Skip to content

Accounting Intelligence Blog

Talk about tax and corporate finance in Japan

  • Our profile
  • Pricing: 値段表
  • お問合せフォーム Contact Form
  • Career Oppotunities
  • Home
  • 2017
  • February
  • 4
  • Japanese Exit Tax on stocks

Japanese Exit Tax on stocks

Posted on February 4, 2017 By user
Investing in Japan, Personal Tax

I was asked about EXIT Tax of Japan recently and made some recap. EXIT Tax can potentially be applicable to rich people who has foot steps in both Japan and other countries and owns Japanese stocks.

Capital gain on Japanese Stock are free of tax for non-resident

Capital gain from stock transactions are tax free for non-resident (listed stocks). If one is a Japan resident, it is taxed at the flat tax rate of 20.42%. Capital gain is only become taxable for residents when it is realized (sold). It means that you are not taxed until you sell your stock, if you are a resident. You are never taxed on capital gain from Japanese stock if you are a non resident.
Here it raises a question. What if I have Japanese stock, I move abroad and then sell the stocks?

Marginal case – EXIT Tax

If you have more than 50 million yen in stock and change your tax status from a Japan resident to a non-resident, your stocks are to be deemed as sold and the difference between your cost and its market price are taxed with capital gain tax.
But this rule has an exception. You will be NOT taxed if you are non-permanent resident (a tax terminology, meaning you have been in Japan more than 5 years in the last 10 years). It seems that this exception is meant give a room for non residents, in line with the other income tax exception that allows foreign source income for non-permanent residents to be exempt.
A person who has residences both in Japan and your country, and therefore, there is a chance to be regarded as either a Japan resident or non-resident, needs to be careful in determining when to become a non-resident from a resident for a tax purpose.
居住者と非居住者の区別の仕方
I will write about the distinction between a resident and non-resident soon.

Post navigation

❮ Previous Post: Tax saving – basics things better than sexy ones
Next Post: Blurred line between Resident and non-resident ❯

Recent Posts

  • Carried Losses for non-SMEs
  • 蓝表申报人身份的诸多好处
  • 消费税出口退税时的须知事项
  • RPAとPythonはどう違うの?Power Automateでエクセルの操作をしてみました。
  • Power Automateをやって見ました。

Recent Comments

No comments to show.

Archives

  • January 2023
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • July 2020
  • April 2020
  • March 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • February 2016
  • December 2015
  • October 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015

Categories

  • About our firm
  • Accounting and DX
  • Consumption Tax
  • Corporate Tax
  • cross border related tax
  • Estate Tax
  • Investing in Japan
  • M&A
  • Personal Tax
  • routine tax practices
  • Setting up organization
  • Starting a business in Japan
  • Tax
  • Tax saving
  • TK
  • Uncategorized
  • Valuation of stock in private company
  • Withholding Tax
  • キャリア
  • システム開発
  • スタートアップの経理と税金
  • プログラミングで効率化
  • ブロックチェーンと仮想通貨
  • ランニング
  • 中国語
  • 中文税金
  • 事業の成長・経営
  • 事業承継
  • 企業再編
  • 会社・支店の設立関係
  • 会社の解散・清算
  • 会社節税
  • 会計事務所独立・経営
  • 会計基準関係
  • 国際税務
  • 小さな会社の経理と税金
  • 山
  • 投資スキームと税金
  • 未分類
  • 本
  • 法人税関係
  • 洋書の読書ガイド
  • 消費税(日本語)
  • 監査など
  • 相続
  • 英語学習
  • Our profile
  • Pricing: 値段表
  • お問合せフォーム Contact Form
  • Career Oppotunities

Copyright © 2023 Accounting Intelligence Blog.

Theme: Oceanly by ScriptsTown