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Tax Info at a Glance

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Subject
TransferIncomeTax    Valuation method for unlisted shares in the case of a merger during the taxable period,
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Date
2023-08-30
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Hello,
I am planning to conduct a valuation of unlisted stocks as of the end of December 2022. We underwent a merger in 2021, and I'm curious about how to calculate the net profit per share during that time.
Answer
In the case of a valuation during a business year with a merger, when calculating the "weighted average net profit per share for the past 3 years per share," if the merger occurred during the recent 3-year period or the taxable period, the net profit per share for each business year or taxable period before the merger is determined by dividing the total net profit of the merging corporation and the merged corporation by the total number of issued shares after the merger.
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