028 Revision of Controlled Foreign Companies law accompanied
According to Tax Reform in 2009, dividends and such
received from foreign subsidiaries which were included in
gross revenue get excluded from gross revenue. Along with
this change, Controlled Foreign Companies law has been
revised. The amount of dividends and such is added up in
Japanese parent companies whether or not there are
dividends paid by specific foreign subsidiaries such as those
founded in tax havens. When Japanese parent companies
receive dividends from dividends and such which are subject
to being added up, these dividends are excluded from gross
revenue in principle. In this case, the amount excluded from
gross revenue is not a 95% of dividends, but all of them.
