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Re: Max out a dependent's NISA, how to work out taxation?
Posted: Wed Feb 14, 2024 8:54 am
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.
Re: Max out a dependent's NISA, how to work out taxation?
Posted: Wed Feb 14, 2024 8:58 am
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.