Junior NISA

From RetireWiki.jp

The Junior NISA scheme ended in 2023 and is no longer available for new investments.

A type of NISA for Japan-resident children aged below 18, summarised below:

  • Annual investment limit of ¥800,000.
    • This is within the gift tax annual limit of ¥1.1 million[1].
    • The limit is per calendar year irrespective of when within the year the account was opened.
  • Cannot be transferred to other financial institutions (unlike other NISAs).
  • The JNISA began in 2016 and ended in 2023.
  • The investments can remain invested tax free until the child turns 18, even after 2023.

Events triggered up reaching the age of 18

  • A password is sent by mail to the named owner of the account.
  • A standard "New NISA" account is created for future contributions.
  • Holdings inside J-NISA annual accounts tare moved out into a taxable account, on the condition they have benefited from at least 5 years of tax exempt investment
    • J-NISA annual accounts that are yet to have benefit from at least 5 years of tax free investment, are left as they are until they reach that five year threshold.
      • By 2029 all J-NISA annual accounts will have had at least 5 years of tax exempt status.

See also