②Where a consolidated parent corporation prescribed in Article 68-58, paragraph (1) of the Former Act on Special Measures Concerning Taxation or a consolidated subsidiary corporation having a consolidated full controlling interest with that consolidated parent corporation holds, on the first day of the first consolidated business year beginning on or after April 1, 2012 (or, if the first business year beginning on or after April 1, 2012 is not a consolidated business year, the first day of that business year), an amount of the reserve for special repairs prescribed in paragraph (3) of that Article (limited to the amount pertaining to special repairs (meaning the repairs specified in paragraph (1), item (ii) of that Article that are carried out on the fixed assets listed in that item, the repairs carried out in order to undergo the inspections specified by Order of the Ministry of Finance that are periodically carried out on spherical gas holders prescribed in Article 2, paragraph (13) of the New Gas Business Act that are used for the gas retail business prescribed in paragraph (2) of that Article or the general gas pipeline service business prescribed in paragraph (5) of that Article and are specified by Order of the Ministry of Finance, or the repairs specified in Article 68-58, paragraph (1), item (iv) of the Former Act on Special Measures Concerning Taxation that are carried out on the fixed assets listed in that item; the same applies in paragraph (4), items (i) and (ii))), then, for each consolidated business year that includes any day within four years (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a consolidated parent corporation or a consolidated subsidiary corporation that falls under the category of small or medium-sized consolidated corporation prescribed in Article 68-9, paragraph (8), item (v) of the 2019 Former Act on Special Measures Concerning Taxation (hereinafter referred to in this Article as a "small or medium-sized consolidated parent corporation" or a "small or medium-sized consolidated subsidiary corporation", respectively), ten years) from that first day, an amount equivalent to the amount calculated by multiplying the amount of that reserve for special repairs by the number of months in each consolidated business year and dividing the result by 48 (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a small or medium-sized consolidated parent corporation or a small or medium-sized consolidated subsidiary corporation, by 120) (referred to in the following paragraph as the "equal reversal amount over four years, etc.") is included in gross profit in calculating the amount of consolidated income for that consolidated business year.

③In the case referred to in the preceding paragraph, if the equal reversal amount over four years, etc. exceeds the amount of the reserve for special repairs as of the end of that consolidated business year (where, out of the amount of the reserve for special repairs prescribed in that paragraph, there are amounts that have been included, or are to be included, in gross profit by that day pursuant to the provisions of the following paragraph (including amounts included in gross profit pursuant to the provisions of Article 65, paragraph (4) of the Supplementary Provisions), or amounts that were included in gross profit pursuant to the provisions of the preceding paragraph by the end of the preceding consolidated business year (or, if the business year that includes the day before the first day of that consolidated business year is not a consolidated business year, the business year that includes that day before) (including amounts included in gross profit pursuant to the provisions of paragraph (2) of that Article), the amount obtained by deducting those amounts; the same applies hereinafter in this Article), the equal reversal amount over four years, etc. is to be the amount of that reserve for special repairs.

④Where a consolidated parent corporation or its consolidated subsidiary corporation that is subject to the provisions of paragraph (2) comes to fall under any of the cases listed in the following items (excluding the case where it has transferred an asset with a reserve set (meaning the fixed assets pertaining to the reserve for special repairs referred to in that paragraph; the same applies hereinafter in this Article) through a qualified merger, a qualified company split or a qualified capital contribution in kind), an amount equivalent to the amount specified in each of those items is included in gross profit in calculating the amount of consolidated income for the consolidated business year that includes the day on which it came to fall under that case (or, in the case listed in item (iii), the consolidated business year that includes the day before the date of the merger):

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.

⑥Where a consolidated parent corporation or its consolidated subsidiary corporation that is subject to the provisions of paragraph (2) has transferred an asset with a reserve set to a merging corporation through a qualified merger (for a qualified merger in which a consolidated subsidiary corporation is the merged corporation, limited to a qualified merger whose date is the first day of a consolidated parent corporation business year of that consolidated parent corporation), the amount of the reserve for special repairs immediately before that qualified merger is to be succeeded to by that merging corporation. In this case, the amount of the reserve for special repairs that the merging corporation has succeeded to is deemed to be the amount of the reserve for special repairs referred to in that paragraph held by that merging corporation as of the date of that qualified merger (or, if the business year of that merging corporation that includes the date of that qualified merger is not a consolidated business year, the amount of the reserve for special repairs referred to in Article 65, paragraph (2) of the Supplementary Provisions).

