XM tax return method and taxes

About tax returns

How much do I need to file an XM tax return?

Please refer to the link below to find out how to check your XM annual profits using the XM Trading app (XM smartphone app) . By using the XM app, you can easily check your trading history even when you are on the go.

Currently, the iOS version of the XMTrading app cannot be installed.

Differences in tax systems between XM (overseas FX) and domestic FX

Open a live account

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Documents required for XM tax return

Log in to the member page

How to obtain XM MT4/MT5 annual trading report

How to file your XM tax return

1. 
   
   If you are completing

   your tax return by hand
2. 
   
   When using

   the tax return preparation corner

1. 1. Steps: 1

      Fill in your personal information

      At the top of the first page of the tax return, fill in the following information, including your personal information such as your address, name, date of birth, My Number (personal identification number), and the name of your local tax office.

      

      1The local tax office	Example: Shibuya
      2Date of filing of tax return	Example ) February 16 , 2020​​
      3title	Example: 04 Confirmed
      4Current address	Example) 　　5-3-1-301 Shibuya, Shibuya-ku, Tokyo 150-0001
      5Individual Number (My Number)	Example: 000123456789
      6date of birth	Example: 3.45.01.01
      7Name and furigana	Example: Yamada 　　Taro
      8Address as of January 1st of the year you are filing	Example: Same as above
      9Occupation/trade name/pen name (B only)	Example: Company employee/No entry
      10Name and relationship of head of household	Example: Taro Yamada / himself
      11Type (B only)	No entry
      12Extra thick display (B only)	No entry
      13telephone number	Example) Mobile number: 090-1111-9999

      ①For the local tax office , please fill in the name of the tax office nearest you.

      ②Please enter the date of submission of the tax return in numbers only.

      ③In the title , write the year of the tax return period, and write “Final” in the blank immediately before Return Form B.

      ④ For current address , please fill in your current address from postal code to house number and room number. If you are self-employed and paying taxes at the address of your office or business, circle either business, office, or residence, and fill in the address of your office in the top row and your residential address in the bottom row.

      ⑤Please enter your personal identification number (My Number) correctly.

      ⑥Please enter your date of birth starting with the era name. The numbers corresponding to the era names are as follows:

      Meiji	1
      Taisho	2
      Showa	3
      Heisei	4
      Reiwa	5

      ⑦For Name and Furigana , please enter your full name in kana and kanji.

      ⑧ If your address as of January 1st of the year you are filing is the same as the address in ④, please write “Same as above.” If it is different from the address in ④, please write your address.

      ⑨ If you have an occupation/trade name or pen name, you must fill it in. If you are a sole proprietor, fill in the occupation section with detailed information about your occupation, such as “XX retail business” or “XX sales business,” and then fill in your trade name or pen name.

      ⑩ For the name and relationship of the head of household , please enter the name of the head of household and your relationship to the head of household. If you are the head of household, please write “myself.”

      ⑪For type , please circle all that apply to you: “Blue return filer,” “Those who use Form 3 of the tax return,” “Those subject to the overseas emigration tax system,” or “Those who use Form 4 of the tax return.” If you do not fall into any of these categories, you do not need to fill in the form.

      ⑫ For the “Extra-rich” label , please circle only if you are a special farmer. If you are not, there is no need to fill it in.

      ⑬For your phone number , please circle either “Home, Work, or Mobile” and enter the number.

      On the second page of your tax return, please also fill in the year of the declaration period in the title, as well as your address, name (in katakana), and business name.

      

   2. Steps: 2

      Enter XM profits (miscellaneous income)

      Profits generated from trading with XM should be entered in the “Income Amount, etc.” section of Form 1 of your tax return. In addition, enter your final income amount after deducting necessary expenses in the “Income Amount, etc.” section. Enter the amount listed in “Closed Trade P/L” or “Total Profit/Loss” on your XM annual trading report. However, if you also trade with overseas FX or virtual currencies other than XM, enter the total amount of all of these.

      In “K” of the income amount, etc., enter the total profit or loss incurred from overseas FX trading, including XM. Next, enter the amount obtained by subtracting necessary expenses from the income amount entered in “K” in ⑨ of the income amount, etc. Enter the “total amount of ⑦ to ⑨” in ⑩ , and calculate “total of ① to ⑥ + ⑩ + ⑪” and enter this in ⑫ .

