What this is
Japan's rule on how much of a dividend received by one company from another is exempt from corporate tax, by size of holding: wholly owned subsidiaries 100%; holdings above one-third 100%; other holdings 50%; holdings of 5% or less 20%.
How it’s built
- From the National Tax Agency's explanatory note on the 2015 tax reform, covering Article 23 of the Corporation Tax Act.
- The one-third test counts issued shares excluding the issuer's own treasury shares, held throughout the period.
What we assumed
- Nintendo's 32% stake in The Pokémon Company falls in the 'other holdings' band.32% is below one-third, so half of any dividend from TPC would be taxable for Nintendo.
Sanity check
On a full payout of TPC's ¥413.9bn retained earnings, Nintendo's 32% is ¥132.5bn; half of that taxed at about 30.6% is about ¥20bn.
The values
- 完全子法人株式等: 100% exclusion
- その他の株式等: 50% exclusion
- 非支配目的株式等 (≤5%): 20% exclusion
Some detail is too fine to show here; it is kept in the trainer’s notes.
Where it comes from
The line in the source
イ 完全子法人株式等 100％ ロ 関連法人株式等 100％ ハ その他の株式等 50％ ニ 非支配目的株式等 20％ … 内国法人が他の内国法人の発行済株式又は出資（当該他の内国法人が有する自己の株式等を除く。）の総数又は総額の３分の１を超える数又は金額の株式又は出資を…引き続き有している場合におけるその株式等（法23⑥、令22の3①） Where it’s used
Related figures
Built from this one