①The provisions of Article 10 of the New Income Tax Act apply to Deposits and Savings, Jointly Managed Trusts, or Securities prescribed in Article 10, paragraph (1) of the New Income Tax Act that an individual who has a domicile in Japan and who is an elderly person or similar person deposits, places in trust, or purchases (hereinafter referred to as "placement" in this Article) on or after April 1, 1988 (or, for ordinary deposits or anything else specified by Cabinet Order as being similar thereto (hereinafter referred to as "ordinary deposits and similar deposits" in this Article), the date specified by Cabinet Order; the same applies in paragraph (4)).

②The provisions then in force continue to govern the following interest or distributions of proceeds from Deposits and Savings, Jointly Managed Trusts, or Securities prescribed in Article 10, paragraph (1) of the Former Income Tax Act (hereinafter referred to as "deposits and similar savings" in this Article):

③If an individual who has a domicile in Japan and who falls under the category of an elderly person or similar person as of April 1, 1988 holds deposits and similar savings (excluding ordinary deposits and similar deposits) for which the individual made a placement before that date and which, on the day before that date, satisfy the requirements prescribed in Article 10 of the Former Income Tax Act, and, during the period from April 1, 1988 to the day on which the individual, on or after that date, first receives payment of interest or distributions of proceeds on those deposits and similar savings (limited to those to be received on or after that date) (or to March 31, 1989, if that day is after March 31, 1989, or, if on or after April 1, 1988 and before either of these days the individual makes a placement of Deposits and Savings, a Jointly Managed Trust, or Securities for which the individual seeks to apply the provisions of Article 10, paragraph (1) of the New Income Tax Act at the business office of a financial institution or other such place prescribed in that paragraph, to the day on which the individual first makes such a placement), submits the statement of tax-exempt savings prescribed in Article 10, paragraph (3) of the New Income Tax Act to the district director prescribed in that paragraph via the business office of the financial institution or other such place, and the application to exempt savings from taxation prescribed in paragraph (1) of that Article relating to those deposits and similar savings to the business office of the financial institution or other such place, respectively, and, at the time of that submission, presents the documents prescribed in paragraph (5) of that Article, gives notice in a manner equivalent to that provided for in that paragraph, and receives a seal of verification (if those deposits and similar savings are a Loan Trust relating to bearer beneficiary certificates prescribed in paragraph (1), item (ii) of that Article or Securities prescribed in item (iii) of that paragraph, this is limited to when the entrustment of custody or the registration prescribed in those provisions is made at the time of that submission), then, with respect to that interest or those distributions of proceeds, the provisions of that Article apply by deeming those deposits and similar savings to have been placed at the business office of the financial institution or other such place on April 1, 1988, deeming that statement and that application to have been submitted on that date, and deeming that entrustment of custody or registration to have been made on that date, respectively.

④Beyond what is provided for in the preceding three paragraphs, matters necessary for the application of the provisions of Article 10 of the New Income Tax Act and the preceding three paragraphs with respect to deposits and similar savings for which a placement was made before April 1, 1988 are specified by Cabinet Order.

①The provisions of Article 11 of the New Income Tax Act apply to interest or distributions of proceeds from public and corporate bonds or similar instruments prescribed in paragraph (1) or (2), or paragraph (3) of that Article which a Domestic Corporation or Foreign Corporation, or a charitable trust, prescribed in those provisions is to receive on or after April 1, 1988, and the provisions then in force continue to govern interest and similar income or domestic source income, or income, prescribed in Article 11, paragraph (1) or (2), or paragraph (3) of the Former Income Tax Act which that Domestic Corporation or Foreign Corporation, or that charitable trust, is to receive before that date.

②Notwithstanding the provisions of the preceding paragraph, the provisions then in force continue to govern the part of interest or distributions of proceeds from public and corporate bonds or similar instruments prescribed in Article 11, paragraphs (1) through (3) of the New Income Tax Act which a Domestic Corporation or Foreign Corporation, or a charitable trust, prescribed in the preceding paragraph is to receive on or after April 1, 1988 and which correspond to a calculation period for interest or distributions of proceeds from those public and corporate bonds or similar instruments that includes that date, that is equivalent to the amount calculated pursuant to Cabinet Order as the amount of the interest or distributions of proceeds corresponding to the period from the first day of that calculation period to March 31, 1988.

The provisions of Article 28, paragraph (1), Article 31, Article 35, paragraphs (2) through (5), Article 37, paragraph (1), and Article 120, paragraph (3), item (iii) of the New Income Tax Act apply to income tax for tax year 1988 and subsequent tax years, and the provisions then in force continue to govern income tax for tax year 1987 and prior tax years.

The provisions of Article 57-2 of the New Income Tax Act apply to income tax for tax year 1988 and subsequent tax years.

The provisions of Article 73, paragraph (1) of the New Income Tax Act apply to income tax for tax year 1988 and subsequent tax years, and the provisions then in force continue to govern income tax for tax year 1987 and prior tax years.

