Reserve-Bank.com - Banking Forum

[sapphirecapital]

Japan's Financial Services Agency: Abolition Of Expiration Dates Of Tax-Free Treatments Of Interest Income On Offshore Accounts And Bond Transactions Under Repurchase Agreements

16/05/08

Upon the promulgation and enforcement of the Act to amend the Income Tax Act and other Tax Acts on April 30, 2008, the expiration dates of the tax-free treatment of interest income from deposits, etc. booked in special international financial transaction accounts (offshore accounts) and the preferential tax measure (tax-free treatment) for interest income from bond transactions under repurchase agreements were abolished (the relevant measures are prescribed in Article 7, Article 42-2, Article 67-11 and Article 67-16 of the Special Taxation Measures Act).

The Financial Services Agency believes that these abolitions will further contribute to ensuring the stability of transactions in the Japan's offshore market and bond transactions under repurchase agreements between domestic and foreign financial institutions, etc., thereby helping strengthen the competitiveness of Japan's financial and capital markets.