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When inheriting, receiving gifted land or a house

Gift tax

Gift tax is imposed when one receives properties such as land, a house, or the purchase money for real estate donated by individuals.

■ Calculation of gift tax
Taxable amount = gifted asset value – 1.1 million (basic exemption)
Gift tax = taxable amount × tax rate – exemption

※1 Basic exemption: The gift tax will not be imposed if the total value of properties donated in one year is less than 1.1 million.

 

※2 Donations between spouses can be exempted under certain circumstances. Meanwhile, special rate is applicable if the beneficiary is 20 years or older and is a direct descendant of the donor.

Inheritance tax

Inheritance tax is imposed when one acquires properties by inheritance or bequest upon the death of a decedent.

■ Calculation of inheritance tax
Basic exemption = 30 million + (6 million × number of statutory heirs)
Total taxable estate = Net estate amount − basic exemption
Inheritance tax = total taxable estate × tax rate – exemption

■ How is inherited real estate assessed?

Land

Roadside land value method: roadside land prices for inheritance purpose × land size
Multiplying method: assessed value of fixed assets × a certain multiplying rate (※ If roadside land value is not applicable)

House

Assessed Value of fixed assets, which is approximately 70% of the actual value.

Tax rates of gift and inheritance tax

Taxable amount Tax rate Exemption
Up to ¥ 2 million 10% -
Up to ¥ 4 million 15% ¥ 100 thousand
Up to ¥ 6 million 20% ¥ 300 thousand
Up to ¥ 10 million 30% ¥ 900 thousand
Up to ¥ 15 million 40% ¥ 1.9 million
Up to ¥ 30 million 45% ¥ 2.65 million
Up to ¥ 45 million 50% ¥ 4.15 million
Over ¥ 45 million 55% ¥ 6.4 million

※Special Case
※The beneficiary is 20 years or older and is direct descendant of the donor

Inheritance tax

Totaltaxable estate Tax rate Excemption
Up to ¥ 10 million 10% -
Up to ¥ 30 million 15% ¥ 500 thousand
Up to ¥ 50 million 10% ¥ 2 million
Up to ¥ 100 million 30% ¥ 7 million
Up to ¥ 200 million 40% ¥ 17 million
Up to ¥ 300 million 45% ¥ 27 million
Up to ¥ 600 million 50% ¥ 42 million
Over to ¥ 600 million 55% ¥ 72 million
Note

※The above mentioned is for reference only. The actual tax amount varies according to conditions.
※The above mentioned is for taxes imposed in Japan only, excluding taxes levied from your country of residence.
※The above-mentioned taxes change subject to revision of Japanese laws.

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