Agreed. I'd wager the NTA wrote the English Income Tax guide many years ago, before even the existence of 特定口座. It is not a great document imo - it contains lots of unclear/imprecise translations.RetireJapan wrote: ↑Fri Oct 01, 2021 1:12 pm That does not mention 特定 accounts, so my impression is that they are a special case and an exception to that rule (as indicated pretty much everywhere). The 'Japanese withholding' would seem to refer to withholding from part-time wages, etc.
This document appears to confim this: https://www.nta.go.jp/taxes/shiraberu/t ... u/1476.htm
Declaring capital gains
-
TBS
Re: Declaring capital gains
Re: Declaring capital gains
Google Translate of Article 121 of Current Income Tax Law
Article 121 Salaries, etc. prescribed in Article 28, Paragraph 1 (Salary Income) for residents who have salary income in the year and should be paid during the year.
(Hereinafter referred to as "salary, etc." in this paragraph) If the amount is 20 million yen or less and falls under any of the following items, paragraph 1 of the preceding article
Regardless of the provisions, for the total taxable income amount and the income tax on the taxable forest income amount for that year, submit a tax return pursuant to the provisions of the same paragraph.
Does not need. However, the consideration will be paid by using the real estate and other assets for the business of the payer such as salary related to the salary income.
If otherwise specified by a Cabinet Order, this shall not apply.
(11) Receive payment of salary, etc. from the payer of salary, etc., and for all of the salary, etc., Article 183 (Obligation to withhold tax on salary income) or
When income tax is collected or should be collected pursuant to the provisions of Article 190 (year-end adjustment), the amount of interest income and the amount of dividend income for that year
Amount, amount of real estate income, amount of business income, amount of forest income, amount of capital gains, amount of temporary income and amount of miscellaneous income (hereinafter referred to as this item)
In "income amount other than salary income and retirement income". ) Is less than 200,000 yen.
(Ii) Receiving salary, etc. from two or more payers of salary, etc., and income pursuant to the provisions of Article 183 or Article 190 for all of the salary, etc.
When tax is collected or should be collected and falls under a or b.
B. Salary for the year to be paid by the payer of the subordinate salary, etc. prescribed in Article 195, paragraph 1 (Declaration of Deduction for Dependents, etc. for Subordinate Salary)
When the total amount of salary, etc. related to given income and the amount of income other than salary income and retirement income for that year is 200,000 yen or less.
Except for cases that fall under Loi, the amount of salary, etc. related to salary income for that year is 1.5 million yen, the amount of deduction for social insurance premiums, small business mutual aid, etc.
Exclusion amount, life insurance deduction amount, earthquake insurance deduction amount, disability deduction amount, widows deduction amount, single-parent deduction amount, working student deduction amount, spouse
The amount of income other than the sum of the amount of deduction for persons, the amount of special deduction for spouse, and the amount of deduction for dependents, and the amount of income other than salary income and retirement income for th
When it is less than 100,000 yen.
(2) If a resident who has retirement income in that year falls under any of the following items, regardless of the provisions of paragraph 1 of the preceding Article, the section for that year
Tax With regard to income tax on the amount of retirement income, it is not necessary to submit a tax return pursuant to the provisions of the same paragraph.
