First, the conclusion
Under the new NISA, profits from the sale of investment products held within the scope of the system, as well as dividends and distributions, are exempt from tax. However, this does not mean that losses, foreign taxes, and transactions outside the account will be reduced to zero.
| Check points | way of seeing |
|---|---|
| Things that are tax exempt | Investment profits in NISA account. |
| Things that are not tax exempt | Profits from taxable accounts other than NISA. |
| loss | NISA losses are treated as if they never existed for tax purposes and cannot be added up. |
| foreign tax | Check local taxes on dividends from foreign assets. |
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
- With NISA, I think all foreign taxes are zero.
- I think you can use NISA losses for tax savings.
- I think it's advantageous no matter what you buy because it's tax-free.
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 it a profit within NISA?
- Are transactions from taxable accounts mixed in?
- Foreign stocks or foreign ETFs?
- Do you understand what to do in the event of a loss?
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
The new NISA is a strong system. However, tax exemption is a mechanism that comes into effect when profits are made. You need to consider what you buy, where you buy it, and what happens if you lose money.
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.