Pushing the moment you pay tax further out
Tax is charged not when the gain appears but when you sell or withdraw. Until then the money that would have gone to tax keeps working, so the longer you hold the more compounding it earns. Unlike an exemption, it is paid eventually.
Paying 20% every year versus deferring can differ by tens of percent over 20 years.
Japan — In Japan nothing is taxed while a fund is held; taking a distribution is taxed at that point.
South Korea — In Korea investment growth inside pension accounts such as pension savings and IRPs is not taxed until it is withdrawn. Taken as a pension, it is taxed at source at 5% under age 70, 4% at 70–79 and 3% from 80 (plus local income tax, as of 2026).
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.