①With regard to the application of the provisions of Article 57, paragraph (1) (Carryover of Losses) to the net operating loss that arose in a business year that is not a business year for which a Blue Return is filed, out of the business years starting within ten years prior to the first day of each business year of a domestic corporation, the portion of the net operating loss exceeding the amount of loss specified by Cabinet Order that arose with regard to inventory, Fixed Assets or deferred assets specified by Cabinet Order due to an earthquake, storm, flood, fire or any other disaster specified by Cabinet Order (referred to as the "amount of loss caused by a disaster" in the following paragraph and paragraph (3)) is deemed not to exist.

②With regard to the application of the provisions of Article 57, paragraph (1) to the net operating loss that arose in a business year that is not a business year for which a Blue Return is filed, out of the business years starting within ten years prior to the first day of each business year of a domestic corporation, the provisions of paragraphs (3) and (4) of that Article and the preceding Article do not apply to the portion of the net operating loss up to the amount of loss caused by a disaster.

③In the case where there is no attachment of a document stating the details of the calculation of the amount of loss caused by a disaster to the Final Return, amended return or written request for Reassessment for the business year in which the net operating loss arose, the provisions of the preceding two paragraphs apply by deeming that there is no amount of loss caused by a disaster for that business year.

④Necessary matters concerning the application of the provisions of the preceding three paragraphs are specified by Cabinet Order.