This Act comes into effect on June 1, 1967; provided, however, that the provisions amending Article 10 (Nontaxability of Interest Income from Small Amounts of Deposits, etc.) of the Income Tax Act come into effect on July 1 of that year.

Except as otherwise provided in these Supplementary Provisions, the provisions of the Income Tax Act as amended (hereinafter referred to as "the New Act") apply to income tax for 1967 and subsequent years, and the provisions then in force continue to govern income tax for 1966 and earlier years.

②The amount of income tax on taxable gross income, taxable retirement income, or taxable timber income for 1967, or the amount of tax set forth in Article 90, paragraph (1), item (i) of the New Act, is to be the amount of tax set forth in the following items according to the category of tax amount set forth in each of those items:

The provisions of Article 5, paragraph (3) (Tax Liability of Domestic Corporations), Article 7, paragraph (1), item (iv) (Scope of Taxable Income of Domestic Corporations), Article 174 (Tax Base for a Domestic Corporation's Income Taxes), Article 175 (Tax Rate for a Domestic Corporation's Income Taxes), Article 212, paragraph (3) (Obligation to Withhold Taxes from the Income of Domestic Corporations), and Article 213, paragraph (2) (Amount of Taxes Withheld from the Income of Domestic Corporations) of the New Act (limited to the parts concerning the prize money set forth in Article 174, item (v) of the New Act) apply to such prize money received on or after January 1, 1968.

The provisions of Article 9, paragraph (1), items (xv) and (xvi) and paragraph (2), items (vi) and (vii) of that Article (Nontaxable Income) and Article 25, paragraph (1), items (iii) and (iv) (Amounts Deemed to Constitute Dividends) of the New Act apply to money and other assets received from a corporation that dissolves or merges on or after the date on which the Act Partially Amending the Corporation Tax Act (Act No. 21 of 1967) comes into effect, and the provisions then in force continue to govern money and other assets received from a corporation that dissolved or merged before that date.

①The provisions of Article 10, paragraph (1) (Nontaxability of Interest Income from Small Amounts of Deposits, etc.) of the New Act apply to interest or distributions of proceeds set forth in the items of that paragraph that are to be received on or after July 1, 1967, and the provisions then in force continue to govern such interest or distributions of proceeds that were to be received before that date.

②A statement of tax-exempt savings prescribed in Article 10, paragraph (3) (Nontaxability of Interest Income from Small Amounts of Deposits, etc.) of the Income Tax Act before amendment (hereinafter referred to as "the Former Act") that was submitted pursuant to the provisions of that paragraph before July 1, 1967 is deemed, on and after that date, to be a statement of tax-exempt savings prescribed in Article 10, paragraph (3) of the New Act in which the maximum limitation prescribed in item (iv) of that paragraph is stated as one million yen.

The provisions of Article 57, paragraph (1) (excluding the part concerning the scope of relatives referred to in that paragraph) and paragraph (2) (Special Provisions on Necessary Expenses If There Are Relatives Working Exclusively in the Business, etc.) of the New Act apply to income tax for 1968 and subsequent years, and the provisions then in force continue to govern income tax for 1967 and earlier years.

The provisions of Article 67-2 (Timing for Attributing Revenue and Expenses of Small-Scale Business Operators) of the New Act apply to income tax for 1968 and subsequent years.

①With regard to a Resident's income tax for 1967, the tax prepayment calculation base prescribed in Article 104, paragraph (1) (Making Tax Prepayments) of the New Act (hereinafter referred to as the "tax prepayment calculation base") is to be, except in the case where the provisions of the following paragraph apply, the amount calculated by multiplying the amount set forth in item (i) by the rate set forth in item (ii):

②The tax prepayment calculation base for income tax for 1967 of a Resident whose taxable aggregate income and similar amount for 1966 is 20 million yen or more is to be the amount obtained by deducting 35,000 yen from the amount set forth in item (i) of the preceding paragraph for that person.

③The calculation of the tax prepayment calculation base for 1967 in the case where the provisions of Article 97, paragraph (1) (Amount of Tax If There Are Household Members Subject to Aggregation) of the Former Act were applied to income tax for 1966 is specified by Cabinet Order.

④The tax prepayment calculation base for a Nonresident's income tax for 1967 is as calculated in accordance with the provisions of the preceding three paragraphs.

