English for Taxes Part 25

This time, we will continue to introduce English expressions related to dividends.

In the previous issue, we introduced "Metropolitan Inhabitant Tax on Dividend Income" which is imposed on dividends.

So, is there any way to legally avoid being taxed on dividends?

This is where NISA comes in.

Dividends, etc. in tax-exempt accounts or accounts for minors under the Small Amount Investment Tax Exemption Scheme (NISA, Mittate NISA, and Junior NISA) are exempt from taxation.

Dividends, etc. in tax-exempt accounts on tax-exempt rules for small investments, etc. (such as NISA [Nippon (Japan) Individual Savings Account], Funded NISA, and Junior NISA) Dividends, etc. in tax-exempt accounts on tax-exempt rules for small investments, etc. (such as NISA [Nippon (Japan) Individual Savings Account], Funded NISA, and Junior NISA) are exempted from taxation.

Tax-exempt rules for small investments

Tax-exempt accounts

Tax-exempt = be exempted from taxation

If you receive 50,000 yen in dividends, your net income would be less than 40,000 yen in a non-NISA account, but in a NISA account, you can receive the full amount of 50,000 yen because dividends are not taxed.

The difference is huge!

English expressions about NISA are not easy, but I think it is essential for those who translate accounting-related documents.

Please look forward to the next issue!