      Example) If XM profit is 1,000,000 yen, necessary expenses are 100,000 yen, and there is no income other than XM

      

      Next, enter the amount of income and detailed information about the amount of income you entered in ① in the “Income Breakdown (Amount of Income Tax and Special Reconstruction Income Tax Withheld)” section on the second page of your tax return.

      If the income amount entered in “Q” includes profits earned from overseas FX other than XM, enter all of it in the “Income Breakdown” section.

      

      1Type of income	Example: Miscellaneous
      2Event	Example: Margin trading
      3Name and corporate number or address of payer of salary etc.	Example) Tradexfin Limited. 　　F20,1st Floor,Eden Plaza,Eden Island,Seychelles
      4Income amount	Example: 1,000,000 yen
      5Withholding tax amount	Example: 0 yen
      6Total amount of withholding tax	Example: 0 yen

      ① Enter “Miscellaneous” or “Miscellaneous Income” as the type of income .

      ② Enter “Margin Trading” as the type of transaction to indicate that it is an overseas FX transaction.

      ③For the “Name” and “Corporate Number or Address” of the payer of salary, etc. , enter XM’s company name “Tradexfin Limited.” and address “F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.”

      ④ Enter the amount of income before deducting necessary expenses.

      ⑤ Enter “0” yen for the amount of withholding tax . *There is no withholding tax for overseas FX.

      1. If you have income other than overseas FX including XMTrading, such as salary income, public pension, investment products such as stock trading and investment trusts, real estate investment, etc., please enter the amount of income etc. in the appropriate section.
   3. Steps: 3

      Enter the deduction amount

      Once you have completed entering all your income amounts, enter the applicable deduction amounts in ⑬ to ㉔ and enter the total amount in ㉕ . If you are eligible for the deductions in ㉖ to ㉘, enter the deduction amount and enter the total amount in ㉙ .

      Example) If a basic deduction of 480,000 yen and a social insurance deduction of 100,000 yen are applied

      

      1. Please fill in the details of all deductions other than the basic deduction and the details of dependent deductions on the second page of the final tax return.
   4. Steps: 4

      Income tax calculation

      Once you have completed entering all your income and deductions, including profits from XMTrading transactions, you can calculate your tax liability. Subtract your deductions from your income to calculate your taxable amount, which is then multiplied by the tax rate to calculate your income tax.

      Subtract the amount in ㉙ of “Amount to be deducted from income” from the amount in ⑫ of “Income amount, etc.” on Form 1 of the final tax return. Enter the calculated amount in ㉚ of “Tax calculation.”

      Any fraction less than 1,000 yen will be rounded down.

      Example) ⑫ 900,000 yen – ㉙ 580,000 yen = 320,000 (enter in ㉚)

      

      Refer to the “Calculation method for tax amount on taxable income amount” below to calculate the tax amount by multiplying the determined amount (2) by the tax rate corresponding to the amount and subtracting the deduction amount. Enter the determined tax amount in (2) of “Tax calculation”.

      Calculation method for tax amount based on taxable income

      Taxable income amount (㉚)	Calculation method for tax amount based on taxable income
      0 yen	0 yen
      1,000 yen to 1,949,000 yen	㉚×5%
      1,950,000 yen to 3,299,000 yen	㉚×10%-97,500 yen
      3,300,000 yen to 6,949,000 yen	㉚×20%-427,500 yen
      6,950,000 yen to 8,999,000 yen	㉚×23%-636,000 yen
      9,000,000 yen to 17,999,000 yen	㉚×33% 536,000 yen
      18,000,000 yen to 39,999,000 yen	㉚×40%-2,796,000 yen
      From 40,000,000 yen	㉚×45%-4,796,000 yen

      0円

      0円

      1,000円～1,949,000円

      ㉚×5％

      1,950,000円～3,299,000円

      ㉚×10％-97,500円

      3,300,000円～6,949,000円

      ㉚×20%-427,500円

      6,950,000円～8,999,000円

      ㉚×23%-636,000円

      9,000,000円～17,999,000円

      ㉚×33%536,000円

      18,000,000円～39,999,000円

      ㉚×40%-2,796,000円

      40,000,000円～

      ㉚×45%-4,796,000円

      Example) 2) If your taxable income is 320,000 yen, applying the above table will result in a tax rate of 5% with no deductions, so the total will be 320,000 yen x 5% = 16,000 yen.

