Japan Securities Dealers Say UK And US Corporate Pensions Are Able To Hold TB, FB, And CPI linked JGB

On December 6th 2005, Japan Securities Dealers Association (JSDA) is going to notify UK and US Corporate Pensions are able to hold TB, FB, and CPI linked JGB, and tax exemption for non residents is applied for the redemption profit

By None

On December 6th 2005, Japan Securities Dealers Association (JSDA) is going to notify UK and US Corporate Pensions are able to hold TB, FB, and CPI linked JGB, and tax exemption for non-residents is applied for the redemption profit of TB and FB and the increases in notional principal amount or interest received on CPI Index-linked JGB.

Foreign corporations have been allowed to hold TB, FB, and CPI linked JGB by the revision of taxation in 2005, but it was not clearly defined the scope of foreign corporations in 2005 Revision Ordinance whether UK and US Corporate Pensions are included or not.

The aim of the 2005 Tax Revision is to make UK and US Corporate Pensions eligible, but the Authority has not announced the opinion clearly yet. Those who invested in UK and US Corporate Pensions in the past should have been consulting to the local tax office before buying them. However, the local tax office was not able to answer, because the National Tax Agency has not made the decision yet. The National Tax Agency mentioned that this is applied for those who invested in the past as well, so there is no difference between those who has been holding form the past, and those who are going to hold from now on.

JBA (Japan Bankers Association), JSDA, and Mizuho Corporate Bank have been negotiating with the National Tax Agency in order to have a clear opinion from the National Tax Agency. As a result, the National Tax Agency finally confirmed the eligibility which will be made public by JSDA Bulletin.

«