Government to Address Double Taxation in Overseas Stock ETFs for Pension Accounts
The government is planning to amend legislation to resolve the double taxation issue faced by investors in overseas stock exchange-traded funds (ETFs) through pension accounts. This problem arises as investment income in pension accounts are taxed both in the United States and domestically, thus increasing burdens related to double taxation for investors. The government is currently discussing the simplification of the foreign tax credit rate to prevent disadvantages to pension account investors, with plans to develop a proposal by the first half of the year and incorporate it into the July tax amendment.
This initiative serves as a response to the problems induced by the newly changed overseas dividend income taxation method, indicating an effort to ameliorate the incomplete nature of the existing system. The Ministry of Strategy and Finance is working on delayed countermeasures to prevent the weakening of tax benefits for pension accounts while emphasizing the reduction of tax burdens on investors. The financial investment sector is proposing various solutions to minimize investor losses and urging for policy decisions.
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