Voices are also calling for a significant expansion of NISA’s annual investment quota focus – next year’s tax reform-Bloomberg

The focus of next year’s tax reform will be to make the tax-exempt investment system on small investments (NISA) permanent and the extent to which the annual tax-exempt investment quota can be expanded. The securities industry is calling for a major expansion, but there are various points of contention, and senior officials of the ruling party’s Tax Commission, which has significant authority over tax reform, have yet to present a concrete plan.

Kenji Nakanishi, chairman of the Finance and Banking Division of the Liberal Democratic Party, said, “Since we are talking about a plan to double our income from assets, we want it to go along with that plan.” However, Yoichi Miyazawa, chairman of the LDP Tax Research Institute, cautiously said, “We will discuss it in the future,” and Finance Minister Shunichi Suzuki said, “Right now we are making final adjustments.”

The expansion of the NISA, which promotes the shift from savings to investment, will be a pillar of the government’s “asset income doubling plan” which is to be completed by the end of the year. The Financial Services Agency has practically merged the NISA system, which has three types depending on the target age and investment method, into the “Tsumitate NISA” which is suitable for long-term diversified investment, making the system in perpetuity, annual investment limits, and cumulative tax. trying to expand

existing system Tsumitate NISA NISA General NISA Thursday
investment period until 2042 Until 2028 Until 2023
Tax-free holding period 20 years 5 years 5 years
Annual investment quota 400,000 yen 1.2 million yen 800,000 yen
Tax-exempt limit 8 million yen 6 million yen 4 million yen
Ships investment trust Stocks, investment trusts, etc. Stocks, investment trusts, etc.
subject 20 years or older 20 years or older Under 20

The Japan Securities Dealers Association announced in JulyIn the proposal, he is asked to do the same as in the UK. The purpose of expanding the NISA is to expand the asset income of the middle class, and the annual investment limit will be expanded to 600,000 yen, which is 1.5 times the current amount, and 2,400,000 yen, for a total of 3 million yen for the general NISA.

On the other hand, Shungo Kore-eda, a senior researcher at the Daiwa Research Institute, estimates that in order to double the income of the middle class wealth, it is necessary to increase the annual tax exemption limit to 1.2 million yen, which is three times more than r Current NISA Tsumitate.

Prime Minister Fumio Kishida (November 18, Bangkok)

Photographer: Andre Malerba/Bloomberg

The Liberal Democratic Party and New Komeito plan to hold a full debate on tax reform in mid-December for next year’s tax reform. Issues related to the expansion of NISA are as follows.

1. Continuity and limits of tax exemption

NISA exempts tax on profits and dividends from investments in stocks and investment trusts, but is currently a time-limited system. Prime Minister Fumio Kishida announced in a speech in September that he would make it permanent.

In response, Liberal Democratic Party (LDP) tax commission chairman Miyazawa stressed that although he would take the prime minister’s opinion as a “reference,” the tax system would ultimately be decided by the party that control.Komeito isMinohito Nishida, chairman of the Tax Research Institute, said the deadline for middle class asset building needed to be lifted, and he agreed with making it permanent.

However, Mr. Nishida is cautious about significantly expanding the cumulative tax exemption limit of 8 million yen under Tsumitate NISA.” he noted.

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