RetireJapan

Dear All,
A bit of a dummy's question, but with the end of the financial year approaching,
how does one go about submitting a tax declaration? I sold some stocks/funds this year,
making a few hundred man yen in profit (capital gains?). All of these stocks
were held in tokutei accounts (Rakuten and Monex). I guess even though they are
in tokutei accounts I still need to make some sort of tax declaration ? If so, where / how
do I do it !?
Many thanks in advance!

tokyojoe wrote: ↑Fri Mar 03, 2023 5:36 am I guess even though they are in tokutei accounts I still need to make some sort of tax declaration?

No, as long as they were held in a tokutei account no need to declare.

So long as the tokutei account was also of the variety that withholds tax at the source. Probably the case.

Many thanks to Retirejapan and sutebayashi,
Apologies for the slight delay in responding, but I have been able to verify that no tax declaration is required - which is obviously a very nice feature of such a tokutei account.

In case it might help, for those of you who are interested in checking your own account, in the case of Rakuten you go to
the homepage(this should be the page you are first placed on following login - you can get to this page at any time
by clicking on the 「Rakuten 楽天証券」logo in the top left hand corner of the page. Once on that page you should see
a blue box with 「確定申告に関して」, and in that box click on the 「確定申告サポート」button.
That will take you to a new page with tabs for different years, including the current one.
In my case it said
お客様の状況. 確定申告. 不要
customer status. tax declaration. not required


You can also check previous years clicking on the other tabs.

I think there are also tokutei accounts that do not withhold the tax at source, so it is worthwhile to double
check your status, it could be easy to inadvertently choose one of those when you are making your way through a long
application form in Japanese. I believe there can be circumstances in which such a tokutei account can be advantageous
(I guess because you can use (Invest!?) the money you have to pay as tax for a few months before sending it off to
the tax dept?), but if you prefer an easy life the tokutei + withhold at source is perhaps the way to go.
Thanks again for your responses!

Yeah, I changed to tokutei without tax withholding from this year to see how it goes. But I think withholding is a better choice for those who don’t care for tax returns.

Two benefits from not having the withholding type:
1) keep my money in my own control for longer like you say
2) potentially avoid paying taxes

The second one is not something I am too concerned with, but if your reportable income is under 200,000 yen, then you are not obliged to file a tax return - and so effectively needn’t pay tax even if you made 199,999 yen.

But it’s “only” 200,000 yen, so I only intend to take advantage of this, if it turns out that I can. Rather than make a conscious effort to stay under 200,000 to avoid taxes. (I try to make more money than that each year through my activities )

Actually I found that I had set up my spouses tokutei without the tax withholding, but then the spouse needed to file a tax return anyway this year because of furusato nozei donations. Instead of saving on the investment taxes, to get the furusato nozei recognized we had to pay a little tax instead. Tax due after the whole tax return for my spouse was like 9,000 yen, so not a big one though. (If you do file a tax return, you do have to include the income made, even if it is under the 200,000 yen exemption limit.)