Sunday, January 11, 2009

No Captial Gains Taxes for Private Equity in Japan?

Is Carlyle Group about to make a big footprint in Japan?

Japan may eliminate a 40 percent capital gains tax for most foreign investors, a move the government expects could spur Middle Eastern sovereign funds and private equity firms such as Carlyle Group to pump 10 trillion yen ($110 billion) into its sagging markets, Bloomberg reports.

The trade ministry plans talks over the coming months with buyout firms and state funds from Saudi Arabia, the United Arab Emirates, Qatar and Kuwait to outline proposed changes to its tax regime, said a senior ministry official working on the matter, who declined to be named because details haven’t been finalized, said Bloomberg.

This should be expanded to more than private equity insiders, but competitive tax cuts would be fun.

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