Question about capital gains tax on profits taken

[Mrblobby]

My portfolio has increased in value over 30% since last August last year (!) (!!) and I'm considering taking out some of the profits.

I'm trying to get my head around how the capital tax situation. This is a tokutei rakuten account.

Let's say, for example, I initially invested 10,000,000 yen.
And that is now worth 13,000,000 yen.
If I withdraw 2,000,000 yen, I will leave about 11,000,000 yen in the account.

Question 1:
Am I right in presuming that Rakuten will take off the relevant 20.315% tax on that 2,000,000 yen value?
And I get what remains after that in my bank account and don't need to do anything re: tax.

Question 2:
So my initial investment was 10,000,000 yen.
Whenever I decide to withdraw that amount in the future, that amount will not not taxed. Correct?
So, if I closed the account when it was worth 11,500,000 yen, I would only pay the tax on 1,500,000 yen.

Thank you!

[YouMeWeThem]

Question 2: right, you only pay tax on the profit.

You need to calculate per share. Let's say your initial investment was 1000 shares @ 10,000 yen each so your cost basis is 10,000,000 yen as in your example. Now each share is worth 13,000 yen and you decide to sell. For each share you sell, you have a profit of 13,000 - 10,000 = 3,000 yen. So if you sell 20 shares you'd have a profit of 3,000 * 20 = 60,000 yen, you'd pay a tax of 60,000 * 20.315% = 12,189 yen.

[Mrblobby]

Thank you.

I don't think in "number of shares", that all seems very complicated. (They are all index funds).

But, essentially, I am taking from this that my thinking is not incorrect. Hopefully.

Again, thank you.

[beanhead]

Thank you.

I don't think in "number of shares", that all seems very complicated. (They are all index funds).

Even for index funds, when you buy you decide based on the amount in yen, but you are buying a certain number of units ( 口). Rakuten shows you how many you have and your average purchase price. So you should be able to see how much you have paid for each unit if you want to calculate it.

[Mrblobby]

Got it, thank you.

But, perhaps very silly question, do I need to? I'm not sure what extra info I get from knowing those numbers. Values just seem more real to me.

[beanhead]

Agreed. That is just how Rakuten will decide the tax.
Your simple 20% of the gain estimate should be pretty accurate.

[Mrblobby]

Thank you!

[captainspoke]

...
Let's say, for example, I initially invested 10,000,000 yen.
And that is now worth 13,000,000 yen.
...

To try to simplify, think of each single yen of that initial ¥10m as being equal to one share (¥1=1 share).

Any gain is because each single share appreciated, and that gain is now part of every single share.

Now, all of the individual shares are more valuable--and each share is worth ¥1.3

You will owe tax on the ¥0.3 per share gain. And tax of 20% will be 0.06, so you will net ¥0.24 per share.

[Mrblobby]

Thanks.

I will find out soon, as I'm going to do it!

It's excite!

[Mrblobby]

My sale was fixed in last night. Looks like just over 33% gain since around October. Seems ridiculous, but thank you!

I thought I'd log into my Rakuten account this morning and everything would be very clear.
Silly me. When has Rakuten ever been easy to understand?!
I'm not sure what's going on with all the numbers, it's a bit confusing and it looks like I will have to wait until 9th to see it all fall into place.

One thing I'm not clear on and perhaps someone can help.
I can see the 実現損益 number.
When all the numbers do fall into place, will the amount of tax I have taken off my total withdrawal amount be 20.315% of 実現損益?

There's no indication of that just yet, so I'm curious how it works, this being the first time I have sold.

Thank you!