stock market taxes

[O.S]

Hi

1. As a foreign ( not from the US), if I have a stock market investment with Monex in the US market ( Vanguards ETF ), If I will leave Japan, do I have to sell my portfolio? Or, can it stay here in Japan / or move it with Monex / Vanguard to another country?

2. this one is very basic - are the 20.3% taxes we need to pay on capital growth to be paid every year or only when we sell?

3. the dividend earned can be reinvested without paying taxes?

Thanks

[adamu]

1. As a foreign ( not from the US), if I have a stock market investment with Monex in the US market ( Vanguards ETF ), If I will leave Japan, do I have to sell my portfolio? Or, can it stay here in Japan / or move it with Monex / Vanguard to another country?

My guess is that you will need to sell it and close the account.

2. this one is very basic - are the 20.3% taxes we need to pay on capital growth to be paid every year or only when we sell?

Only when you sell. There is no capital gains tax if it's in a NISA.

3. the dividend earned can be reinvested without paying taxes?

No, dividends on Vanguard ETFs are subject to 10% US tax, then 20.315％ Japanese tax after that. You can claim back some or all of the US part by submitting a Japanese tax return and claiming the foreign tax deduction. That's why it's probably better to choose a Japanese global index fund instead. If you use a NISA, you can avoid the 20.315％ Japanese tax, but not the 10% US.

[Tkydon]

No, dividends on Vanguard ETFs are subject to 10% US tax, then 20.315％ Japanese tax after that. You can claim back some or all of the US part by submitting a Japanese tax return and claiming the foreign tax deduction. That's why it's probably better to choose a Japanese global index fund instead. If you use a NISA, you can avoid the 20.315％ Japanese tax, but not the 10% US.

10% US tax, and if in a Japanese Account that withholds tax, 20.315％ (15% National, 0.315% Reconstruction, and 5% Residents' Taxes) on the remaining 90% after 10% US tax, so that works out to 18.2835% on the Gross, for a total of 28.2835% on the Gross Dividends...

Unless you do your Kakutei Shinkoku correctly, and declare the Gross Dividends under the Separate Taxation Method - Form B - Page 3 第三表, at the Dividend Tax Rate of 20.315％ on the Gross Dividend, and then claim the Foreign Tax Credit - Form B Page 1 Item 46, to claim back the 10% withheld in the US from your Japanese Taxes, with the final result of total 20.315% of the Gross Dividends (10% US tax on the Gross, 15% National Tax minus the 10% Foreign Tax Credit = 5% National Tax on the Gross, 0.315% Reconstruction on the Gross, and 5% Residents' Taxes on the Gross Dividends); a total saving of 7.9685% on the Gross...

[TJKansai]

No, dividends on Vanguard ETFs are subject to 10% US tax, then 20.315％ Japanese tax after that. You can claim back some or all of the US part by submitting a Japanese tax return and claiming the foreign tax deduction. That's why it's probably better to choose a Japanese global index fund instead. If you use a NISA, you can avoid the 20.315％ Japanese tax, but not the 10% US.

10% US tax and 20.315％ (15% National, 0.315% Reconstruction, and 5% Residents' Taxes) on the remaining 90% after 10% US tax, so that works out to 18.2835% on the Gross, for a total of 28.2835% on the Gross Dividends...

Unless you do your Kakutei Shinkoku correctly, and declare the Gross Dividends under the Separate Taxation Method - Form B - Page 3 第三表, at the Dividend Tax Rate of 20.315％ on the Gross Dividend, and then claim the Foreign Tax Credit - Form B Page 1 Item 46, to claim back the 10% withheld in the US from your Japanese Taxes, with the final result of total 20.315% of the Gross Dividends (10% US tax on the Gross, 15% National Tax minus the 10% Foreign Tax Credit = 5% National Tax on the Gross, 0.315% Reconstruction on the Gross, and 5% Residents' Taxes on the Gross Dividends); a total saving of 7.9685% on the Gross...

This got me thinking that we may be paying too much tax due to the Vanguard Fund my wife (J citizen) has バンガード 米国中期債券 ETF(BIV). I was under the impression everything was taxed automatically and I didn't need to worry about it.

It had been doing pretty well, but not of late.

She started out with a NISA, but then switched to Tsumitate (that now all goes to 三菱ＵＦＪ国際－ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）.