First, the conclusion
Generally speaking, profits from the sale of listed stocks, dividends, etc. should be 20.315%, which is the sum of income tax, special income tax for reconstruction, and resident tax. However, the treatment differs for NISA, specified accounts, general accounts, and foreign assets.
| Check points | way of seeing |
|---|---|
| Gain on sale | Profit from selling for more than the purchase price. Taxable accounts are subject to capital gains tax. |
| Dividend/distribution | Taxes will be charged upon receipt. Check the receiving method and account classification. |
| specific account | If tax is withheld, the procedure is easy. If there is no withholding tax, declaration confirmation is required. |
| NISA | Investment profits are tax-free if they are within the tax-exempt limit under the system. Be careful when dealing with losses. |
The important thing when reading tax articles is not just memorizing the system name. It's about looking at your income, accounts, deductions, and reporting methods separately.
common misconceptions
- Just look at the profit amount and don't consider the after-tax take-home pay.
- I mix NISA and taxable accounts and look at the profit and loss.
- Overlooking local taxation of foreign stock dividends.
This is an area where it is easy to get confused just by reading the search article. In particular, "sales" and "income," "income tax" and "resident tax," and "NISA" and "taxable account" need to be treated as different things.
Order of actual checking
If you are confused, it will be easier to organize if you check them in the following order.
- Is the profit a sale gain or a dividend?
- Is the account NISA, specified account, or general account?
- Is the account with withholding tax or not?
- Are foreign taxes deducted?
If it is still difficult to make a decision after looking at the above, it is safer not to leave it to your own judgment. Please check through official channels such as consultation with the tax office, the National Tax Agency's tax return preparation corner, and consultation with a tax accountant.
Summary
When it comes to investment taxes, the practice of account selection changes as much as the stock selection. Beginners will be less confused if they understand the difference between NISA and a specified account with withholding tax.
While it's hard to get away with not knowing about taxes, there's no need to fear them too much if you sort them out early. When your income increases, when you start investing, or when you want to use deductions, it is most practical to prepare your records early rather than at the end of the year.