Taxes on foreign securities and brokerages
Foreign dividends, gains, currency, foreign withholding, and the foreign-tax credit.
A Japanese resident’s dividends and gains from foreign securities are taxable in Japan (a foreign broker usually does no Japanese withholding), you translate amounts to yen, and foreign tax withheld abroad may be relieved through the foreign-tax credit — with its own limits and documentation.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Foreign dividends and gains are taxable in Japan for residents.
- A foreign broker usually does not withhold Japanese tax — you file.
- Translate amounts to yen using the appropriate rate.
- Foreign withholding may be relieved via the foreign-tax credit.
Reporting foreign holdings
If you are a Japanese resident, dividends and capital gains from a foreign brokerage are taxable in Japan even though the foreign broker runs no Japanese withholding. You compute the income yourself from annual statements, translating each amount to yen at the appropriate rate. Keep the foreign statements and CSVs; a general-account-style manual calculation is common for foreign brokers.
Foreign withholding and credits
Foreign countries often withhold on dividends. Japan can grant a foreign-tax credit for qualifying foreign income taxes, limited by Japanese ceilings and requiring documentation of the country, income category, tax, payment, and exchange rate. The credit is not necessarily the whole foreign tax, and treaties can reduce the foreign withholding rate — worth reviewing with a professional if amounts are significant.
Who this is for
- Residents with overseas brokerage accounts
- People with foreign dividends
What this is not
- US-specific PFIC issues (see the US guides)
- Foreign-asset reporting statements may also apply; significant holdings warrant professional review.
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.