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.
If you purchase real properties in Japan, you must pay several kinds of taxes.
1. Acquisition Tax 不動産所得税
This tax applies to land and buildings and is calculated by multiplying 4% by the fixed property tax’s assessment valuations. In most cases, the valuations are under real prices. Special treatment applies to lands and residential buildings. Therefore, the rate of those is 3% until March 2027. Plus, there are many kinds of special subdactive treatments.
2. Registration and License Tax 登録免許税
It is common to register properties purchsed in Japan. This rate is generally 2%. It apply to assesment valuations. Plus, there are many kinds of special subductive treatments.
3. Consumption Tax
In the case purchasing buldings from businesses including individuals, this transaction is taxed with consumption tax by 10%. By the way, lands is non – taxed because it does not match this tax’s nature.
I will explain taxes related to property businesses in the following blogs.
Taxes When Businesses Sell Real Properties in Japan
Taxes When Running a Property Lending Business in Japan
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