This Act comes into effect on August 1, 2002; provided, however, that the provisions of Article 3 amending the Act on Special Measures Concerning Taxation by adding 17 Sections to Chapter III (limited to the part pertaining to Article 68-72, paragraph (8)) come into effect on the date on which the Act on Facilitation of Reconstruction of Condominiums, etc. (Act No. 78 of 2002) comes into effect.

Except as otherwise provided for in these Supplementary Provisions, the provisions of the Corporation Tax Act as amended by the provisions of Article 1 (hereinafter referred to as the "New Corporation Tax Act"), the provisions of the Act on Measures to Reduce the Burden of Income Tax and Corporation Tax to Be Taken Promptly in Response to Changes in the Economy and Society, etc. as amended by the provisions of Article 2, the provisions of the Act on Special Measures Concerning Taxation as amended by the provisions of Article 3 (hereinafter referred to as the "New Act on Special Measures Concerning Taxation"), the provisions of the Act on Temporary Special Provisions of Acts Related to National Tax, in Relation to Victims, etc. of Hanshin-Awaji Earthquake as amended by the provisions of Article 4 (hereinafter referred to as the "New Special Provisions Law for Earthquake Victims"), and the provisions of Articles 7 and 24 of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. (Act No. 24 of 1998) as amended by the provisions of Article 9 apply to corporation tax on income for business years of a corporation (including an association or foundation without juridical personality prescribed in Article 2, item (viii) of the New Corporation Tax Act; the same applies hereinafter) ending on or after March 31, 2003, corporation tax on consolidated income for consolidated business years of a consolidated corporation ending on or after that date, corporation tax on income for calculation periods of a corporation that is the trustee of a specified trust ending on or after that date, corporation tax on retirement pension funds for business years of a corporation ending on or after that date, and corporation tax on liquidation income resulting from the dissolution (excluding dissolution due to a merger; the same applies hereinafter in this Article) of a corporation on or after that date (including corporation tax on income for business years during liquidation of a corporation subject to corporation tax on liquidation income and corporation tax to be paid upon a partial distribution of residual assets; the same applies hereinafter in this Article), and with regard to corporation tax on income for business years of a corporation that ended before that date, corporation tax on income for calculation periods of a corporation that is the trustee of a specified trust that ended before that date, corporation tax on retirement pension funds for business years of a corporation that ended before that date, and corporation tax on liquidation income resulting from the dissolution of a corporation before that date, the provisions then in force continue to govern.

①The provisions of Article 64-2, paragraph (10) of the New Act on Special Measures Concerning Taxation (including as applied mutatis mutandis pursuant to Article 65, paragraph (3) of the New Act on Special Measures Concerning Taxation), Article 65-8, paragraph (10), Article 65-12, paragraph (11) and Article 65-14, paragraph (11) apply to the amount of special accounts prescribed in those provisions that a corporation holds at the end of the business year ending on or after the day on which six months have elapsed counting from the day following the Effective Date.

②In the case where a corporation has received the application of the provisions of Article 3, paragraph (1) of the Supplementary Provisions, if the corporation holds an asset subject to fair valuation, etc. (meaning an asset subject to fair valuation, etc. prescribed in Article 4-3, paragraph (9), item (i) of the New Corporation Tax Act; the same applies hereinafter in this paragraph) at the end of the business year preceding the business year that includes the end of the first consolidated parent corporation business year (meaning the first consolidated parent corporation business year prescribed in Article 15-2, paragraph (1) of the New Corporation Tax Act for which corporation tax on consolidated income for each consolidated business year is imposed; the same applies hereinafter in this paragraph) (or, if the date of commencement of that business year is before the date of commencement of that first consolidated parent corporation business year, at the end of that business year), or if a corporation that has come to have, in the first consolidated parent corporation business year, a wholly controlling relationship prescribed in Article 4-2 of the New Corporation Tax Act by that corporation with that corporation holds an asset subject to fair valuation, etc. at the end of the business year that includes the day on which it came to have that wholly controlling relationship, those provisions apply by deeming the business year immediately before the start of consolidation prescribed in Article 64-2, paragraph (10) of the New Act on Special Measures Concerning Taxation (including as applied mutatis mutandis pursuant to Article 65, paragraph (3) of the New Act on Special Measures Concerning Taxation), Article 65-8, paragraph (10), Article 65-12, paragraph (11) or Article 65-14, paragraph (11), or the business year immediately before joining consolidation prescribed in those provisions (referred to as the "business year immediately before the start of consolidation, etc." in the following paragraph), to be the business year that includes the end of the first consolidated parent corporation business year.

