Japanese regulators are seeking to make taxation rules more transparent for overseas investors in the world's second-biggest economy in a bid to attract more funds from abroad.
The Financial Services Agency issued a clarification Friday exempting managers of offshore investment funds from corporate tax, provided they meet four criteria that prove their assets are managed at local discretion.
Taxation has been a stumbling block prompting investors, particularly hedge funds, to set up shop outside Japan even as they trade in its $4.3 trillion equities market.