Children's NISA will start in January 2020, with a tax-free allowance of 600,000 yen per year for ages 0 to 17

The age limit for NISA (Small Investment Tax Exemption System) will be removed, and the ``Children's NISA'' for children aged 0 to 17 will begin in January 2027. Prior to this, acceptance of account opening will begin sequentially from October 1st. The securities industry is pinning its hopes on this, saying it will serve as a new ``prime factor'' to attract young people to invest.

Gains from the sale of investment trusts and stocks, dividends, etc. are normally subject to a tax of approximately 20%. NISA is a system where you don't have to pay these taxes, and all your profits stay in your pocket.

NISA has a ``build-up investment limit'' (up to 1.2 million yen per year) that allows you to purchase low-cost investment trusts on a regular and continuous basis, and a ``growth investment limit'' (2.4 million yen per year) that allows you to buy a wide range of stocks and investment trusts on a one-off basis.

Children's NISA works in the same way as the accumulated investment limit, with investment limits of 50,000 yen per month and 600,000 yen per year. A total of 6 million yen on a principal basis will be tax exempt (indefinitely).

Parents for future education etc.