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Structure of Q7 finance, the securities taxation system

Last update date November 18, 2020

Please tell the recent taxation system revision of tax to affect transfer gain and allotment such as listed stocks.

Income by interest, profit dividend or sale of (is called "specific bonds" as follows.) such as after January 1, 2016, specific bonds (※ 1), open call for participants open-end bond investment trust report separate taxation (was targeted in 20% of (income tax 15% (※ 2), 5% of residence tax).
It was decided to have carrying forward subtraction about the profit and loss total with these income, amounts of dividend income (thing which chose report separate taxation is best.) such as listed stock, open call for participants stock investment trust and capital gain and amount of money of transfer losses such as specific bonds by this.
In addition, the profit and loss total and carrying forward were not able to subtract transfer loss to affect listed stocks from capital gains to affect (non-listed stocks) such as general stocks.
In addition, we can choose taxation method (report-free system application, aggregate taxation, report separate taxation) that is different from income tax by having you submit report of individual residence tax separately from decision report by day when the tax payment notification is delivered even if decision report of income tax including amounts of dividend income such as specific listed stocks is submitted.
※1 "identification bonds" mean government bonds, local bond, foreign government bonds, open call for participants bonds, listed bonds, constant bonds such as bonds (corporate bond which family corporation issued is excluded.) issued before December 31, 2015.
※In the case of final income tax return and withholding taxes of income tax about income arising from 2 2013 to 2037, special reconstruction income tax (as a general rule, 2.1% of income amount of a tax) is imposed other than income tax of mention

  • "Listed stocks" are stocks listed on country, foreign territory Stock Exchange, and listed ETF (stock index interlocking movement type investment trust), listed REIT (real estate investment trust) are included, too.
  • About transfer gain such as listed stocks, transfer gain that we produced other than "the specific account" which there are withholding taxes in needs final income tax return
What is specific account?

When investors sell listed stocks, it is account that brokerage firms perform calculations of the income amount of money in place of investors.

  • When we choose "there are withholding taxes" among specific accounts, about the income amount of money mentioned above, it is not necessary for investors to make final income tax return to tax office (brokerage firms pay instead and go through the procedure).
  • When we choose "there are no withholding taxes" among specific accounts, by specific account annual business report which has been sent by brokerage firms, we can report easily.

In addition, when it is made a deal with general account, we calculate annual transfer gain by yourself and make calculation statement, and it is necessary to have you do final income tax return.
Specific account

What is NISA (nisa) to hear well recently?

It is tax exemption measures such as amount of dividend income to affect small listed stocks in tax exemption account which began on January 1, 2014 and capital gain.
Targeting at residents 20 years or older or non-residents (called "residents" as follows.) having lasting facility in the country, we set a ceiling of 1.2 million yen a year between 2014 and 2023, and transfer gain that occurred by having sold allotment such as listed stocks that we acquired with tax exemption account or the listed stock is system becoming tax-free for up to five years from January 1 in year to belong on day when tax exemption management calculation was established.
We open tax-free account to financial products transactions suppliers to receive application of this tax exemption measures, and it is necessary to set tax-free management calculation.
In addition, youth NISA for residents of minor was started in 2016.

Difference between NISA and youth NISA 
Tax exemption objectSale gain or allotment such as listed stock, open call for participants stock investment trust
Person of establishment
(eligible people)
In January 1 of year of account opening
; residents 20 years or older
In January 1 of year of account opening
Residents of minor (0-19 years old)
Account opening
Possibility period
Ten years from January 1, 2014 to December 31, 2023Eight years from January 1, 2016 to December 31, 2023
※Can invest; period from April 1, 2016
The number of the account openingPrinciple, one 1 account
Change of financial institution by unit is possible for each age.
(when we change financial institution, we will have plural NISA accounts
Only as for the account having one what we can purchase per each age.)
One 1 account
Change of financial institution is impossible after the establishment.
(available for re-establishment after the abolition.)
Annual investment1.2 million yen the upper limit (until 2015 1 million yen)
※Unused frame is impossible of carrying forward after the next year
800,000 yen is the upper limit
※Unused frame is impossible of carrying forward after the next year
Tax exemption periodFor up to five years, sale is possible on the way
(but frame of sale part nonreusable)
For up to five years, sale is possible on the way
(but, as for the frame of sale part, nonreusable)
※Until person of account opening becomes 20 years old even if we reach the expiration of tax exemption period (five years)
We can hold with tax exemption.
Tax exemption investment
The total sum
Up to 6 million yen (1.2 million yen X five years)Up to 4 million yen (800,000 yen X five years)
WithdrawalWe can pay money freelyPerson of account opening does not perform to 18 years old (※) in principle.
※After January 1 of age that is 18 years old as of March 31

Inquiry to this page

Financial Leading court lady tax part Tax Division

Telephone: 045-671-2253

Telephone: 045-671-2253

Fax: 045-641-2775

E-Mail address [email protected]

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