#23 NISA Tax free program for investing(NISAについて 日本語併記)

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#23 NISA Tax free program for investing(NISA について)

From this time I’d like to talk about investment in Japan. Today’s topic is about NISA. NISA is a tax-free program for investment.

If you live in Japan, I think you already have a bank account. However if you want to invest on the market you’d better to have an account in securities company, because there are more options for investing. There are two types of securities companies. One has a physical store such as Nomura shoken, Daiwa shoken. The other one has no physical store, we call them Net Shoken in Japanese. SBI, Rakuten, Monex and Matui shoken, those are very famous one. If you are familiar with using internet I recommend you to open the account in Net Shoken because trading costs are cheaper than the others.

This is a picture of the website of Rakuten shoken. If you want to open the account you just click the button like this. Which says KOUZAKAISETSU. Even though it’s only written in Japanese I think you can follow the directions, because all you have to do is answering the questions, like your name your address and so on. Also you are required to submit your my number card and residence card.


Once you open the account, please go ahead to open the NISA account, too. NISA account is a very special account you can invest effectively.


NISA is an abbreviation for the Nippon individual saving account. This is tax-free program. If you use NISA you can invest stocks or mutual funds without paying taxes on capital gains or income gains.


If you earn income gain or capital gain from the investment, you have to pay 20.315 percent of income tax. However with NISA you don’t have to pay the income tax.

There are two types of NISA. NISA or TSUMITATE NISA. You can’t have both accounts you have to choose either one. There are three different things between two accounts, number one limitation for investment per year, number two terms of tax free, number three the financial products you can purchase. Let me explain you step by step.


Since NISA is a tax-free program, there is a limitation for investing. In this account you can’t put more than 1.2 million yen per year.

In TUMITATE NISA account you can’t put more than 0.4 million yen per year. So the limitation for investment in the TUMITATE NISA account is much smaller than that of NISA account.


The second difference is the terms of tax free. In NISA account you can enjoy the tax-free for five years.


On the other hand with TSUMITATE NISA the terms of tax-free is 20 years. So TSUMITATE NISA has much longer period of time for tax-free.

The third difference is the financial products you can purchase. In NISA account you can buy stocks or mutual funds whatever you want.

However with TSUMITATE NISA account you can only buy the mutual funds which are specially selected by financial service agency. Also you can only buy the mutual fund regularly. TSUMITATE is accumulation in Japanese. TSUMITATE NISA is designed for long-term investment so you have to follow the direct cost averaging investing.


Since you have to choose either NISA or TSUMITATE NISA. You may think which one is better for you. If you want to invest on the market for short time or you want to invest on stock market you, you would better to use NISA account. But if you don’t have a lot of experience for investment or you want to invest on the market for a long term you’d better to choose TSUMITATE NISA.


The final information is about official website for NISA. This is provided by the financial service agency. I have a columns on this website as a specialist. I’m sorry it’s only written in Japanese, but I will be happy if you have a look my columns also.