XMTrading: What can be recorded as expenses in overseas FX? Explanation of final tax returns, taxes, and tax saving measures


If you make a profit from overseas FX XM, you will need to pay tax in your final tax return. We will introduce and explain the necessary tax saving methods. When trading FX, “everything necessary to make a profit in FX” can be recorded as an expense. It takes a lot of effort to make a profit in FX. And you have to pay taxes on the profits you earn. By recording rent, computers, etc. as expenses and reducing the taxable amount, you can keep the taxes you pay low.

List of expenses in Forex

When trading FX, “everything necessary to make a profit in FX” can be recorded as an expense. I’ve put together a list of things that will help you with your taxes. If you calculate your profit and loss and it becomes positive, it will be taxed by the National Tax Agency as miscellaneous income, so you will need to prepare a final tax return. If you have any salary income, it will also be taken into consideration. Since income tax and resident tax are difficult to deal with, we have compiled a list of items that can be used as operational expenses by submitting documents as a tax-saving measure. It also depends on whether you are a sole proprietor or a salaried employee.

Book fee

The cost of books, e-books, etc. to collect information about Forex is an expense. Books on current affairs news and international economics can also be expensed, even if the book does not say “FX”.

Paid site about trading

Of course, the cost of paid e-mail magazines and paid membership sites will also be expenses. Even if this is a paid e-mail magazine that has nothing to do with a book, it can be included in the necessary expenses if it can be forced.

Trade seminar participation fee

Seminars and forex trading are necessary expenses. Even if it is a seminar that is the same as a book and has nothing to do with it, it can be included in the necessary expenses if it can be forced.

newspaper fee

The newspaper fee is a tool to obtain information on the global economy and Japan’s economy, so it can be used as an expense without any problems.

Internet line fee

Since FX is premised on Internet communication, the provider fee will also be an expense.

mobile phone bill

Telephone charges and mobile phone charges are also necessary expenses. However, from a tax point of view, it is common to think that “if you are also using daily telephone charges, that amount is not an expense.”

Purchase cost of personal computers and peripherals

Necessary expenses include the cost of purchasing laptops and computers used in FX trading, maintenance costs such as repairs, and costs such as batteries and memory. Printers, scanners, keyboards, mice, etc. are also expenses for laptops and computers that trade FX.


If you do FX trading at home, part of the rent will be a necessary expense. In the case of rent, if you live and live there, the full amount is not an expense. How much of your living space will your FX trading room take up? The application ratio will change.

Utility costs

Computers for FX trading also require electricity, so utility costs are also expenses, except for those related to daily life.

Furniture, stationery and office supplies

Office furniture such as desks and chairs for FX trading are expenses. Please note that items such as sofas in the living space are not included as expenses.

vacuum cleaner, toilet supplies

Even a vacuum cleaner to clean the trading room can be an expense.

tv set

If it is a TV for collecting information for trading, it can be recorded as an expense. The television in the living room for watching variety shows and dramas may not be recognized as an expense.

Transportation expenses

Transportation expenses for attending seminars, transportation expenses for buying books, transportation expenses for exchanging information with Forex colleagues, etc. are expenses. Train fares and taxi fares are expenses. In order to ensure that expenses are recorded, it is a good idea to leave a reason for using transportation expenses at that time.

Language acquisition cost

If you need to learn a foreign language to understand foreign news information in Forex, even the cost of the foreign language will be an expense.

Entertainment expenses

If you go out for a drink at an izakaya to exchange information with your Forex buddies, it is a necessary expense. Even if you entertain yourself at a cabaret club in order to obtain important information, it will be an expense.

International remittance fee

The overseas remittance fee incurred when depositing money into a foreign Forex account is a clear expense.

software cost

Excel is necessary for analysis, security software for security, etc. This is also a necessary expense.

You can decide your expenses

Ultimately, it is up to the tax office to decide what is allowed as an expense, but it is up to the tax office to decide how much to declare as an expense. Consider whether the expense is necessary for Forex trading. Whether or not it is an expense depends on whether the money spent is related to Forex trading or contributes to profits. Be sure to keep receipts for expenses that you think are expenses so that you can prove them to the tax office.

extreme expenses

Even if you think it is an expense, it is not always recognized as an expense. It is important to be able to rationally explain what was necessary for FX trading. It is very important to use books, newspapers, magazines, etc. to collect information when conducting transactions, so the purchase price can be recorded as an expense. However, if you expand the interpretation of this and think common sense and include things that are not directly related to Forex, problems will arise.

Things that cannot be recorded as expenses in Forex

It is difficult to include expenses such as water bills, car-related expenses, and clothing purchases that have little to do with XM trading. In addition, it is difficult to tie travel expenses, qualification examination expenses, etc. with Forex. If you are participating in a seminar, etc., you may be able to claim travel as an expense, but if there is no evidence to support it, the tax office will suspect it.

How to not be found out without declaring

There is almost no way to avoid being found out without declaring. If the annual profit is small, the tax office may not come even if you do not declare it. It’s just that if you’re a person who makes a lot of profit, you may be audited by the tax office if you don’t declare it. The tax office does not come immediately without a tax return, but rather allows the taxpayer to swim for several years and comes to audit after the period of non-reporting has accumulated to some extent.


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