Securities Tax System

1 Dividends from Listed Stocks, etc.

For dividends from listed stocks (excluding large amounts), 15.315% is withheld as Income Tax and Reconstruction Special Income Tax (national tax), and 5% as resident tax (local tax), totaling 20.315%.
Since resident tax has already been specially withheld on this income, filing is not required; however, if you determine that filing is advantageous, you can declare it as income (note).
When declaring this dividend as income, it will be subject to comprehensive taxation or separate taxation, and the 5% of resident tax that was specially withheld will be deducted from the income tax (it will not be deducted from the flat-rate tax).
Any amount that could not be deducted will be refunded or applied to the flat-rate tax.
If you choose to file, please remember to enter the amount of the specially withheld resident tax of 5% in the section for dividend tax credit on the second page of the income tax return.
For dividends from unlisted stocks and large dividends from listed stocks, 20.42% is withheld as Income Tax and Reconstruction Special Income Tax; however, this only includes Income Tax and does not include resident tax, so all dividends for which you did not choose to declare as Income Tax must be declared for resident tax, regardless of the amount.

2 Capital Gains from Stock Transfers Conducted in a Specific Account with Withholding Tax

For capital gains from stock transfers conducted in a specific account with withholding tax, 15.315% will be withheld as Income Tax and Special Reconstruction Income Tax (national tax), and 5% as resident tax (local tax), totaling 20.315%.
Since resident tax has already been specially withheld on this income, filing is not required; however, if you determine that filing is advantageous, you can declare it as income (note).
When declaring this capital gain as income, it will be subject to separate taxation, and the 5% of resident tax that was specially withheld will be deducted from the income tax (it will not be deducted from the flat-rate tax).
Any amount that could not be deducted will be refunded or applied to the flat-rate tax.
If you choose to file, please remember to include the amount of the specially withheld resident tax of 5% in the section for capital gains from stock transfers on the second page of the tax return regarding resident tax.

Notes：If reported as income, it may be affected by the status of resident tax (such as tax amount or income) when calculating items such as National Health Insurance Tax and Long-Term Care Insurance premiums, and it also impacts non-taxable determinations and dependent determinations.