With less than six weeks to go until the New NISA system starts, the sub has seen an increasing number of questions about the system. This post is our attempt to collect all the questions (and answers) about New NISA in one place.
The FSA’s information page for the New NISA system is [here](https://www.fsa.go.jp/policy/nisa2/about/nisa2024/index.html). As stated on that page, the basics are as follows:
– Dividends and capital gains realized within a New NISA account will always be tax-free (as far as Japan is concerned).
– The products that can be put in a New NISA account are divided into two tiers: a “growth-focused” tier (成長投資枠) and a tsumitate/“regular purchases” tier.
– Assets available in the growth-focused tier include listed shares, ETFs, REITs, and mutual funds. Some types of high-risk/short-term products are excluded, though, such as leveraged funds and funds that pay monthly distributions. (Accordingly, the range of products available is slightly smaller than the range of products available under the current Ordinary NISA system.)
– The assets available in the tsumitate tier are the same low-risk mutual funds that are currently available to purchase via Tsumitate NISA.
– The maximum value of *purchases* allowed per year is 3.6 million yen, including no more than 2.4 million yen worth of products in the growth-focused tier.
– Products can be sold at any time.
– The maximum value of the *purchases* corresponding to the products held in the account at any one time is 18 million yen, including no more than 12 million yen worth of purchases corresponding to products in the growth-focused tier.
– Pre-2024 NISA accounts will continue to function as normal and will not be affected by the limits applicable to the New NISA system.
**Changing financial institutions**
It will be possible to change financial institutions during the operation of a New NISA account, though only on a year-by-year basis. The assets purchased in the years prior to the change will continue to be held at the previous institution/s, while new purchases will be held at the new institution. The NTA will keep track of your lifetime limits and keep your current financial institution properly informed.
Once you have made a purchase via a particular financial institution in a given year, you must use that institution for the remainder of the year. Similarly, it is not possible to change financial institutions for a particular year after September 30 of that year. From October 1, it is possible to choose a new financial institution for the following year.
**Setting up tsumitate purchases**
Purchases of products in the growth-focused tier can be made at any time for any amount (up to the 2.4 million yen annual limit, of course). But purchases of products in the tsumitate tier can only be made via a tsumitate (regular purchase) order.
How you make a tsumitate order depends on your brokerage, but there can be some time-lag between making a tsumitate order and the order being executed (especially if you are purchasing via credit card), so if you want to make sure you start purchasing tsumitate-tier products from January, it would be sensible to check your tsumitate settings ASAP.
Note that many brokerages offer a “bonus” setting (ボーナス設定 or ボーナス月設定) as part of their tsumitate order process, which enables customers to effectively bypass the “regular purchase” aspect of tsumitate and make a large, one-off purchase of tsumitate-tier products, once or twice per year.
The bonus setting exists so that employees can make larger purchases in the months they receive a bonus, but it doesn’t have to be used that way. For example, the bonus setting would allow you to use up your entire annual purchasing allowance within the first month of the year, if you wish to do so.
by AutoModerator