Just in the process of doing my tax return, and want to sanity check the reporting requirements for earnings from my Tokutei Kouza (特定口座), as it's the first year I've had this.
I have a single Tokutei Kouza (with SBI)
It is set to "特定口座（源泉徴収あり)", so tax is already deducted from each transaction
It has generated profit from sales of shares, and from dividends (domestic stocks only)
I have no other kinds of transaction (overseas stocks, losses etc.)
AFAICS, based on perusng various sources (including this comment on this fine forum) I don't need to report this at all when creating the 確定申告?
However, you MAY have a better tax rate than the Withholding Tax Rate if you include them in your Kakutei Shinkoku...
It depends on the level of your Total Taxable Income after all Deductions and Allowances.
For Dividends from Japanese Companies, under the Aggregate Taxation Method for Dividends, you can claim the Japanese Dividend Deduction, and therefore, if your Total Taxable Income after all Deductions and Allowances if you include the Dividends is less than about Y6M, then you would achieve a lower marginal tax rate by using the Aggregate Taxation Method with the Japanese Dividend Deduction than the tax rate for either the Separate Taxation Method (20.315%) or the Withholding Tax Rate (20.42%)
If over about Y6M, then the Withholding Tax Rate will be lower, and you don't need to add them to your Kakutei Shinkoku...
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This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
Tkydon wrote: ↑Sun Mar 02, 2025 2:59 amSeparate Taxation Method (20.315%) or the Withholding Tax Rate (20.42%)
The 20.42% rate only applies to unlisted stocks, right? I believe publicly traded stocks are taxed at 20.315% whether you use separate taxation on the tax return or use tokutei kouza withholding tax.
Tkydon wrote: ↑Sun Mar 02, 2025 2:59 am
However, you MAY have a better tax rate than the Withholding Tax Rate if you include them in your Kakutei Shinkoku...
It depends on the level of your Total Taxable Income after all Deductions and Allowances.
For Dividends from Japanese Companies, under the Aggregate Taxation Method for Dividends, you can claim the Japanese Dividend Deduction, and therefore, if your Total Taxable Income after all Deductions and Allowances if you include the Dividends is less than about Y6M, then you would achieve a lower marginal tax rate by using the Aggregate Taxation Method with the Japanese Dividend Deduction than the tax rate for either the Separate Taxation Method (20.315%) or the Withholding Tax Rate (20.42%)
If over about Y6M, then the Withholding Tax Rate will be lower, and you don't need to add them to your Kakutei Shinkoku...
Thanks for the follow-up, sticking with the withholding tax rate is indeed the better deal in my case.
Tkydon wrote: ↑Sun Mar 02, 2025 2:59 amSeparate Taxation Method (20.315%) or the Withholding Tax Rate (20.42%)
The 20.42% rate only applies to unlisted stocks, right? I believe publicly traded stocks are taxed at 20.315% whether you use separate taxation on the tax return or use tokutei kouza withholding tax.
OK.
:
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
