Rakuten Securities
楽天証券Brokerage (NISA/iDeCo) · Rakuten Securities
- Fees
- Varies
- English
- Partial
A leading low-cost brokerage for NISA and index-fund investing, integrated with Rakuten points and Rakuten Bank.
Taxes on investments in Japan
The 20.315% rate on gains and dividends, how specified accounts work, loss carryforward, NISA exemptions, and foreign income.
Direct answers
Gains and qualifying dividends on listed securities are generally taxed at 20.315% in a taxable account; a specified account with withholding settles this automatically, losses can offset gains and carry forward three years, and NISA exempts qualifying returns entirely.
Key points
- Listed-securities gains and qualifying dividends are generally taxed at 20.315%.
- A specified account with withholding usually removes the need to file for those trades.
- Taxable losses can offset eligible gains/dividends and carry forward three years if you file.
- NISA exempts qualifying gains and dividends, but NISA losses give no deduction.
- Foreign dividends can face source-country withholding even inside NISA; foreign tax credits need filing.
The rate and how accounts handle it
In a taxable securities account, gains on listed shares and funds and qualifying dividends are generally taxed at 20.315% (income tax, special reconstruction surtax, and local tax combined). How you pay depends on the account. A specified account with withholding (特定口座・源泉徴収あり) has the broker calculate and withhold the tax at source, so a tax return is often unnecessary for those transactions. A specified account without withholding gives you an annual transaction report to file with. A general account requires you to calculate acquisition cost and gain yourself.
NISA sits outside this: qualifying gains, dividends, and distributions are exempt from the 20.315% Japanese tax, which is the wrapper’s central benefit.
Losses, offsets, and carryforward
In taxable accounts, qualifying listed-security losses can be offset against eligible gains and dividends, and — when the required tax returns are filed — carried forward for up to three years to offset future gains. This loss relief is a genuine advantage of taxable accounts that NISA does not provide: a loss realised inside NISA gives no deduction and cannot be carried forward, so you cannot tax-loss harvest in NISA.
If you use multiple brokers or a general account, keeping your own acquisition-cost records matters, because offsets and carryforward depend on correct, filed figures across accounts.
Foreign income and when to file
Foreign dividends and gains can face source-country withholding in addition to Japanese tax outside NISA. For example, a US dividend may have US withholding even when received in NISA — NISA removes the Japanese tax, not the foreign one. Foreign tax credits may relieve some double taxation, but they generally require filing a Japanese return. A withholding account does not automatically solve foreign or cross-border obligations.
Even if qualifying NISA returns need no return, other income, foreign obligations, or a wish to claim loss offsets can require filing. Declared investment income can also interact with social-insurance or dependent calculations in some cases. Keep annual transaction reports and dividend statements, and get individual advice where cross-border tax is involved.
Who this is for
- Investors using taxable accounts alongside NISA
- People with foreign dividends or gains
What this is not
- Anyone needing individual tax advice for a specific case
- US taxpayers before cross-border review
Important cautions
- Tax rules and rates change and depend on individual facts; this is educational, not tax advice. Confirm with the NTA or a tax professional.
Related products & services
SBI Securities
SBI証券Brokerage (NISA/iDeCo) · SBI Securities
- Fees
- Varies
- English
- Partial
Japan’s largest online brokerage by accounts, with a very broad low-cost fund lineup and full NISA/iDeCo support.
Monex Securities
マネックス証券Brokerage (NISA/iDeCo) · Monex
- Fees
- Varies
- English
- Partial
An established online brokerage often chosen for US-stock access and research tools, with NISA and iDeCo support.
Frequently asked questions
Should US citizens use NISA or Japanese mutual funds?
Be very careful. Japanese mutual funds and ETFs are usually PFICs (Passive Foreign Investment Companies) for US tax, which triggers punitive US taxation and heavy Form 8621 reporting — and the NISA tax exemption does not apply to the US. Many US persons in Japan avoid Japanese pooled funds and instead hold US-domiciled assets, but rules are complex. Get advice from a cross-border US/Japan tax professional before investing.