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JGB Interest Taxation System (for individuals)


Category Type of income Taxation
Coupon-
bearing bonds		 Interest
(interest income)

○ Separate self-assessment taxation
Withholding at source upon interest payment (it has two options as below)

  • Not to file final tax return (tax payment is completed only by withholding.)
  • To file final tax return as income gain, etc. on listed stocks, etc.

○ Tax exemption (only for the disabled, etc.)

  • Maruyu
    (Non-taxable interest income from small-sum deposits of the disabled, etc.)
    Maximum face value: ¥3.5 million
  • Tokubetsu-Maruyu
    (Non-taxable interest income from small-sum public bonds held by the disabled, etc.)
    Maximum face value: ¥3.5 million
Profits from redemption
(capital gain)

○ Separate self-assessment taxation
Paid by declaration as taxation on capital gains, etc. on listed stocks, etc.
Profits from sale
(capital gain)
Discount Bonds
(T-Bills and STRIPS)		 Profits from redemption
(capital gain)

○ Separate self-assessment taxation
Withholding at source upon redemption
Profits from sale
(capital gain)

○ Separate self-assessment taxation
Paid by declaration as taxation on capital gains, etc. on listed stocks, etc.

Note 1: The tax rates on the income above are 15% income tax (special income tax for reconstruction (basically 2.1% of income tax) is imposed additionally from 2013 to 2037) and 5% local tax.

Note 2: It is able to offset profit/loss among the income above and income from listed stocks, etc.

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