What taxes will I have to pay?

Update : Apr. 12, 2013


The securities taxation system in Japan is outlined below.
For information on securities taxation systems of countries other than Japan, please contact the taxation authorities of the relevant countries.

Tax on Capital Gain of the Listed Stocks etc.

(As of the end of January 2012)
Tax-Payer Taxation Remarks

[Tax Rate]
‹Until December 31, 2013›
10% separate taxation (7% income tax, 3% inhabitant tax).
‹From January 1, 2014›
20% separate taxation (15% income tax, 5% inhabitant tax).

[Specific Tax Account System]
For profit or losses made on trades through a tax withholding account (a special account for which an investor has chosen direct tax withholding), the securities company collects
and submits the prescribed amount of tax, and therefore filing by the individual is unnecessary.

[System for Deferred Deduction for CapitalLosses]
For losses incurred on sales of listed stocks,etc. made through securities companies, the amount may be deducted from income made throughthe sale of listed stocks, unlisted stocks, dividends of listed stocks, (only for items taxed separately) or the amount that could not be deducted in that year may be carried over and deducted from capital gains
from stocks and other securities over a period of 3 years after the following year by filing taxes.

Listed stocks and other securities include:
Exchange-listed stocks (including foreign stocks,listed warrants, and listed subscription warrants),listed warrant bonds, country funds, Bank of Japan equity investment securities, stocks(including ADRs and company-type mutual funds)and warrant bonds traded on foreign markets,preferred equity investment securities, beneficiary certificates of publicly-offered investment funds(including ETFs), odd-lot shares, fractional shares(request for repurchase) and real estate investment trusts (J-REITs), and venture funds
Corporation Capital gains are taxable. Capital losses are deductible from taxable income.  

Tax on Dividends

(As of the end of January 2012)
Tax-Payer Taxation Remarks
Individual ‹Until December 31, 2013›
10% tax (7% income tax, 3% inhabitant tax)withheld at source (declaration not required). ‹From January 1, 2014›
20% tax (15% income tax, 5% inhabitant tax)withheld at source (declaration not required).
(Aggregate taxation)
Aggregate taxation may be selected, in which case deduction for dividends would be applicable (except listed foreign securities).
Corporation 50% of the total amount of dividend received is not taxable.  

Tax on Interest

(As of the end of January 2012)
Tax-Payer Taxation Remarks
Individual 20% tax withheld at source comprising 15% income tax and 5% inhabitant tax). Separate withholding tax.
Corporation Taxable.  
  • (*)The above tax rates, etc. are based on the 2012 Tax Reform Proposal.
    They are subject to change due to future tax system revisions, etc.

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