RetireJapan

That is very interesting. I wonder how funds like eMaxis Slim all-country (which don't pay out dividends at all, regardless of whether you choose reinvesting or distribution when you buy them) are treated?

TokyoWart wrote: ↑Tue Feb 16, 2021 6:09 am That's why I find this confusing. Several years ago I had to help someone with a Nikkei index mutual fund they had contributed to over about a decade and no dividends had ever been paid out so it was internally accumulating but there also did not seem to be any report in the interim that indicated taxes paid or due.

Fraussie wrote: ↑Tue Feb 16, 2021 5:56 am This is so confusing. I've asked the tax accountant who is currently preparing my tax return whether one would have to include in their tax return dividends from accumulating ETFs and her answer is yes... Although I am not sure she understands what a accumulating ETF is. I tried to describe as best as I could that dividends are never paid into my brokerage account - she said that it does not matter. But again, her English is very limited and my Japanese is even more so...

I just don't know what weight to give to the advice... This is very annoying.

TBS wrote: ↑Mon Apr 26, 2021 10:52 am - If you are not planning on staying in Japan long-term, you will be able to keep your ETF units when you leave if e.g. Interactive Brokers let you transfer your account to your new country. This avoids having to sell on exit and pay Japanese capital gains taxes.
- The Japanese tax treatment with respect to dividends looks broadly identical to Japanese mutual funds: they can re-invest internally only having to pay foreign withholding taxes. [Edit Apr 30, 2021: I am no longer sure about this, check it out if you are thinking of investing this way.]
- The fund costs are low.
- You can do everything in English, from researching to trading, which many will appreciate.