A must-see for investors! We'll look up your tax rate.

This year is almost over.

Profits earned from investments within the year are taxable depending on the amount.

Generally, when you search online for tax rates on stocks and FX, you often see the notation "20.315%".

This does not apply to everyone.

As the tax return deadline approaches, many people are probably researching these rates, so,

・What are the tax rates for stocks, FX, cryptocurrency, and binary options?

・Are there differences between domestic and overseas accounts?

・What happens if you don't pay taxes?

We will guide you through these and more.

◆What are the tax rates for each investment?

【Stocks】

・Dividends on listed stocks…20.315％

・Dividends on unlisted shares…20.42％

Listed foreign stocksDividends are taxed at the same rate as domestic listed stocks,20.315％.

【Cryptocurrency】

For cryptocurrency, if annual income from trading exceeds 200,000 yen, it becomes taxable.

Also, if you have other sources of income, the tax rate depends on your total income, so you need to be careful.

Taxable income brackets

Up to 1,950,000 yen: 5%

Over 1,950,000 yen and up to 3,300,000 yen: 10%

Over 3,300,000 yen and up to 6,950,000 yen: 20%

Over 6,950,000 yen and up to 9,000,000 yen: 23%

Over 9,000,000 yen and up to 18,000,000 yen: 33%

Over 18,000,000 yen and up to 40,000,000 yen: 40%

Over 40,000,000 yen: 45%

【FX・Binary Options】

For salaried workers, profits from trading exceeding 200,000 yen per year are taxable.

If you have no salary income, profits from trading exceeding 380,000 yen per year are taxable.

Also, tax rates differ depending on domestic vs overseas accounts.

・Domestic accounts……20.315％

・Overseas accounts……treated as miscellaneous income like cryptocurrency, so taxed according to total income (for details, refer to the cryptocurrency section)

◆Are there differences between domestic and overseas accounts?

As noted above, tax rates differ between domestic and overseas accounts, but“Which is better in the end?” is a common question we hear.

Each has its advantages and disadvantages, and here are just a few.

・Overseas accounts may have a lower tax rate when annual profits are small.

・Domestic accounts apply a loss offsetting system, so you can reduce tax burden in years with losses.

In reality, I think few investors consistently earn profits every year.

Loss offsettingallows you to offset profits and losses over a certain period, reducing taxes, which is reassuring.

※This system applies only when trades are conducted in domestic accounts, as shown below.This will apply, so please be careful.

◆What happens if you don’t pay taxes?

When you search online about tax rates, keywords like"loopholes" and"getting caught" stand out.

It's better to minimize the burden, butthere are no loopholes or tricks.

You must pay the taxes that are due.

If you fail to file a tax return or underreport, it may be considered tax evasion, potentially resulting in penalties, surcharges, fines, or even imprisonment.

To avoid spending before your tax payable is determined, it's better to research thoroughly and manage your funds; it's also better for your peace of mind!

Written by Kuwabara