My wife (income of ¥25,000/year) has some overseas funds with potential capital gains, and we are thinking about selling and bringing the funds back to Japan, with the aim of moving them into her NISA over the next few years.
Roughly, she bought it for 10,000,000, now worth 12,000,000, so a gain of 2,000,000 if we sell. I believe the tax is about 20%, so she needs to pay 400,000 if she brings it all back at once, correct?
Last year she brought back a much smaller amount, declared the gains, and ended up paying some tax. She was told that she was just over the limit for tax-free filing.
I'm not sure if it is worth cashing out in drips or just biting the bullet and getting it in one shot.
Any advice/comments?
Jpn Spouse: How much tax on overseas gains?
Re: Jpn Spouse: How much tax on overseas gains?
Tax Free Limit Y500,000.
Over that, 20.315%, consisting of 15% National and 0.315% Reconstruction Tax payable at the time of Kakutei Shinkoku in April of the year following the gain, and 5% Residents' Taxes which will be included in the Resident's Tax Bill payable either out of payroll, from July of the year following the gain to June of the year after that, or with Payslips from the Municipal Tax Office (received in June) if not in employment, payable in 1 shot or 4 installments; July, October, January and April, so it may not be blatantly visible.
Over that, 20.315%, consisting of 15% National and 0.315% Reconstruction Tax payable at the time of Kakutei Shinkoku in April of the year following the gain, and 5% Residents' Taxes which will be included in the Resident's Tax Bill payable either out of payroll, from July of the year following the gain to June of the year after that, or with Payslips from the Municipal Tax Office (received in June) if not in employment, payable in 1 shot or 4 installments; July, October, January and April, so it may not be blatantly visible.
Last edited by Tkydon on Sat Oct 07, 2023 1:37 pm, edited 1 time in total.
:
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
https://zaik.jp/books/472-4
The Publisher is not planning to publish an update for '23 Tax Season.
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:
https://zaik.jp/books/472-4
The Publisher is not planning to publish an update for '23 Tax Season.
-
captainspoke
- Sage
- Posts: 1419
- Joined: Tue Aug 15, 2017 9:44 am
Re: Jpn Spouse: How much tax on overseas gains?
Keep in mind that cost basis and sale value need to be expressed in yen for each of those dates (or, basis as an average if there is more than one acquisition price/date).
Something bought a few years ago, when the yen was ~110/$1, and sold now at 148, will show a gain over and above what the gain may be in US$ alone.
$1000 back then would have been ¥110,000; and now it's ¥148,000. So a 'gain' of ¥38,000 even if the stock (or ETF, or fund) did nothing since then. And if it did move up some, the gain, once it is expressed in yen, will be even more.
http://www.murc-kawasesouba.jp/fx/past_3month.php
Use that site to look back at values in yen (use TTM for both dates), and don't use the calendars--just below those are some dropdowns to find any date. Also, if it doesn't return a value for a certain date (such as a holiday here), step backwards by a day at a time and use the first available previous f/x rate.
Something bought a few years ago, when the yen was ~110/$1, and sold now at 148, will show a gain over and above what the gain may be in US$ alone.
$1000 back then would have been ¥110,000; and now it's ¥148,000. So a 'gain' of ¥38,000 even if the stock (or ETF, or fund) did nothing since then. And if it did move up some, the gain, once it is expressed in yen, will be even more.
http://www.murc-kawasesouba.jp/fx/past_3month.php
Use that site to look back at values in yen (use TTM for both dates), and don't use the calendars--just below those are some dropdowns to find any date. Also, if it doesn't return a value for a certain date (such as a holiday here), step backwards by a day at a time and use the first available previous f/x rate.
Re: Jpn Spouse: How much tax on overseas gains?
Good point. The amounts I gave are the yen cost/sale price (a Goldman Yen Fund), so it is a 20% gain.captainspoke wrote: ↑Sat Oct 07, 2023 3:44 am Keep in mind that cost basis and sale value need to be expressed in yen for each of those dates (or, basis as an average if there is more than one acquisition price/date).
Something bought a few years ago, when the yen was ~110/$1, and sold now at 148, will show a gain over and above what the gain may be in US$ alone.
$1000 back then would have been ¥110,000; and now it's ¥148,000. So a 'gain' of ¥38,000 even if the stock (or ETF, or fund) did nothing since then. And if it did move up some, the gain, once it is expressed in yen, will be even more.
http://www.murc-kawasesouba.jp/fx/past_3month.php
Use that site to look back at values in yen (use TTM for both dates), and don't use the calendars--just below those are some dropdowns to find any date. Also, if it doesn't return a value for a certain date (such as a holiday here), step backwards by a day at a time and use the first available previous f/x rate.