Withholding Income Tax Burden and Financial Impact Arising from the National Tax Agency's Tax Position on Trust-Type Stock Options
First written in FY2023-Q3. 2 of 6 entries say "Mitigated", first in FY2024-Q2. Latest entry: 2026-03-17.
Speee moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
0 other companies' latest entry also says "Reframed".
- 2026-03-17ReframedStatutory disclosure document
「However, the Company believes that this interpretation is not appropriate as an interpretation of the tax laws and regulations and that it has no obligation to withhold tax at source.」
Regarding the burden of withholding income tax and other taxes associated with trust-type stock options, the explanation advanced from previously disclosed payment and recognition of related losses and completion of payment to the filing of a lawsuit against the government seeking a refund of erroneously paid withholding income tax and other amounts. - FY2025-H1MitigatedAnnual report
「Payment of losses related to trust-type stock options: △¥682.540 million —」
Payment of the ¥682.540 million in losses related to trust-type stock options recognized in the prior interim period had been completed, and the amount paid in the current interim period was stated as zero. - FY2024-Q2MitigatedAnnual report
「This was due to decreases of ¥990.182 million in accounts payable and ¥682.540 million in the provision for losses related to trust-type stock options. / Payment of losses related to trust-type stock options: ¥682.540 million」
The ¥682.540 million provision for losses related to trust-type stock options decreased, and the same amount of related losses was paid. The filing states that the provision recognized in the previous fiscal year was settled through payment, reducing the liability. - FY2024-Q1Decrease in the provision for losses related to trust-type stock optionsAnnual report
「Current liabilities at the end of the first quarter of the consolidated fiscal year were ¥3,331.754 million, a decrease of ¥1,587.987 million from the end of the previous consolidated fiscal fiscal year. This was mainly due to decreases of ¥968.589 million in accounts payable and ¥682.540 million in the provision for losses related to trust-type stock options.」
The ¥682.540 million provision for losses related to trust-type stock options recognized in FY2023 had decreased by the end of the first quarter. The filing does not explain the circumstances or whether the ultimate burden had been fully eliminated. - FY2023MaterialisedAnnual report
「After discussions and consultations with external experts regarding the trust-type stock options introduced by the company, the company decided to bear the withholding income tax and other related costs associated with the trust-type stock options under the Fifth Series of Share Acquisition Rights. As this would impose an additional burden not originally anticipated on officers and employees, the company decided to waive its right of recourse, taking into account its communications with officers and employees to date and the circumstances surrounding the introduction of the trust-type stock options. In the consolidated fiscal year, the company recognized a loss related to trust-type stock options of ¥1,847.710 million as an extraordinary loss.」
In FY2023, the company decided to bear the withholding income tax and other costs related to trust-type stock options and waive its right of recourse against officers and employees. As a result, it recognized a related loss of ¥1,847.710 million as an extraordinary loss. - FY2023-Q3First statedAnnual report
「On 30 May 2023, the National Tax Agency published "Taxation of Stock Options (Q&A)" and expressed the view that, because trust-type stock options are effectively treated as salary when officers and employees exercise rights granted by the company to acquire shares, the company must retrospectively withhold tax from officers and employees who have already exercised their rights. In the third quarter of the consolidated fiscal year, the company recognized ¥683.541 million, equivalent to the amount of withholding income tax payable, as accounts payable on the quarterly consolidated balance sheet, and recorded the corresponding receivable under other current assets. Following the National Tax Agency's view, the company is considering its response after discussions with internal and external experts. Depending on developments, this may affect the company's financial position and operating results.」
Following the National Tax Agency's view on trust-type stock options, the company recognized ¥683.541 million, equivalent to the withholding income tax payable, as accounts payable and recorded the corresponding receivable under other current assets. The company is considering its response, and the potential impact on its financial position and operating results has been disclosed.