Transfering stock holdings to Japn

Hi

I hold Japanese listed stocks through interactive brokers. I set up the account in Australia.

As I am now based in Japan, IB is seeking to transfer my holdings (no liquidation) into a Japan based account. This actually suits me as the Japan account will apply withholding tax at the source meaning I won't need to declare dividends and capital gains in the end of year tax return. This avoids inflating my insurance premiums.

I just wanted to check that the transfer will not lead to any taxable event in Japan. I'm pretty sure it should be fine, as I'm just remitting my savings (in the form of stock holdings) into Japan without realising any capital gains, but I would just like to check.

I am a non permanent resident of Japan.

Thanks for your help!

by Competitive-Ask4499

3 comments
  1. > This actually suits me as the Japan account will apply withholding tax at the source meaning I won’t need to declare dividends and capital gains in the end of year tax return.

    Dividends generally have tax withholding.

    However, IBSJ does not, at this point, offer [accounts that withhold capital gains from stock sales](https://www.interactivebrokers.co.jp/jp/support/faqs.php).

    > 特定口座は現在提供しておりません。一般口座のみ提供となり、お客様自身で確定申告をしていただく必要があります。

    As for…

    > I just wanted to check that the transfer will not lead to any taxable event in Japan.

    If in fact no liquidation happens there is no taxable event.

    > I am a non permanent resident of Japan.

    Have you held your securities since before coming to Japan?

    If so, and you haven’t and won’t remit any money to Japan this year (you’d have to park it in an Australian bank account until next year) it may make sense to actually liquidate in Australia as it could (check your tax treaty) effectively make the liquidation tax-free.

  2. Coming from Canada and as a non-permanent resident, I read that if i sell stock i purchased before moving to Japan, the gains are considered foreign income (not taxed in Japan) because not remitted to Japan.

    Also dividends are also considered foreign income (not taxed in Japan), if not remitted to Japan.

    But if the stocks are transferred to IBSJ first, they will be considered in Japan.

    So if you have long term investments, you could keep them offshore until your status change to permanent resident (for tax) which is 5 years. Sell just before it happens and make the gains tax free (again without remitting to Japan).

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