From domestic accounts, overseas accounts are more profitable in the mechanism [Most people do not need to worry about high taxes]

Hello!

I’m Takashi, a former accountant, psychological counselor, and trader.

This time, it’s about accounts.

Domestic accounts, overseas accounts

Which one are you using?

Which is better? It can become a topic of debate.

Recently, a famous person made a remark that could be interpreted as denying overseas accounts, which sparked various counterarguments and opinions, and it got a bit heated.

Domestic and overseas accounts each have their own merits and demerits, and depending on the person, whether you are losing or winning, and how much you are winning, the advantages and disadvantages vary, so I don’t think it’s possible to say one is clearly better.

Therefore, if you deny one side unilaterally, it will cause a clash.

▼ Are overseas accounts taxed highly?

The negative view of overseas accounts began with opinions like this.

FX overseas accounts, when you make a profit, is it treated as overall taxation up to 55%?

So isn’t it extremely difficult to have more after tax money than a domestic account?

People hearing this for the first time are shocked by how high it is, right?

More than half taxed!

Domestic is 20.315%.

Let’s take a look at the list.

If annual profit is 3.3 million yen or less, taxes are almost the same as a domestic account.

If it’s 1.95 million yen or less, overseas accounts are cheaper than domestic accounts.

▼ “Don’t use overseas accounts because taxes are high” is a mistake

We had a trading plan starting from 200,000 yen.

⇒FX account from 200,000 yen: week 4

In one month (20 trading days), the profit rate＋63.39%

Starting from 200,000 yenProfit amount +126,776 yen

“From data of several FX companies, new trading funds from customers are mostly 500,000 yen or less.”

Starting with 200,000 yen seems realistic.

Trading can’t yield this much profit right away, but if it did, assuming simple interest

Annual profit 1,521,312 yen

Since it’s under 1.95 million yen per year, overseas account tax rate is 15%. It’s cheaper than domestic.

For someone starting now,saying “use domestic accounts because taxes are high”is a mistake.

Even if you start with 500,000 yen, to have overseas accounts not be more taxed, you’d want to multiply by about 6.6 times per year.

(330万円超～30% tax)

Most people don’t need to worry about high taxes.

Use overseas accounts where taxes are cheaper up to 1.95 million yen, and if profits exceed that, consider switching to a domestic account.

▼ Correct comparison between domestic and overseas accounts

Shall we actually calculate and compare?

I’ll use my actual data.Using overseas accounts.

Starting from 200,000 yen,Profit amount +126,776 yen

With simple interestAnnual profit 1,521,312 yen

Tax comparison

Domestic: 309,054 yen (20.315%)

Overseas: 228,196 yen (since 1.95 million yen or less, 15%)

80,858 yen is cheaper with overseas accounts.

Overseas accounts areabout 530,000 yen more expensive!

This time’s “Trading plan from 200,000 yen.”

If the top tax rate were 55%, would it have been more profitable to do it with a domestic account?

Actually, overseas accounts would be more profitable.

The above calculations don’t apply the same way.

Let me explain why that happens.