①When a domestic corporation has transferred its assets or liabilities to a succeeding corporation in a company split, as a result of a qualified company split by spin-off, the amount of income of the domestic corporation for each business year is calculated by deeming that the domestic corporation has transferred the assets and liabilities to the succeeding corporation in a company split at their book value as of immediately prior to the qualified company split by spin-off, notwithstanding the provisions of Article 62, paragraph (1) (Transfer of Assets at Fair Value as a Result of Merger and Company Split).

②The acquisition cost of the assets and liabilities of a succeeding corporation in a company split and other necessary matters concerning the application of the provisions of the preceding paragraph are specified by Cabinet Order.