asia房地產

The Japanese Inheritance Tax Law (sozoku zei ho) covers inheritance tax (souzoku zei) and gift tax (zoyo zei). Inheritance tax is imposed on an individual who acquires property by inheritance or bequest upon the death of the decedent. Gift tax is imposed on an individual who acquires properties by gift (or economic benefit by deemed gift). Gift tax is a tax supplementary to inheritance tax. Both taxes are national taxes and no local tax is assessed on the transfer of property due to death or a gift.

Computation of inheritance tax

The individual heirs are taxed, but not the estate. Inheritance tax is imposed on the aggregate value of all properties acquired by inheritance or bequest. Inheritance tax is calculated separately for each statutory heir and legatee, regardless of how and to whom the property is to be distributed. Then, the total amount of tax calculated is allocated between those who will actually receive the decedent’s properties in accordance with his or her will or by agreement of the heirs by portion. The tax is calculated based on the statutory heirs and legatees, whereas the tax liability is attributed to those who actually acquire the properties.

Computation

The calculation is based on the following steps:

• Aggregate the amount of taxable properties acquired by all heirs and legatees (net of the liabilities succeeded).(日本徵收遺產稅)
• Deduct the basic exemption of ¥50 million plus ¥10 million multiplied by the number of statutory heirs from the amount of 1, “aggregated taxable estate value.”
• Allocate the aggregated taxable estate value to each statutory heir according to the statutory share.
• Calculate the inheritance tax separately for each statutory heir’s portion allocated in 3, by the application of the following progressive tax rates:
• (以下是稅率表,購買日本房地產必須注意稅的問題)

• Up to ¥10 million	10%
  Above ¥10 million up to ¥30 million	15%
  Above ¥30 million up to ¥50 million	20%
  Above ¥50 million up to ¥100 million	30%
  Above ¥100 million up to ¥300 million	40%
  Above ¥300 million	50%

• Aggregate the inheritance tax calculated in 4 above, “aggregated inheritance tax.”
• Allocate the aggregated inheritance tax to each of the heirs and legatees based on the ratio of the value of the taxable properties actually acquired by him or her against the aggregated taxable estate value.
• A 20% surtax is imposed on heirs or legatees of anyone who is not the decedent’s spouse, the decedent’s parents and the decedent’s children. Where the decedent’s grandchild became the decedent’s adopted child, he or she is also subject to a 20% surtax.
• Deduct applicable tax credits to each heir (see Section 4).

The property acquired by a gift from the deceased within 3 years of the death of the deceased is regarded as estate property. Any gift tax imposed on the acquisition of such property is creditable against the inheritance tax liability.

Sample case where the heirs consist of spouse and 2 children:

1.2 Gift tax

Gift tax is imposed on individuals who acquire property by gift during the lifetime of the donee. Gift tax is also imposed on economic benefits received by deemed gift.

Computation of gift tax(日本徵收贈與稅)

The taxable base of gift tax is determined as the value of properties obtained by a gift (or by a deemed gift) during each calendar year, after an annual basic exemption of ¥1.1 million. The applicable tax rates are as follows:

(以下是稅率表)

1.3 Real estate transfer tax

Registration and license tax

The registration of the transfer of ownership of real property by inheritance or bequest is subject to registration and license tax at the rate of 0.4% of assessed value of the land and building. The registration of the transfer of ownership by gift or sales is generally subject to registration and license tax at a standard rate of 2%. At present, the rate for land and residential buildings is tentatively reduced.

Real estate acquisition tax

The acquisition of real property by gift or sales is generally subject to real estate acquisition tax at 4%. At present, the rate for land and residential buildings is tentatively reduced. The acquisition of real property by inheritance or bequest is exempt from real estate acquisition tax.

1.4 Endowment tax

There is no endowment tax in Japan. As described in Section 4, if the heir makes donations of property to certain specified nonprofit organizations or foundations of the Japanese government, a local public organization by the filing due date of the inheritance tax, the property is exempt from the inheritance tax.

1.5 Transfer duty

There is no transfer duty other than real estate transfer taxes (see Section 1.3).

1.6 Net wealth tax

There is no tax imposed on net wealth in Japan.