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Japanese Tax on US Capital Gains from Stock 2016/11/4 13:17
I'm a permanent resident of Japan. On my Japanese tax return for this year, I will have to report capital gains from the sale of some US stock. All I can find online is information saying that capital gains from the sale of overseas stock is reported "separately from ordinary income" in Japan and is also subject to "separate taxation". Fair enough. I called the National Tax Agency information hotline for advice, but they were of no help.
Does anyone know about this (eg: Which Japanese tax form(s) to use? What the tax rate is for capital gains on overseas stock? etc.)
Later, I'll probably end up going to a Japanese tax professional for help, but in the meantime I want to try to understand what I'm up against, and also try to learn the related vocabulary in Japanese.
by Buzzcut (guest)  

Re: Japanese Tax on US Capital Gains from Stock 2016/11/4 15:50
as same as domestic stock selling.
national tax : 15\ې
residential tax : 5 %
ې : the tax will be calculated separately from your salary.
you may choose ې (combine your salary and capital gain). in mot cases, ې is better (cheaper tax).
calculation of capital gain : exchange at TTB on the selling date.
you can claim OŊzT, if US withdraws some tax when selling.
the system is complicated.
follow the advise by an accountant.
you can use the ordinary form. just fill the columns as same as domestic stock selling. (I believe)
by ken (guest) rate this post as useful

Re: Japanese Tax on US Capital Gains from Stock 2016/11/5 06:47
Yes, that is exactly what I want to find out about... the so-called "separate taxation" (ې) of overseas capital gains.

Thanks, Ken!

I'm going to keep searching online for information about ې and about how to report overseas capital gains. I want to have the correct Japanese vocabulary and the "separate taxation" tax forms when I talk with an accountant and with the tax office people.

If anyone out there has links to specific sites with explanations -- in English or Japanese -- as well as a link to the exact Japanese tax form(s) to use, please post the links here.

by Buzzcut (guest) rate this post as useful

Re: Japanese Tax on US Capital Gains from Stock 2016/11/5 17:17
Do you use Shinkokusho A?
I believe it will be Zatsu shotoku. There is an instruction on how to figure the amount.
You apply the amount to the Income column (shunyu) ㋒. You can deduct expenses from your gain and you put the deducted amount to the tax column in the shinkokusho A (shotoku kingaku A.
I am not sure about which yen rate to use.
If you are American and you also file U.S. tax return, I am not sure about you file this gain with Japanese tax office because it will be double taxation. @@
by Naoki (guest) rate this post as useful

Re: Japanese Tax on US Capital Gains from Stock 2016/11/5 23:10
n,jyouto-shotoku
https://biz.moneyforward.com/tax_return/basic/joutoshotoku-shinkoku/

necessary documents and forms
1.m\B
https://www.nta.go.jp/tetsuzuki/shinkoku/shotoku/yoshiki01/shinkokusho...
2.ېŗp̐\(O\)
https://www.nta.go.jp/tetsuzuki/denshi-sonota/kokugai/yoshiki/pdf/02.p...
3.ɌWn̋žvZ׏
you can make in any forms (for example, you can make it by Excel.)
buying: date, yen/USD rate, amount, handling fee, etc.
selling: date, yen/USD rate, amount, handling fee, etc.
if you convert between yen and USD when buying and selling, you can consider the exchange fees as necessary expense. generally, if you use TTS for buying (convert yen to USD), TTB for selling(convert USD to yen), your tax will become lower, if that is true. otherwise, use TTM.

by ken (guest) rate this post as useful

Re: Japanese Tax on US Capital Gains from Stock 2016/11/6 07:03
I use Form B.

It seems that I'm supposed to use this version of Form B:
\Bi\E\jE\O\iېŗpj

http://www.nta.go.jp/tetsuzuki/shinkoku/shotoku/kisairei2011/pdf/shink...

In the past, I asked the local tax office for help with my return, and they did not tell me about "separation taxation." So I paid too much tax by using the higher tax rate.

In addition to using the lower tax rate (15% national + 5% local) for this year's tax return, I want to look into amending some previous returns to get money back since I paid the higher rate (33% national + 10% local) in the past.

by Buzzcut (guest) rate this post as useful

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