Japan's Exit Tax on Securities: The ¥100 Million Test, Filing and Deferral

Who the exit tax applies to: two tests

The exit tax applies only if you meet both tests. Leaving means you no longer have an address or residence in Japan. A posting abroad of 1 year or more generally counts. This tax is separate from the International Tourist Tax on departing travelers.

• Test 1: The securities you hold when you leave total ¥100 million or more.
• Test 2: In the 10 years before you leave, your counted time in Japan exceeds 5 years.

What counts toward ¥100 million

Use market value, not what you paid. Include shares at a loss, overseas broker accounts and NISA accounts. Foreign-currency holdings convert to yen at the TTM rate, the bank's mid-rate.

Two 5-year counts: your visa matters for only one

The exit tax count is not the same as the non-permanent resident count. Non-permanent resident is a tax status. It is unrelated to the Permanent Resident status of residence.

David has worked in Japan for 9 years on an Engineer/Specialist visa. He stopped being a non-permanent resident after 5 years. His exit tax count is still zero, so the exit tax does not apply to him.

Maria became a Permanent Resident on April 1, 2019, and leaves on April 1, 2027. Her count is 8 years, so the exit tax applies if she holds ¥100 million or more. Time as a Japanese national also counts.

How much tax you pay

For shares and investment funds, the estimated tax is 15.315% of the unrealized gain. For example, Maria holds only listed shares worth ¥150,000,000, and she paid ¥50,000,000 for them.

• Gain: ¥150,000,000 − ¥50,000,000 = ¥100,000,000
• Tax: ¥100,000,000 × 15.315% = ¥15,315,000

These are estimates that assume listed shares and no other income. The rate includes surtax and stays the same from 2027. People with very high incomes can owe an added tax, which starts above ¥165 million from tax year 2027 (¥330 million for 2026). The amounts above do not trigger it on their own.

If you have no address in Japan on the next January 1, resident tax (juminzei) on that year's income generally does not arise.

Notifying the tax office of a tax agent sets your deadline

Notifying the tax office of your tax agent before you leave changes your deadline, your valuation date and your deferral options. A tax agent is a person or company in Japan who files and pays for you. See our tax agent guide. Either way, your final tax return (kakutei shinkoku) includes your other income for the year.

Deferring the tax, or canceling it if you return to Japan

Deferral postpones this tax for 5 years, or 10 years with an extension notice. Payment falls due 4 months after that period ends. You need all four of these:

1. A tax agent notification filed with the tax office before you leave
2. A return that claims the deferral and attaches the required statements
3. Security (collateral) for the tax and interest by the filing deadline, such as real estate or government bonds
4. A continuation notice filed every year by March 15

If you return to Japan within 5 years and still hold the securities, you can cancel the tax on them. This works even if you paid without deferring. With an extension, the window is 10 years. You must file within 4 months of the day you come back to Japan, and tax on concealed or falsified facts cannot be canceled.

With deferral, you can also reduce the tax by filing within 4 months if you sell below the departure value. If your new country also taxes that sale, a foreign tax credit may be available.

Common mistakes

• Leaving out overseas or NISA accounts. They count, and they can take you over ¥100 million.
• Using the wrong 5-year count. Ending non-permanent resident status does not start the exit tax count.
• Leaving with no notification and no return. Your return is then late. It uses the value when you left, and you cannot defer.
• Forgetting the annual notice. The deferral generally ends, and tax and interest fall due.

What you can do yourself, and where you need help

You can start with these steps yourself:

• List every securities account at market value and add them up.
• Write down your status of residence history, with dates.

Get professional help if you hold unlisted shares, stock compensation or stock options, or if your status history is mixed.

What changes when a tax accountant handles it

• Once engaged, we work back from your departure date and set the order of each step.
• We list your holdings, run the ¥100 million test and estimate the tax.
• We prepare the return, its statements and the annual notices, and you approve an English summary before filing.

We quote exit tax work individually. The 60-second estimate covers your other income only. We handle Japanese tax for individuals only, by email, with no calls. See our service for people leaving Japan. If you do not have anyone in Japan who can act as your tax agent, we can act for you. The fee is ¥60,000 per year (¥66,000 with consumption tax).

Frequently asked questions

This article is general information based on rules in force as of November 6, 2026. It is not advice for your situation. If the English and Japanese differ, the Japanese original applies.