Of the expenses borne by local government employees on the basis of the system prescribed in Article 8, paragraph (8), item (viii) (Meaning of Social Insurance Premiums) of the Former Act (excluding those deducted from the overseas service allowance listed in Article 9, paragraph (1), item (vii) (Nontaxation of Overseas Service Allowance) of the Act), those paid, or deducted from salary, during the period from January 1, 1965 to June 30, 1971 are, notwithstanding the provisions of Article 208 (Scope of Social Insurance Premiums) of the New Order, to be included in the social insurance premiums prescribed in Article 74, paragraph (2) (Social Insurance Premium Deduction) of the Act.

In applying the provisions of Article 224, paragraphs (1) through (3) (Maximum Carry-Over Credit, etc.) or Article 225 (Foreign Income Tax Carried Over, etc.) of the New Order, the unused portion within the maximum creditable amount for national tax, the unused portion within the maximum creditable amount for local taxes, or the amount exceeding the credit limit prescribed in Article 12-31, items (iv) through (vi) (Meaning of Terms Concerning Foreign Tax Credit) of the Former Order for each year up to and including 1964 are deemed to be, respectively, the unused portion within the maximum creditable amount for national tax, the unused portion within the maximum creditable amount for local taxes, or the amount exceeding the credit limit prescribed in Article 224, paragraphs (4) through (6) of the New Order for each of those years. In this case, of those amounts, the amounts deemed not to exist pursuant to Article 12-33, paragraph (4) (Calculation of Amounts to Be Added to the Maximum Foreign Tax Credit for National Tax, etc.) or Article 13, paragraph (3) or (4) (Calculation of Amounts of Foreign Income Tax Carried Over for Deduction) of the Former Order are deemed to be amounts deemed not to exist pursuant to Article 224, paragraph (3) or Article 225, paragraph (3) or (4) of the New Order, respectively.

Where the provisions of Article 11-3 (Calculation of Income, etc. Where a Household Member Has Asset Income) of the Former Act were applied to income tax for 1964, the tax prepayment calculation base for 1965 of the principal income earner and household member prescribed in paragraph (1) of that Article, as prescribed in Article 104, paragraph (1) (Making Tax Prepayments) of the Act (hereinafter in this Article referred to as the "tax prepayment calculation base"), is to be calculated, in accordance with Article 11-3 of the Former Act, Article 18-2 (Calculation of Tax Amount in the Case of Aggregate Taxation of Asset Income) of the Former Order and other methods of calculating the amount of income tax under the provisions of the Former Act and the Former Order, on the basis of the amount calculated pursuant to the provisions of Article 14, paragraphs (1) through (3) of the Supplementary Provisions (Special Provisions on Calculation of the tax prepayment calculation base for 1965) of the Act, read with the terms replaced.

In applying the provisions of Article 272, paragraph (2) (Refund by Carryback of Net Loss) of the New Order, where the provisions of Article 36 (Refund by Carryback of Net Loss) of the Former Act have already been applied to the income tax for the year before the preceding year prescribed in the latter part of that paragraph, the amount obtained by deducting the Net Loss pertaining to that application from the amounts equivalent to the taxable gross income, taxable retirement income and taxable timber income for the year before the preceding year prescribed in the latter part of that paragraph is deemed to be that taxable gross income, taxable retirement income and taxable timber income, and the amount obtained by deducting the amount refunded through that application from the amount equivalent to the amount of income tax for the year before the preceding year prescribed in the latter part of that paragraph is deemed to be that amount of income tax.

①With respect to income tax for 1965 and earlier years of an individual who is deemed to have received the approval under Article 143 (Blue Returns) of the Act (including as applied mutatis mutandis pursuant to Article 166 (Application Mutatis Mutandis to Nonresidents) of the Act) pursuant to Article 3 of the Supplementary Provisions (Effect of Dispositions or Procedures Based on the Provisions of the Former Act) of the Act, the provisions of the Act are applied on the basis that that approval is deemed to have been given only for the income pertaining to the approval under Article 26-3, paragraph (1) (Blue Returns) of the Former Act.

②With respect to income tax for 1965 of an individual who submitted the written application under Article 26-3, paragraph (4) of the Former Act before the Effective Date and received the approval of the district director for that application, the provisions of the Act are applied on the basis that that approval is deemed to have been given only for the income pertaining to that application.

With respect to income tax for 1965, income tax for which the provisions then in force continue to govern pursuant to Articles 24 through 28 of the Supplementary Provisions (Transitional Provisions Concerning Withholding) of the Act is deemed to be income tax pertaining to collection under the provisions of Part IV, Chapters I through V (Withholding) of the Act, respectively.

①Among salaries that are calculated by the day or hours worked and paid for each day worked and that do not fall under the provisions of Article 309 (Meaning of Salary or Other Wage Paid on a Daily Basis) of the New Order, those paid during the period from the Effective Date to May 31, 1965 are, notwithstanding the provisions of that Article, to be included in the salary or other wage listed in Article 185, paragraph (1), item (iii) (Amount Withheld from a Salary or Other Wage Other Than a Bonus) of the Act.

②The provisions of Article 181, paragraph (2) (Cases Where Payment of Dividends, etc. Is Deemed to Have Been Made) and Article 183, paragraph (2) (Cases Where Payment of Bonuses Is Deemed to Have Been Made) of the Act, as applied mutatis mutandis pursuant to Article 212, paragraph (4) (Obligation to Withhold Taxes on the Income of Nonresidents or Corporations) of the Act, also apply to the dividends and similar income and bonuses prescribed in those provisions for which payment was determined before the Effective Date and which have not yet been paid as of that date. In this case, the phrase "the day on which payment was determined" in those provisions is deemed to be replaced with "April 1, 1965".

The laws and regulations specified by Cabinet Order as prescribed in Article 36 of the Supplementary Provisions (Special Provisions for Central Unions of Agricultural Co-operatives) of the Act are the Act, the Act on Special Measures Concerning Taxation and other laws and regulations pertaining to income tax.