What You Be Careful About Tax Before Living in Japan

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 are planning to move in Japan from other countries, you have better to consider taxes in Japan in advance to avoid unexpected taxes in Japan.

1. Inheritance And Gift Tax

Inheritance and gift taxes in Japan are strict. The basic deduction or inheritance tax is 30 million yen plus 6 million yen per regal heir, and the tax is calculated by multiplying the amount deducted by 10% to 55%. A gift tax deduction is 1,100,000 yen per year per receiver, and the rate is 10% to 55%. However, there are unique treatments for a spouse, such as 160 million inheritance tax deductions.
Then, when you start to live in Japan with a spouse visa or Japanese passport, which is different from living with a working visa or management visa, you also must pay taxes in Japan on your gifts and inheritances about your overseas properties. So, to avoid these taxes, you should gift your properties to your family before living in Japan.
If you want to know more about inheritance tax in Japan, please check it out.

Taxes in Japan for Receiving Inheritance or Gifts Across Countries

2. Special Treatment For Funds For Retirement Like Ros IRA

Non-taxed funds for retirement, like U.S. Ros IRA, are taxed in Japan when you refund. Therefore, it might be better to refund it before living in Japan. However, an early refund might cause a penalty, so you should consider what is the best.

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