Inheritance Taxation in Japan

【Koshida Accounting Firm Column Date:

Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.


I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.



Who is taxed?

The heirs are taxed on inheritance tax in Japan.


How much or more of the decedent’s property would be subject to inheritance tax?

The basic deductions for inheritance tax in Japan are 30 million yen plus 6 million yen multiplied by the number of legal heirs. This means that if the value of the property, after deducting any debts, exceeds this deduction, it is subject to inheritance tax.


Who are regal heirs?

Legal heirs are the spouse of the decedent and blood relatives. Relatives are subject to inheritance order rules. The first orderers are children and their heir descendants, the second are parents and grandparents, and the third are siblings and their heir descendants. The spouse is always an heir. If the higher rankers do not exist, the next ranker in line gets the right.


Legal inherit fortune portion

If heirs are the spouse and children, the legally inherited fortune portion of a suporse is half of them, and the rest is for children. If they are a spouse and blood relatives, a spouse portion is two-thirds, and the rest is relatives.


The rate of inheritance tax

The rate for the portion of the taxed property under 10 million yen is 10%, for the portion from 10 million to 30 million yen, 15% for the portion from 30 million to 50 million, 20% for the portion from 50 million to 100 million, 30%, for the portion from 100 million to 200 million, 40%, for the portion from 200 million to 300 million, 45%, for the portion from 300 million to 600 million, and for over 600 million, 55%. For example, when it is 25 million, tax is calculated by 10 million multiplied by 10%, plus 25 million minus 10 million equals 15 million multiplied by 15%.



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