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Tax Tips for Asset Management in Japan Part 1

I recently attended a tax accountant’s training on stock investment and asset management.

The training content of Mr. Adachi was very good for my own knowledge, experience, and providing accurate advice to customers, so I will summarize some TIPS.

✔ Sales gains and losses of gold and cryptocurrencies, and foreign exchange losses and gains are subject to comprehensive taxation.

✔ Taxes related to asset management are divided into income gains (dividend income) and capital gains (transfer gains).

✔ Dividends are taxed in ① comprehensive taxation ② declaration separate taxation ② withholding tax (20.315%).

✔ Comprehensive taxation final tax return is refunded if other income is small.

✔ Declaration separate taxation is refunded by loss and gain calculation.

✔ If you receive dividends in proportion to the number of shares, the sale loss and dividends are automatically offset.

✔ A specific account is an account where the securities company calculates the tax for you, and there is withholding tax and no withholding tax.

✔ A NISA account is an account where sales gains and dividends are tax-free for 5 years.

✔ A final tax return is required when a specific account without withholding tax and a general account record profits.

✔ Wrap accounts, individual national bonds, and bonds are not eligible for NISA.

✔ There are comprehensive taxation and declaration separate taxation for the final tax return of dividends.

✔ If you settle the tax relationship of dividends by withholding tax, you do not need to file a final tax return.

✔ If the taxable income amount exceeds 9 million yen, it is disadvantageous not to select comprehensive taxation for income tax.

✔ It is disadvantageous not to always select comprehensive taxation for resident tax.

✔ For dividends, you can choose whether or not to file a final tax return for each stock.

✔ For dividends for which a final tax return has been selected, choose either comprehensive taxation or declaration separate taxation uniformly.

✔ The only case where the sale gain does not need to be declared is when a specific account with withholding tax is selected.

✔ Sale loss is not required to be declared in any case, but it is necessary if you calculate loss and gain or carry over the loss.

✔ A final tax return is required if you calculate loss and gain or carry over the loss.

✔ The carryover of the sale loss is up to 3 years.

✔ Filing a final tax return affects the amount of spouse deduction and dependent deduction for income tax.

✔ Filing a final tax return affects national health insurance premiums, etc. on resident tax.

✔ If a specific account with a sale loss has interest and dividends, all final tax returns are required.

✔ If you forgot the final tax return of past losses, you can carry over the loss with a post-deadline declaration.

✔ If you forget to declare past losses, carry over with a rehabilitation claim for a general account and a specific account without withholding tax.

✔ There is no relief measure for a specific account with withholding tax if you forget to declare past losses.

✔ Sales losses and dividends of stocks through overseas securities companies cannot be calculated together.

✔ Sales losses of stocks through overseas securities companies cannot be carried over.

#Stock investment

#Asset management

#Specific account

#Taxes related to dividends

#Dividend source

#Withholding income tax



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