RetireJapan

captainspoke wrote: ↑Sat Jan 02, 2021 11:01 am I'm not a tax person, but I think there's an up-to-¥200,000 allowance that this might fall within. I think that's usually for some minor side income, a kind of miscellaneous category.

Can anyone confirm if there is in fact a 200,000yen allowance? Would be excellent news.

Thanks for the quick answer. That was what I thought. Not looking forward to filing form 8621!

Oh, I see, thank you for the clarification. That is steep. You would need 4-5 years in the market to cover that cost of early withdrawal? Have you found any documentation on the PFIC rate a minor with no income source would have to pay? Would it be more than 20%? How much would you be "netting...

You can withdraw early, but you'd get taxed 20% and not be able to get any of the tax advantages associated with NISA. Oh, I see, thank you for the clarification. That is steep. You would need 4-5 years in the market to cover that cost of early withdrawal? Have you found any documentation on the PF...

US citizen here, realizing last night that I may have made a huge mistake with my son's investment account (Junior NISA). He is also a US citizen and I have been purchasing the e-maxis all country fund for him (https://emaxis.jp/fund/253425.html). I was initially told by the monex representative tha...

Yes, I read somewhere that the 8621 form takes accountants up to 40 hours to complete....I guess you could try doing it yourself, but that would be a bear of a task.

You can withdraw early, but you'd get taxed 20% and not be able to get any of the tax advantages associated with NISA.

I don't really understand the PFIC rule but I think at 2000 yen you are well below the de minimis threshold for completing form 8621: "De minimis exceptions – The final regulations retain an exception to PFIC reporting if: (i) the shareholder has not made a QEF or mark-to-market election, (ii)...

This article seems to indicate that I made a huge mistake that I hope nobody else makes. The de minimus exception doesn't really cover you once you decide to sell some of the stock. Great article on it here: https://hodgen.com/children-investment-accounts-pfics-mess/ I am now debating the following ...

Thank you both for the clarification.
That clears things up a lot.
Wish things were a bit more straightforward.