Request for tax reduction to attract financial institutions and human resources to international financial cities Financial Services Agency September 19, 4:49
The Financial Services Agency aims to become an international financial center that represents Asia, and in order to attract overseas financial institutions and specialized human resources, the Financial Services Agency will take measures to reduce the burden of corporate tax with the fund management company in mind in the tax reform next year. We have compiled a proposal that includes introductions.
The "Hong Kong National Security Law" was enforced in Hong Kong, one of Asia's leading financial centers, and it is expected that financial institutions and human resources will be transferred due to concerns about business activities, so the government summarized this in July. The "Strong Policy" includes the aim of establishing an international financial city.
Based on this trend, the Financial Services Agency has put together a proposal that includes a reduction in the tax burden to attract overseas financial institutions and highly specialized human resources to Japan in preparation for the tax reform next year.
Specifically, in order to ease the burden of corporate tax, keeping in mind the operating companies of unlisted funds, we are requesting that performance-linked executive compensation be recognized as an expense in the same way as listed companies.
In addition, since it has been pointed out that Japan's income tax rate is higher than that of Asian rivals Hong Kong and Singapore, the government has a policy of requesting a mechanism to reduce the tax burden on performance fees of fund managers. It is expected to be discussed carefully by the ruling party.
The Financial Services Agency has decided to increase the number of staff who can speak English, including specialized content, in addition to the tax system, and to simplify the procedure to promote efforts to attract people.