To promote the shift from savings to investment, Japan government will expand tax benefits for profits from stocks and investment trusts more than ever before from 2024.
After the legal revision, we will obtain a special “wallet”.
It is a wallet that allows financial products to be operated tax-free up to 3.6 million yen per year.
What does tax-free mean?
In Japan, dividend income received from stock ownership is subject to a 20% tax.
This NISA scheme means that this 20% tax will not be applied.
By purchasing high dividend stocks, you can receive regular income without paying any taxes.
This wallet allows you to deposit up to 18 million yen of investment trust money over your lifetime.
How about using it in the following way?
You want to create retirement funds to live permanently in Japan.
Although salaries in Japan are known to be very low, if you can save 50,000 yen per month, you can somehow accumulate and invest it.
The annual savings amount is 600,000 yen, which can be tax-free for 30 years.
Is the investment limit of 18 million yen not enough for you?
Don’t worry. If this 18 million yen investment limit is reached, when you sell the stocks or investment trusts you hold, the limit will be available again from the next year.
You can continue to buy the same amount of 3.6 million yen worth of financial products by selling the profitable ones every year for 30 years, and the cumulative profit from buying and selling will also be tax-free over 100 million yen.
This new NISA system is designed to be used for a lifetime from the age of 18 to death.
The earlier you start, the greater the benefits you will receive.
The new NISA system has also been criticized as being favorable to the rich.
However, in this world, it is the rule that those who have information and knowledge win. It is a fact that only those who realize the Japanese government’s message of “from savings to investment” and move quickly will benefit.
Other Question?
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