The Finance Services Agency (FSA) have officially announced their requests for tax reform 2008, including permanent tax relief for dividend.
To strengthen global competitiveness of Japanese financial and capital market, the requests submitted by FSA include permanent tax relief for dividend at 10 percent tax rate, expanding the eligible ETFs which are applied the same tax rate for equity and expanding tax-exemption on coupon income for non-residents to corporate bonds as well as JGB and Municipal bonds.
The requests will be regarded as official when they are included in the tax reform guideline of the ruling party to be publicized in December 2008.
“It is not clear at this stage which of the above is likely to be taken on in the tax reform project, nor the details of the requests,” says a Mizuho spokesman.