3) of the Cropland Act (Act No. 229 of 1952) prior to the amendment by the provisions of Article 3 of the Act Partially Amending the Agricultural Co-operatives Act, etc., and Other Matters (Act No. 63 of 2015) (referred to as a "former agricultural production corporation" in the following paragraph), the provisions of that Article remain in force. In this case, the phrase "agricultural production corporation" in the caption of that Article is deemed to be replaced with "former agricultural production corporation"; in that paragraph, the phrase "Article 2, paragraph (7) of that Act" is deemed to be replaced with "Article 2, paragraph (3) of the Cropland Act prior to the amendment by the provisions of Article 3 of the Act Partially Amending the Agricultural Co-operatives Act, etc., and Other Matters (Act No. 63 of 2015)", the phrase "referred to as an "agricultural production corporation" in this Article and the following Article" is deemed to be replaced with "referred to as a "former agricultural production corporation" in item (iii) of the following paragraph and paragraph (1), item (i) of the following Article", and the phrase "that agricultural production corporation" is deemed to be replaced with "the qualified farmland-owning corporation prescribed in Article 2, paragraph (3) of the Cropland Act that has received that capital contribution (referred to as a "qualified farmland-owning corporation" in this paragraph and paragraph (8))"; the phrase "agricultural production corporation" in items (i) through (iii) of that paragraph is deemed to be replaced with "qualified farmland-owning corporation"; the phrase "agricultural production corporation" in paragraph (2), item (iii) of that Article is deemed to be replaced with "former agricultural production corporation"; the phrase "大蔵省令" (Order of the Ministry of Finance, under the Ministry's name before 2001) in paragraph (3) of that Article is deemed to be replaced with "財務省令" (Order of the Ministry of Finance, under its present name); and the phrase "agricultural production corporation" in paragraph (8) of that Article is deemed to be replaced with "qualified farmland-owning corporation".

②If an individual who received the application of the provisions of Article 41-9, paragraph (1) of the Former Act, which remain in force pursuant to the provisions of the preceding paragraph, or an individual who made a capital contribution of farmland, etc. prescribed in that paragraph to a former agricultural production corporation by December 31, 1985 (excluding a person who, before the Effective Date, filed a return under the provisions of Article 120, paragraph (1) of the Income Tax Act for the year that includes the day on which that capital contribution was made) dies, the provisions of Article 41-10 of the Former Act remain in force. In this case, the phrase "agricultural production corporation" in the caption of that Article and in paragraph (1), item (i) of that Article is deemed to be replaced with "former agricultural production corporation"; the phrase "the amount of which is 500,000 yen or less" in paragraph (2) of that Article is deemed to be replaced with "where its amount is 1,000,000 yen or less or where the period of that deferred payment is three months or less"; and the phrase "rate" in paragraph (7) of that Article is deemed to be replaced with "rate (or, if the special base rate for interest tax prescribed in Article 93, paragraph (2) of the Act on Special Measures Concerning Taxation as amended by the provisions of Article 15 of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2020) for each year is less than 7.3 percent per annum, that special base rate for interest tax during that year)".

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

The provisions of Article 42 of the New Act apply to corporation tax on income for business years ending on or after the Effective Date of a corporation listed in the first column of items (iii) through (v) of the table in paragraph (1) of that Article and to corporation tax on liquidation income resulting from dissolution or merger on or after the Effective Date (including corporation tax on income for business years during liquidation of a corporation listed in the first column of item (iv) of that table and corporation tax to be paid upon a partial distribution of residual assets; the same applies in this Article), and with regard to corporation tax on income for business years of those corporations that ended before the Effective Date and corporation tax on liquidation income resulting from dissolution or merger before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 42-2, paragraph (1) of the New Act apply to corporation tax on income for business years ending on or after the Effective Date of a cooperative, etc. prescribed in item (ii) of that paragraph, and with regard to corporation tax on income for business years of that cooperative, etc. that ended before the Effective Date, the provisions then in force continue to govern.

