Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 188

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 10
Chunk 188
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Distributions

Under U. S. federal income tax laws, if you are a U. S. holder, the gross amount of any distribution we pay out of our current or accumulated earnings and profits (as determined for U. S. federal income tax purposes), other than certain pro-rata distributions of our shares, will be treated as a dividend that is subject to U. S. federal income taxation. If you are a non-corporate U. S. holder, dividends that constitute qualified dividend income will be taxable to you at the preferential rates applicable to long-term capital gains provided that you hold the ADSs for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and meet other holding period requirements. Dividends that we distribute with respect to the ADSs will be qualified dividend income if the ADSs are readily tradable on an established securities market in the U. S. in the year that we distribute the dividend. Our ADSs are listed on the NYSE which is considered an established securities market in the U. S. We therefore expect that dividends that we distribute on our ADSs will be qualified dividend income, provided that you satisfy the aforementioned holding period requirements.

You must include any Japanese tax withheld from the dividend payment in this gross amount even though you do not in fact receive it. The dividend is taxable to you when the depositary receives the dividend, actually or constructively. The dividend will not be eligible for the dividends-received deduction generally allowed to U. S. corporations in respect of dividends received from other U. S. corporations. The amount of the dividend distribution that you must include in income will be the U. S. dollar value of the yen payments made, determined at the spot yen/U. S. dollar rate on the date the dividend is distributed, even if the depositary (a) converts the yen into U. S. dollars at a different rate or (b) does not convert the dividend payment into U. S. dollars. If the depositary converts the yen into U. S. dollars at a different rate, then you will recognize U. S. source ordinary income (that would not be treated as qualified dividends) or loss equal to the difference between the U. S. dollars that you receive and the U. S. dollar amount that you included as dividend income. If the depositary does not convert the dividend payment into U. S. dollars, then you will recognize U. S. source ordinary income (that would