This is part of Japan's domestic brokerage and tax system. Non-resident investors and those holding shares through overseas brokers may be subject to different rules.
How it works
Under the registered dividend account method, you designate a single bank account in advance through your brokerage, and dividends on every stock you hold — even across multiple brokerages — are consolidated and paid into that one account. This makes it easy to track your dividend income without checking each brokerage account separately.
Difference from the proportional distribution method (NISA tax exemption)
Japan has four ways to receive dividends: the proportional distribution method, the registered dividend account method, the dividend slip method, and the stock-by-stock designation method. Of these, dividends held in a NISA account are tax-free only under the proportional distribution method. If you use the registered dividend account method, dividends on shares in your NISA account remain taxable even though the account itself is a NISA account. If you want the NISA tax exemption to apply, you need to switch your dividend receipt method to the proportional distribution method through your brokerage.
Changing your receipt method
You can check or change your dividend receipt method through your brokerage's website or customer support. Note that the setting is matched and applied across every brokerage account registered under your name by Japan Securities Depository Center (JASDEC), not set individually per account. Please confirm the exact procedure with your own brokerage.
This article reflects the rules as of the time of writing (September 2026). NISA rules and JASDEC's handling may change in the future, so please check the National Tax Agency or your own brokerage for the latest information.