①The provisions of Article 54 of the New Act apply to the reserve for overseas market development by small and medium sized enterprises, etc. set aside 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. set aside 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 business years of a corporation prescribed in paragraph (1) of that Article ending during the period from the Effective Date to March 31, 1990, the phrase "80 percent" in that paragraph is deemed to be replaced with "90 percent", the phrase "83 percent" is deemed to be replaced with "93 percent", the phrase "85 percent" is deemed to be replaced with "95 percent", and the phrase "88 percent" is deemed to be replaced with "98 percent".

②In the case referred to in the preceding paragraph, with regard to the application of the provisions of Article 54 of the New Act 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, notwithstanding the provisions of the second sentence of the preceding paragraph, the phrase "amount calculated by dividing" in paragraph (1) of that Article is deemed to be replaced with "amount calculated by dividing (for a business year that began before the date on which the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 12 of 1989) comes into effect and ends on or after that date, the amount obtained by adding, to the total of the amount equivalent to 1.76/1,000 (10.4/1,000 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 from 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, 1989 (referred to as the "designated period for the former reserve rate" in this paragraph) and dividing the result by the number of months in that base year, and the amount equivalent to 1.6/1,000 (10/1,000 for a small or medium-sized corporation) of the amount obtained by multiplying by 90 percent (93 percent where the ratio of the total amount of consideration for import transactions of goods in that business year to the total amount of consideration for import transactions of goods in the base year is 110 percent or more and less than 120 percent, 95 percent where that ratio is 120 percent or more and less than 130 percent, and 98 percent where that ratio is 130 percent or more; the same applies hereinafter in this paragraph) the amount calculated by multiplying the revenue from 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 result by the number of months in that base year, the total of the amount equivalent to 2.44/1,000 (14.1/1,000 for a small or medium-sized corporation) of the amount calculated by multiplying the revenue from 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 result by the number of months in that base year, and the amount equivalent to 2.2/1,000 (13/1,000 for a small or medium-sized corporation) of the amount obtained by multiplying by 90 percent the amount calculated by multiplying the revenue from 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 result by the number of months in that base year)".

③The provisions of Article 55 of the New Act (excluding paragraph (10)) 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 specified in the following paragraph. In this case, with regard to specified shares, etc. prescribed in Article 55, paragraph (1) of the New Act pertaining to a corporation listed in item (i) or (ii) of the table in that paragraph that a domestic corporation prescribed in that paragraph (excluding a corporation that falls under the category of small and medium sized enterprise prescribed in that paragraph) acquires during the period from the Effective Date to March 31, 1990, the provisions of that Article apply with the phrase "that business year (for specified shares, etc. of a corporation listed in the left-hand column of item (i) or (ii) of that table, limited to that business year in the case where that domestic corporation falls under the category of small and medium sized enterprise prescribed in Article 42-4, paragraph (3) at the end of the business year)" in that paragraph deemed to be replaced with "that business year", and the phrase "15 percent" in items (i) and (ii) of the table in that paragraph deemed to be replaced with "8 percent".

④If a corporation acquired specified shares, etc. prescribed in Article 55, paragraph (1) of the Former Act before the Effective Date and, on or after the Effective Date, comes to fall under any of the cases listed in the items of Article 55, paragraph (4) of the New Act, the same rules as in the provisions of that paragraph apply.

⑤With regard to the application of the provisions of Article 56-4 of the New Act for business years of a corporation beginning during the period from the Effective Date to March 31, 1990, the phrase "the total of those pertaining to the special agreement" in paragraph (1) of that Article is deemed to be replaced with "the total of those pertaining to the special agreement (where the corporation sells computers both to that specified computer leasing company and to other persons engaged in the business of leasing computers, the amount obtained by adding the amount equivalent to one-half of the total of the revenue from the sale of computers to those other persons engaged in the business of leasing computers that pertains to that special agreement)", the phrase "specified computer leasing company" in paragraph (3) of that Article is deemed to be replaced with "specified computer leasing company or a person engaged in the business of leasing computers prescribed in that paragraph", and the phrase "its request" is deemed to be replaced with "the request of those persons".

⑥With regard to the inclusion in gross profit of the amount of the reserve for losses on computer buybacks referred to in Article 56-4, paragraph (1) of the Former Act that a corporation set aside in business years beginning before April 1, 1990 and that pertains to computers sold to persons engaged in the business of leasing computers prescribed in that paragraph, the provisions then in force continue to govern.

⑦With regard to the inclusion in gross profit of the amount of the reserve for abnormal risks that a corporation prescribed in Article 57-5, paragraph (1) of the Former Act set aside pursuant to the provisions of that paragraph in business years beginning before the Effective Date, the provisions then in force continue to govern.

⑧With regard to the reserve for abnormal risks set aside in business years of a corporation prescribed in Article 57-5, paragraph (1) of the Former Act beginning during the period from the Effective Date to March 31, 1990, the provisions of that Article remain in force. In this case, the phrase "amount obtained by deducting" in that paragraph is deemed to be replaced with "amount equivalent to 60 percent of the amount obtained by deducting".