System of Financial and Securities Tax System

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

• "Listed stocks, etc." refers to stocks listed on domestic and foreign stock exchanges, including listed ETFs (stock index-linked investment trusts), listed REITs (real estate investment trusts), etc.
• Regarding gains on the transfer of listed stocks, etc., a tax return is required for transfer gains other than "specified accounts" with withholding tax.

From 2024 (for 2023), the taxation method of income tax and municipal tax and prefectural tax will be matched, and you will not be able to select a different taxation method. For details, please refer to "How to declare dividend income and transfer income of listed stocks, etc."
　
In addition, until 2023 (for 2022), if you choose a different taxation method for individual municipal tax and prefectural tax, by the time the tax payment letter of advice for individual municipal tax and prefectural tax is served, You must file a tax return to select a different tax formula from income tax. 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 in which a securities company, etc. calculates the amount of income on behalf of the investor.

• If you select "withholding tax" from a specific account, the investor does not need to file a final tax return with the tax office for the above income amount (securities companies, etc. will pay instead).
• If you select "No withholding" from a specific account, you can easily file a declaration using a specific account annual transaction report sent from a securities company.

If you trade with 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 living in Japan, under certain conditions, the tax exemption is based on dividends on listed stocks, etc. acquired in a tax-exempt account and gains on the transfer resulting from the sale of the listed stocks, etc. is. Conditions such as the tax exemption period vary depending on the start time of NISA.
　On January 1, 2024, the new NISA system, which has been drastically expanded and permanentized, has been launched.
　Please refer to the Financial Services Agency's web page for an overview of the NISA system.
Financial Services Agency New NISA (outside site)
Financial Services Agency NISA Special Website (Outside Site)