If you are a salaried employee or receive a salary from your employer, you must file a tax return if your profits from overseas forex trading exceed 200,000 yen. Tax filing is generally done between February 16th and March 15th, where you declare your income from January 1st to December 31st of the previous year and calculate your taxes. Overseas forex profits are subject to comprehensive taxation, meaning a progressive tax system applies where the tax rate increases with higher income. This article explains overseas forex taxes and what salaried employees should be aware of when filing their tax returns. For more information on overseas forex taxes, please refer to the "Complete Guide to Overseas Forex Taxes." Contents 1. Essential Information for Salaried Employees! Rules on Overseas Forex Taxes and Tax Filing 1.1 When are taxes levied? When you make more than 200,000 yen in profits annually 1.2 The tax category is "Miscellaneous Income"! 1.3 Progressive taxation applies, where the tax rate increases as you earn. Unrealized gains and losses are not subject to taxation. 2 Tax-saving measures for salaried workers with overseas FX 2.1 Record all expenses without fail. 2.2 Utilize income deductions. 2.3 Pay taxes with a credit card and earn points. 3 Points to note when salaried workers pay taxes on overseas FX 3.1 How to prevent your company from finding out about your FX profits... 3.2 Get a withholding tax slip from your company when filing your tax return. 3.3 Be careful of late payment penalties for forgetting to pay taxes. 3.4 Make sure you have funds set aside to pay your taxes. 4 Frequently asked questions about taxes for salaried workers regarding overseas FX 4.1 Can salaried workers file blue return tax returns? 4.2 What is the deadline for paying taxes? 4.3 Can profits and losses from overseas FX be combined with domestic FX? 5 Summary A must-read for salaried workers! Rules on taxes and tax returns for overseas FX Let's get started and explain the rules on taxes and tax returns for overseas FX that salaried workers should know. Taxes are due when you make a profit of 200,000 yen or more per year. If you are a salaried employee or receive a salary, you will need to pay taxes if you make a profit of more than 200,000 yen per year from overseas forex trading. Since taxes on overseas forex trading are calculated by combining it with your salary income, you must file a tax return if your annual profit exceeds 200,000 yen. The following are the people and conditions under which you need to file a tax return if you make a profit from overseas forex trading: <Salaried Employees> Target: ・Those who receive a salary from an employer, such as company employees, part-time workers, etc. ・Those who have income such as public pensions Condition: If your annual income other than salary exceeds 200,000 yen For non-salaried employees, see below. <Non-Salaried Employees> Target: Unemployed, self-employed, housewives, students, etc. who do not receive a salary Condition: If your total annual income, including income from overseas forex trading, exceeds 480,000 yen. An important point to note is that the conditions for filing a tax return include income other than overseas forex trading. If you have other income, you will need to file a tax return if the total exceeds 200,000 yen. <Important Note: It's NOT at the Time of Withdrawal> Taxes on overseas forex trading are incurred not when you withdraw funds from your overseas forex broker account, but when your position is closed and the profit or loss is reflected in your account. Even if you haven't withdrawn any funds, the profit or loss on closed positions is subject to taxation, so be careful. If your salary income is low, you may not need to file a tax return due to deductions. If your annual salary income from part-time work or other sources is low, you may not need to file a tax return due to deductions. For example, in the case described below, you do not need to file a tax return. Calculation formula (Annual salary 650,000 yen - Salary income deduction 550,000 yen) + Overseas forex 380,000 yen - Basic deduction 480,000 yen = Taxable income 0 yen In the case of an annual salary of 650,000 yen, you can receive a maximum deduction of 1,030,000 yen. If your overseas forex profit is 380,000 yen or less, your taxable income will be 0 yen, so you do not need to file a tax return. Tax classification is "Miscellaneous Income"! Progressive taxation applies, and the tax rate increases as you earn. Profits from overseas forex trading are classified as miscellaneous income, so progressive taxation applies to the calculation of taxes. Progressive taxation is a system where the more profit you earn, the higher your taxes become, with tax rates set in seven stages according to taxable income. Income Tax Rate Table Taxable Income Amount… Continue reading A thorough explanation of tax calculation, tax filing, and tax saving for salaried workers trading overseas forex.