Japan: Information about carried interest distributions, to be filed with individual income tax returns

Check sheets and calculation sheets related to the tax treatment of “carried interest”

Check sheets and calculation sheets related to the tax treatment of “carried interest”

Japan’s Financial Services Agency on 11 May 2021 released items in the form of check sheets and calculation sheets related to the tax treatment of “carried interest.”

For these purposes, carried interest refers to partnership profit distributions received by individual fund managers in relation to a partnership agreement that provides for the distribution of partnership profits in excess of their interest holding ratio from the partnership business managed by the fund managers as partners.

Previously, Japan’s Financial Services Agency on 22 April 2021 released information, in English, regarding the tax treatment of carried interest. The English-language guidance, provided on a webpage, includes an English version of a previously released notice [PDF 465 KB] addressing the tax treatment of carried interest. Read TaxNewsFlash

The check sheets and calculation sheets (available in Japanese only) are to be enclosed when fund managers receiving carried interest distributions file their individual income tax returns.

Read a May 2021 report [PDF 102 KB] prepared by the KPMG member firm in Japan

 

 

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