Article 121 from the Old version of the Law on Japanese Law Translation Website
My notes DP>
http://www.japaneselawtranslation.go.jp ... 95&page=26
（確定所得申告を要しない場合）
(When Filing an Income Tax Return Is Not Required)
DP> By contrast, anything not defined does require the Resident to file a return
第百二十一条 その年において給与所得を有する居住者で、その年中に支払を受けるべき第二十八条第一項（給与所得）に規定する給与等（以下この項において「給与等」という。）の金額が二千万円以下であるものは、次の各号のいずれかに該当する場合には、前条第一項の規定にかかわらず、その年分の課税総所得金額及び課税山林所得金額に係る所得税については、同項の規定による申告書を提出することを要しない。ただし、不動産その他の資産をその給与所得に係る給与等の支払者の事業の用に供することによりその対価の支払を受ける場合その他の政令で定める場合は、この限りでない。
Article 121 (1) Notwithstanding paragraph (1) of the preceding Article, if a Resident who has salary income for the year and who is to be paid a salary or other wage as prescribed in Article 28, paragraph (1) (Salary Income) (hereinafter referred to as a "salary or other wage" in this paragraph) amounting to 20,000,000 yen or less in the year falls under one of the following items, that Resident is not required to file a return pursuant to paragraph (1) of the preceding Article as regards income taxes on taxable gross income and taxable timber income for the year; provided, however, that this does not apply if the Resident makes available real property or other assets for use in the business of the person paying the salary or other wage constituting the Resident's salary income and is paid a consideration for this, nor does it apply in any other case prescribed by Cabinet Order:
DP> By contrast, "salary or other wage" in this paragraph) amounting to 20,000,000 yen or More in the year falls under one of the following items, that Resident IS required to file a return
一 一の給与等の支払者から給与等の支払を受け、かつ、当該給与等の全部について第百八十三条（給与所得に係る源泉徴収義務）又は第百九十条（年末調整）の規定による所得税の徴収をされた又はされるべき場合において、その年分の利子所得の金額、配当所得の金額、不動産所得の金額、事業所得の金額、山林所得の金額、譲渡所得の金額、一時所得の金額及び雑所得の金額の合計額（以下この項において「給与所得及び退職所得以外の所得金額」という。）が二十万円以下であるとき。
(i) the Resident's is paid the salary or other wage by a single person; all of the salary or other wage has been or is required to be subject to the withholding of income taxes as under Article 183 (Obligation to Withhold Taxes from Salary Income) or Article 190 (Year-End Adjustments); and the sum total of the Resident's interest income, dividend income, real property income, business income, timber income, capital gains, occasional income, and miscellaneous income (hereinafter referred to as the "income other than salary income and retirement income" in this paragraph) for the year is 200,000 yen or less;
DP> By contrast, if the sum total of the Resident's interest income, dividend income, real property income, business income, timber income, capital gains, occasional income, and miscellaneous income (hereinafter referred to as the "income other than salary income and retirement income" in this paragraph) for the year is 200,000 yen or more, that Resident IS required to file a return
二 二以上の給与等の支払者から給与等の支払を受け、かつ、当該給与等の全部について第百八十三条又は第百九十条の規定による所得税の徴収をされた又はされるべき場合において、イ又はロに該当するとき。
(ii) the Resident is paid the salary or other wage by two or more persons; all of the salary or other wage has been or is required to be subject to the withholding of income taxes as under Article 183 or Article 190; and the Resident falls under either (a) or (b):
イ 第百九十五条第一項（従たる給与についての扶養控除等申告書）に規定する従たる給与等の支払者から支払を受けるその年分の給与所得に係る給与等の金額とその年分の給与所得及び退職所得以外の所得金額との合計額が二十万円以下であるとき。
(a) the sum total of the salary or other wage constituting salary income for the year which the Resident is paid by the person paying a secondary salary or other wage as prescribed in Article 195, paragraph (1) (Return for Deduction for Dependents, etc. Regarding Secondary Salaries) and the Resident's income other than salary income and retirement income for the year is 200,000 yen or less;
DP> By contrast, if the sum total of the Resident's income other than salary income and retirement income for the year is 200,000 yen or more, that Resident IS required to file a return
ロ イに該当する場合を除き、その年分の給与所得に係る給与等の金額が百五十万円と社会保険料控除の額、小規模企業共済等掛金控除の額、生命保険料控除の額、地震保険料控除の額、障害者控除の額、寡婦（寡夫）控除の額、勤労学生控除の額、配偶者控除の額、配偶者特別控除の額及び扶養控除の額との合計額以下で、かつ、その年分の給与所得及び退職所得以外の所得金額が二十万円以下であるとき。
(b) the salary or other wage constituting the Resident's salary income for the year is not more than the sum total of 1,500,000 yen and the amount of the social insurance premium deduction, deduction for small enterprise-based mutual aid premiums and similar payments, life insurance premium deduction, earthquake insurance premium deduction, disability deduction, widow (or widower) deduction, working student deduction, spousal deduction, special spousal deduction, and dependency exemption; and income other than salary income and retirement income for the year is 200,000 yen or less, other than in a case that falls under (a).
