Japan » Taxes

Inheritance Tax	Land Value Tax	Income Tax	Fixed Property Tax

Inheritance Tax

A person who acquires properties by gift must file a return between 1st February and 15th March of the following year.

It must be paid during the filing period or by the last filing day. Deferment of payment for up to five years for the gift tax is approved in cases where the tax amount exceeds ¥100,000 and there are reasons for not paying the amount at one time. Standing timber, depreciable assets, and non-listed stocks of a family company, of which the heir and the special concerned person have no less than 50% of stocks and constitute no less than 50% of the total amount of inherited properties.

Land Value Tax

Individuals and corporations who are owners of land, etc., in Japan are required to pay this tax. The tax base is the total amount of the assessment value (the assessed value for the Inheritance Tax) off all the land (excluding exempted land listed below) held by a taxpayer as of the first day of each year (taxable period), minus the amount of the basic deduction. The tax rate is fixed at 0.3%.

Income Tax

Income tax rate is 10% on the income which is more than 1,000 but less than 3.3 million.

Fixed Property Tax

A person who owns a property as of 1st January is responsible for paying the following taxes in the same year. For the year when a property is transferred, the buying person should pay such taxes of the year (on a pro-rate basis) to the selling person when purchasing and the selling person should pay the gross of such taxes to the authority.