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

①Article 20-2 (Nontaxable Commutation Allowances) of the New Order applies to the commutation allowances prescribed in that Article receivable on or after January 1, 1998 (excluding those additionally paid as the difference of those commutation allowances received before that date), and for the commutation allowances prescribed in that Article receivable before that date (including those receivable on or after that date that are additionally paid as the difference of those commutation allowances received before that date), the provisions then in force continue to govern.

②With regard to the application of the provisions of Part IV, Chapter II, Section 1 (Obligation to Withhold Taxes on Salary Income and Amount of Tax Collected) of the Income Tax Act to the commutation allowances referred to in the preceding paragraph that are receivable on or after January 1, 1998 and were received before the date of enforcement of this Cabinet Order (hereinafter referred to as the "Effective Date"), notwithstanding Article 20-2 of the New Order and the preceding paragraph, the provisions then in force continue to govern.