RetireJapan

RetireJapan wrote: ↑Tue Jun 18, 2019 1:46 pm

Leafs_Raps wrote: ↑Tue Jun 18, 2019 11:27 am Perfect. I am paying taxes in Japan so I guess there is a way to claim it when I do my 確定申告 next year then?

No, you can only offset the US tax on dividends against the Japanese tax on dividends. So you can claim it back within a taxable account (reducing your taxes from 30% to 20%) but not in a NISA account.

RetireJapan wrote: ↑Tue Jun 18, 2019 1:50 pm

TokyoWart wrote: ↑Tue Jun 18, 2019 1:23 pm I think this is one more reason we benefit from holding broad market index funds which, while they may have years of losses or stagnation, over the longer term bounce back from each downturn and never require an apology.

Absolutely. Which is why I tend to recommend cheap, diversified index funds and indeed have the bulk of our investments going into them.

But I haven't quite outgrown the urge to dabble and mess things up

RetireJapan wrote: ↑Tue Jun 18, 2019 11:05 am You can only claim the US 10% back against Japanese taxes that you paid (ie outside NISA). This is due to the tax treaty that aims to prevent double taxation.

StockBeard wrote: ↑Wed Jun 26, 2019 9:14 am

RetireJapan wrote: ↑Tue Jun 18, 2019 11:05 am You can only claim the US 10% back against Japanese taxes that you paid (ie outside NISA). This is due to the tax treaty that aims to prevent double taxation.

I need to reply that my follow up with the well established company that did taxes for me this year has led me to the conclusion that claiming the 10% US dividend tax as foreign tax credit in JP is actually not possible in the case of a mutual fund or an ETF, only in the case of individual stocks (but in your case Ben you should probably leverage it since your US stocks are individual companies). With many of us going with indexing, I think this is an important edge case to know about. See here: viewtopic.php?f=8&t=582&start=10#p4722