Partial revision of the notice regarding the tax treatment of Carried Interest
The Financial Instruments and Exchange Act was amended to establish a new entry system regarding the investment management business with the updated procedures (notification) pertaining to Special Business for Foreign Investors, etc. and Special Business during Transition Period. Also, under the amendment to the Cabinet Office Ordinance on Definitions under Article 2 of the Financial Instruments and Exchange Act, a foreign investment manager who has difficulty in continuing its business in the foreign country can continue the business temporarily in Japan based on an approval by the commissioner of the FSA.
In response, the FSA, in consultation with the relevant authorities, has partially revised the notice regarding the tax treatment of Carried Interest (released on April 1, 2021) with respect to the definition of "Investment management business".[PDF(297KB)]
In addition, when fund managers receiving Carried Interest file their individual income tax returns, the following sheets should be enclosed:
1) Check sheets to ensure that the conditions for Carried Interest (described in the Notice) are satisfied[PDF(178KB)/
Word(151KB)]
2) Calculation sheets to describe the breakdown of income for Carried Interest (e.g., categories of income, and amounts of gross revenue/cost)[PDF(218KB)/
Word(90KB)]
Site Map
- Laws & RegulationsPage list Open
- Name of Laws and Regulations(PDF)
- Guidelines
- Financial Instruments and Exchange Act
- Recent Changes
- Public Comment
- Capital adequacy requirements (Basel framework)
- Economic value-based solvency regulation
- No-Action Letter System
- Procedures concerning Foreign Account Management Institutions
- PrinciplesPage list Open
- Strategic Directions and Priorities
- Progress and Assessment of the Strategic Directions and Priorities
- Policy Approaches to Strengthen Cyber Security in the Financial Sector
- Financial Monitoring Policy
- AnnouncementsPage list Open
- Press Conferences
- Press Releases
- Official Statements
- Speeches
- Disaster-related Information (Support for Disaster Victims)
- Others