Hello,
I have a question regarding holding multiple brokerage accounts in Japan.
I'm a Japanese citizen thats moving back to Japan from the US. Since I have not lived in Japan since I was little, I'm a bit unfamiliar with the Japanese side of things.
I see that in Japan, the cost basis of a stock purchased in multiple lots is calculated based on an average across the lots. See: https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1466.htm
I want to explore the following hypothetical scenario:
– I land in Japan and create two accounts across two different brokerages, A & B.
– I transfer over from the US a bunch of stocks from company X into brokerage A account.
– Next, I begin purchasing new stocks from the same company X, but under brokerage B account.
Assume that brokerage B account is 特定口座. When buying or selling, I assume that the averaged cost basis used for withholdings will be calculated only with the knowledge of what I hold under brokerage B.
Is there some sort of adjustment that needs to be done manually that reconciles the cost basis with my holdings in brokerage A of the same stock?
by Big-Particular-6138
3 comments
I would deal with those separately, as not the same holding even tho technically the same.
Also, apart from IB (interactive brokers), an international outfit which has a subsidiary here and has ‘transferred over’ some US-based accounts to the local subsidiary, moving US-based stocks/ETFs to Japan is going to be a challenge. To do that, I think you’d have to first move your assets to the US version of IB (from your present broker), then initiate a transfer of the same to their Japan-based operation.
If you hold the same stock in two different brokerage you just can’t use 特定口座.
As for transferring holdings from the US to Japan without selling/repurchasing, it’s almost impossible anyway.
> Assume that brokerage B account is 特定口座. When buying or selling, I assume that the averaged cost basis used for withholdings will be calculated only with the knowledge of what I hold under brokerage B.
That is correct, expected, and not a problem.
See https://www.nta.go.jp/law/tsutatsu/kobetsu/shotoku/sochiho/020624/sanrin/1273/37_11_3/01.htm (37の11の3-1 → (1)).
Here’s maybe a more approachable article by [Rakuten Securities](https://media.rakuten-sec.net/articles/-/46564#:~:text=%E3%81%AB%E3%81%AA%E3%82%8A%E3%81%BE%E3%81%99%E3%80%82-,%E5%AF%BE%E5%87%A6%E6%B3%952%EF%BC%9A%E7%95%B0%E3%81%AA%E3%82%8B%E8%A8%BC%E5%88%B8%E4%BC%9A%E7%A4%BE%E3%81%AE%E7%89%B9%E5%AE%9A%E5%8F%A3%E5%BA%A7%E3%82%92,%E7%85%A9%E9%9B%91%E3%81%AB%E3%81%AA%E3%82%8B%E3%81%93%E3%81%A8%E3%81%A7%E3%81%99%E3%80%82):
> 特定口座は証券会社ごとに一つ持つことができます。そして、異なる証券会社で同じ銘柄を持っていたとしても、特定口座の場合はその取得価格や損益計算は合算せず、特定口座ごとに別々に行うことになっています。
> Is there some sort of adjustment that needs to be done manually that reconciles the cost basis with my holdings in brokerage A of the same stock?
You actually explicitly **aren’t** allowed to do such an adjustment from a Japanese tax perspective. That single stock held in different 特定口座 needs to be treated as essentially separate stock**s**: the same stock in any number of 一般口座 *combined*, and then the same stock held on each 特定口座 *each in isolation*, have separate cost basis.
See this article that describes a case where this was fought over: https://chester-tax.com/column/21114.html
> 控訴人（納税者）は、「特定口座」と「一般口座」において同一銘柄の上場株式を保有しており、一般口座において管理していた当該上場株式のみを譲渡しました。
>
> この当該上場株式の譲渡に係る譲渡所得の計算にて用いる「取得費」を計算する際、一般口座において保有している当該上場株式の取得価額だけではなく、特定口座において保有する当該上場株式等の取得価額も含めて、「総平均法に準ずる方法」によって計算をして申告をしました。
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> しかし原処分庁は **「取得費に算入する金額については、特定口座にて所有している上場株式等の取得価格を含めずに算出するべき」** として所得税の更正処分等を行い、控訴人（納税者）が処分の全部の取り消しを求めた事案です。
So, if you buy new stocks in B, their cost basis is fresh and has no impact on the cost basis in A. Only if you were to move them out of B into A, would B’s cost basis of that stock start to become relevant for A.
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