Thin capitalisation – diagrams

Thin capitalisation in Japan

This article consists of three diagrams which illustrate how the Japanese thin capitalisation regulations are applied. The first diagram illustrates the most straightforward application of the rules, the second illustrates the impact of a parent company guarantee on a Japanese subsidiary’s thin capitalisation position and the third shows efficient and in-efficient cross border funding structures for a holding company in Japan. Please also see the main page with posts to articles on thin capitalisation regulations.

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