Financial and Securities Tax System

After January 1, 2016, income from interest, profit distribution, sale, etc. of specified public and corporate bonds (* 1) and publicly offered public and corporate bond investment trusts (hereinafter referred to as “specified public and corporate bonds, etc.”) is subject to separate taxation (20% (income tax 15% (* 2) and resident tax 5%).
As a result, between these incomes, dividend income of listed stocks and publicly offered stock investment trusts, etc. (limited to those for which separate taxation is selected), the total profit and loss with transfer income, etc., and the amount of transfer loss on specified public bonds, etc. It has been decided that a carry-over deduction.
In addition, the transfer loss on listed stocks, etc., can no longer be calculated from the transfer income, etc. related to general stocks (unlisted stocks, etc.) and carry forward deductions.
※1 “Specific public and corporate bonds” refers to certain types of government bonds, municipal bonds, foreign government bonds, publicly offered public and corporate bonds, listed public and corporate bonds, and public and corporate bonds issued before December 31, 2015 (excluding corporate bonds issued by family companies). Refers to bonds.
※2 In the case of final income tax return or withholding of income tax on income generated between 2013 and 2037, in addition to the stated income tax, special reconstruction income tax (in principle, 2.1% of the income tax amount) is imposed. You.

• “Listed stocks, etc.” are listed on domestic and overseas stock exchanges, and include listed ETFs (index-linked investment trusts) and listed REITs (real estate investment trusts), etc.
• Regarding gains on the transfer of listed stocks, etc., a final tax return is required for transfer gains generated outside of the "specified account" with withholding tax.

From 2024 (for 2023), the taxation method of income tax and municipal tax, prefectural tax will be matched, and it will not be possible to select different taxation methods. For details, please refer to "How to declare dividend income and transfer income of listed stocks, etc."
　
In addition, if you choose a different taxation formula for individual municipal tax and prefectural tax until 2023 (for 2022), income tax will be paid by the time the tax payment letter of advice for individual municipal tax and prefectural tax is served. You need to file a tax return to select a different tax formula. For details, please refer to "How to declare dividend income and transfer income of listed stocks, etc."

When an investor sells listed stocks, etc., this is an account where a securities company, etc., calculates the income amount on behalf of the investor.

• If you select "Withholding" in a specific account, investors do not need to file a final tax return for the above income amount with the tax office (securities company etc. will pay the payment procedure instead).
• If you select "No withholding tax" among the specific accounts, you can easily make a declaration using the specific account annual transaction report sent from a securities company.

If you trade in a general account, you will need to calculate the annual transfer gain on your own, prepare a calculation statement, and file a final tax return.

　Tax exemption measures such as dividend income and transfer income related to small listed stocks in tax-exempt accounts.
　For people aged 18 and over who live in Japan, under certain conditions, dividends on listed stocks, etc. acquired with tax-exempt accounts and the sale of listed stocks, etc. are exempt from taxation. Conditions such as tax exemption periods vary depending on the start date of NISA.
　On January 1, 2024, the new NISA system, which has been drastically expanded and permanently made.
　For an overview of the NISA system, please refer to the Financial Services Agency's website.
[Financial Services Agency] New NISA (external site)
[Financial Services Agency] NISA Special Website (external site)