①The provisions of items (i) and (ii) of the table in Article 43, paragraph (1) of the New Act apply to machinery and other depreciable assets listed in those provisions that a corporation makes an acquisition, etc. (meaning acquisition, or manufacture or construction; the same applies in this Article) of on or after the Effective Date and puts to use for its business, and with regard to cases where a corporation has put to use for its business machinery and other depreciable assets listed in item (i) or (ii) of the table in Article 43, paragraph (1) of the Former Act that it made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

②The provisions of item (iii) of the table in Article 43, paragraph (1) of the New Act apply to machinery and other equipment listed in that item that is put to use for business in place of a well prescribed in that item located in an area that has become a designated area prescribed in Article 3, paragraph (1) of the Industrial Water Act on or after the Effective Date, and with regard to machinery and other equipment listed in item (iii) of the table in Article 43, paragraph (1) of the Former Act that is put to use for business in place of a well prescribed in that item located in an area that became such a designated area before the Effective Date, the provisions then in force continue to govern.

③The provisions of items (iv), (vii) and (viii) of the table in Article 43, paragraph (1) of the New Act apply to depreciable assets listed in those provisions that a corporation makes an acquisition, etc. of on or after the Effective Date and puts to use for its business, and with regard to cases where a corporation has put to use for its business depreciable assets listed in item (iv), (vii) or (viii) of the table in Article 43, paragraph (1) of the Former Act that it made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 44, paragraph (1) of the New Act apply to assets for emergency earthquake disaster countermeasures prescribed in that paragraph that a corporation makes an acquisition, etc. of on or after the Effective Date and puts to use for its business, and with regard to cases where a corporation has put to use for its business assets for emergency earthquake disaster countermeasures prescribed in Article 44, paragraph (1) of the Former Act that it made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 45, paragraph (1) of the New Act apply to industrial machinery, etc. prescribed in that paragraph that a corporation makes an acquisition, etc. of on or after the Effective Date and puts to use for its business, and with regard to cases where a corporation has put to use for its business industrial machinery, etc. prescribed in Article 45, paragraph (1) of the Former Act that it made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

⑥If a corporation prescribed in Article 45-2, paragraph (3) of the Former Act has, before the Effective Date, acquired or manufactured machinery and equipment prescribed in that paragraph and put it to use for its business, the provisions then in force continue to govern that machinery and equipment.

⑦The provisions of Article 45-2, paragraph (2) of the New Act apply to medical equipment prescribed in that paragraph that a corporation acquires or manufactures on or after the Effective Date and puts to use for its business, and with regard to cases where a corporation has put to use for its business medical equipment prescribed in Article 45-2, paragraph (5) of the Former Act that it acquired or manufactured before the Effective Date, the provisions then in force continue to govern.

⑧If a small and medium sized enterprise prescribed in Article 45-3, paragraph (1) of the Former Act that obtained, before the Effective Date, the approval prescribed in that paragraph for a business rationalization plan prescribed in that paragraph acquires, or manufactures or constructs, machinery, etc. for business rationalization prescribed in that paragraph within the period prescribed in that paragraph and puts it to use for its business, the provisions of that Article remain in force with respect to that machinery, etc. for business rationalization.

