Supplementary Provisions, Article 3Transitional Measures Concerning Commutation Allowances Treated as Nontaxable

①The provisions of Article 20-2 (Commutation Allowance Treated as Nontaxable) of the New Order apply to the commutation allowance prescribed in that Article that is to be received on or after January 1, 1989 (excluding any such commutation allowance that is paid additionally as the difference in the commutation allowance received before that day), and the provisions then in force continue to govern the commutation allowance prescribed in that Article that is to be received before that day (including any such commutation allowance that is to be received on or after that day and is paid additionally as the difference in the commutation allowance received before that day).

②With regard to the application of the provisions of Part IV, Chapter II, Section 1 (Obligation to Withhold Taxes on Salary Income or Tax Amount Collected) of the Income Tax Act to a commutation allowance referred to in the preceding paragraph that is to be received on or after January 1, 1989 and that was received before the day of enforcement of this Cabinet Order (hereinafter referred to as the "Effective Date"), the provisions then in force continue to govern, notwithstanding Article 20-2 of the New Order and the preceding paragraph.