DP> By contrast, if the sum total of the Resident's income other than salary income and retirement income for the year is 200,000 yen or more, that Resident IS required to file a return
２ その年において退職所得を有する居住者は、次の各号のいずれかに該当する場合には、前条第一項の規定にかかわらず、その年分の課税退職所得金額に係る所得税については、同項の規定による申告書を提出することを要しない。
(2) Notwithstanding paragraph (1) of the preceding Article, if a Resident who has retirement income for the year falls under one of the following items, the Resident is not required to file a return under paragraph (1) of the preceding Article for income taxes on taxable retirement income for the year:
一 その年分の退職所得に係る第三十条第一項（退職所得）に規定する退職手当等（以下この項において「退職手当等」という。）の全部について第百九十九条（退職所得に係る源泉徴収義務）及び第二百一条第一項（退職所得に係る源泉徴収税額）の規定による所得税の徴収をされた又はされるべき場合
(i) all of the Resident's severance pay or other such compensation as prescribed in Article 30, paragraph (1) (Retirement Income) (hereinafter referred to as "severance pay or other such compensation" in this paragraph) which constitutes retirement income for the year has been or is required to be subject to the withholding of income taxes pursuant to the provisions of Article 199 (Obligation to Withhold Taxes from Retirement Income) or Article 201, paragraph (1) (Tax Withheld from Retirement Income);
二 前号に該当する場合を除き、その年分の課税退職所得金額につき第八十九条（税率）の規定を適用して計算した所得税の額がその年分の退職所得に係る退職手当等につき源泉徴収をされた又はされるべき所得税の額以下である場合
(ii) the amount of income taxes calculated when Article 89 (Tax Rates) is applied for the year's taxable retirement income is not more than the amount of income taxes that have been or are required to be Withheld from the severance pay or other such compensation that constitutes retirement income for the year, other than in a case that falls under the preceding item.
Article 121 Salaries, etc. prescribed in Article 28, Paragraph 1 (Salary Income) for residents who have salary income in the year and should be paid during the year.
(Hereinafter referred to as "salary, etc." in this paragraph) If the amount is 20 million yen or less and falls under any of the following items, paragraph 1 of the preceding article
Regardless of the provisions, for the total taxable income amount and the income tax on the taxable forest income amount for that year, submit a tax return pursuant to the provisions of the same paragraph.
Does not need. However, the consideration will be paid by using the real estate and other assets for the business of the payer such as salary related to the salary income.
If otherwise specified by a Cabinet Order, this shall not apply.
(11) Receive payment of salary, etc. from the payer of salary, etc., and for all of the salary, etc., Article 183 (Obligation to withhold tax on salary income) or
When income tax is collected or should be collected pursuant to the provisions of Article 190 (year-end adjustment), the amount of interest income and the amount of dividend income for that year
Amount, amount of real estate income, amount of business income, amount of forest income, amount of capital gains, amount of temporary income and amount of miscellaneous income (hereinafter referred to as this item)
In "income amount other than salary income and retirement income". ) Is less than 200,000 yen.
(Ii) Receiving salary, etc. from two or more payers of salary, etc., and income pursuant to the provisions of Article 183 or Article 190 for all of the salary, etc.
When tax is collected or should be collected and falls under a or b.
B. Salary for the year to be paid by the payer of the subordinate salary, etc. prescribed in Article 195, paragraph 1 (Declaration of Deduction for Dependents, etc. for Subordinate Salary)
When the total amount of salary, etc. related to given income and the amount of income other than salary income and retirement income for that year is 200,000 yen or less.
Except for cases that fall under Loi, the amount of salary, etc. related to salary income for that year is 1.5 million yen, the amount of deduction for social insurance premiums, small business mutual aid, etc.
Exclusion amount, life insurance deduction amount, earthquake insurance deduction amount, disability deduction amount, widows deduction amount, single-parent deduction amount, working student deduction amount, spouse
The amount of income other than the sum of the amount of deduction for persons, the amount of special deduction for spouse, and the amount of deduction for dependents, and the amount of income other than salary income and retirement income for th
When it is less than 100,000 yen.