⑨With regard to the application of the provisions of Articles 42-4 through 42-6, Articles 46 through 49, Article 51, Article 52-2, Article 52-3, Article 64 (including as applied mutatis mutandis pursuant to Article 64-2, paragraph (6) and Article 65, paragraph (6) of the New Act), Article 65-7 (including as applied mutatis mutandis pursuant to Article 65-8, paragraph (7) of the New Act) and Article 67-4 of the New Act in the case where the provisions of the preceding paragraph apply, the phrase "or Article 51" in Article 42-4, paragraph (4), item (ii) of the New Act is deemed to be replaced with ", Article 51 or Article 45-3 of the Act on Special Measures Concerning Taxation prior to the amendment by the provisions of Article 1 of the 1985 Amendment Act, which remains in force pursuant to the provisions of Article 16, paragraph (8) of the Supplementary Provisions of the 1985 Amendment Act (hereinafter referred to as "Article 45-3 of the 1985 Former Act" in this Chapter)"; the phrase "or Article 51" in Article 42-5, paragraphs (1) and (2) and Article 42-6, paragraphs (1) and (2) of the New Act is deemed to be replaced with ", Article 51 or Article 45-3 of the 1985 Former Act"; the phrase "or Article 51" in Article 46, paragraph (1) and Article 46-2, paragraph (1) of the New Act is deemed to be replaced with ", Article 51 or Article 45-3 of the 1985 Former Act"; the phrase "that rental housing for each business year" in Article 47, paragraph (1) of the New Act is deemed to be replaced with "that rental housing for each business year (excluding rental housing for which the provisions of Article 45-3 of the 1985 Former Act, or of Article 52-3, paragraph (1) as it relates to that Article, are applied with regard to the calculation of the amount of depreciation for that business year)"; the phrase "or the preceding paragraph" in Article 47, paragraph (2) of the New Act is deemed to be replaced with ", the preceding paragraph or Article 45-3 of the 1985 Former Act"; the phrase "through Article 44-2" in Article 48, paragraph (1) of the New Act is deemed to be replaced with "through Article 44-2 or Article 45-3 of the 1985 Former Act"; the phrase "through Article 45" in Article 49, paragraph (1) of the New Act is deemed to be replaced with "through Article 45 or Article 45-3 of the 1985 Former Act"; the phrase "or Articles 47 through 49" in Article 51, paragraph (2) of the New Act is deemed to be replaced with ", Articles 47 through 49 or Article 45-3 of the 1985 Former Act"; the phrase "or Article 51" in Article 52-2 and Article 52-3, paragraph (1) of the New Act is deemed to be replaced with ", Article 51 or Article 45-3 of the 1985 Former Act"; and the phrase "and Articles 47 through 51" in Article 64, paragraph (6), Article 65-7, paragraph (7) and Article 67-4, paragraph (6) of the New Act is deemed to be replaced with ", Articles 47 through 51 and Article 45-3 of the 1985 Former Act".

⑩With regard to the application of the provisions of Article 45-3, paragraphs (1) and (2) of the New Act in the case where the provisions of paragraph (8) apply, the phrase "or Article 51" in paragraph (1) of that Article is deemed to be replaced with ", Article 51 or Article 45-3 of the 1985 Former Act", and the phrase "or the preceding paragraph" in paragraph (2) of that Article is deemed to be replaced with ", the preceding paragraph or Article 45-3 of the 1985 Former Act".

⑪The provisions of Article 46 of the New Act apply to depreciable assets listed in paragraph (1), item (i) or (ii) of that Article that are held by a member of a commercial and industrial association, etc. or a specified association referred to in those provisions that obtains, on or after the Effective Date, approval for a small and medium sized enterprise structural improvement plan or structural improvement project plan prescribed in those provisions, and with regard to depreciable assets listed in Article 45-4, paragraph (1), item (i) or (ii) of the Former Act that are held by a member of a commercial and industrial association, etc. or a specified association referred to in those provisions that obtained, before the Effective Date, approval for a small and medium sized enterprise structural improvement plan or structural improvement project plan prescribed in those provisions, the provisions then in force continue to govern.

⑫The provisions of Article 46-2, paragraph (1) of the New Act apply to machinery and equipment, buildings for factory use and their associated facilities, and vehicles and transport equipment prescribed in that paragraph that a corporation makes an acquisition, etc. of on or after the Effective Date, and with regard to machinery and equipment, buildings for factory use and their associated facilities, and vehicles and transport equipment prescribed in Article 46, paragraph (1) of the Former Act that a corporation made an acquisition, etc. of before the Effective Date, the provisions then in force continue to govern.

⑬The provisions of Article 47, paragraph (1) of the New Act apply to rental housing prescribed in that paragraph that a corporation acquires or newly builds on or after the Effective Date, and with regard to rental housing prescribed in Article 47, paragraph (1) of the Former Act that a corporation acquired or newly built before the Effective Date, the provisions then in force continue to govern.

