Listed stocks (for Japanese tax purposes)

[FlamingWombat]

I have been scouring the forum for various info as I prepare to deal with Japanese taxes on my dividends for the first time. One thing that I've seen conflicting info on is whether certain stocks, etc. are considered "listed" for Japanese tax purposes. In my case, American ETFs such as VTI and BND bought through Interactive Brokers without any tax withheld at source. Anyone know if these are "listed" or unlisted because they are foreign (one poster here said he was told this by the tax office).

[Haystack]

All of these stocks were bought via NYSE/Nasdaq etc? Or were some bought via TYO?

All via Interactive brokers (non-domestics)? Or some via Japanese brokers?

[FlamingWombat]

All bought through Interactive Brokers via NYSE/Arca. Nothing bought from Japanese brokers.

[Tkydon]

Listed stocks are any stocks listed on any Stock Exchange, i.e. post-IPO, so any ETFs traded publicly on an Exchange are "listed". The Japanese is 上場株式等 = JouJou Kabushiki Nado = Stocks, etc. Listed on any Public Exchange...

For Foreign Dividends, you cannot use the Aggregate Method Dividend Allowance.

Therefore, if you have total income greater than Y3,300,000, you should probably file foreign dividends under the Separate Taxation Method - Form B - Page 3 第三表 for the Dividend Tax Rate of 20.315% (15% National, 0.315% Reconstruction, and 5% Residents' Taxes).

If the dividends are from a country with which Japan has a Tax Treaty, you can claim any foreign tax on the Dividend Income as a Foreign Tax Credit.

[FlamingWombat]

Thank you. So even if the dividend amount is under the ￥200000 amount that requires someone to declare for national tax, one needs to pay national tax under the separate taxation method in order to pay residents' tax?

[FlamingWombat]

Also, so as not to start a new topic I will ask here for now: When making the spreadsheet to show your dividend payments and TTM conversions to the tax office, is there any reason to show a break down of how much of the dividend was qualified vs. non-qualified? I assume this makes no difference on the Japanese tax end, but would like to clarify.

[Tkydon]

Makes no difference on the Japanese Dividend which is charged on Gross Dividend.

It wil make a difference on Foreign Tax Credit - whether you paid any Foreign Tax on the Dividend or not...

[FlamingWombat]

Listed stocks are any stocks listed on any Stock Exchange, i.e. post-IPO, so any ETFs traded publicly on an Exchange are "listed". The Japanese is 上場株式等 = JouJou Kabushiki Nado = Stocks, etc. Listed on any Public Exchange.

You are very likely correct, but I was told at the tax office that they consider 上場株式等/listed stocks to only be stocks listed in Japan. Stocks listed on foreign exchanges are considered unlisted for Japanese tax purposes (they said).

[Tkydon]

So what did they say the implications of that definition would be to your taxes?

[FlamingWombat]

They said the amount was low enough that I didn't need to declare at the national tax office but should instead declare at the municipal tax office to pay residents' tax.