(2) If a resident who has retirement income in that year falls under any of the following items, regardless of the provisions of paragraph 1 of the preceding Article, the section for that year
Tax With regard to income tax on the amount of retirement income, it is not necessary to submit a tax return pursuant to the provisions of the same paragraph.
Article 121 from the Old version of the Law on Japanese Law Translation Website
My notes DP>
http://www.japaneselawtranslation.go.jp ... 95&page=26
（確定所得申告を要しない場合）
(When Filing an Income Tax Return Is Not Required)
DP> By contrast, anything not defined does require the Resident to file a return
第百二十一条 その年において給与所得を有する居住者で、その年中に支払を受けるべき第二十八条第一項（給与所得）に規定する給与等（以下この項において「給与等」という。）の金額が二千万円以下であるものは、次の各号のいずれかに該当する場合には、前条第一項の規定にかかわらず、その年分の課税総所得金額及び課税山林所得金額に係る所得税については、同項の規定による申告書を提出することを要しない。ただし、不動産その他の資産をその給与所得に係る給与等の支払者の事業の用に供することによりその対価の支払を受ける場合その他の政令で定める場合は、この限りでない。
Article 121 (1) Notwithstanding paragraph (1) of the preceding Article, if a Resident who has salary income for the year and who is to be paid a salary or other wage as prescribed in Article 28, paragraph (1) (Salary Income) (hereinafter referred to as a "salary or other wage" in this paragraph) amounting to 20,000,000 yen or less in the year falls under one of the following items, that Resident is not required to file a return pursuant to paragraph (1) of the preceding Article as regards income taxes on taxable gross income and taxable timber income for the year; provided, however, that this does not apply if the Resident makes available real property or other assets for use in the business of the person paying the salary or other wage constituting the Resident's salary income and is paid a consideration for this, nor does it apply in any other case prescribed by Cabinet Order:
DP> By contrast, "salary or other wage" in this paragraph) amounting to 20,000,000 yen or More in the year falls under one of the following items, that Resident IS required to file a return
一 一の給与等の支払者から給与等の支払を受け、かつ、当該給与等の全部について第百八十三条（給与所得に係る源泉徴収義務）又は第百九十条（年末調整）の規定による所得税の徴収をされた又はされるべき場合において、その年分の利子所得の金額、配当所得の金額、不動産所得の金額、事業所得の金額、山林所得の金額、譲渡所得の金額、一時所得の金額及び雑所得の金額の合計額（以下この項において「給与所得及び退職所得以外の所得金額」という。）が二十万円以下であるとき。
(i) the Resident's is paid the salary or other wage by a single person; all of the salary or other wage has been or is required to be subject to the withholding of income taxes as under Article 183 (Obligation to Withhold Taxes from Salary Income) or Article 190 (Year-End Adjustments); and the sum total of the Resident's interest income, dividend income, real property income, business income, timber income, capital gains, occasional income, and miscellaneous income (hereinafter referred to as the "income other than salary income and retirement income" in this paragraph) for the year is 200,000 yen or less;
DP> By contrast, if the sum total of the Resident's interest income, dividend income, real property income, business income, timber income, capital gains, occasional income, and miscellaneous income (hereinafter referred to as the "income other than salary income and retirement income" in this paragraph) for the year is 200,000 yen or more, that Resident IS required to file a return
二 二以上の給与等の支払者から給与等の支払を受け、かつ、当該給与等の全部について第百八十三条又は第百九十条の規定による所得税の徴収をされた又はされるべき場合において、イ又はロに該当するとき。
(ii) the Resident is paid the salary or other wage by two or more persons; all of the salary or other wage has been or is required to be subject to the withholding of income taxes as under Article 183 or Article 190; and the Resident falls under either (a) or (b):
イ 第百九十五条第一項（従たる給与についての扶養控除等申告書）に規定する従たる給与等の支払者から支払を受けるその年分の給与所得に係る給与等の金額とその年分の給与所得及び退職所得以外の所得金額との合計額が二十万円以下であるとき。
(a) the sum total of the salary or other wage constituting salary income for the year which the Resident is paid by the person paying a secondary salary or other wage as prescribed in Article 195, paragraph (1) (Return for Deduction for Dependents, etc. Regarding Secondary Salaries) and the Resident's income other than salary income and retirement income for the year is 200,000 yen or less;
DP> By contrast, if the sum total of the Resident's income other than salary income and retirement income for the year is 200,000 yen or more, that Resident IS required to file a return
ロ イに該当する場合を除き、その年分の給与所得に係る給与等の金額が百五十万円と社会保険料控除の額、小規模企業共済等掛金控除の額、生命保険料控除の額、地震保険料控除の額、障害者控除の額、寡婦（寡夫）控除の額、勤労学生控除の額、配偶者控除の額、配偶者特別控除の額及び扶養控除の額との合計額以下で、かつ、その年分の給与所得及び退職所得以外の所得金額が二十万円以下であるとき。
(b) the salary or other wage constituting the Resident's salary income for the year is not more than the sum total of 1,500,000 yen and the amount of the social insurance premium deduction, deduction for small enterprise-based mutual aid premiums and similar payments, life insurance premium deduction, earthquake insurance premium deduction, disability deduction, widow (or widower) deduction, working student deduction, spousal deduction, special spousal deduction, and dependency exemption; and income other than salary income and retirement income for the year is 200,000 yen or less, other than in a case that falls under (a).