⑭With regard to facility buildings 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.

⑮The provisions of Article 48, paragraph (1) of the New Act apply to petroleum gas storage facilities listed in item (i) of the table in that paragraph that a corporation acquires or constructs on or after the Effective Date, and with regard to petroleum gas storage facilities listed in item (i) of the table in Article 48, paragraph (1) of the Former Act that a corporation acquired or constructed before the Effective Date, the provisions then in force continue to govern.

⑯With regard to contributions listed in Article 52, paragraph (1), item (iv) of the Former Act that a corporation pays to a production area association prescribed in that item that obtained the approval referred to in that item before the Effective Date for a promotion plan prescribed in that item, the provisions of that Article remain in force. In this case, the phrase "March 31, 1985" in that paragraph is deemed to be replaced with "the day before the date on which the Act on Temporary Measures for Small and Medium Sized Enterprises in Production Areas ceases to be effective".

①The provisions of Article 54 of the New Act apply to the amount of the reserve for overseas market development by small and medium sized enterprises, etc. accumulated in business years of a corporation ending on or after the Effective Date, and with regard to the amount of the reserve for overseas market development by small and medium sized enterprises, etc. accumulated in business years of a corporation that ended before the Effective Date, the provisions then in force continue to govern. In this case, with regard to the application of the provisions of that Article for a business year of a corporation prescribed in paragraph (1) of that Article that began before the Effective Date and ends on or after the Effective Date, the phrase "amount calculated by dividing" in that paragraph is deemed to be replaced with "amount calculated by dividing (for a business year that began before the Effective Date of the 1985 Amendment Act and ends on or after that date, the amount obtained by adding, to the total of the amount equivalent to 5.6/1,000 (or 12.2/1,000 for a corporation whose amount of capital or amount of contributions is 100 million yen or less at the end of that business year, or a corporation that has no capital or contributions (referred to as a "small or medium-sized corporation" in this paragraph)) of the amount calculated by multiplying the revenue pertaining to the transactions listed in item (i) of the following paragraph by the number of months in the period from the first day of that business year to March 31, 1985 (referred to as the "designated period for the former reserve rate" in this paragraph) and dividing the product by the number of months in that base year and the amount equivalent to 4.2/1,000 (or 10.4/1,000 for a small or medium-sized corporation) of the amount calculated by multiplying the revenue pertaining to those transactions by the number of months obtained by deducting the number of months in the designated period for the former reserve rate from the number of months in that business year and dividing the product by the number of months in that base year, the total of the amount equivalent to 7.7/1,000 (or 16.6/1,000 for a small or medium-sized corporation) of the amount calculated by multiplying the revenue pertaining to the transactions listed in items (ii) through (viii) of the following paragraph by the number of months in the designated period for the former reserve rate and dividing the product by the number of months in that base year and the amount equivalent to 5.8/1,000 (or 14.1/1,000 for a small or medium-sized corporation) of the amount calculated by multiplying the revenue pertaining to those transactions by the number of months obtained by deducting the number of months in the designated period for the former reserve rate from the number of months in that business year and dividing the product by the number of months in that base year)".

②If a corporation prescribed in Article 56-10, paragraph (1) of the Former Act holds, in the first business year beginning on or after the Effective Date (excluding the case where that business year is a business year that includes the day of dissolution (excluding dissolution due to a merger); hereinafter referred to as the "business year of the amendment" through paragraph (7)), the amount of the reserve for losses on share trading prescribed in paragraph (2) of that Article as of the end of the business year immediately preceding the business year of the amendment (meaning the amount obtained by deducting the amount included in gross profit pursuant to the provisions of that paragraph or paragraph (3) of that Article in that immediately preceding business year and adding the amount included in deductible expenses pursuant to the provisions of paragraph (1) of that Article in that immediately preceding business year), an amount equivalent to the amount calculated, for each business year from the business year of the amendment to the business year that includes the day before the day on which 10 years have elapsed from the first day of the business year of the amendment, by multiplying that amount of the reserve for losses on share trading by the number of months in each such business year and dividing the product by 120 (or, if that amount exceeds the remaining balance of the reserve for losses on share trading as of the end of each such business year (meaning the amount obtained by deducting, from that amount of the reserve for losses on share trading, the amount that has been, or is to be, included in gross profit pursuant to the provisions of the following paragraph by that day, or the amount included in gross profit pursuant to the provisions of this paragraph in business years that ended before that day; the same applies hereinafter through paragraph (7)), that remaining balance of the reserve for losses on share trading), out of that amount of the reserve for losses on share trading, is included in gross profit in calculating the amount of income for each such business year.