⑦With regard to the application of the provisions of paragraph (2) to each consolidated business year of a merging corporation referred to in the preceding paragraph or Article 65, paragraph (8) of the Supplementary Provisions (limited to one that is a consolidated corporation after that qualified merger) on or after the consolidated business year that includes the date of the qualified merger (or, if the business year that includes the date of that qualified merger is not a consolidated business year, each consolidated business year after that business year), the amount of the reserve for special repairs prescribed in that paragraph is to include the amount of the reserve for special repairs that the merging corporation is deemed to hold pursuant to the provisions of the preceding paragraph or paragraph (8) of that Article. In this case, with regard to the amount of the reserve for special repairs that the merging corporation is deemed to hold, the phrase "by the number of months in each consolidated business year and dividing the result by 48 (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a small or medium-sized consolidated parent corporation or a small or medium-sized consolidated subsidiary corporation, by 120)" in paragraph (2) is deemed to be replaced with "by the number of months in each consolidated business year (or, for the consolidated business year that includes the date of that qualified merger, the number of months in the period from that date to the end of the consolidated business year that includes that date) and dividing the result by the number of months obtained by deducting the number of months in the elapsed period (meaning the period from the first day of the first consolidated business year beginning on or after April 1, 2012 (or, if the first business year beginning on or after April 1, 2012 is not a consolidated business year, the first day of that business year) to the day before the date of that qualified merger) from 48 months (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a small or medium-sized consolidated parent corporation or a small or medium-sized consolidated subsidiary corporation, 120 months)".

⑧Where a consolidated parent corporation or its consolidated subsidiary corporation that is subject to the provisions of paragraph (2) has transferred an asset with a reserve set to a successor corporation in a company split through a qualified company split, the amount of the reserve for special repairs pertaining to that asset with a reserve set immediately before that qualified company split is to be succeeded to by that successor corporation in a company split. In this case, the amount of the reserve for special repairs that the successor corporation in a company split has succeeded to is deemed to be the amount of the reserve for special repairs referred to in that paragraph held by that successor corporation in a company split as of the date of that qualified company split (or, if the business year of that successor corporation in a company split that includes the date of that qualified company split is not a consolidated business year, the amount of the reserve for special repairs referred to in Article 65, paragraph (2) of the Supplementary Provisions).

⑨In the case referred to in the preceding paragraph, for the consolidated business year of the consolidated parent corporation or its consolidated subsidiary corporation that is subject to the provisions of paragraph (2) that includes the date of the qualified company split (excluding a consolidated business year in the case where that date is the first day of the consolidated business year of that consolidated parent corporation or its consolidated subsidiary corporation), the provisions of that paragraph apply by deeming the day before the date of that qualified company split to be the end of that consolidated business year. In this case, the phrase "the number of months in each consolidated business year" in that paragraph is deemed to be replaced with "the number of months in each consolidated business year (or, for the consolidated business year that includes the date of that qualified company split, the number of months in the period from the first day of the consolidated business year that includes the date of that qualified company split to the day before the date of that qualified company split)".

⑩With regard to the application of the provisions of paragraph (2) to each consolidated business year of a successor corporation in a company split referred to in paragraph (8) or Article 65, paragraph (11) of the Supplementary Provisions (limited to one that is a consolidated corporation after that qualified company split) on or after the consolidated business year that includes the date of the qualified company split (or, if the business year that includes the date of that qualified company split is not a consolidated business year, each consolidated business year after that business year), the amount of the reserve for special repairs prescribed in that paragraph is to include the amount of the reserve for special repairs that the successor corporation in a company split is deemed to hold pursuant to the provisions of paragraph (8) or paragraph (11) of that Article. In this case, with regard to the amount of the reserve for special repairs that the successor corporation in a company split is deemed to hold, the phrase "by the number of months in each consolidated business year and dividing the result by 48 (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a small or medium-sized consolidated parent corporation or a small or medium-sized consolidated subsidiary corporation, by 120)" in paragraph (2) is deemed to be replaced with "by the number of months in each consolidated business year (or, for the consolidated business year that includes the date of that qualified company split, the number of months in the period from that date to the end of the consolidated business year that includes that date) and dividing the result by the number of months obtained by deducting the number of months in the elapsed period (meaning the period from the first day of the first consolidated business year beginning on or after April 1, 2012 (or, if the first business year beginning on or after April 1, 2012 is not a consolidated business year, the first day of that business year) to the day before the date of that qualified company split) from 48 months (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a small or medium-sized consolidated parent corporation or a small or medium-sized consolidated subsidiary corporation, 120 months)".

