JAPANESE INHERITANCE AND GIFT TAXES
AMERICAN ESTATE AND GIFT TAXES
I. Estate Taxes
e. Tax on bequest to surviving spouse can be delayed by creating a Qualified Domestic Trust
b. Exemption of ¥30,000,000 + (¥6,000,000 for each statutory heir); Possible additional exemption for insurance money, retirement savings, and money left to handicapped individuals [NOTE - this is a reduction from the previous exemption of ¥50,000,000 and ¥10,000,000 per statutory heir.]
- Up to ¥10 million 10%
- Above ¥10 million up to ¥30 million 15%
- Above ¥30 million up to ¥50 million 20%
- Above ¥50 million up to ¥100 million 30%
- Above ¥100 million up to ¥200 million 40%
- Above ¥200 million up to ¥300 million 45%
- Above ¥300 million up to ¥600 million 50%
- Over ¥600 million 55%
b. I'm currently double checking to see if the Beneficiary is a Japanese Domiciliary whether Japan CAN tax inheritance regardless of where Decedent lived and regardless of where assets are located (subject to tax treaties)
- Up to ¥2 million 10%
- Above ¥2 million up to ¥4 million 15%
- Above ¥4 million up to ¥6 million 20%
- Above ¥6 million up to ¥10 million 30%
- Above ¥10 million up to ¥15 million 40%
- Above ¥15 million up to ¥30 million 45%
- Above ¥30 million up to ¥45 million 50%
- Over ¥45 million 55%
- The threshold is lower for gifts to other individuals.
b. Japan will tax donees who live in Japan.
2. Tax of 40% on rest
For more information on Japanese taxes, the Japanese government has a website in English with some helpful facts, but it is now very outdated.
I am not licensed to practice in Japan, this is just my understanding of Japanese gift and inheritance tax law that I can gather from sources which are written in English.
NOTE- Major rewrite on 9/12/14 to address changes in rates and fact that assets outside of Japan are now subject to Japanese inheritance and gift tax.