Japanese
 Financial Services Agency

Business Reports on a Special Provision for Deductibility in Performance-based Compensation

In the tax reform of fiscal 2021, a special provision was established to allow an unlisted, non-family company, including a wholly-owned subsidiary of a listed company, which mainly opertes asset management businesses to deduct its performance-based compensation with a number of conditions, including where the calculation methods are described in its business reports filed under the Financial Instruments and Exchange Act (FIEA) and disclosed publicly through the JFSA website. (click here for an overview.)

   For those who would like to post a business report on the JFSA website stating the calculation methods for performance-based compensation in order to receive the application of the special provision, please submit a PDF of your business report to “businessreport★fsa. go.jp” (Note: please replace the ★ symbol with the @ symbol) with the following information in the body of the email: the corporate name, name of the person in charge (department, position), contact information (address, phone number and e-mail address) and the number of the page in the business report that describes the calculation methods for performance-based compensation.

   Please note that if the information in the PDF above differs from the business report submitted to the Securities Business Division of the Supervisory Bureau or the Local Finance Bureaus, it may constitute a false statement in a business report under Article 198 (6) of the FIEA.