What Is Capital Gains Tax on Stock Sales in Japan?

Capital gains tax, in the context of Japanese stock investing, is the tax charged on the profit earned from selling stocks or other securities.

This is part of Japan's tax system. If you are not a Japanese tax resident, capital gains from selling Japanese stocks may be taxed differently, or not at all, under the rules of your own country.

How it works

Tax is charged, under separate self-assessment taxation (see related page), on the profit remaining after subtracting the acquisition cost and fees from the sale price of stocks or other securities. If you use a "with withholding" specific account, the brokerage automatically calculates and collects the tax.

Things to watch for

Gains within a NISA account are tax-exempt, and the treatment otherwise differs depending on the type of account used. Please confirm the exact calculation and whether a filing is required with the Japanese tax authorities (NTA) or a qualified tax accountant.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

What is the capital gains tax rate?
A statutory rate exists, but it is subject to change. Please confirm the current rate and calculation method with the Japanese tax authorities (NTA) or a qualified tax accountant.
Do I need to report a loss on a stock sale?
Losses themselves are not taxed, but if you want to use loss offsetting or a loss carryforward, filing a tax return is required. Please confirm the treatment for your situation with a qualified tax accountant.