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New independent agent exemption for discretionary investment managers: Background, release of reference cases, Q&A and joint presentation by the Financial Services Agency ("FSA"), National Tax Agency ("NTA") and Ministry of Finance ("MOF")
To strengthen the competitiveness of Japan's financial and capital market, Japan has modernized its permanent establishment regulations by including an independent agent exemption in the Japanese tax law. The law was enacted on 30 April 2008 and became effective retrospectively from 1 April 2008. Under the new regulations, independent agents carrying out business in Japan will no longer cause an offshore principal to have a permanent establishment in Japan. Putting it into the context of fund management business, an independent agent exemption allows Japan-based investment managers to manage client funds without exposing the fund into the Japanese tax net.
Since the enactment of the new law, the FSA issued a press release on 27 June 2008 outlining the details of the exemption ("the Guidance"). In addition, the NTA and the MOF in Japan held a joint presentation on 4 July 2008 on "Minimizing the 'PE Risk' of Fund Manager". We are pleased to share with you this special edition of the Japan Financial Services Tax News which summarises the features of the Guidance and the presentation.
Get your copy here
Read more by downloading our Japan Financial Services Tax News (Aug 2008) (pdf file, 100KB) for your reference.
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