DP> By contrast, if the sum total of the Resident's income other than salary income and retirement income for the year is 200,000 yen or more, that Resident IS required to file a return
２ その年において退職所得を有する居住者は、次の各号のいずれかに該当する場合には、前条第一項の規定にかかわらず、その年分の課税退職所得金額に係る所得税については、同項の規定による申告書を提出することを要しない。
(2) Notwithstanding paragraph (1) of the preceding Article, if a Resident who has retirement income for the year falls under one of the following items, the Resident is not required to file a return under paragraph (1) of the preceding Article for income taxes on taxable retirement income for the year:
一 その年分の退職所得に係る第三十条第一項（退職所得）に規定する退職手当等（以下この項において「退職手当等」という。）の全部について第百九十九条（退職所得に係る源泉徴収義務）及び第二百一条第一項（退職所得に係る源泉徴収税額）の規定による所得税の徴収をされた又はされるべき場合
(i) all of the Resident's severance pay or other such compensation as prescribed in Article 30, paragraph (1) (Retirement Income) (hereinafter referred to as "severance pay or other such compensation" in this paragraph) which constitutes retirement income for the year has been or is required to be subject to the withholding of income taxes pursuant to the provisions of Article 199 (Obligation to Withhold Taxes from Retirement Income) or Article 201, paragraph (1) (Tax Withheld from Retirement Income);
二 前号に該当する場合を除き、その年分の課税退職所得金額につき第八十九条（税率）の規定を適用して計算した所得税の額がその年分の退職所得に係る退職手当等につき源泉徴収をされた又はされるべき所得税の額以下である場合
(ii) the amount of income taxes calculated when Article 89 (Tax Rates) is applied for the year's taxable retirement income is not more than the amount of income taxes that have been or are required to be Withheld from the severance pay or other such compensation that constitutes retirement income for the year, other than in a case that falls under the preceding item.
:
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
https://zaik.jp/books/472-4
The Publisher is not planning to publish an update for '23 Tax Season.
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
https://zaik.jp/books/472-4
The Publisher is not planning to publish an update for '23 Tax Season.
Re: Declaring capital gains
The INCOME TAX AND SPECIAL INCOME TAX FOR RECONSTRUCTION GUIDE is prepared every year and released in Jan/Feb of the year of filing, before the March 15 deadline. The translation is not brilliant and the confusion of the words salary and Income, but Employment Income refers to remuneration from employment, Pension Income refers to remuneration from Pensions, and Salary etc. or Income etc. refers to everything else... i.e. interest income, dividend income, real property income, business income, timber income, capital gains, occasional income, and miscellaneous income (hereinafter referred to as the "income other than salary income and retirement income" in this paragraph) as stated in Article 121 of the Income Tax Act quoted above.TBS wrote: ↑Fri Oct 01, 2021 1:57 pmAgreed. I'd wager the NTA wrote the English Income Tax guide many years ago, before even the existence of 特定口座. It is not a great document imo - it contains lots of unclear/imprecise translations.RetireJapan wrote: ↑Fri Oct 01, 2021 1:12 pm That does not mention 特定 accounts, so my impression is that they are a special case and an exception to that rule (as indicated pretty much everywhere). The 'Japanese withholding' would seem to refer to withholding from part-time wages, etc.
