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Last Updated: Nov 07, 2007

Inheritance tax and law

INHERITANCE TAX

Inheritance tax in Japan is based on the residence status of the individual. Beneficiaries are subject to inheritance tax on property they received if they are domiciled in Japan. If, however, beneficiaries are not domiciled in Japan, they are still subject to inheritance tax if the property that they inherited is situated in Japan. Still, a non-domiciled person could still be subject to inheritance tax if he has a Japanese nationality and if he or the donor had lived in Japan at any time within 5 years before the deceased’s death. The registration tax rate for entrusting real estate is 0.4% on the appraised value of the property.

Inheritance tax is levied at progressive rates on the fair market value of the property inherited less funeral expenses and taxes. Further deductions are allowed, depending on the status of the heir/s:

  • JPY10,000,000 (US$93,711) for each statutory heir
  • JPY160,000,000 (US$1,499,377) for the surviving spouse

The net value of the inheritance is then subject to the following progressive rates:

INHERITANCE TAX
TAXABLE INHERITANCE, JPY (US$) RATE
Up to 10,000,000 (US$93,711) 10%
10,000,000 - 30,000,000 (US$281,133) 15%
30,000,000 - 50,000,000 (US$468,555) 20%
50,000,000 - 100,000,000 (US$937,111) 30%
100,000,000- 300,000,000 (US$2,811,332) 40%
Over 300,000,000 (US$2,811,332) 50%
Source: Gobal Property Guide

 

Japan - more data and information

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