https://www.akasakarealestate.com/wiki/index.php?title=Taxes&feed=atom&action=historyTaxes - Revision history2024-03-29T06:50:33ZRevision history for this page on the wikiMediaWiki 1.34.0https://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=60&oldid=prevErik: /* Withholding for Income Tax */2023-05-10T04:58:10Z<p><span dir="auto"><span class="autocomment">Withholding for Income Tax</span></span></p>
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 04:58, 10 May 2023</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l173" >Line 173:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>For non-residents the tax office wants to make sure that the income tax is paid. To this effect the law states that 20.42% of the incoming rent should be paid as withholding tax. When the annual income tax is filed by March the following year the owner will get a refund of these withholding tax payments. </div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>For non-residents the tax office wants to make sure that the income tax is paid. To this effect the law states that 20.42% of the incoming rent should be paid as withholding tax. When the annual income tax is filed by March the following year the owner will get a refund of these withholding tax payments. </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Officially a withholding tax filing is the responsibility of the tenant and should be done for every rent payment. This entails filling out a tax form, making the payment and sending a copy of the payment slip to the owner. Clearly this would create an excessive amount of paperwork and so the tax office is willing to take a rather flexible approach. This means that normally there is no issue if the withholding tax is not filed in case both the renter and the owner are individuals. If the renter is a corporation however they have requested that the payments are made for larger rent payments, but they are willing to let the property manager handle it. The exact definition of 'large' has not been given, but so far we have managed to avoid this paperwork for rents below <del class="diffchange diffchange-inline">200</del>,000 yen a month.</div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Officially a withholding tax filing is the responsibility of the tenant and should be done for every rent payment. This entails filling out a tax form, making the payment and sending a copy of the payment slip to the owner. Clearly this would create an excessive amount of paperwork and so the tax office is willing to take a rather flexible approach. This means that normally there is no issue if the withholding tax is not filed in case both the renter and the owner are individuals. If the renter is a corporation however they have requested that the payments are made for larger rent payments, but they are willing to let the property manager handle it. The exact definition of 'large' has not been given, but so far we have managed to avoid this paperwork for rents below <ins class="diffchange diffchange-inline">100</ins>,000 yen a month<ins class="diffchange diffchange-inline">. However, sometimes an accountant hired by the renter insists</ins>.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== How to file ===</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== How to file ===</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=59&oldid=prevErik: /* Direct ownership versus a holding company */2022-06-09T10:59:52Z<p><span dir="auto"><span class="autocomment">Direct ownership versus a holding company</span></span></p>
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 10:59, 9 June 2022</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l205" >Line 205:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Direct ownership versus a holding company ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Direct ownership versus a holding company ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>As a direct owner you have to pay income tax at progressive rates over the profit made from the investment properties. For large investors it can be a good idea to set up a local Japanese company (kabushiki kaisha) to reduce the tax burden. Setting up a company takes around 3 months and costs about 300,000 to 500,000 yen. The annual accounting costs might be similar. In return it is possible to deduct for example entertainment expenses and many more items from your profit. You would have to put yourself and possibly other people on the payroll to avoid paying the high corporate taxes. This could allow you to spread the income over several people making sure to avoid those higher tax bands. For non-resident directors there is a fixed tax rate of 20%. <del class="diffchange diffchange-inline">For more details we can recommend to talk to Greg McDonald at [http://www</del>.<del class="diffchange diffchange-inline">solidjapan</del>.<del class="diffchange diffchange-inline">com SolidJapan]</del>.</div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>As a direct owner you have to pay income tax at progressive rates over the profit made from the investment properties. For large investors it can be a good idea to set up a local Japanese company (kabushiki kaisha) to reduce the tax burden. Setting up a company takes around 3 months and costs about 300,000 to 500,000 yen. The annual accounting costs might be similar. In return it is possible to deduct for example entertainment expenses and many more items from your profit. You would have to put yourself and possibly other people on the payroll to avoid paying the high corporate taxes. This could allow you to spread the income over several people making sure to avoid those higher tax bands. For non-resident directors there is a fixed tax rate of 20<ins class="diffchange diffchange-inline">.42</ins>%. <ins class="diffchange diffchange-inline">A company might also be liable for sales tax over non-residential rental income</ins>. <ins class="diffchange diffchange-inline">Given the costs and tax rates, setting up a company is not attractive for non-residents, unless you are investing over 500 million yen</ins>. <ins class="diffchange diffchange-inline">And even then, you could consider buying properties in the name of children or other family members to avoid higher tax rates</ins>.