Tax Return - Rakuten Securities

[eyeswideshut]

I made the mistake of buying my first shares in a general （一般）account. This cannot be reversed. If you have a tokutei account you choose to buy shares in it at the point of purchase. I still have the option of purchasing things in my regular account now, although I am careful not to select that option.

Ugh you're right. I should have read more closely. You can transfer from specific to general but not the other way around. How annoying. Will probably sell and re-buy once my specific account is up and running.

[Chris]

To put into your analogy, I am the kind of kid that you would tell "If you touch the fire, you will get burned" so I actually go around putting my pinky in the fire and get 3rd degree burn and realize "oh, well what do you know? Chris was right!"

Your user name checks out

[Bushiman]

I made this same mistake with GME... Bought one share in my Rakuten 'general' account...
Am I right in thinking that as long as I don't make any capital gains and sell at a loss, I don't have to declare anything or fill out any forms?

[FIRE-Rookie]

I made this same mistake with GME... Bought one share in my Rakuten 'general' account...
Am I right in thinking that as long as I don't make any capital gains and sell at a loss, I don't have to declare anything or fill out any forms?

I hope this question was not directed so me as I really don't know.

[FIRE-Rookie]

I made a visit to the Shibuya tax office today and I think I owe everyone an explanation.

First of all, before my visit I called the Japan Tax Office - English consultation number at 03-3821-9070 and they were basically confused and told me to go to the tax office directly to get my queries answered. At least they were helpful giving the address..

So I went to the tax office and after 1.5 hours wait, I got a guy who spoke English to some extent but struggled to explain anything.
What I got out of him are 3 things:
1- Come back between 4th of January to 15th of February of 2022 (next year)
2- Submit the form which he gave me. (attached to the post)
3- In the form, report on the purchase price and sale price and price difference.
4- The tax officer will report how much you will need to pay but they "estimated"[/b] it will be ~20% which is composed of 15.315% in income tax and a "variable" resident tax around 5%.
5- Once the full amount has been disclosed then I will have to pay by some means.

Now, I honestly don't know if this form for each stock or just all of them combined but I guess I will figure out next year.

1 step nearer to the truth!
P.S. Ignore the random marking at the photo. The tax official was trying to explain on this form.

[sogun771]

Hello everyone,

Small question as I haven't found answers yet on the forum.

Does selling stocks with profit is considered as Miscellaneous income ? I'm thinking of Capital Gain, but it is hard to check the difference between Capital Gain, and Miscellaneous income and the explanation document from Japan tax doesn't really help to tell the difference

The reason is I have as well like the author of this thread a stock in the "general" account. My bet is I will have to do a tax return for next year if I sell this year, but was wondering in case stocks fall under "Miscellaneous income" and it doesn't reach the cap, if still I need to do that tax return ?

from what I understand some prefer to use the general option if they want to make profit for small amount.

If stocks doesn't fall under this status of Miscellaneous income, what could enter to this scope from Rakuten Securities ? I believe some people might be interested by the answer if someone knows.

Your help will be greatly appreciated.

Thank you in advance everyone

[TBS]

Does selling stocks with profit is considered as Miscellaneous income ? I'm thinking of Capital Gain, but it is hard to check the difference between Capital Gain, and Miscellaneous income and the explanation document from Japan tax doesn't really help to tell the difference

The reason is I have as well like the author of this thread a stock in the "general" account. My bet is I will have to do a tax return for next year if I sell this year, but was wondering in case stocks fall under "Miscellaneous income" and it doesn't reach the cap, if still I need to do that tax return ?

Yes capital gains on stocks count as a type of miscellaneous income. If your total miscellaneous income is less than ¥200,000, and you meet all the requirements in this post, it is not necessary to file a national tax return and pay that portion of the capital gains tax (15.315%). You may have to file a separate residents tax return and pay the municipal portion (5%). See more in that thread.

[sogun771]

Thank you very much TBS for your clear answer.

[RMA]

Does selling stocks with profit is considered as Miscellaneous income ? I'm thinking of Capital Gain, but it is hard to check the difference between Capital Gain, and Miscellaneous income and the explanation document from Japan tax doesn't really help to tell the difference

The reason is I have as well like the author of this thread a stock in the "general" account. My bet is I will have to do a tax return for next year if I sell this year, but was wondering in case stocks fall under "Miscellaneous income" and it doesn't reach the cap, if still I need to do that tax return ?

Yes capital gains on stocks count as a type of miscellaneous income. If your total miscellaneous income is less than ¥200,000, and you meet all the requirements in this post, it is not necessary to file a national tax return and pay that portion of the capital gains tax (15.315%). You may have to file a separate residents tax return and pay the municipal portion (5%). See more in that thread.

Based on this information, today I changed the settings of my tokutei account from withholding tax to not withholding tax. I don't mind filling the return if in the end the gains are above ¥200,000 in a year. But if they are below then no withholding tax or return for me. Hope I'm correct?

[TBS]

Based on this information, today I changed the settings of my tokutei account from withholding tax to not withholding tax. I don't mind filling the return if in the end the gains are above ¥200,000 in a year. But if they are below then no withholding tax or return for me. Hope I'm correct?

There would be no national tax return, but there would likely be a requirement to file a tax return to your city. Check the details with your city. For instance this is how to file in Yokohama.

The ¥200,000 miscellaneous income exemption is offered by the National Tax Agency for salaried workers with an end of year adjustment. Local municipalities and the prefectures have different rules for collecting the taxes they are due.