About securities taxation system

Dividends from listed stocks, etc. (excluding large amounts) are subject to withholding tax of 15.315% as income tax and special income tax for reconstruction (national tax), and 5% as resident tax (local tax), for a total of 20.315%.
There is no need to declare this income as resident tax has already been specially collected, but if you decide that it would be more advantageous to declare it, you can declare it as income (note).
When this dividend is declared as income, it will be taxed comprehensively or separately, and 5% of the specially collected resident tax will be deducted from the income tax (not deducted from the per capita tax).
Any amount that cannot be deducted will be refunded or applied equally.
If you choose to file a tax return, please do not forget to enter the amount of this special collected 5% resident tax in the Dividend Percentage Deduction Amount column of Table 2 Resident Tax Matters on your final tax return. .
Regarding dividends from unlisted stocks, etc. and large dividends among listed stock dividends, 20.42% is withheld as income tax and special income tax for reconstruction, but this only includes income tax and does not include resident tax. Therefore, all dividends, etc. that you did not choose to declare for income tax must be declared for resident tax, regardless of the amount.

Regarding stock transfer income made in a specified account with withholding tax, a total of 20.315% will be withheld, including 15.315% as income tax and special reconstruction income tax (national tax) and 5% as resident tax (local tax).
There is no need to declare this income as resident tax has already been specially collected, but if you decide that it would be more advantageous to declare it, you can declare it as income (note).
When this stock transfer income is declared as income, it will be taxed separately, and 5% of the specially collected resident tax will be deducted from the income tax (not deducted from the per capita tax).
Any amount that cannot be deducted will be refunded or applied equally.
If you choose to file a tax return, do not forget to enter the amount of this special 5% resident tax in the section of the tax return, Table 2, Matters related to resident tax, Deduction amount based on capital gains from stocks, etc. please.

Note: If declared as income, it may affect things that are calculated based on the resident tax situation (tax amount or income, etc.) (national health insurance tax, nursing care insurance premiums, etc.), and it will also affect the tax exemption and dependent determinations.