This document appears to confim this: https://www.nta.go.jp/taxes/shiraberu/t ... u/1476.htm
:
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
https://zaik.jp/books/472-4
The Publisher is not planning to publish an update for '23 Tax Season.
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
https://zaik.jp/books/472-4
The Publisher is not planning to publish an update for '23 Tax Season.
-
TBS
Re: Declaring capital gains
@Tkydon I get where you are coming from, but as Ben said Tokutei Kouza have a special exemption on this. The NTA website says this is covered in the 租税特別措置法 (Act on Special Measures Concerning Taxation) under 37条の11の5第1項, rather than the 所得税法 (Income Tax Act) which you quoted from.
Re: Declaring capital gains
Related point.
Did anyone else see the discussion about an increase from 20.315% for capital gains?
Looks like this Kishida fellow is considering raising it to 30%.
Did anyone else see the discussion about an increase from 20.315% for capital gains?
Looks like this Kishida fellow is considering raising it to 30%.
Aiming to retire at 60 and live for a while longer. 95% index funds (eMaxis Slim etc), 5% Japanese dividend stocks.
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RetireJapan
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Re: Declaring capital gains
That would be painful. One would hope they'd introduce it in bands (20% up to certain amount, then 30% afterwards).
Or I guess we could just file with income to get taxed at marginal income tax rate...
If the latter remains possible, no big deal I guess? At least with regards to retirement.
English teacher and writer. RetireJapan founder. Avid reader.
eMaxis Slim Shady
eMaxis Slim Shady
Re: Declaring capital gains
Quite painful indeed…
To get capital gains on stocks to be taxed at marginal tax rate, they would also need to change the law to allow filing capital gains on stocks as 総合課税, correct?
Right now aren’t they only 分離課税 at 20.315%?
If it becomes possible then i agree, selling during retirement without an income from salary would make sense to get a lower tax rate.
To get capital gains on stocks to be taxed at marginal tax rate, they would also need to change the law to allow filing capital gains on stocks as 総合課税, correct?
Right now aren’t they only 分離課税 at 20.315%?
If it becomes possible then i agree, selling during retirement without an income from salary would make sense to get a lower tax rate.
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TBS
Re: Declaring capital gains
If the tax rate goes up but 総合課税 for capital gains does not become an option, this may create scenarios where retirement investing via MAXIS ETFs beats the eMAXIS Slim mutual funds. The MAXIS ETF benefits would be being able to cash out part of the retirement pot using dividends at a low marginal tax rate, and avoiding double taxation on American stocks' dividends.Kiro wrote: ↑Sat Oct 02, 2021 3:26 am Quite painful indeed…
To get capital gains on stocks to be taxed at marginal tax rate, they would also need to change the law to allow filing capital gains on stocks as 総合課税, correct?
Right now aren’t they only 分離課税 at 20.315%?
If it becomes possible then i agree, selling during retirement without an income from salary would make sense to get a lower tax rate.
These benefits would be need to be weighed up against the existing ETF downsides: opportunity cost of no internal dividend reinvestments, slow dividend payouts by the brokers, and high unit cost complicating dividend reinvestments in accumulation phase.
Fingers crossed the new PM just doesn't put the tax rate up though
Re: Declaring capital gains
I watched the news last night and they again discussed the revision of the capital gains tax rate. So it seems it is being seriously considered.
I don't have much interest in Japanese politics in general, but have a small vested interest in seeing how this develops.
I don't have much interest in Japanese politics in general, but have a small vested interest in seeing how this develops.
Aiming to retire at 60 and live for a while longer. 95% index funds (eMaxis Slim etc), 5% Japanese dividend stocks.
Re: Declaring capital gains
Kishida seems to be going the populist route. If the capital gains tax is revised upto 30% I hope its accompanied by some improvement in the NISA system. Its gonna suck for all of us smaller investors who will be counting on this money for our retirement.