This Act comes into effect on April 1, 2003; provided, however, that the provisions set forth in the following items come into effect on the dates specified in those items:

Unless otherwise provided for in these Supplementary Provisions, the provisions of the New Corporation Tax Act apply to corporation tax on income for a business year of a corporation (including an association or foundation without juridical personality prescribed in Article 2, item (viii) of the New Corporation Tax Act; the same applies hereinafter up to Article 14 of the Supplementary Provisions) beginning on or after the Effective Date (excluding each business year within the period of the business year subject to the transitional measures prescribed in Article 3, paragraph (1) of the Supplementary Provisions of the 2002 Amendment Act (limited to the period intended to be the first consolidated business year prescribed in that paragraph; hereinafter referred to as the "business year subject to the transitional measures") of a domestic corporation prescribed in Article 3, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. (Act No. 79 of 2002; referred to as the "2002 Amendment Act" in this Article) that receives the approval referred to in Article 4-2 of the Corporation Tax Act prior to the amendment by the provisions of Article 2 (hereinafter referred to as the "Former Corporation Tax Act") upon receiving the application of the provisions of that paragraph (referred to as a "parent corporation under the transitional measures" in this Article), of an other domestic corporation prescribed in Article 3, paragraph (3) of the Supplementary Provisions of the 2002 Amendment Act that receives the approval referred to in Article 4-2 of the Former Corporation Tax Act upon receiving the application of the provisions of that paragraph (hereinafter referred to as a "subsidiary corporation under the transitional measures"), and of an other domestic corporation prescribed in Article 4-2 of the Former Corporation Tax Act that has come to have a full controlling interest prescribed in that Article with the parent corporation under the transitional measures in the first consolidated parent corporation business year (meaning a consolidated parent corporation business year prescribed in Article 15-2, paragraph (1) of the Former Corporation Tax Act) for which corporation tax on consolidated income for each consolidated business year of the parent corporation under the transitional measures is imposed (hereinafter referred to as a "corporation joining during the transitional period")), to corporation tax on consolidated income for a consolidated business year of a consolidated corporation beginning on or after the Effective Date (excluding a consolidated business year within the period of the business year subject to the transitional measures of a parent corporation under the transitional measures, a subsidiary corporation under the transitional measures or a corporation joining during the transitional period), to corporation tax on income for a calculation period beginning on or after the Effective Date of a corporation that is the trustee of a specified trust, and to corporation tax on liquidation income resulting from a dissolution (excluding a dissolution due to a merger; the same applies hereinafter in this Article) of a corporation on or after the Effective Date (including corporation tax pertaining to income for a business year during 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 a business year of a corporation that began before the Effective Date and for each business year within the period of the business year subject to the transitional measures of a parent corporation under the transitional measures, a subsidiary corporation under the transitional measures or a corporation joining during the transitional period, corporation tax on consolidated income for a consolidated business year of a consolidated corporation that began before the Effective Date and for a consolidated business year within the period of the business year subject to the transitional measures of a parent corporation under the transitional measures, a subsidiary corporation under the transitional measures or a corporation joining during the transitional period, corporation tax on income for a calculation period of a corporation that is the trustee of a specified trust that began before the Effective Date, and corporation tax on liquidation income resulting from a dissolution of a corporation before the Effective Date, the provisions then in force continue to govern.

The provisions of Article 2, item (xii)-8, (b), item (xii)-11, (b) and item (xii)-14, (b) of the New Corporation Tax Act apply to a merger, company split or capital contribution in kind carried out by a corporation on or after the Effective Date, and with regard to a merger, company split or capital contribution in kind carried out by a corporation before the Effective Date, the provisions then in force continue to govern.

With regard to Fixed Assets set forth in Article 42, paragraph (2), item (ii) of the Former Corporation Tax Act acquired by a corporation before the date specified in Article 1, item (iv) of the Supplementary Provisions, the provisions then in force continue to govern.

①The provisions of Article 57, paragraph (9) and Article 58, paragraph (4) of the New Corporation Tax Act apply to the net operating loss in the business year that includes the day before the date of a company split by split-off or merger in the case where a corporation carries out, on or after the Effective Date, the company split by split-off or merger in which the corporation is the splitting corporation or acquired corporation, and with regard to the net operating loss in the business year that includes the day before the date of a company split by split-off or merger in the case where a corporation carried out, before the Effective Date, the company split by split-off or merger in which the corporation was the splitting corporation or acquired corporation, the provisions then in force continue to govern.

②In the case where a subsidiary corporation under the transitional measures or a corporation joining during the transitional period (referred to as a "subsidiary corporation, etc. under the transitional measures" in this paragraph and Article 13, paragraph (2) of the Supplementary Provisions) has carried out, in the business year subject to the transitional measures (or, for the business year subject to the transitional measures that includes the Effective Date, in the period from the Effective Date to the last day of that business year subject to the transitional measures), a company split by split-off in which the subsidiary corporation, etc. under the transitional measures is the splitting corporation, for the purpose of applying the provisions of Article 57, paragraph (9), item (i) of the New Corporation Tax Act in the business year of the subsidiary corporation, etc. under the transitional measures that includes the day before the date of the company split by split-off, the phrase "consolidated parent corporation business year" in (a) of that item is deemed to be replaced with "first consolidated business year".

The provisions of Article 80, paragraph (1) of the New Corporation Tax Act (including as applied mutatis mutandis pursuant to paragraph (4) of that Article) apply to the net operating loss incurred in the business year that includes the day before the date of a company split by split-off or merger in the case where a corporation carries out, on or after the Effective Date, the company split by split-off or merger in which the corporation is the splitting corporation or acquired corporation, and with regard to the net operating loss incurred in the business year that includes the day before the date of a company split by split-off or merger in the case where a corporation carried out, before the Effective Date, the company split by split-off or merger in which the corporation was the splitting corporation or acquired corporation, the provisions then in force continue to govern.

①The provisions of Article 81-9 of the New Corporation Tax Act apply to corporation tax on consolidated income for a consolidated business year of a consolidated corporation ending on or after March 31, 2003.

②In the case where a subsidiary corporation, etc. under the transitional measures has carried out, in the business year subject to the transitional measures, a company split by split-off in which the subsidiary corporation, etc. under the transitional measures is the splitting corporation, for the purpose of applying the provisions of Article 81-9, paragraph (3) of the New Corporation Tax Act in the consolidated business year of the subsidiary corporation, etc. under the transitional measures that includes the date of the company split by split-off, the phrase "and the consolidated corporation" is deemed to be replaced with ", one carried out on the first day of the first consolidated business year of the consolidated corporation, and the consolidated corporation".

The provisions of Article 132, paragraph (1), item (ii), (c) of the New Corporation Tax Act apply to acts or calculations carried out by a corporation on or after the Effective Date, and with regard to acts or calculations carried out by a corporation before the Effective Date, the provisions then in force continue to govern.

Beyond what is provided for in Article 2 through the preceding Article of the Supplementary Provisions, the transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.

The provisions of Article 5 of the Supplementary Provisions of the Act Partially Amending the Corporation Tax Act, etc. as amended by the provisions of the preceding Article apply to corporation tax on income for a business year of a corporation beginning on or after the Effective Date, and with regard to corporation tax on income for a business year of a corporation that began before the Effective Date, the provisions then in force continue to govern.