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What Is NISA (Japan's Tax-Free Investment Account)?

NISA is a Japanese tax-advantaged scheme under which dividends, distributions, and capital gains earned within a set investment amount are tax-exempt.

NISA is a scheme specific to Japan's tax system. If you are not a Japanese tax resident, it does not apply to you, or a different set of rules will apply in your own jurisdiction.

How it works

Dividends, distributions, and gains on the sale of stocks or mutual funds are normally taxed at roughly 20%, but for financial products purchased within a NISA account, this tax is waived.

The structure of the scheme

The current NISA (introduced in 2024 as the "new NISA") consists of two components: the Tsumitate (installment) Investment Quota and the Growth Investment Quota (see related pages for details). There are caps on the amount that can be invested tax-free, and the details of the scheme may change in the future, so please check official information from Japan's Financial Services Agency (FSA), the National Tax Agency (NTA), or a qualified tax accountant for the latest details.

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

Is it really true that no tax is charged on gains earned through NISA?
Dividends, distributions, and capital gains earned within a NISA account are not taxed, within the scope of the statutory tax-free allowance. However, the details and eligibility conditions of the scheme can change through legal amendments, so please check with the National Tax Agency (NTA) or a qualified tax accountant for accurate, up-to-date information. NISA is a Japan-specific scheme and does not apply to readers who are not Japanese tax residents.
Are NISA and the 'new NISA' the same scheme?
The scheme in effect from 2024 onward is called the 'new NISA,' and it changed several features from the previous scheme, including making the tax-exempt holding period indefinite (see the New NISA page for details). Please confirm the details with the tax authorities.

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