Conversion of Foreign Currency Transactions
Salary Income:
Foreign currency amounts must be converted to Japanese yen using the applicable exchange rate at the time of transaction.
- Income from exercise of stock options or vesting of RSUs:
Use Telegraphic Transfer Middle Rate (TTM) on the date of exercise or vesting Capital losses cannot be combined with dividend income for Japanese tax purposes. - Capital losses cannot be carried forward for Japanese tax purposes.
Capital Gains:
- Income from stock sales:
Use Telegraphic Transfer Buying Rate (TTB) on the date of sale - Cost basis:
Use Telegraphic Transfer Selling Rate (TTS) on the date of exercise or vesting
Note: Generally, use the closing rate on the transaction date (or previous day’s rate if unavailable) published by a major Japanese bank.