      

   5. Steps: 5

      Enter and confirm the amount of tax to be paid

      For income earned up to December 31, 2037, a 2.1% special income tax for reconstruction will be added to the income tax. Add the 2.1% special income tax for reconstruction to the tax amount determined in (27) to determine the final tax amount, and enter this in “Tax to be paid” 51. If a refund is due based on the calculations made so far, please enter this in “Tax to be refunded” 52 .

      Subtract the amounts listed in (22) through (23) in order and enter the result in (24) . Enter the result of (24) – (25) in ( 26) . Enter the amount obtained by multiplying (26) by the Special Reconstruction Income Tax of 2.1% in (27) and enter the total amount of (28) + (29) in (28) .

      Subtract the amounts in (2) through (2) from the amount in (2) and enter the result in (2) . If the number in (2) is in the black, round down any amount less than 100 yen, but if it is in the red, enter the amount as is.

      

      If there is a refund

      If you are due a tax refund after calculating your taxes, please enter your bank account information in the “Place to receive the tax refund” section at the bottom right of Page 1 of your tax return. If you submit your tax return in person or by mail, the tax refund will be delivered to your designated account in approximately one to one and a half months.

      

   6. Steps: 6

      Other entries

      Fill in the required information in the appropriate sections of Form 2 of the final tax return. Salaried employees can choose how to collect resident tax on income earned through XM trading. If you want resident tax to be deducted from your salary, check “Special Collection.” If you pay it yourself, check “Pay by yourself.” If you select “Pay by yourself,” a payment slip will be sent to your current address, so please pay your resident tax by the due date.

      

When submitting by mail, pay attention to the submission date.

If you submit your tax return by mail or letter, the postmark (communication date stamp) will be considered the submission date. If you send it by any other method, the submission date will be the day the tax return arrives at the tax office. If the deadline for submitting your tax return is approaching, we recommend that you take it to a post office counter rather than dropping it in the post, so that you have proof that you submitted it by the deadline.

Pay your taxes by the due date

Once you have completed submitting your tax return, please pay your taxes promptly. The deadline for paying taxes is usually March 15th, the same as the deadline for submitting your tax return. If you use the “tax transfer system” where the tax is deducted from your savings account, you must deposit the tax amount by the transfer date set by the National Tax Agency (usually mid-April). Please note that if you forget to pay your tax or if the payment is not deducted due to insufficient funds, you will be subject to late payment penalties (the tax rate changes annually).

If you know in advance that you will not be able to pay the full amount of your tax by the due date, you can use the “deferral system.” The deferral system is a system that allows you to postpone payment of the remaining amount if you pay more than half of the tax amount by the due date. If you want to use the deferral system, you should write the following in the “Notification of deferral” section of your tax return:

If you are using the tax return preparation corner, the “Notification of Deferral” button will appear on the tax “Calculation Result Confirmation Screen.” Please fill in or input the “Deferral Amount” and “Amount to be paid by the filing deadline.”

XM Tax Return Notes

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1. When preparing your tax return using the Tax Return Preparation Corner, please declare profits and losses for each company (payer) that incurred the profit or loss.

1. Please note that profits generated from trading using bonuses (credit balances) are subject to tax.

Open a live account

1. If you trade on a Japanese public holiday when financial institutions are closed, or on the weekend when trading cryptocurrency CFDs, please use the mid-price of the previous day to convert to yen.

If you want to change the base currency of your trading account to Japanese Yen

The base currency of your trading account cannot be changed, so please open an additional account and select “JPY” when selecting “Account Base Currency.” XM allows one person to open up to eight accounts, so you can use different account base currencies, or use different accounts for different trading methods or trading instruments. You can also diversify your risk by diversifying your assets across multiple accounts. To open an additional account, log in to the XM member page and apply by clicking “Open an additional account.” If you already have an activated real account, you can open an additional account in just a few minutes.

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XM Tax Return Related Questions (FAQ)