Japan NISA Program for Minors to Have 6-M.-Yen Tax-Exemption Cap

Tokyo, Dec. 10 (Jiji Press)–The Japanese government and ruling coalition are considering capping tax-free holdings at 6 million yen for a new investment program planned to be launched for minors under the country’s new Nippon Individual Savings Account tax exemption framework, according to informed sources. They also plan to set the annual investment limit at 600,000 yen for the NISA program for people under 18, the sources said on Tuesday. These plans are expected to be included in the fiscal 2026 tax system reform outline to be adopted later this month. The new NISA program consists of the “tsumitate” installment investment quota, allowing users to purchase investment trusts with an eye to long-term asset building, and the quota for growth investments for buying individual stocks and other products. Combined, they allow for up to 18 million yen in tax-exempt holdings. The government plans to lift the age restriction only for the tsumitate investment quota to include those under 18. The 6-million-yen tax-exemption cap will be introduced to address potential disparities that could arise when the assets are eventually withdrawn, since contributions for minors would effectively come from their parents or grandparents. NISA accounts, which currently can be opened only by those aged 18 and older, will also become available from infancy. Withdrawals, however, will be allowed only after the child turns 12 to prevent misuse by parents or other guardians. END [Copyright The Jiji Press, Ltd.]