FX EA Tax & Filing Guide 2026

(Note: applies specifically to Japan)

If you have generated profits through FX automated trading (EA), you are required to file a tax return. This guide explains taxes, filing procedures, and tax-saving tips for EA trading in plain terms for beginners.

How FX Profits Are Taxed

Domestic FX Brokers (GMO, DMM, SBI, etc.)

(Note: applies specifically to Japan)

Domestic FX is subject to separate self-assessment taxation at a flat rate of 20.315%.

• Income tax: 15%
• Resident tax: 5%
• Special reconstruction income tax: 0.315%

Because the rate is fixed regardless of profit amount, high earners benefit more from this flat rate than from the progressive bracket system. Loss carryover and offsetting against other separately taxed income are also available.

Offshore FX Brokers (XM, Exness, HFM, etc.)

(Note: applies specifically to Japan)

Offshore FX profits are treated as miscellaneous income (aggregate taxation).

Because offshore FX profits are combined with your other income, the effective tax rate rises as profits grow.

When Filing Is Required

(Note: applies specifically to Japan)

Salaried Employees

• FX profits exceeding ¥200,000 in a calendar year → tax return required
• Even if profits are ¥200,000 or less, you may still need to file a resident tax declaration with your municipality

Self-Employed or Unemployed Individuals

• A tax return is required when total annual income exceeds ¥480,000 (the basic deduction threshold)

Holding Multiple Brokerage Accounts

Losses from a domestic FX account and profits from an offshore FX account cannot be offset against each other — domestic FX falls under separate taxation while offshore FX is classified as miscellaneous income, making them different tax categories.

How to Calculate Profits and Losses

What Counts as Taxable

• Realized gains and losses: profit or loss at the time a position is closed
• Swap points: both received and paid amounts are included in income calculations
• Rollover gains/losses: applicable to domestic FX only

Unrealized gains and losses on open positions are not subject to tax. Floating profits on positions held at year-end are not taxed.

Calculation Example (Offshore FX — Miscellaneous Income)

EA trading profit:       +¥320,000
Swap points received:     +¥12,000
Commissions/spreads:      (already included in EA P&L, no separate entry needed)
──────────────────────────────────────
Taxable miscellaneous income: ¥332,000

This amount would be combined with other income and filed under aggregate taxation.

Deductible Expenses

Costs directly related to EA trading can be deducted as necessary expenses, reducing your taxable income.

The EAs distributed by fxea365.com are free, but VPS fees may still be deductible as a business expense.

When You Have Losses

Domestic FX (Separate Self-Assessment)

(Note: applies specifically to Japan)

• Loss offsetting available: losses can be applied against profits from other separately taxed accounts (such as CFD)
• 3-year loss carryover: losses can be carried forward and deducted over the following three years

Offshore FX (Miscellaneous Income)

(Note: applies specifically to Japan)

• Offsetting is limited to other miscellaneous income (for example, side business income)
• Cannot be offset against salary income
• No carryover available (miscellaneous income losses cannot be carried forward)

How to File Your Tax Return

(Note: applies specifically to Japan)

Required Documents

1. Annual transaction report: download from your broker's client portal
2. Certificate of withholding tax: required if you have salaried income
3. My Number card or notification card

Filing Methods

1. e-Tax (National Tax Agency online filing) ← recommended
2. In-person submission at your local tax office
3. Postal submission

Filing Period

• Annually from February 16 to March 15 (for the previous calendar year)
• Resident tax filing deadlines vary by municipality — check with your local government

Frequently Asked Questions

Q: Do I need to file taxes on demo account profits? A: No. Demo account trades are virtual and are not subject to taxation. Only realized profits from live (real money) accounts are taxable.

Q: Do I need to file if I ended the year at a loss? A: For domestic FX, filing is recommended even on a loss so you can carry the loss forward. For offshore FX, filing is generally not required if you only have losses, but those losses cannot be carried over.

Q: What if I use multiple brokers? A: Combine the profit and loss figures from each broker and report them together. Accounts in the same tax category can be offset — for example, losses from one offshore FX broker can be applied against profits from another (both count as miscellaneous income).

Q: What if I trade through a corporate account? A: Corporate accounts are subject to corporate taxation. Some traders consider incorporating when annual profits exceed approximately ¥5,000,000, but incorporation costs and ongoing administrative expenses must be factored in.

Summary

Once your EA trading begins generating profits, it is wise to start preparing for your tax return early. In particular, if you expect to exceed ¥200,000 in annual profits, organizing your trade history as you go will save you significant effort at filing time.

Related Pages

• FX EA Tax & Filing (Knowledge Page) — In-depth explanation of the tax system
• EA List & Rankings — Compare free EAs
• Risk Management & Lot Sizing — Money management to maximize returns
• Recommended VPS Comparison — Choosing a VPS you can deduct as a business expense