In conclusion, taxes on income from stock investments, FX, etc. are applicable to Furusato Nozei deductions. Not only people who make a living from investing in stocks and FX, but also people who invest in stocks as a side job can apply for tax deductions. Income earned from real estate investment, futures/option trading, investment trusts, etc. are also applicable to Frusato Nozei deductions.
If you are a company employee, by filing a final tax return, you can calculate the amount of your tax through combining income earned from stock investments, FX, etc. with your employment income. As your total income increases, the amount that can be deducted through Furusato Nozei increases, which means that the options for the Gift of Thanks that you can select through Furusato Nozei also expand. On the other hand, if you make a loss on stock investments, FX, etc., you cannot reduce the amount of income (= reduce the amount of taxes you pay) by combining it with your employment income. In other words, you need to be careful because the limit for Furusato Nozei deduction does not change.
How much the deduction limit will increase depends on the transaction conditions and type of stock investment, FX, etc. For details, so please refer to " [2] Furusato Nozei deduction limit when income increases through stock investment, FX, etc. "

In addition, the deduction method and limit for Furusato Nozei will change depending on the usage status of stock investments, FX, etc. Please check your situation with the chart below.

You can choose from two types of tax payment methods for income earned from stock investments: "no withholding tax" and "with withholding tax".
If you choose an account with no withholding tax at a securities company, you will be subject to "separate self-assessment taxation," and if you choose an account with withholding tax, you will be subject to "separate withholding taxation."A final tax return is required for accounts without withholding tax (in the condintion that salaried workers gain profits of more than 200,000 yen, and housewives, unemployed people, students, etc. gain profits of more than 380,000 yen). For accounts with withholding tax, there is no need to file a final tax return, and you can easily complete the procedure applying for the "One-stop Special System."
In addition, in the "NISA account", which allows a certain amount of trading profits and dividends from stocks and investment trusts to be tax-free, up to 1.2 million yen per year (up to 6 million yen in total in the tax-free period) is tax-free and "One-stop Special System" is available. Details of the "One-stop Special System" are described in " About the One-stop Special System for Furusato Nozei ." Please check the terms of use before using.

On the other hand, in the case of an account without withholding tax, or in the case of FX without a withholding tax system, a final tax return(or a resident tax return) is required, and the "One-stop Special System" cannot be used. In particular, salaried workers whose income from stock investments, FX, etc. is 200,000 yen or less are not obligated to file a final tax return, but must file a final tax return in order to receive the Furusato Nozei deduction. For more information, see " [3] Points to note when filing a final tax return in Furusato Nozei payment ."

The deduction limit for Furusato Nozei is determined by the amount of income, so if income increases due to stock investment, FX, etc., the deduction limit will also increase. Now, let's apply the formula to calculate how much the deduction limit will increase. The calculation formula for the deduction limit by Furusato Nozei is as follows. For more information, please refer to " Calculation formula and simple simulation for the upper limit of Furusato Nozei deduction ."

The “Individual resident tax income rate”, which is the basis for calculating the amount of donation deduction, can be calculated by combining “Income Rate of Municipal Inhabitant resident tax” and “Income Rate of Prefectural Resident Tax" in the tax notice issued by Municipalities. If you want to calculate it, please use the following formula.

In addition, the tax rate for stock transfer gains, dividends (in the case of listed stocks), and profits from FX is 15.315% income tax and 5% resident tax, totaling 20.315%. In other words, the “individual resident tax income rate” for profits from stock investment, FX, etc. can be calculated by {income (profit) amount × resident tax rate (5%)}.

If you have income from stock investments, FX, etc., the deduction limit for Furusato Nozei will increase, but depending on your income amount and tax payment method, you need to be careful of the following.

This applies to company employees who gain their salaries from one place, whose salary income is 20 million yen or less, and whose total income from stock investments, FX, etc. is 200,000 yen or less.
In this case, you do not need to file a final tax return for income from stock investment, FX, etc., and you must file a resident tax return within the prescribed period. The One-stop Special System cannot be used for resident tax returns, and deductions cannot be received unless a final tax return is filed. In other words, if you file a final tax return to apply for Furusato Nozei you will also have to declare (subject to tax payment) income from stock investments, FX, etc. It means that compared to the advantage of an increase in Furusato Nozei deduction limit, there will also be the disadvantage of an increase in the amount of tax payment. Please pay close attention to the overall balance and judge for yourself.

If you are using a non-withholding account, you will need to file a final tax return, but if you are using a withholding account, tax will be automatically collected on each profitable sale. Therefore, regardless of the amount (even if it exceeds 200,000 yen), you do not need to file a final tax return. However, if you do not file a final tax return, the profit from stock trading will not be added to income such as salary, so even if there is a profit from stock trading and tax is collected, the deduction limit of Furusato Nozei will not increase. Those who want to reflect their stock investment income to the Furusato Nozei deduction limit must file a final tax return separately.

If you file a final tax return and add up income from stock investments, FX, etc. with salary income, etc., and the amount of income increases, you may end up paying more money. Please be aware of the following cases.

This is the end of the “Advantages and precautions of Furusato Nozei for those who invest in stocks, FX, etc.”
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