③If a corporation that receives the application of the provisions of the preceding paragraph comes to fall under any of the cases listed in the following items, an amount equivalent to the amount specified in the respective items is included in gross profit in calculating the amount of income for the business year that includes the day on which it comes to fall under that case:

④With regard to the remaining balance of the reserve for losses on share trading in the case where a corporation that receives the application of the provisions of paragraph (2) has had its approval for filing blue returns revoked or has submitted a written notification to the effect that it will discontinue filing returns by blue return, the provisions of Article 56-10, paragraph (5) of the Former Act are to govern. In this case, the phrase "accumulates the reserve for losses on share trading referred to in paragraph (1)" in that paragraph is deemed to be replaced with "has the remaining balance of the reserve for losses on share trading prescribed in Article 17, paragraph (2) of the Supplementary Provisions of the 1985 Amendment Act (referred to as the "remaining balance of the reserve for losses on share trading" in this paragraph)", the phrase "the amount of the reserve for losses on share trading as of" is deemed to be replaced with "the remaining balance of the reserve for losses on share trading as of", the phrase "that amount of the reserve for losses on share trading" is deemed to be replaced with "that remaining balance of the reserve for losses on share trading", and the phrase "the preceding three paragraphs and paragraph (7)" is deemed to be replaced with "Article 17, paragraphs (2), (3) and (6) of the Supplementary Provisions of the 1985 Amendment Act".

⑤The number of months referred to in paragraph (2) is calculated in accordance with the calendar, and any fraction of less than one month is counted as one month.

⑥The treatment of the remaining balance of the reserve for losses on share trading in the case where a corporation prescribed in paragraph (2) carries out a merger in any business year on or after the business year of the amendment, and other necessary matters concerning the application of the provisions of that paragraph and paragraph (3), are specified by Cabinet Order.

⑦The provisions of Article 53, paragraph (1) of the New Act do not apply to shares that a corporation prescribed in paragraph (2) holds at the end of each business year on or after the business year of the amendment (limited to business years in which it has the remaining balance of the reserve for losses on share trading).

⑧With regard to the calculation of the amount of income for business years up to and including the business year that includes March 16, 1986 of a corporation that holds the reserve for exhibiting at the International Science and Technology Exposition prescribed in Article 56-11, paragraph (1) of the Former Act, the provisions of that Article remain in force. In this case, the phrase "a corporation" in paragraph (4) of that Article is deemed to be replaced with "a corporation, by the end of the business year that includes March 16, 1985,".

The provisions of Article 65-4, paragraph (1), item (iii) of the New Act apply to the transfer of land, etc. prescribed in that paragraph that a corporation makes on or after the Effective Date, and with regard to the transfer of land, etc. prescribed in Article 65-4, paragraph (1) of the Former Act that a corporation made before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 65-10 of the New Act apply to assets acquired through exchange prescribed in paragraph (1) of that Article that a corporation acquires through exchange and consolidation prescribed in the items of that paragraph carried out on or after January 1, 1985, and with regard to assets acquired through exchange prescribed in Article 65-10, paragraph (1) of the Former Act that a corporation acquired through exchange and consolidation prescribed in that paragraph carried out before that date, the provisions then in force continue to govern.

