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Japan's ¥200,000 Rule for Offshore Forex Profits Explained

Updated 2 November 2026 · Written by Broker Atlas Guides Desk · Data checked by Broker Atlas Data Desk

Short answer

If you live in Japan, are paid by one employer and have your tax settled through year-end adjustment, you generally don't need to file a national income tax return when all your non-salary income, offshore forex included, totals ¥200,000 or less for the year (NTA No. 1900). But the exemption doesn't apply to resident tax: that income still has to be declared to your city or ward. The ¥200,000 is profit after expenses, counted together with any other side income.

Who this guide is for

This guide is for people who live in Japan, Japanese or not, who trade with an offshore broker alongside a salaried job. Japan treats offshore forex profit as miscellaneous income taxed together with your other income (NTA Tax Answer No. 1521), and many employees hear that “under ¥200,000 you don’t need to file”. That’s partly true. Here is what the rule actually says, and where people get caught out. If you don’t live in Japan, read our general forex tax guide instead.

The conditions for the ¥200,000 rule

The National Tax Agency lists, among the salaried people who must file a return, anyone who receives salary from one place, has all of it subject to withholding, and whose total income other than employment and retirement income exceeds ¥200,000 (NTA Tax Answer No. 1900).

Turned around, an employee generally doesn’t have to file a national income tax return if all of these apply:

  • You’re paid by one employer and your tax is settled through year-end adjustment (nenmatsu chōsei)
  • Your annual salary is ¥20 million or less
  • Your income other than salary and retirement income totals ¥200,000 or less

If you’re paid by two or more employers, the test adds the salary that wasn’t covered by year-end adjustment to your non-salary income.

What counts towards the ¥200,000

Include:

  • Offshore forex profit and loss plus swap, after expenses
  • Results from every offshore broker you use, added together
  • Other miscellaneous income, such as side-job fees or crypto gains

Don’t include:

  • Profit from a registered Japanese FX broker (taxed separately at a flat rate)
  • Employment and retirement income
  • Income already fully taxed by separate withholding

So ¥300,000 of offshore forex profit with ¥120,000 of genuine expenses is ¥180,000 of income, under the threshold. But ¥150,000 from offshore forex plus ¥100,000 from a side job is ¥250,000, and you must file. Which results can be netted against each other is explained in offshore forex losses in Japan; what counts as an expense is in deductible expenses for offshore forex traders.

Resident tax has no ¥200,000 exemption

This is the part most people miss. The ¥200,000 rule only removes the obligation to file a national return. Resident tax (jūminzei, paid to your prefecture and municipality) has no equivalent exemption. Hiroshima City, for example, states that people who don’t need to file an income tax return because their non-salary income is ¥200,000 or less still need to submit a resident tax declaration (Hiroshima City).

Check your own city or ward’s website for the declaration form and deadline. Resident tax on this income is roughly 10% of it.

If you file anyway, include it

If you file a return for another reason, such as claiming the medical expense deduction, or hometown tax donations (furusato nōzei) without the one-stop exception, you include your offshore forex income even if it’s ¥200,000 or less. The ¥200,000 test decides whether you have to file; it doesn’t let you leave income out of a return you do file.

If you’re not a salaried employee

The ¥200,000 rule is for employees taxed through year-end adjustment. If you’re self-employed, a full-time trader, a student with no salary or between jobs, you generally need to file when your total income exceeds your total income deductions (such as the basic deduction). Start with the NTA’s guidance for people who need to file.

Next steps

This guide explains the general rules only. For your own situation, ask your local tax office or a licensed tax accountant (zeirishi).

Frequently asked questions

Is the ¥200,000 based on revenue or profit?

Profit (income), meaning receipts minus necessary expenses. For offshore forex, that's the year's realised trading profit and loss plus swap, minus expenses.

Is side income counted together with forex?

Yes. The test uses the total of all income other than employment and retirement income. ¥150,000 from a side job plus ¥100,000 from offshore forex is ¥250,000, so you need to file.

Where do I declare resident tax?

To the municipality where you lived on 1 January. If you file a national tax return, that information is passed to your municipality, so a separate resident tax declaration is normally not needed.

Does the ¥200,000 rule apply if I'm not an employee?

No. It's a rule for salaried people whose tax is settled by year-end adjustment. If you're self-employed, a full-time trader or have no salary, you generally need to file when your total income exceeds your total income deductions.

Does this apply to me if I don't live in Japan?

No. These are rules for Japanese tax residents. If you live elsewhere, your country's tax rules apply; see our general forex tax guide.