NISA system allows restoration of tax-exempt investment quotas

Under the new NISA (Nippon Individual Savings Account) system implemented in 2024, investors can withdraw funds without permanently losing their lifetime tax-exempt quota. When assets are sold, the tax-exempt limit is restored in the following year based on the original acquisition cost (book value) rather than the current market value.

For example, if an investor sells stocks worth 1 million yen that were originally purchased for 800,000 yen, the lifetime tax-exempt limit of 18 million yen will be restored by the 800,000 yen acquisition amount. It is important to note that while the lifetime limit is restored, the annual investment limit—consisting of a 1.2 million yen accumulation quota and a 2.4 million yen growth quota—remains subject to yearly caps.

Additionally, regarding the upcoming 'Kodomo NISA' scheduled for January 2027, the system is expected to target investment trusts. While children may be the beneficiaries, procedures are typically handled by parents.