①The provisions of Article 37-10, paragraph (3) of the New Act on Special Measures Concerning Taxation (limited to the parts concerning items (i) and (iii)) apply to income from a transfer, as referred to in paragraph (1) of that Article, of shares, etc. prescribed in paragraph (3) of that Article that an individual carries out on or after the Effective Date.

②With regard to the application of the provisions of Article 37-10, paragraph (3) of the New Act on Special Measures Concerning Taxation (limited to the parts concerning items (i) and (iii)) in the case where the provisions of Article 6, paragraph (1) or Article 7, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Commercial Code, etc. (Act No. 128 of 2001; referred to as the "Commercial Code, etc. Amendment Act" in this paragraph and Article 16, paragraph (2) of the Supplementary Provisions) apply, the shares prescribed in item (i) of that paragraph are to include subscription rights for new shares for which the provisions then in force continue to govern pursuant to the provisions of Article 6, paragraph (1) of the Supplementary Provisions of the Commercial Code, etc. Amendment Act, or subscription rights for new shares attached to bonds with subscription rights for new shares for which the provisions then in force continue to govern pursuant to the provisions of Article 7, paragraph (1) of the Supplementary Provisions of the Commercial Code, etc. Amendment Act, and the bonds with share options prescribed in Article 37-10, paragraph (3), item (iii) of the New Act on Special Measures Concerning Taxation are to include convertible bonds or bonds with subscription rights for new shares for which the provisions then in force continue to govern pursuant to the provisions of Article 7, paragraph (1) of the Supplementary Provisions of the Commercial Code, etc. Amendment Act.