What is double taxation? Basics and Points to Know in Investment and Inheritance

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Double taxation for the same money or profit Tax is required multiple times.

not completely illegal There are cases in which the system occurs.

In particular,

• idend
• Property
• Overseas ETF

Related

In this article,

• Basics of double taxation
• Example
• Why happen
• Practice Points

organize for beginners.

What is double taxation?

to say

A state where another tax is overlapping on the amount of money or profits taxed once

Home

For example:

• Corporate income tax
• Income tax and resident tax for subsequent dividends

There is a shape.

つまり、 For the same economic value It seems that multiple tax burdens are expected.

However, due to the system, tax is different, It does not mean un onable or illegal.

Double taxation common in investment

1. idend

idends

This is the current.

Companies pay corporate tax to profits, After that, the dividends received by the shareholder will be taxed.

For View from individual investors

taxed by the company and taxed by the shareholders

Looks like

For dividends of domestic shares, "Dividend Deduction" may be used in certain conditions.

2. Overseas ETF

のidends for overseas ETFs and foreign stocks After tax is collected overseas, It may be taxed in Japan.

For example:

• Source collection in the United States
• idend tax in Japan

It is a form.

As a system to adjust the double taxation of foreign and Japanese, There is a foreign tax deduction.

However,

• It may be necessary to make a final declaration
• The amount that can be deducted is limited
• Different handling depending on account and product

Therefore, it is not simply a full return.

3. Sale of assets after inheritance

There is a scene that feels “double-sided” even in inheritance.

For example:

• Inheriting stock and real estate
• Pay inheritance tax
• Then sell the assets
• Income tax and resident tax are required if there is a transfer profit

This is the case.

This is

• Inheritance tax: taxation to inheriting property
• Transfer Profit Taxation: Taxation of profits caused by sale

Taxes are different.

That's why Even if it looks double taxation as a sense, The institution is treated as a separate taxation relationship.

Why double taxation occurs

HOME Taxes are subject to change.

For example:

• Corporate tax: Corporate profit
• Income Tax: Individual Income
• Relocation of property
• Transfer Profit Taxation: Profits from Sale of Assets

Like Taxes are different.

つまり、 Even if it looks like the same money, Tax law may be treated as another transaction or another income.

Common misunderstandings

"Double Taxation = All Illegal"

This is different.

Even if it looks like double taxation, There are many cases recognized by the system.

Home To avoid excessive tax burden,

• idend
• Foreign Tax Deduction
• Special examples of acquisition fee addition

There are cases where the adjustment system is changed.

NA

N、 is a national tax system. This is a system that taxes certain dividends, etc. and transfer profits.

However, when investing in foreign shares or overseas ETFs, It is not possible to tax all taxes that are collected in foreign countries.

especially when dealing with overseas assets

• 国内 Tax
• Foreign Tax
• Account Category
• Payment method

You need to check it.

Important Points in Practice

View Tax Return

In investment It is insufficient to say "how many% has changed?"

Important

After tax

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For example:

• Tax
• Tax
• Foreign tax
• Exchange fee

The actual return will change.

Use the system

Example

• NISA
• iDeCo
• Foreign Tax Deduction
• idend

Others

Especially in long-term investment The difference in tax costs is effective.

Not only " Yield", Tax efficiency is also important in asset formation.

The concept for beginners

Important

Improve tax efficiency rather than aiming to zero tax

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rather than aiming for full avoidance

• 分散
• Long term
• Application
• ation of tax return

is.

Because taxation changes depending on the person, When moving a large amount, it is safe to consult a tax accountant or other specialist.

Double taxation takes multiple tax burdens to the same economic value

• Easy to get up with dividends and overseas ETFs
• There is also a case to apply for the system
• Tax return is important
• Effective use of Nの and deduction systems

First,

1. Check your tax account
2. Know the tax system of foreign assets
3. View Operations After Tax

When you start with this 3 Easy to understand.

※This article is a general explanation for the basic understanding of tax system. For individual tax decisions, please check with experts such as tax accountants.