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.