This Act comes into effect on April 1, 2000.

①The provisions of Part I, Part II, Chapter II, and Part III, Chapters III through V (General Provisions, etc.) of the Corporation Tax Act after the amendment (hereinafter referred to as "the New Act") apply to corporation tax on retirement pension funds for business years of corporations ending on or after the date on which this Act comes into effect (hereinafter referred to as "the Effective Date").

②Except as otherwise provided in these Supplementary Provisions, the provisions of Part II, Chapter I, Section 1 and Article 142 (Tax Base and Calculation Thereof, etc.) of the New Act apply to corporation tax on income for business years of corporations (including associations or foundations without juridical personality prescribed in Article 2, item (viii) (Definitions) of the New Act; the same applies hereinafter) beginning on or after the Effective Date and to corporation tax on liquidation income arising from a dissolution or merger on or after the Effective Date (including corporation tax on income for a business year in liquidation of a corporation subject to corporation tax on liquidation income and corporation tax to be paid upon a partial distribution of residual assets; the same applies hereinafter in this Article), and with regard to corporation tax on income for business years of corporations that began before the Effective Date and corporation tax on liquidation income arising from a dissolution or merger before the Effective Date, the provisions then in force continue to govern.

①If a corporation concludes a contract for the transfer of securities in a business year before the business year of the amendment (meaning the business year beginning first on or after the Effective Date; the same applies hereinafter) and delivers those securities in a business year on or after the business year of the amendment, the capital gain or capital loss prescribed in Article 61-2, paragraph (1) (Inclusion of Capital Gains or Losses on Securities in Gross Profits or Deductible Expenses) of the New Act pertaining to that transfer is, notwithstanding the provisions of that paragraph, included in the amount of gross profit or the amount of deductible expenses for the business year containing the date of that delivery; provided, however, that this does not apply to a transfer for which the corporation concluded the contract in a business year before the business year of the amendment and included the amount equivalent to the capital gain or capital loss prescribed in that paragraph pertaining to that transfer in the amount of gross profit or the amount of deductible expenses for the business year containing the date on which it concluded the contract.

②With regard to the application of the provisions of Article 61-2, paragraph (1) of the New Act in the case where a corporation concludes a contract for the transfer of securities in each business year beginning during the period from the Effective Date to March 31, 2002 (for each business year after the business year of the amendment, limited to the case where the provisions of this paragraph have been applied in the business year immediately preceding that business year), the phrase "the date on which the contract was concluded" in that paragraph is deemed to be replaced with "the date on which the contract was concluded (if the domestic corporation has concluded a contract for the transfer of securities not for buying and selling prescribed in paragraph (1), item (ii) of the following Article and, with regard to the transfers under all of those contracts, includes the capital gain or capital loss pertaining to those transfers in the amount of gross profit or the amount of deductible expenses for the business year containing the date on which it delivered those securities not for buying and selling, the date on which it made that delivery, with regard to that capital gain or capital loss)".

If, before the date of the beginning of the business year of the amendment, a corporation has conducted derivative transactions, etc. prescribed in Article 61-6, paragraph (2) of the New Act in order to reduce the amount of a loss listed in the items of paragraph (1) of that Article (Deferment of Profit or Loss by Deferred Hedge Accounting) or the amount of a loss prescribed in Article 61-7, paragraph (1) (Recording of Profit or Loss by Market Value Hedge Accounting) of the New Act, and has not settled those derivative transactions, etc. by the day preceding that date, and on that date of beginning it holds assets or liabilities under paragraph (1), item (i) of that Article or securities not for buying and selling under Article 61-7, paragraph (1) of the New Act whose amount of loss it intends to reduce through those derivative transactions, etc. (hereinafter referred to as "hedged assets, etc." in this Article), or on or after that date it has a receipt or payment of an amount of monies under Article 61-6, paragraph (1), item (ii) of the New Act whose amount of loss it intends to reduce through those derivative transactions, etc. (hereinafter referred to as "hedged transactions" in this Article), then with regard to the application of the provisions of Articles 61-6 and 61-7 of the New Act to those derivative transactions, etc., hedged assets, etc. and hedged transactions, those derivative transactions, etc. are deemed to have been conducted on that date.

①The provisions of Article 61-8, paragraph (1) (Conversion of Transactions in a Foreign Currency) of the New Act apply to transactions in a foreign currency prescribed in that paragraph (referred to as "transactions in a foreign currency" in the following paragraph) that a corporation conducts on or after the date of the beginning of the business year of the amendment.

②The provisions of Article 61-8, paragraph (2) of the New Act apply to those transactions in a foreign currency that a corporation conducted before the date of the beginning of the business year of the amendment for which, on or after that date, it concluded a foreign exchange futures contract, etc. prescribed in that paragraph and thereby determined the amount in Japanese yen (meaning the amount in Japanese yen prescribed in paragraph (1) of that Article), and to transactions in a foreign currency that it conducts on or after that date.

Beyond what is provided for in Article 2 of the Supplementary Provisions through the preceding Article, matters necessary for the enforcement of the provisions of Part II, Chapter I, Section 1 and Article 142 (Tax Base and Calculation Thereof, etc.) of the New Act are specified by Cabinet Order.