What is Tokutei Kouza?
In some cases a final income tax return is necessary when profit or loss arises by redeeming publicly offered investment trusts during a fiscal year.
From fiscal year 2009, a final income tax return is mandatory in principle when redeeming publicly offered investment trusts. When a customer adopts Tokutei Kouza, Shinsei Bank will calculate annual profits and losses arising from transactions of publicly offered investment trusts, and draw up a Yearly Transaction ReportEon behalf of the customer.
- Simplified procedures when filing a final income tax return with a "Yearly Transaction Report"
- Possible cases where a final income tax return is not necessary when a customer adopts Tokutei Kouza with a withholding tax function
Tokutei Kouza will reduce the burden of filing a final income tax return.
Investment trusts carry risks of losses due to their price fluctuations. Application, maintenance, and redemption are subject to fees and charges. Furthermore, there will be risks, and fees and charges for each product, so please read each products prospectus and brochure.
This page is provided for general informational purposes ONLY. The accuracy of descriptions above is not guaranteed by the Bank.
Furthermore, tax payment obligations for each customer may differ, so please consult an expert such as a tax accountant or at a tax office for more details.
For further information,
Products covered by Tokutei Kouza
Publicly-offered investment trusts handled by Shinsei Bank
Bond investment trusts, yen deposits, and foreign currency deposits are not covered by Tokutei Kouza.
The investment trust products listed below are also not covered by Tokutei Kouza.
[Domestic Domiciled Investment Trusts]
- Daido's Money Management Fund
[Foreign Domiciled Investment Trusts]
- Power Light 100
- Power Boost 105
- Power India China
Tokutei Kouza System
Example of a redemption of publicly-offered investment trusts
(Investment trust accounts opened with Shinsei Bank are not a Tokutei Kouza but an ordinary account as of November 16, 2008.)
Even if Tokutei Kouza with taxed withheld is selected, there is still the option to individually file a final tax return.
If Tokutei Kouza with taxes withheld is selected and a transaction is made, the selection can not be changed until the following year.
Taxes will be withheld at the source whenever shares are sold based on profits and losses.
Customers can offset the profits with losses on other accounts or carry forward the losses by filing a final tax return.
Selections of Option 1 or Option 2 can be made by submitting the necessary documents to the Bank.
- •Profits and losses on transactions such as purchases, redemptions, cancellations, etc. covered by Tokutei Kouza will be calculated, whereas dividend income will not be calculated. Taxes on divided income are withheld, so filing of a final tax return is unnecessary.
- •Transactions made before opening Tokutei Kouza will be excluded from the "Yearly Transaction Report", therefore customers must prepare statements themselves by calculating profits and losses.
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