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| 1, |
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Capital Gains |
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a, |
Increase in Rate - The current reduced tax rate of 7% (10%, including inhabitant tax) for capital gains from listed stocks will continue through December 31, 2008, and will subsequently increase to 15% (20%, including inhabitant tax) thereafter. However, the reduced tax rate of 7% (10%, including inhabitant tax) can still be applied to capital gains up to five million yen per year for the 2009 and 2010 calendar years. |
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b, |
Reporting – If capital gains from listed companies exceed five million yen in calendar years 2009 and 2010, the individual is required to file his/her own individual income tax return (rather than having only deductions made from the sales proceeds). |
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| 2, |
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Dividends |
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a, |
Increase in Rate – Similar to the above, The current reduced tax rate of 7% (10%, including inhabitant tax) for dividends received from listed stocks will continue through December 31, 2008, and will subsequently increase to 15% (20%, including inhabitant tax) thereafter. However, the reduced tax rate of 7% (10%, including inhabitant tax) can still be applied to dividends up to one million yen per year for the 2009 and 2010 calendar years. |
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b, |
Reporting – If dividends received from listed companies exceed one million yen in calendar years 2009 and 2010, the individual is required to file his/her own individual income tax return. Such income can either be reported separately from salaried income as explained above or reported together with salaried income. |
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| 3, |
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Offsetting |
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From the 2009 calendar year, if the individual elected to have the dividend income reported separately, he/she will be permitted to net the dividend income with capital losses from the listed stocks which have arose during the past three years. |
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