RetireJapan

grisha wrote: ↑Sun Dec 06, 2020 2:26 pm Hi everyone,

I noticed that earlier this year I bought ｅＭＡＸＩＳ 先進国株式インデックス instead of ｅＭＡＸＩＳ slim 先進国株式インデックス.
I think that what I'm currently holding is basically the same as the slim version, but with higher fees (correct me if I'm wrong).
I'm holding this both in my NISA account and 特定口座, and would basically like to sell both and buy the slim version. I bought most of it around April so it went up quite a bit.

If I understand correctly, selling and immediately buying the slim version will require me to pay capital gains tax on the current sum. Actually, short-term capital gains tax which is even worse. So what is the best way to proceed in this case? Should I wait a year since the last time I purchased the mutual fund and then sell it off and buy the slim version? What should I do about the NISA account? Am I stuck with this for 3 years?

Will appreciate any advice!

Capital gains from sales of certain securities (including shares/equity interest in corporations, warrant bonds, etc.) are taxed separately from other sources of income at a flat rate of 20.315% (i.e. 15.315% national tax and 5% local inhabitant’s tax).

Capital gains from sales of certain securities (including shares/equity interest in corporations, warrant bonds, etc.) are taxed separately from other sources of income at a flat rate of 20.315% (i.e. 15.315% national tax and 5% local inhabitant’s tax).

grisha wrote: ↑Mon Dec 07, 2020 7:32 am Looks like the capital gains tax for securities is a flat rate. From the link you provided:

Capital gains from sales of certain securities (including shares/equity interest in corporations, warrant bonds, etc.) are taxed separately from other sources of income at a flat rate of 20.315% (i.e. 15.315% national tax and 5% local inhabitant’s tax).

OkiBum wrote: ↑Mon Dec 07, 2020 8:37 am Why would you pay capital gains tax if it is in your NISA account? You can sell it and buy the slim fund without any taxes.

Of course, you would eat into your annual limit of 1.2 million if you have a regular NISA.

fools_gold wrote: ↑Mon Dec 07, 2020 8:06 am If your capital gains mean that your investment is worth significantly more than 1.2 million yen you'd probably want to roll it over into another NISA when your five years is up.

grisha wrote: ↑Mon Dec 07, 2020 8:48 am Isn't 1.2 million the yearly limit for nisa contributions rather than the total amount?

Actually, short-term capital gains tax which is even worse.

sutebayashi wrote: ↑Tue Dec 08, 2020 1:56 am I'd keep both too - actually I've got both myself because I started NISA when eMAXIS slim funds didn't exist.
(I even have some relatively expensive ETFs in my NISA account for that reason, but they are up 20-40% so I don't care about the slightly higher costs when I'll hopefully be selling them for gainful tax-free profits many years from now, or when NISA ends.)

Actually, short-term capital gains tax which is even worse.

I don't think Japan has different rates for short-term and long-term gains, or am I missing it?