Corporate tax, inheritance tax, and income tax have been set so that businesses and people who have been engaged in the asset management business overseas can easily conduct similar business in Japan.
|Corporate tax / For Asset management firms||30％
Performance-based compensation of directors
Private companies：not deductible
|Inheritance tax / For heirs of foreign residents in Japan||0-55％
Living in Japan over 10 years：worldwide assets
Living less than 10 years：tax on only assets in Japan
|Income tax / For fund managers||0-55％
Carried interests - distribution allocated returns in excess of their capital contribution ratio
→ Unclear if it is a capital gain or not
|A private, non-family company including a 100% subsidiary of a listed company which mainly operates asset management business should be able 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 and disclosed publicly through the JFSA website. (Sequentially applied after relevant law enters into force in 2021 November, expected)|
|Assets outside of Japan that a foreign national who entered Japan with a valid working visa holds should be exempt from Japanese inheritance tax regardless of their years of residence in Japan when the heir receives the assets as a non-resident. (2021 April 1st)|
|When a profit distribution of a carried interest has an economic rationality, that profit should be taxed as a capital gains tax (20%).
(2021 April 1st, )
This creates a prime opportunity to consider setting up a company in Japan.
A measure that exempts interest on the margin deposits that foreign financial institutions have deposited with domestic financial institutions from taxation for over-the-counter derivatives transactions conducted between financial institutions.
Measures to make the difference in repo transactions received by foreign financial institutions, etc. from Japanese financial institutions, etc. non-taxable in relation to cross-border bond repurchase agreements (repo transactions).
In order to enable investment by Islamic investors, a measure to exempt the registration and license tax related to dividends paid to overseas investors and the redemption of real estate from the trust pertaining to the Japanese version of Sukuk with regard to corporate bond-type beneficial interest (Japanese version of Sukuk) issued by special purpose trust.
Clarify the requirements for a domestic investment management business operator that has concluded a discretionary investment contract with a foreign fund to be an independent agent with regard to the domestic taxation relationship of a limited partner of a foreign fund that is a non-resident or a foreign corporation.