Even if you understand that "claiming expenses" is important for tax savings in overseas forex trading, you may not know which expenses are deductible or what percentage of them can be claimed. This article will introduce what expenses are deductible in overseas forex trading and the percentages that can be claimed. Understanding your knowledge of expenses can lead to significant tax savings. If you are unsure which expenses are deductible, please refer to this article. For more information on taxes in overseas forex trading, please read the Complete Guide to Overseas Forex Taxes. Contents 1. Tax Rules for Overseas Forex Trading 1.1 Taxes on overseas forex trading are subject to comprehensive taxation 1.2 Losses from overseas forex trading cannot be carried forward 1.3 Profits and losses cannot be offset against domestic forex trading 2. Points to Know Regarding Expenses for Overseas Forex Trading 2.1 If you make a profit from overseas forex trading, claiming it as an expense will have a greater tax-saving effect 2.2 Whether or not to claim expenses is at your own discretion 2.3 Only transaction-related expenses can be deducted 2.4 Expenses cannot be carried forward to the following year 3. What can be deducted as expenses in overseas forex trading 3.1 Transaction fees 3.2 Purchase costs of PCs and smartphones 3.3 Equipment costs 3.4 Book costs related to overseas forex trading 3.5 Seminar participation fees, transportation costs, and accommodation costs related to forex trading 3.6 VPS contract fees for automated trading 3.7 Purchase costs of EAs and indicators 3.8 Fees for hiring a tax accountant 3.9 Interest on loans 4. What percentage of expenses can be allocated between household and overseas forex trading? 4.1 PC/smartphone communication costs: 10-20% 4.2 Electricity costs: 5-10% 4.3 Rent: 5-15% 5 Differences in taxes depending on the amount of expenses claimed 5.1 In the case of an income of 5 million yen and necessary expenses of 100,000 yen 5.2 In the case of an income of 5 million yen and necessary expenses of 300,000 yen 5.3 In the case of an income of 5 million yen and necessary expenses of 500,000 yen 6 Points to note when claiming expenses in overseas FX 6.1 Expenses may not be recognized 6.2 High expenses must be depreciated 6.3 Keep receipts and invoices for at least 5 years 6.4 Spreads are not eligible as expenses 6.5 High expenses relative to profits may raise suspicion of tax evasion 7 How to claim necessary expenses in overseas FX 7.1 ① Access the National Tax Agency's tax return creation page 7.2 ② Select "Income Tax" and start creating 7.3 ③ Enter salary income, etc. according to the screen 7.4 ④ Enter the profits actually earned from FX 8 8.1 Incorporating is one way to save on taxes with overseas forex trading. 8.2 The break-even point for incorporation is "annual income of approximately 9 million yen". 9. Frequently asked questions about overseas forex expenses. 9.1 Is there a limit to overseas forex expenses? 9.2 Where can I get advice if I'm unsure whether an expense is deductible? 9.3 Can a computer be deducted as an expense for forex trading? 9.4 Are meal expenses included in forex expenses? 9.5 What should I do if I'm in the red after deducting expenses with overseas forex trading? 9.6 Can I freely decide the percentage of expenses? 9.7 What expenses cannot be deducted for overseas forex trading? 10. Summary… Continue reading List of deductible expenses for overseas forex trading | Explanation of what percentage of rent and mobile phone bills should be accounted for