(1) Where a domestic corporation survives a division (excluding a split-off), gains or losses accruing from the transfer of the assets of the divided business category to a corporation established through division, etc. (referring to the amount calculated by deducting the value under subparagraph 2 from the value under subparagraph 1; hereafter the same shall apply in this Article) shall be included in gross income or deductible expenses when the divided corporation calculates the amount of income for the business year which includes the registration date of the division:
1. Transfer value received by a divided corporation from a corporation established through division, etc.;
2. Net book value of assets as at the registration date of the division of the business category divided by a divided corporation.
(2) Article 46 (2) through (4) shall apply mutatis mutandis to the calculation of transfer gains or losses under paragraph (1). <Amended on Dec. 22, 2020>
(3) Articles 46-2, 46-3 and 46-4 shall apply mutatis mutandis to the taxation on a corporation established through division, etc.; provided, the losses of a divided corporation shall not be succeeded.[This Article Wholly Amended on Dec. 30, 2010]