How to file ETF dividends (IBSJ) on kakutei

[ojolle93]

Long time reader, first time poster.

Can anyone explain the proper way to declare dividends on ETFs (Vanguard) in an IBSJ account in the kakutei shinkoku?

In the IBKR days, I followed the information on https://www.retirejapan.com/forum/viewtopic.php?t=1442 and declared them as unlisted stocks, while attaching a printed spreadsheet giving the distribution dates, taxes paid to US and third countries, all converted to yen using the correct TTM exchange rate for those days.

I am now wondering if that was correct, though. A poster on reddit today said they are and always were listed stocks (上場株式等): https://www.reddit.com/r/JapanFinance/c ... t/ktkdk10/

Assuming that they are indeed 上場株式等, I have tried to figure out how to declare them on the NTA website. I downloaded the "Annual Settled Income Report" from IBSJ, which lists each ETF holding, the total dividend distributions for each for the year (in yen), and the withheld amount for the year (in yen).

Using that, I tried filling out the form under 上場株式等に係る配当所得等 , 「配当等の支払通知書」などの内容を入力する方, 個別に配当等を入力（訂正等）する。.

I had to split the 15.315% tax from the 5% tax when filling out the form, but I think I succeeded.

In the end, though, the system is now saying that I will receive a 配当控除 and that I am due for a refund greater than the total withheld from my dividends! Is this correct? I was under the impression this only applied to dividends from Japanese stocks.

[ Edit: I realized that, under (２) 配当等の種類, I had not selected ４ 配当控除(税額控除)の対象とならない配当等. Once I selected that for each of the ETFs, the 配当控除 disappeared. Apparently I am still supposed to get some money back, though (less than the total withheld, but more than the 5% local tax withheld). ]

Any help would be appreciated!

[Tkydon]

I had to split the 15.315% tax from the 5% tax when filling out the form, but I think I succeeded.

There are two methods to declare Dividends.

1. Aggregate Taxation Method - Pages 1 and 2

Page 1 - Items エ and 5

Calculate the Amount of Tax at your Marginal Tax Rate at Item 31
At Item 44 the Recontruction Surtax is added

The Dividend Deduction 配当控除is Only available under the Aggregate Taxation Method, and ONLY on Dividends from Japanese Listed Companies.
It is not available on Foreign Dividends, and not available under the Separate Taxation Method


or


2. Separate Taxation - Page 3

You calculate the total Dividends in Items テ and 73
You calculate the Dividend Tax @15% in Items 89 and 93

And then you transfer that back to Item 31 on Page 1

The Dividend Deduction 配当控除 is NOT available on Foreign Dividends, and not available under the Separate Taxation Method

The 0.315% Reconstruction Surtax is added at Item 44 on Page 1
so you do not need to add it in your Calculation at Item 31 on Page 1 or Item 89 on Page 3...

In the end, though, the system is now saying that I will receive a 配当控除 and that I am due for a refund greater than the total withheld from my dividends! Is this correct? I was under the impression this only applied to dividends from Japanese stocks.

You are correct.

But, I see you found the cause...

[ Edit: I realized that, under (２) 配当等の種類, I had not selected ４ 配当控除(税額控除)の対象とならない配当等. Once I selected that for each of the ETFs, the 配当控除 disappeared. Apparently I am still supposed to get some money back, though (less than the total withheld, but more than the 5% local tax withheld). ]

The 5% Local Tax Withheld is correct under the Separate Taxation Method.


Depending on the total amount of taxable income, and the mix of earned to dividend income, and whether foreign or Japanese dividends, the Aggregate Taxation Method may yield a lower tax rate than the Separate Taxation Method if your Total Taxable Income is less than some threshold between about Y3M and Y6M, even without the 配当控除.

Over that threshold, the Separate Taxation Method will definitely be more advantageous. Probably above about Y3M Total Taxable Income for Foreign Dividends, and above about Y6M Total Taxable Income for Japanese Dividends, even with the 配当控除, but you would have to do the calculation to work out the actual threshold in your particular case.

[ojolle93]

Thank you so much for your response! It sounds like I am putting things in the correct places, then. I appreciate your help!