The Ministry of Finance (MOF) conducted a prior policy evaluation in August 2025 regarding the extension of special corporate enterprise tax measures for the Banks' Holdings of Stocks Acquisition Organization (the "Organization").
Special Tax Measures Overview
The current special measure applies to business years beginning by March 31, 2026, reducing the Organization's taxable capital base from 284.8 billion yen (107.0 billion yen in general account initial contributions + 177.8 billion yen in special account disposal contributions) to 10 billion yen for corporate enterprise tax calculation purposes. This extension proposal would maintain this measure through the Organization's operational period.
Revenue Impact Analysis
The tax reduction amounts to 144 million yen annually per fiscal year, with the applicable total reaching 274.8 billion yen each year. This represents a significant fiscal support measure designed to ensure the Organization's stable financial operations.
Policy Objectives and Legal Framework
This measure aims to maintain the Organization's safety net function by facilitating stable business operations, enabling smooth acquisition of target stocks held by banks and thereby ensuring financial system stability and sound development of the national economy. The legal basis stems from the "Act on Limitation of Banks' Holdings of Stocks" (Act No. 131 of 2001), Article 1, aligned with Policy Goal 4-2: "Appropriate Development and Operation of Financial Failure Resolution Systems and Swift, Accurate Financial Crisis Management."
Performance Target
A new performance target has been established for FY 2026: achieving an acceptance rate of 80% or higher when banks request the Organization to acquire target stocks, demonstrating the measure's effectiveness in maintaining financial system stability.
Historical Context
Since its establishment in FY 2004, this measure has been extended five times previously, with consistent annual revenue reductions supporting the Organization's critical role as a financial system stabilizer. The measure's continuation reflects the ongoing importance of maintaining robust crisis management capabilities within Japan's financial infrastructure.
The evaluation concludes that extending this special measure remains essential for preserving the Organization's safety net function and ensuring continued financial system stability.