With regard to the application of the provisions of Article 140, paragraph (1) (Claim to Be Issued a Refund Based on Carryback of Net Loss) or Article 141, paragraph (1) (Claim by an Heir to Be Issued a Refund Based on Carryback of Net Loss) of the New Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the New Act; the same applies hereinafter in this Article) in the case where there is a Net Loss in 1967, the amount of income tax that forms the basis for calculating a refund under those provisions is the amount of income tax calculated by applying the provisions of Article 3, paragraph (2) (Special Provisions on the Calculation of Income Deductions and Tax Amounts for Income Tax for 1966) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act (Act No. 31 of 1966) (including the provisions of Article 84, paragraph (2) (Averaging Taxation on Fluctuating Income and Ad Hoc Income) of the Income Tax Act as amended by that Act, as replaced pursuant to paragraph (1) of that Article).

The provisions of Article 150, paragraph (1), item (ii) (Rescission of Approval to File a Blue Return) of the New Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the New Act) apply in the case where a fact falling under the provisions of that item arises on or after the date on which this Act comes into effect (hereinafter referred to as "the Effective Date"), and the provisions then in force continue to govern the case where such a fact arose before that date.

The provisions of Article 169, item (iii) (Income Tax Base for Separate Taxation) and Article 213, paragraph (1), item (i) (Amount of Taxes Withheld from the Income of Nonresidents) of the New Act apply to prize money prescribed in those provisions that is to be paid on or after August 1, 1967, and the provisions then in force continue to govern such prize money that was to be paid before that date.

①The provisions of Part IV, Chapter II, Section 1 (Obligation to Withhold Taxes from Salary Income and Amount of Tax Collected) of the New Act and Appended Tables IV through VI of the New Act apply to salary or other wage prescribed in Article 183, paragraph (1) (Obligation to Withhold Taxes) of the New Act (hereinafter referred to as "salary or other wage" in this Article) that is to be paid on or after the Effective Date, and the provisions then in force continue to govern salary or other wage that was to be paid before that date.

②The provisions of Article 190 (Year-End Adjustment) and Article 191 (Refund of Amounts Overpaid) of the New Act as replaced pursuant to Article 3, paragraph (1) (Special Provisions on the Calculation of Income Deductions and Tax Amounts for Income Tax for 1967) of the Supplementary Provisions, and Appended Table V of the Supplementary Provisions and the attached table to that Table, apply in the case where, for salary or other wage to be paid in 1967, the day on which the last payment is made falls on or after the Effective Date, and the provisions then in force continue to govern the case where the day on which the last payment is made falls before the Effective Date.

The provisions of Article 201 (Amount of Tax Withheld from Retirement Income) of the New Act as replaced pursuant to Article 3, paragraph (1) (Special Provisions on the Calculation of Income Deductions and Tax Amounts for Income Tax for 1967) of the Supplementary Provisions, and Appended Table VI of the Supplementary Provisions and the table attached to Appended Table VIII of the New Act, apply to severance pay or other such compensation prescribed in Article 199 (Obligation to Withhold Taxes from Retirement Income) of the New Act (hereinafter referred to as "severance pay or other such compensation") that is to be paid in 1967 and is paid on or after the Effective Date, and the provisions then in force continue to govern severance pay or other such compensation to be paid in that year that was paid before that date.

①The provisions of Part IV, Chapter IV, Section 1 (Withholding on Remuneration, Fees, Contract Money, or Prize Money) of the New Act (excluding the parts concerning the remuneration of professional boxers set forth in Article 204, paragraph (1), item (iv) (Obligation to Withhold Taxes) of the New Act, the remuneration and fees set forth in item (vi) of that paragraph, and the horse racing prize money received by horse owners set forth in item (viii) of that paragraph) apply to remuneration or fees, contract money, or prize money referred to in that paragraph that is to be paid on or after August 1, 1967, and the provisions then in force continue to govern such remuneration or fees, contract money, or prize money that was to be paid before that date.

②The provisions of Part IV, Chapter IV, Section 1 of the New Act concerning the remuneration of professional boxers set forth in Article 204, paragraph (1), item (iv) of the New Act, the remuneration or fees set forth in item (vi) of that paragraph, or the horse racing prize money received by horse owners set forth in item (viii) of that paragraph apply to such remuneration or fees, or prize money, that is to be paid on or after January 1, 1968.