Japan: Guidance on “payments economically equivalent to interest” for purposes of earnings stripping rules
Guidance from Japanese Financial Services Agency, in response to inquiry from National Tax Agency
The Japanese Financial Services Agency, in response to an inquiry from the National Tax Agency, released a document summarizing the meaning of “payments economically equivalent to interest”—a term used in the Japanese earnings stripping rules (also referred to as interest deductibility limitation rules).
Read a June 2025 report prepared by the KPMG member firm in Japan