Continuity of control requirement for minority squeeze-out transactions relaxed

Japan Inbound Tax & Legal Newsletter April 2019, No. 38

Japan issued the 2019 Tax Reform Act, along with enforcement orders and regulations, on 29 March 2019.

Most of the rules are effective for taxable years beginning on or after 1 April 2019 and several of the provisions likely will impact inbound M&A transactions in Japan. This article analyzes the new relaxation of the “continuity of control” requirement for certain minority squeeze-out (MSO) transactions (i.e. acquisition transactions in which the target’s minority shareholders are compelled to sell their shares for cash).

This newsletter explains the following topics;

1. Pre and Post-reform tax treatment
2. Common squeez-out scenario
(169KB, PDF)

* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.

Related Services


  • Global Tax

    Did you find this useful?