The Japanese Financial Service Agency announced that so called Carried Interest, partnership profit distributions received by individual fund managers in relation to a partnership agreement that stipulates the distribution of partnership profits in excess of their interest holding ratio from the partnership business managed by the fund managers as its partners, will be taxed on a pass through basis and treated as the income of the fund managers in accordance with the distribution ratio as stated in the partnership agreement (Pass-through treatment).

Japanese Financial Service Agency seems to be open to new and flexible procedures that make the Japanese financial market more attractive to non-Japanese investors.