With regard to corporation tax in the case where a corporation engaged in the business prescribed in Article 66, paragraph (1) of the Former Act that obtained the approval prescribed in that paragraph before the Effective Date made a capital contribution in kind of fixed assets based on the business tie-up plan prescribed in that paragraph pertaining to that approval, the provisions then in force continue to govern.

①The provisions of Article 66-6, paragraphs (1), (3) and (6) of the New Act apply to the amount of applicable retained income for business years of a specified foreign subsidiary, etc. prescribed in paragraph (1) of that Article ending on or after the Effective Date and the taxable retained amount prescribed in that paragraph pertaining to that amount of applicable retained income, and with regard to the amount of applicable retained income prescribed in Article 66-6, paragraph (1) of the Former Act for business years of a specified foreign subsidiary, etc. prescribed in that paragraph that ended before the Effective Date and the taxable retained amount prescribed in that paragraph pertaining to that amount of applicable retained income, the provisions then in force continue to govern.

②In the case where, in a business year ending on or after the Effective Date of a specified foreign subsidiary, etc. prescribed in Article 66-6, paragraph (3) of the New Act, there is an amount of dividends of profit or distributions of surplus prescribed in the proviso to Article 66-6, paragraph (3) of the Former Act that the specified foreign subsidiary, etc. received before the Effective Date from another specified foreign subsidiary, etc. prescribed in that proviso (including the case where there is an amount of dividends of profit or distributions of surplus pertaining to a business year of that other specified foreign subsidiary, etc. that ended before the Effective Date which was received on or after the Effective Date), the provisions of the proviso to Article 66-6, paragraph (3) of the Former Act remain in force with respect to the amount of applicable retained income prescribed in Article 66-6, paragraph (1) of the New Act for that business year of that specified foreign subsidiary, etc. and the taxable retained amount prescribed in that paragraph pertaining to that amount of applicable retained income.

③The provisions of Article 66-6, paragraph (4) of the New Act apply to business years of a foreign affiliated company prescribed in that paragraph ending on or after the Effective Date, and with regard to business years of that foreign affiliated company that ended before the Effective Date, the provisions then in force continue to govern.

④The provisions of Article 66-8, paragraph (1) of the New Act apply to facts listed in the items of that paragraph that arise on or after the Effective Date with regard to a specified foreign subsidiary, etc. or a foreign affiliated company prescribed in that paragraph (with regard to the facts listed in item (i) of that paragraph, limited to those facts pertaining to business years of that specified foreign subsidiary, etc. ending on or after the Effective Date), and with regard to facts listed in the items of Article 66-8, paragraph (1) of the Former Act that arose before the Effective Date with regard to a specified foreign subsidiary, etc. prescribed in that paragraph (with regard to the facts listed in item (i) of that paragraph, including those facts pertaining to business years of that specified foreign subsidiary, etc. that ended before the Effective Date which arise on or after the Effective Date), the provisions then in force continue to govern.

With regard to corporation tax in the case where a production area association listed in Article 66-10, paragraph (1), item (iv) of the Former Act acquires or manufactures fixed assets listed in that item that are set forth in the promotion plan referred to in that item for which the approval prescribed in that item was obtained before the Effective Date and that fall under assets for experimental research prescribed in that paragraph, the provisions of that Article remain in force. In this case, the phrase "March 31, 1985" in that paragraph is deemed to be replaced with "the day before the date on which the Act on Temporary Measures for Small and Medium Sized Enterprises in Production Areas ceases to be effective".

The provisions of Article 67-2 of the New Act apply to corporation tax on income for business years ending on or after the Effective Date of a medical care corporation prescribed in paragraph (1) of that Article, and with regard to corporation tax on income for business years that ended before the Effective Date of a medical care corporation prescribed in Article 67-2, paragraph (1) of the Former Act, the provisions then in force continue to govern.

With regard to issue discounts prescribed in Article 68 of the Former Act that a foreign corporation prescribed in that Article receives on interest-bearing foreign currency bonds prescribed in that Article that were issued before the Effective Date, the provisions then in force continue to govern.

