Max out a dependent's NISA, how to work out taxation?

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Tkydon
Sensei
Posts: 1398
Joined: Mon Nov 23, 2020 2:48 am

Re: Max out a dependent's NISA, how to work out taxation?

Post by Tkydon »

trajan wrote: Wed Feb 14, 2024 7:51 am I am going to give her money as I make it. I calculate it will be approximately 4 million yen each year.

Do I need to go to the Tax Office every time I make a transfer to her or can I go yearly?
Y4M - Y1.1M Gift Tax Allowance = Y2.9M Taxable.

First Y2M taxable at 10% = Y200,000
Next Y0.9M taxable at 15% = Y135,000

Total Tax Y200,000 + Y135,000 = Y335,000

Assuming no other gifts in the same year.

She can report that once a year in March in a Gift Tax Return.
:
:
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.
trajan
Regular
Posts: 80
Joined: Fri Dec 10, 2021 4:20 am

Re: Max out a dependent's NISA, how to work out taxation?

Post by trajan »

Tkydon wrote: Wed Feb 14, 2024 8:54 am
trajan wrote: Wed Feb 14, 2024 7:51 am I am going to give her money as I make it. I calculate it will be approximately 4 million yen each year.

Do I need to go to the Tax Office every time I make a transfer to her or can I go yearly?
Y4M - Y1.1M Gift Tax Allowance = Y2.9M Taxable.

First Y2M taxable at 10% = Y200,000
Next Y0.9M taxable at 15% = Y135,000

Total Tax Y200,000 + Y135,000 = Y335,000

Assuming no other gifts in the same year.

She can report that once a year in March in a Gift Tax Return.
Thank you very much.

Good karma to you.
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