The provisions of Article 78, paragraph (3) of the New Income Tax Act apply to money prescribed in that paragraph which an individual expends on or after October 1, 1987.

The provisions of Article 80, paragraph (1) of the New Income Tax Act apply to income tax for tax year 1988 and subsequent tax years, and the provisions then in force continue to govern income tax for tax year 1987 and prior tax years.

With regard to the application of the provisions of Article 83-2 of the New Income Tax Act to income tax for tax year 1987, the term "165,000 yen" in paragraph (1) of that Article is deemed to be replaced with "112,500 yen", the term "16.5/33" in that paragraph with "11.25/33", and the term "16.5/33" in paragraph (2) of that Article with "11.25/33".

With regard to the application of the provisions of Article 140, paragraph (1) or Article 141, paragraph (1) of the New Income Tax Act (including as applied mutatis mutandis pursuant to Article 166 of the New Income Tax Act) if there is a Net Loss for 1987, the amount of income tax that forms the basis for calculating the refund under those provisions is the amount of income tax calculated by applying the provisions of Part II, Chapter III, Section 1 of the Former Income Tax Act.

①The provisions of Article 161, items (i), (xi), and (xii), Article 162, Article 164, and Article 170 of the New Income Tax Act apply to domestic source income set forth in Article 161 of the New Income Tax Act which is to be received on or after April 1, 1988 (or, for ordinary deposits or anything else specified by Cabinet Order as being similar thereto (referred to as "ordinary deposits and similar deposits" in the following paragraph), the date specified by Cabinet Order; hereinafter the same applies in this paragraph), and the provisions then in force continue to govern such domestic source income which is to be received before April 1, 1988.

②Notwithstanding the provisions of the preceding paragraph, the provisions then in force continue to govern, among interest and similar income set forth in Article 161, item (iv) of the New Income Tax Act (excluding that relating to ordinary deposits and similar deposits; hereinafter referred to as "interest and similar income" in this paragraph) which a Nonresident is to receive on or after April 1, 1988 and which corresponds to a calculation period for interest and similar income that includes that date, the part of the interest and similar income equivalent to the amount calculated pursuant to Cabinet Order as the amount corresponding to the period from the first day of that calculation period to March 31, 1988.

③Notwithstanding the provisions of paragraph (1), the provisions then in force continue to govern, among compensation for periodic deposits, finance charges, profits, or margin profits set forth in Article 161, item (xi) of the New Income Tax Act (hereinafter referred to as "compensation for periodic deposits or similar amounts" in this paragraph) which a Nonresident is to receive on or after April 1, 1988 and which correspond to a period specified by Cabinet Order as the calculation period for compensation for periodic deposits or similar amounts that includes that date, the part of the compensation for periodic deposits or similar amounts equivalent to the amount calculated pursuant to Cabinet Order as the amount corresponding to the period from the first day of that period to March 31, 1988.

①The provisions of Part IV, Chapter I of the New Income Tax Act apply to interest and similar income prescribed in Article 181, paragraph (1) of the New Income Tax Act which is to be paid on or after April 1, 1988 (or, for ordinary deposits or anything else specified by Cabinet Order as being similar thereto (referred to as "ordinary deposits and similar deposits" in the following paragraph), the date specified by Cabinet Order; hereinafter the same applies in this paragraph), and the provisions then in force continue to govern interest and similar income prescribed in Article 181, paragraph (1) of the Former Income Tax Act which is to be paid before April 1, 1988.

②Notwithstanding the provisions of the preceding paragraph, the provisions then in force continue to govern, among interest and similar income prescribed in the preceding paragraph (excluding that relating to ordinary deposits and similar deposits; hereinafter referred to as "interest and similar income" in this paragraph) which is to be paid on or after April 1, 1988 and which corresponds to a calculation period for interest and similar income that includes that date, the part of the interest and similar income equivalent to the amount calculated pursuant to Cabinet Order as the amount corresponding to the period from the first day of that calculation period to March 31, 1988.

①The provisions of Part IV, Chapter II, Section 1 of the New Income Tax Act and Appended Tables IV through VI of the New Income Tax Act apply to salary or other wages prescribed in Article 183, paragraph (1) of the New Income Tax Act (hereinafter referred to as "salary or other wages" in this Article) which are to be paid on or after October 1, 1987, and the provisions then in force continue to govern salary or other wages which are to be paid before that date.

②The provisions of Article 190 of the New Income Tax Act, and Appended Table VII of the New Income Tax Act and the attached table to that Table, apply to salary or other wages which are to be paid during 1987 and for which the last day of payment is on or after October 1, 1987, and the provisions then in force continue to govern those for which the last day of payment is before October 1, 1987. In such a case, with regard to the application of Appended Table VII of the New Income Tax Act, the term "500,000 yen" in Note (2) of that Table is deemed to be replaced with "250,000 yen".