Japan mulls tax-free investment program for seniors

Japan is considering creating a new tax exemption program aimed at elderly investors that would exclusively allow them to invest in funds offering monthly dividends, sources familiar with the matter said Wednesday.

The Financial Services Agency is also considering lowering or scrapping the age restriction on “tsumitate” installment-type programs for long-term mutual funds, which currently require investors to be aged 18 or older, the sources said.

Japan’s tax exemption program for private investors, known as NISA and modeled on Britain’s Individual Savings Account, enables investors to trade stocks and investment trusts up to an annual investment ceiling.