①The provisions of Article 70-7 of the New Act apply to inheritance tax pertaining to permission for deferred payment under the provisions of Article 38, paragraph (1) or Article 43, paragraph (5) of the Inheritance Tax Act (Act No. 73 of 1950) granted on or after the Effective Date, and with regard to inheritance tax for which permission for deferred payment under those provisions was granted before the Effective Date, except for that provided for in the following paragraph, the provisions then in force continue to govern.

②If, among the amounts of inheritance tax for which permission for deferred payment was granted before the Effective Date where the proportion of the total value of the property that formed the basis for calculating that amount of inheritance tax accounted for by the value of standing timber prescribed in Article 70-7, paragraph (1) of the New Act is four-tenths or more and the proportion of the value of the taxable inherited property prescribed in that paragraph accounted for by the value of real property, etc. prescribed in Article 38, paragraph (1) of the Inheritance Tax Act is five-tenths or more, there is any amount for which the due date for payment of an installment payment pertaining to the deferred payment arrives on or after the Effective Date, the district director may, with regard to the portion of the installment payments whose due date for payment arrives on or after the Effective Date that is specified by Cabinet Order as corresponding to the value of that standing timber, upon application by the person who received that permission for deferred payment made by the first such due date for payment arriving on or after the Effective Date (or, if the period from the Effective Date to that due date for payment is less than four months, by the day on which four months have elapsed from the Effective Date), extend the time limit for deferred payment within the range of a period equivalent to one-third of the deferred payment period on or after the Effective Date (or, if that period contains a fraction of less than one month, the period calculated by counting that fraction as one month), and change the annual installment amount of deferred payment on or after the Effective Date in accordance with the provisions of Article 70-7, paragraph (2) of the New Act or Article 38, paragraph (2) of the Inheritance Tax Act.

①The provisions of Article 73 of the New Act apply to registration and license tax on the registration of transfer of ownership of a house for residential use prescribed in that Article that is acquired on or after the Effective Date, and with regard to registration and license tax on the registration of transfer of ownership of a house for residential use prescribed in Article 73 of the Former Act that was acquired before the Effective Date, the provisions then in force continue to govern.

②With regard to registration and license tax pertaining to the registration of the transfer or creation of ownership, superficies rights, farming rights or rights of lease to land referred to in Article 77-2 of the Former Act in the case where an agricultural production corporation prescribed in that Article received, before the Effective Date, a capital contribution prescribed in that Article and used that land for its cultivation or livestock raising, the provisions then in force continue to govern.

③The provisions of Article 77-3 of the New Act apply to registration and license tax on the registration of transfer of ownership of land prescribed in those provisions that is acquired on or after the Effective Date through consultation, conciliation or mediation prescribed in item (i) of that Article or through a project for promoting the establishment of use rights, etc. prescribed in item (ii) of that Article, and with regard to registration and license tax on the registration of transfer of ownership of land prescribed in those provisions that was acquired before the Effective Date through consultation, conciliation or mediation prescribed in Article 77-4, item (i) of the Former Act or through a project for promoting the establishment of use rights, etc. prescribed in item (ii) of that Article, the provisions then in force continue to govern.

④The provisions of Article 77-4, paragraph (1) of the New Act apply to registration and license tax on the registration of transfer of ownership of land prescribed in that paragraph acquired through exchange and consolidation prescribed in that paragraph carried out on or after the Effective Date, and with regard to registration and license tax on the registration of transfer of ownership of land prescribed in Article 77-5, paragraph (1) of the Former Act acquired through exchange and consolidation prescribed in that paragraph carried out before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 77-4, paragraph (2) of the New Act apply to registration and license tax on the registration of transfer of ownership of land that a member of an agricultural and residential land cooperative prescribed in that paragraph acquires on or after the Effective Date through exchange and consolidation prescribed in that paragraph, and with regard to registration and license tax on the registration of transfer of ownership of land that such a member acquired before the Effective Date through exchange and consolidation prescribed in Article 77-5, paragraph (2) of the Former Act, the provisions then in force continue to govern.