Taxes on Gain and Dividend???

[Hárbarðr]

Long time no talk everyone. Again thank you for all the help I have been receiving on this forum.

I have another question that I can't seem to sort out by myself (and google).

Taxes on gains and on Dividend on US and foreign Stocks in Japan.

So here are the scenarios:
scenario1: I own some ABBV stocks on my rakuten security broker. Let's say I want to sell those stocks. What will I be taxed on the profit of those stocks?

scenario2: Same ABBV stocks, it's finally time for the dividend payout, how do I get taxes on that?

scenario3: I own ENB stocks, which is a Canadian company. If I sell those stocks, how will I be taxed?

scenario4: Same ENB stocks and time for dividend, how do I get taxed on the dividend payout?

I hope I am making sense and thank you all in advance for always being so helpful.

Regards.

[RetireJapan]

It's very easy. Assuming you hold them in Japan:

-if you sell a stock and make a profit (a capital gain), you pay 20.315% tax on the gain. If the stock is in a NISA account there is no tax.
-if you receive a dividend, you pay 20.315% tax on the dividend (tax free in a NISA account)


*if the stock is listed in the US, the US takes a 10% withholding tax on the dividend, which you can claim back from Japan on your tax return if you paid Japanese tax on it (you cannot claim back the US withholding tax for stocks held in a NISA account).

[Hárbarðr]

Thank you so much for the prompt reply.
I think I get it now.

So, when i got my dividend last time from some of my stocks, the taxes which were taken off the dividend was 20.315% Japan Tax + 10% US withholding taxes? Is that correct?

Now, how do I know which taxes I have paid for?
When I check my dividend payout on RS I get the dividend price before taxes and the price after taxes, but doesn't to whom im paying the taxes too?

This is what it says on the statement about taxes:

所得税額 -
住民税額 -

The - is where the amount should be I guess. but there's just a dot.

Ill post a picture

[RetireJapan]

You haven't paid any taxes because you bought the AT&T stocks in an ordinary account. That means you have to calculate, declare, and pay the taxes yourself.

If you buy shares in a tax-withholding account (特定口座源泉徴収あり) the broker will calculate and pay your taxes for you (but not claim the US tax refund -you have to do that manually).

[Hárbarðr]

thanks for that.
But the amount of the dividend and the amount i actually received wasn't the same. Sorry it wasn't clear cause I cut it out from the file, but the amount I received was less. So some taxes where taken I assume.

Right

[RetireJapan]

thanks for that.
But the amount of the dividend and the amount i actually received wasn't the same. Sorry it wasn't clear cause I cut it out from the file, but the amount I received was less. So some taxes where taken I assume.

Right

That was probably the US withholding tax. Is the difference around 10%?

[Snowmonkey]

I believe the tax rate is currently 30% on dividends held by non US residents. It changed early last year.

[beanhead]

I believe the tax rate is currently 30% on dividends held by non US residents. It changed early last year.

If you see around 30% deducted in a tokutei account it is the 10% from the U.S. and the 20.3% from Japan.

[RetireJapan]

I believe the tax rate is currently 30% on dividends held by non US residents. It changed early last year.

Many countries have a tax treaty with the US that reduces the withholding tax. For Japan, the treaty reduces it to 10% for residents of Japan.

[Tkydon]

If you do not file a W8-BEN Form, the broker will withhold US Tax on dividend income at 30%
If you file a W8-BEN with your broker, you claim The Reduced Rate of Withholding On Dividends of 10% according to Article 10 Paragraph 2(b) of the US-Japan Tax Treaty

You then have to do the Japan Tax Return to claim back the Foreign Tax Credit.

See my other post on the details...