Toyota Motor Corp. said Thursday a change in the corporate tax code will have no "major effect" on its earnings estimate for the last fiscal year.
The world's largest automaker reiterated its loss forecast of ¥350 billion for the year that ended on Tuesday in a statement. The firm was responding to a Nikkei newspaper report that said changes in the tax law may give it a windfall of ¥600 billion.
Japan this month began to exempt dividends earned by overseas units from taxation. The change would eliminate the need for Toyota and exporting rivals Honda Motor Co. and Nissan Motor Co. to keep reserves for these taxes.
Honda's net income forecast of ¥80 billion announced in January reflects the tax change, spokeswoman Tomoko Uchida said. Nissan spokeswoman Haruko Wada said the new tax rule has no effect on the carmaker's loss forecast of ¥265 billion.