How to claim and carry forward stock losses
Eligible losses, dividend offsets, continuous filing, and the three-year carryforward.
A listed-share loss can be offset against listed-share gains and, by election, eligible dividends; any remaining loss carries forward three years — but only if you file a return each year continuously, even in years with no gain.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Offset losses against listed-share gains and, by election, eligible dividends.
- Carry a remaining loss forward up to three years.
- You must file continuously — even in a no-gain year — to preserve it.
- Requires an eligible account and the annual transaction report.
Offsetting and carrying forward
When you realize a loss on listed shares, filing lets you set it against listed-share gains in the same year and, if you elect, against eligible listed dividends. If a loss remains, it carries forward up to three years to offset future gains and dividends. This can meaningfully reduce tax across a volatile few years.
Keep filing
The catch is continuity: to keep a carried-forward loss alive you must file a return every year in the carryforward window, even a year with no gains, otherwise the loss is lost. Keep the annual transaction reports, and if you have losses across multiple brokers, filing consolidates them.
Who this is for
- Investors with realized losses
- Active traders across brokers
What this is not
- NISA losses (not usable)
- Skip a year’s filing and the carryforward is lost — file every year in the window.
Frequently asked questions
How is cryptocurrency taxed in Japan?
Crypto profits are treated as miscellaneous income (雑所得) and taxed at your marginal rate — combined with resident tax this can reach roughly 55%, unlike the ~20% flat rate for listed stocks. Every disposal is taxable, including selling for yen, trading one crypto for another, and spending crypto on goods. You must track cost basis and calculate gains, so recordkeeping tools are important, and larger activity often warrants a tax accountant.