③For the business year immediately before the start of consolidation, etc. of a corporation that ends before December 31, 2006, the provisions of Article 64-2, paragraph (10) of the New Act on Special Measures Concerning Taxation (including as applied mutatis mutandis pursuant to Article 65, paragraph (3) of the New Act on Special Measures Concerning Taxation), Article 65-8, paragraph (10), Article 65-12, paragraph (11) or Article 65-14, paragraph (11) apply by deeming the day five years before prescribed in each item of Article 61-11, paragraph (1) or each item of Article 61-12, paragraph (1) of the New Corporation Tax Act to be January 1, 2002.

The provisions of Article 66-8, paragraphs (3) and (4) of the New Act on Special Measures Concerning Taxation apply in the case where a qualified merger, qualified company split, qualified capital contribution in kind or qualified post-formation acquisition of assets (hereinafter referred to as a "qualified merger, etc." in this Article) is carried out on or after the Effective Date, and with regard to the case where a qualified merger, etc. was carried out before the Effective Date, the provisions then in force continue to govern.

With regard to the application of the provisions of Article 68-15 of the New Act on Special Measures Concerning Taxation in the case where a consolidated parent corporation or a consolidated subsidiary corporation having a consolidated full controlling interest with that consolidated parent corporation has, in each business year of that consolidated parent corporation or each of its consolidated subsidiary corporations that commenced within one year before the date of commencement of each consolidated business year, a total amount of the portion of the maximum tax credit prescribed in Article 42-6, paragraph (2) 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, etc. (Act No. 15 of 2002) or the maximum lease tax credit prescribed in paragraph (3) of that Article that has not been fully deducted even after the deduction prescribed in paragraph (5) of that Article, in paragraph (5) of that Article, the phrase "Article 42-11, paragraph (2) or (3)" is deemed to be replaced with "Article 42-11, paragraph (2) or (3), or Article 42-6, paragraph (2) or (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, etc. (Act No. 15 of 2002) (hereinafter referred to as the "2002 Former Act" in this paragraph and paragraph (10))", the phrase "paragraph (2) or (3) of that Article" is deemed to be replaced with "Article 42-11, paragraph (2) or (3), or Article 42-6, paragraph (2) or (3) of the 2002 Former Act", and the phrase "paragraph (4) of that Article" is deemed to be replaced with "Article 42-11, paragraph (4) or Article 42-6, paragraph (4) of the 2002 Former Act", and in paragraph (10) of that Article, the phrase "Article 42-11, paragraph (2) or (3)" is deemed to be replaced with "Article 42-11, paragraph (2) or (3), or Article 42-6, paragraph (2) or (3) of the 2002 Former Act", and the phrase "Article 42-11, paragraph (4)" is deemed to be replaced with "Article 42-11, paragraph (4) or Article 42-6, paragraph (4) of the 2002 Former Act".

With regard to the application of the provisions of Article 68-13 of the New Act on Special Measures Concerning Taxation in the case where a consolidated parent corporation or a consolidated subsidiary corporation having a consolidated full controlling interest with that consolidated parent corporation has, in each business year of that consolidated parent corporation or each of its consolidated subsidiary corporations that commenced within four years before the date of commencement of each consolidated business year, a total amount of the portion of the maximum tax credit prescribed in Article 42-9, paragraph (1) 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, etc. (Act No. 15 of 2002) that has not been fully deducted even after the deduction prescribed in paragraph (3) of that Article, in paragraph (3) of that Article, the phrase "Article 42-9, paragraph (1)" is deemed to be replaced with "Article 42-9, paragraph (1) or Article 42-9, paragraph (1) 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, etc. (Act No. 15 of 2002) (hereinafter referred to as the "2002 Former Act" in this paragraph and paragraph (6))", the phrase "paragraph (1) of that Article" is deemed to be replaced with "Article 42-9, paragraph (1) or Article 42-9, paragraph (1) of the 2002 Former Act", and the phrase "paragraph (2) of that Article" is deemed to be replaced with "Article 42-9, paragraph (2) or Article 42-9, paragraph (2) of the 2002 Former Act", and in paragraph (6) of that Article, the phrase "Article 42-9, paragraph (1)" is deemed to be replaced with "Article 42-9, paragraph (1) or Article 42-9, paragraph (1) of the 2002 Former Act", and the phrase "Article 42-9, paragraph (2)" is deemed to be replaced with "Article 42-9, paragraph (2) or Article 42-9, paragraph (2) of the 2002 Former Act".