On July 2, 2018, Japan's National Tax Agency ("NTA") issued a guidance on the Partial Amendment of the Circular Notice on Special Taxation Measures Law (Corporation Tax Part) (Circular Notice for Statutory Interpretation). The circular notice applies to Japanese controlled foreign corporation ("CFC") rules as amended by the 2018 Tax Reform (please see the December 2016/January 2017 issue of this newsletter). The July 2 guidance sets forth the NTA's explanation of the purpose of the circular notice. The NTA has already issued a Q&A concerning the amended controlled foreign corporation ("CFC") rules on January 31, 2018 (please see the March 2018 issue of this newsletter). Japanese companies that have CFCs should be prepared for the amendment of the CFC rules based on these guidelines.