RetireJapan

alberto wrote: ↑Tue Oct 25, 2022 6:29 am Does my kid (who is 5 years old) have to pay capital gain tax when selling stocks with profit? If so, is there any exempt amount?

I am considering selling some stocks with a profit of ~2,000 EUR (in our overseas broker).

Thanks!

alberto wrote: ↑Tue Oct 25, 2022 8:06 am Thank you!

About Junior NISA, in my case it could not have been avoided because I want to use the money for something else, and Junior NISA makes you pay taxes if you withdraw the money before the kid is 18.

alberto wrote: ↑Tue Oct 25, 2022 6:29 am Does my kid (who is 5 years old) have to pay capital gain tax when selling stocks with profit? If so, is there any exempt amount?

I am considering selling some stocks with a profit of ~2,000 EUR (in our overseas broker).

Thanks!

sutebayashi wrote: ↑Tue Oct 25, 2022 10:27 am

alberto wrote: ↑Tue Oct 25, 2022 6:29 am Does my kid (who is 5 years old) have to pay capital gain tax when selling stocks with profit? If so, is there any exempt amount?

I am considering selling some stocks with a profit of ~2,000 EUR (in our overseas broker).

Thanks!

There is a useful rule that says you only need to report income if it exceeds 200,000 yens worth, if I am not mistaken.
So if you keep your (son’s) yen profits within that amount you can keep the 40,000 yen that would be due in tax.

sutebayashi wrote: ↑Tue Oct 25, 2022 12:46 pm That sounds like the rule I am thinking of, but my understanding is that one need not file a tax return if this non-salary income doesn’t exceed 200,000, and by extension not need to pay any tax on that income either. So I was thinking a 5 year old with no salary would effectively be looking at a 200,000 yen equivalent annual profit limit for capital gains before needing to report any income.

What 5% rate do you refer to?

Beaglehound wrote: ↑Tue Oct 25, 2022 3:27 pm I was under the impression that capital gains can be accounted for as ordinary income, in which case a kid with no other income would be off the hook, assuming the gain is under the personal exemption limit (is it 480k these days?). I may be wrong though.