Profits earned from overseas forex trading are calculated as income in Japan, so once you earn a certain amount of profit, you must file a tax return and pay taxes. Tax returns are generally required to be filed between February 16th and March 15th of the following year, covering income earned from January 1st to December 31st of each year, so it's a good idea to prepare in advance. This article will thoroughly explain how to file a tax return, as well as various deductions and penalties to avoid losing money on taxes. Contents 1 Before filing a tax return for overseas forex trading! Check this first 2 What is a tax return in the first place? "A procedure to report the amount of tax payable to the government" 2.1 Tax returns are required for salaried employees when their annual income exceeds 200,000 yen 2.2 Unrealized gains and losses are not subject to taxation 2.3 Losses cannot be carried forward 2.4 To reduce taxes, declare your expenses 3 How to file a tax return for overseas forex trading! 3.1 Specific Methods Explained 3.1 ① Prepare your "My Number" and "Annual Profit and Loss Statement" before filing your tax return 3.2 ② Access the National Tax Agency's tax return creation page 3.3 ③ Select "Income Tax" and begin creation 3.4 ④ Enter your salary income, etc., according to the screen 3.5 ⑤ Enter the profits you actually earned from FX 3.6 ⑤ Enter any applicable deductions 3.7 ⑥ Check the amount of tax payable and proceed 3.8 ⑦ Check the matters concerning resident tax and business tax and proceed 3.9 ⑧ Enter personal information such as your address and name 3.10 ⑨ Print your tax return 3.11 If you are unsure, it is also recommended to ask a tax accountant to do it for you 4 Q&A on how to file a tax return for overseas FX 4.1 Q. What is the tax rate for overseas FX? 4.2 Q. Do I need to file a tax return even if I haven't withdrawn any money from the overseas FX broker? 4.3 Q. Will I get away with not paying taxes? 4.4 Q. What is the going rate for completely outsourcing tax filing to a tax accountant? 5 Summary Before we look at how to file your tax return for overseas forex trading, let's check this first. Before we look at how to file your tax return for overseas forex trading, let's first understand what a tax return is. In short, a tax return is "a procedure to report the amount of tax that should be paid to the government." A tax return is a procedure to calculate your income and tax amount from January 1st to December 31st of each year. Since the tax amount is calculated based on income, if your taxable income for the year is negative, you do not need to file a tax return. However, if you have already withheld taxes or estimated tax payments, you will need to file a tax return to settle any overpayments or underpayments. The tax return period is generally set from February 16th to March 15th of the following year. It is a good idea to prepare in advance so that you do not have to rush during the filing period. Penalties will be incurred if you do not file a tax return If you are required to file a tax return and do not do so within the deadline, the following penalties will be incurred and you will have to pay extra taxes. If you fail to declare your taxable income, you will be subject to a non-filing penalty of 15% to 20%. If you file or pay after the deadline, you will be subject to a late payment penalty of 2.4% to 14.6%. If there is gross negligence such as concealing income, you will be subject to a heavy penalty of 35% to 40%. If you file after the deadline, or if there is insufficient documentation or concealment, your blue return approval may be revoked or special deductions may be reduced. Profits from overseas FX are also subject to Japanese income tax, so if you make a profit, be sure to file a tax return correctly. Tax returns are required for salaried employees when their annual income exceeds 200,000 yen. If a salaried employee earns more than 200,000 yen in income from overseas FX, they are required to file a tax return. Salaried employees who are subject to this requirement: - Those who receive a salary from their employer, such as company employees or part-time workers - Those who have income from public pensions, etc. Generally, if your only income is your company salary, you do not need to file a tax return because your company calculates and pays your taxes. However, if a company employee earns more than 200,000 yen in income from overseas FX, or if a housewife or student earns more than a certain amount in income, they are required to file a tax return. Please note that the conditions for filing a tax return include miscellaneous income other than that from overseas forex trading. If you have miscellaneous income other than from overseas forex trading, be sure to include it in the total. For business owners, etc., if it exceeds 480,000 yen... Continue reading A thorough explanation of how to file a tax return for overseas forex trading! How to avoid losing money on taxes?