Individual Service

For those concerned about inheritance

(1) For those concerned about inheritance

Inheritance issues often involve questions of wills, partition of the estate and the like – matters that require consideration of both issues of both tax and law – and people dealing with such issues may hesitate as to whether to consult a tax accountant or an attorney.
On this point, our firm provides wide-ranging services, from tax issues to legal issues, regarding your inheritance matter. Consequently, our clients have no need to hesitate between consulting one expert or another.
Our aim is to provide speedier and lower-cost services compared with the case of engaging multiple specialists.

① If you are concerned about future inheritance, ②or if you have any other concern over inheritance, please consult us (Click here for consultation).

(l) Inheritance procedures
Once inheritance commences, procedures generally go as set forth below. If you wish to reduce inheritance tax as much as possible or avoid potential disputes among parents and sibling heirs, it is necessary to consult experts and take estate planning procedures while the testator is living.

  • 1Within 7 days after death:Submission of death certificate and application for cremation permit
  • 2Within 3 months of death:(a)Verification of whether a will exists
    (b)Determination of heirs
    (c)Investigation of the hereditary property and debts
    (d)Renunciation of inheritance and qualified acceptance
  • 3Within 4 months of death:Filing of Quasi-final return
  • 4Within 10 months of death:(a)Agreement on partition of the estate and drafting of written agreement on partition of the estate
    (b)Filing of inheritance tax return
  • 5Within 1 year after death:Claim for abatement of legally reserved portion
  • 6Within 5 years after death:Right to claim recovery of inheritance

(2) Other issues relating to inheritance

(a)Forfeiture of qualification as heir (Disqualification as heir and disinheritance)

(b)Payment in kind, etc.

Inbound Services international clients

For foreign-owned enterprises and those considering overseas expansion

(1) Immigration procedures

Visa acquisition and renewal agency: By tying up with an accomplished visa agency firm that has specialized knowledge, we provide one-stop service for immigration procedures to foreigners and foreign-owned enterprises.

(2) Income tax, etc.

Advice on taxes for those being posted overseas and foreigners in Japan

(3) Miscellaneous

(a)Legal advice relating to foreigners
(b))Introduction of overseas experts (attorneys, accountants and the like)

For those who invest in real estate in Japan

(1) Investment in real estate in Japan

When a non-Japanese citizen who does not have domicile or residence in Japan invests in real estate in Japan, he/she must pay special attention to the following matters for tax purposes:

(2) If you have acquired real property

When you acquire real property in Japan, the following taxes must be paid:

  1. Stamp tax…The stamp shall be affixed to the sales contract.

  2. Registration and license tax…This tax shall be paid when registering the acquired real property.

  3. Real estate acquisition tax…This is a tax that the prefectural government charges to those who have acquired real property.

  4. Fixed property tax…This is a tax that the municipal government charges to the owner of real property every year.

Tax notices for real estate acquisition and fixed property taxes are sent to you after the acquisition of real property, and you will have to pay them. However, you are generally required to hire a tax agent in Japan for the reception of tax notices and payment procedures.    

A tax agent is a person who takes care of paperwork including submitting applications, receiving notices, and carrying out payment procedures on behalf of non-Japanese citizens who do not have domicile or residence in Japan.

(3) When leasing real estate

The rent that you receive from leasing out your property is subject to income tax in Japan. Therefore, a non-Japanese citizen who leases his/her property is obliged to file his/her income tax return and pay income tax in Japan.  

Also, in certain cases, consumption tax may be imposed. In that case, you are obliged to file consumption tax and make a payment. For more information on consumption tax liability, visit this website: https://www.nta.go.jp/foreign_language/consumption_tax/01.htm#c06

Since it is difficult to file these tax returns from outside Japan and make payments, you shall generally appoint a tax agent to do the paperwork on your behalf.

In Japan, those who pay rent to a non-Japanese citizen are to withhold 20.42% of the rent and pay it to the government as the non-Japanese citizen’s income tax and special income tax for reconstruction (hereinafter called “income tax, etc.”). This withheld income tax, etc. can be deducted from his/her total income tax, etc. calculated when he/she files his/her tax return. If the total income tax, etc. is too low to be deducted, the withheld tax will be returned to him/her. Please note that for individuals who borrow a property for their or their family’s residence, its income tax, etc. does not need to be withheld from the rent.

(4) If you have sold real property

Income arising from the transfer of a real property in Japan is subject to income tax. Therefore, non-Japanese citizens who transfer their real property and gain income are obliged to file their income tax return and make a payment.

Also, in certain cases, consumption tax may be imposed. In that case, you are obliged to file consumption tax and make a payment. For more information on consumption tax liability, visit this website: https://www.nta.go.jp/foreign_language/consumption_tax/01.htm#c06

Since it is difficult to file these tax returns from outside Japan and make payments, you shall generally appoint a tax agent to do the paperwork on your behalf.

In Japan, those who purchase a real property from a non-Japanese citizen are to withhold 10.21% of the purchased amount and pay it to the government as the non-Japanese citizen’s income tax, etc. This withheld income tax, etc. can be deducted from his/her total income tax, etc. calculated when he/she files his/her tax return. If the total income tax, etc. is too low to be deducted, the withheld tax will be returned to him/her. Please note that for those individuals who purchase a real property costing 100 million yen or lower for their or their family’s residence, its income tax, etc. do not need to be withheld from the purchased amount.

(5) Services we provide

We, Bansho Ito Certified Public Accountant’s Corporation, provide the following services for non-Japanese citizens who have purchased real property in Japan:

 

Services

Fees (tax exclusive)

(i) Being appointed as a tax agent, we receive and submit documentation from/ to the national and local governments and perform tax payment procedures on your behalf. Please note that we do not make advance payments on your behalf.

(*1)

(ii) We perform accounting activities related to your real estate leasing and create your tax return form. Additionally, we report your annual income/expenses in English.

(*2)

(iii) We perform accounting activities related to the sales of real property and create your tax return form.

(*3)

(*1) 50,000 yen/ year

(*2) As follows

Annual rent (tax exclusive)

Fees (tax exclusive)

0 yen to 3,000,000 yen

60,000 yen

3,000,001 yen to 5,000,000 yen

80,000 yen

5,000,001 yen to 10,000,000 yen

100,000 yen

10,000,001 yen to 15,000,000 yen

120,000 yen

15,000,001 yen to 20,000,000 yen

150,000 yen

20,000,001 yen to 25,000,000 yen

200,000 yen

25,000,001 yen or more

For more than 25,000,001 yen of annual rent, an additional 50,000 yen will be charged for every additional 5,000,000 yen of annual rent.

   If you require us to file a consumption tax return, an additional 50,000 yen will be charged.

(*3) Amount equivalent to 2% of the sales value

(6) Why we are chosen

Bansho Ito Certified Public Accountant’s Corporation, established in 1942, has provided services to customers for over 75 years that enable them to focus on their businesses. We have proven experience and success in this field.    

We have several lawyers and are able to provide advice on subjects not limited to accounting and taxation issues for real properties, but also on other legal issues. We aim to provide true one-stop services.  

Please contact us to protect your important real properties in a foreign country, Japan. 

 *The services listed above are based on the laws as of the end of January 2017.

Service

Start up business in Tokyo/Japan
In-bound/Out-bound services in Tokyo/Japan
Inheritance by foreign people/cross-border inheritance
How to avoid legal troubles in Japan
How to cope with tax audit in Japan
How to cope with tax audit in Japan