Archive for July 28th, 2010

Dividends and short term share holdings

July 28, 2010  |  Dividend Taxation, Domestic  |  No Comments

Center Gai, a main shopping street in Shibuya

In order to apply the Japanese Dividends Received Deduction (‘DRD’) a holding period requirement (the ‘Holding Criteria’) has to be met relating to the shares on which the dividend concerned is paid (below, relating to the ‘Shares’).   The Holding Criteria is an anti-avoidance measure intended to prevent companies buying shares shortly before a dividend is due, Read More

Deemed dividends – calculation

July 28, 2010  |  Dividend Taxation  |  No Comments

Sapporo station in the snow, Hokkaido

This post gives an example of the calculation of the amount of a Deemed Dividend for Japanese DRD purposes in a merger. You can find at this post an explanation of the Deemed Dividends concept, including the basic formulae for their calculation.   This post explains Tax Based Capital, which is an important concept Read More