⑪Where a consolidated parent corporation or its consolidated subsidiary corporation that is subject to the provisions of paragraph (2) has transferred an asset with a reserve set to a corporation receiving a capital contribution in kind through a qualified capital contribution in kind, the amount of the reserve for special repairs pertaining to that asset with a reserve set immediately before that qualified capital contribution in kind is to be succeeded to by that corporation receiving a capital contribution in kind. In this case, the amount of the reserve for special repairs that the corporation receiving a capital contribution in kind has succeeded to is deemed to be the amount of the reserve for special repairs referred to in that paragraph held by that corporation receiving a capital contribution in kind as of the date of that qualified capital contribution in kind (or, if the business year of that corporation receiving a capital contribution in kind that includes the date of that qualified capital contribution in kind is not a consolidated business year, the amount of the reserve for special repairs referred to in Article 65, paragraph (2) of the Supplementary Provisions).

⑫In the case referred to in the preceding paragraph, for the consolidated business year of the consolidated parent corporation or its consolidated subsidiary corporation that is subject to the provisions of paragraph (2) that includes the date of the qualified capital contribution in kind (excluding a consolidated business year in the case where that date is the first day of the consolidated business year of that consolidated parent corporation or its consolidated subsidiary corporation), the provisions of that paragraph apply by deeming the day before the date of that qualified capital contribution in kind to be the end of that consolidated business year. In this case, the phrase "the number of months in each consolidated business year" in that paragraph is deemed to be replaced with "the number of months in each consolidated business year (or, for the consolidated business year that includes the date of that qualified capital contribution in kind, the number of months in the period from the first day of the consolidated business year that includes the date of that qualified capital contribution in kind to the day before the date of that qualified capital contribution in kind)".

⑬With regard to the application of the provisions of paragraph (2) to each consolidated business year of a corporation receiving a capital contribution in kind referred to in paragraph (11) or Article 65, paragraph (15) of the Supplementary Provisions (limited to one that is a consolidated corporation after that qualified capital contribution in kind) on or after the consolidated business year that includes the date of the qualified capital contribution in kind (or, if the business year that includes the date of that qualified capital contribution in kind is not a consolidated business year, each consolidated business year after that business year), the amount of the reserve for special repairs prescribed in that paragraph is to include the amount of the reserve for special repairs that the corporation receiving a capital contribution in kind is deemed to hold pursuant to the provisions of paragraph (11) or paragraph (15) of that Article. In this case, with regard to the amount of the reserve for special repairs that the corporation receiving a capital contribution in kind is deemed to hold, the phrase "by the number of months in each consolidated business year and dividing the result by 48 (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a small or medium-sized consolidated parent corporation or a small or medium-sized consolidated subsidiary corporation, by 120)" in paragraph (2) is deemed to be replaced with "by the number of months in each consolidated business year (or, for the consolidated business year that includes the date of that qualified capital contribution in kind, the number of months in the period from that date to the end of the consolidated business year that includes that date) and dividing the result by the number of months obtained by deducting the number of months in the elapsed period (meaning the period from the first day of the first consolidated business year beginning on or after April 1, 2012 (or, if the first business year beginning on or after April 1, 2012 is not a consolidated business year, the first day of that business year) to the day before the date of that qualified capital contribution in kind) from 48 months (or, if the consolidated parent corporation or its consolidated subsidiary corporation is a small or medium-sized consolidated parent corporation or a small or medium-sized consolidated subsidiary corporation, 120 months)".