General
What taxes will I have to pay?
Update : Apr. 14, 2004
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.
| Tax-Payer | Taxation | Remarks |
| Individual |
[Tax Rate] ‹For period January 1, 2003-December 31, 2007› 10% separate taxation on statement comprising of 7% income tax and 3% inhabitant tax ‹For period January 1, 2008 and after› 20% separate taxation on statement comprising of 15% income tax and 5% inhabitant tax [Specific Tax Account System] If you make a specific tax account at a securities company and trade through it, you don't have to declare tax on the listed stocks on the account. [Treatment to Defer Deduction on Capital Loss] Among the capital loss on the listed stocks etc. caused on January 1, 2003 and after, the deducted in the fiscal period will be deferred for deductions with the capital gains for three years by filling final declaration. [Special Treatment for Stock Investments] Stock investments from November 30, 2001 to December 31, 2002 with limited amount of 10 million yen, will be exempted for capital gain tax if sale of such investments will be done from year of 2005 to 2007. |
(Taxable stocks etc.)
Shares, subscription rights warrants, convertible bonds, bonds with stock subscription warrants, preferred beneficiary certificates, ETFs, J-REITs and others (Special Treatment relating to the IPO shares) As for the shares that had already held for 3 years or more before the IPO, the capital gain tax will be half as usual if the shares are sold within one year from the IPO. |
| Corporation | Capital gains are taxable. Capital losses are deductible from taxable income. |
Tax on Dividend
| Tax-Payer | Taxation | Remarks |
| Individual |
‹For period April 1, 2003-March 31, 2008› 10% tax withheld at source (declaration not required) comprising of 7% income tax and 3% inhabitant tax ‹For period April 1, 2008 and after› 20% tax withheld at source (declaration not required) comprising of 15% income tax and 5% inhabitant tax |
(Aggregate taxation) Aggregated taxation would be chosen.In that case, the dividend reduction would be applicable. |
| Corporation | 50% of the total amount of dividend received is not taxable. |
Tax on Interest
| Tax-Payer | Taxation | Remarks |
| Individual | 20% tax withheld at source comprising 15% income tax and 5% inhabitant tax | Separate taxation |
| Corporation | Taxable |
Securities Transfer Tax (Payable by Seller) & Exchange Tax
Abolished on April 1, 1999.