Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 189

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 10
Chunk 189
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 not be treated as qualified dividend income) or loss upon a conversion of the yen into U. S. dollars equal to the difference between the U. S. dollars that you receive in the conversion and the U. S. dollar amount that you included as dividend income.

Distributions in excess of current and accumulated earnings and profits, as determined for U. S. federal income tax purposes, will be treated as a non-taxable return of capital to the extent of your basis in the ADSs and thereafter as capital gain. However, we do not expect to calculate earnings and profits in accordance with U. S. federal income tax principles. Accordingly, you should expect to generally treat distributions we make as dividends.

Subject to certain limitations, the Japanese tax withheld in accordance with the Treaty and paid over to Japan will be creditable or deductible against your U. S. federal income tax liability. Special rules apply in determining the foreign tax credit limitation with respect to dividends that are subject to the preferential tax rates. To the extent a reduction or refund of the tax withheld is available to you under Japanese law or under the Treaty, the amount of tax withheld that could have been reduced or that is refundable will not be eligible for credit against your U. S. federal income tax liability.

Dividends will generally be income from sources outside the U. S. and will generally be “passive” income for purposes of computing the foreign tax credit allowable to you. However, if (a) we are 50% or more owned, by vote or value, by U. S. persons and (b) at least 10% of our earnings and profits are attributable to sources within the U. S., then for foreign tax credit purposes, a portion of our dividends would be treated as derived from sources within the U. S. With respect to any dividend paid for any taxable year, the U. S. source ratio of our dividends for foreign tax credit purposes would be equal to the portion of our earnings and profits from sources within the U. S. for such taxable year, divided by the total amount of our earnings and profits for such taxable year.

Distributions of additional shares to you with respect to ADSs that are made as part of a pro rata distribution to all of our shareholders generally will not be subject to U. S. federal income tax.

Sales or Dispositions

If you are a U. S. holder and you sell or otherwise dispose of your ADSs, you will recognize a capital gain or loss for U. S