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Putting Japanese property directly in an overseas holding company might not be an effective way to save taxes. In such circumstances the tax rate would be 20% of the rent without allowing any deductions. Also the property manager would have to file a withholding tax form and make a payment with the tax office for EVERY rent payment. If overseas ownership is required a special construction called a [http://www.venturejapan.com/tokumei-kumiai-tk.htm Tokumei Kumiai (TK)] should be set up instead. However this is only suitable for larger investments (JPY 200 million and over) given the fact that non-residents pay very low tax rates on smaller investments.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Putting Japanese property directly in an overseas holding company might not be an effective way to save taxes. In such circumstances the tax rate would be 20% of the rent without allowing any deductions. Also the property manager would have to file a withholding tax form and make a payment with the tax office for EVERY rent payment. If overseas ownership is required a special construction called a [http://www.venturejapan.com/tokumei-kumiai-tk.htm Tokumei Kumiai (TK)] should be set up instead. However this is only suitable for larger investments (JPY 200 million and over) given the fact that non-residents pay very low tax rates on smaller investments.</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=56&oldid=prevErik: /* Sales Tax */2021-07-28T09:47:03Z<p><span dir="auto"><span class="autocomment">Sales Tax</span></span></p>
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 09:47, 28 July 2021</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Sales Tax ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Sales Tax ==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>No sales tax is levied on residential rental contracts. For corporate contracts <del class="diffchange diffchange-inline">8</del>% sales tax is added. However if the owner is an individual and the total rent is less than 10 million yen a year, the owner can keep this money and does not have to file a sales tax form.</div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>No sales tax is levied on residential rental contracts. For corporate contracts <ins class="diffchange diffchange-inline">10</ins>% sales tax is added. However if the owner is an individual and the total rent is less than 10 million yen a year, the owner can keep this money and does not have to file a sales tax form.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Direct ownership versus a holding company ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Direct ownership versus a holding company ==</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=55&oldid=prevErik: /* Withholding for Income Tax */2021-07-28T09:45:42Z<p><span dir="auto"><span class="autocomment">Withholding for Income Tax</span></span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 09:45, 28 July 2021</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Income Tax ===</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Income Tax ===</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>For non-residents the tax office wants to make sure that the income tax is paid. To this effect the law states that 20% of the incoming rent should be paid as withholding tax. When the annual income tax is filed by March the following year the owner will get a refund of these withholding tax payments. </div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>For non-residents the tax office wants to make sure that the income tax is paid. To this effect the law states that 20<ins class="diffchange diffchange-inline">.42</ins>% of the incoming rent should be paid as withholding tax. When the annual income tax is filed by March the following year the owner will get a refund of these withholding tax payments. </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Officially a withholding tax filing is the responsibility of the tenant and should be done for every rent payment. This entails filling out a tax form, making the payment and sending a copy of the payment slip to the owner. Clearly this would create an excessive amount of paperwork and so the tax office is willing to take a rather flexible approach. This means that normally there is no issue if the withholding tax is not filed in case both the renter and the owner are individuals. If the renter is a corporation however they have requested that the payments are made for larger rent payments, but they are willing to let the property manager handle it. The exact definition of 'large' has not been given, but so far we have managed to avoid this paperwork for rents below 200,000 yen a month.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Officially a withholding tax filing is the responsibility of the tenant and should be done for every rent payment. This entails filling out a tax form, making the payment and sending a copy of the payment slip to the owner. Clearly this would create an excessive amount of paperwork and so the tax office is willing to take a rather flexible approach. This means that normally there is no issue if the withholding tax is not filed in case both the renter and the owner are individuals. If the renter is a corporation however they have requested that the payments are made for larger rent payments, but they are willing to let the property manager handle it. The exact definition of 'large' has not been given, but so far we have managed to avoid this paperwork for rents below 200,000 yen a month.</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=54&oldid=prevErik: /* Depreciation Deduction for Income Tax */2021-07-28T09:45:23Z<p><span dir="auto"><span class="autocomment">Depreciation Deduction for Income Tax</span></span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 09:45, 28 July 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l167" >Line 167:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>For second hand properties you can deduct 80 percent of the age. So for example a concrete apartment built in 1980 and bought in 2011 can be depreciated in 47 - (31 x 80%) = 47 - 24.8 = 22 years. The depreciation amount is 1/22 = 4.5% of the building value a year. When calculating the amount of years and the percentage depreciation the results are truncated down. It is not possible to depreciate a building more than its useful life, so a 40 year old wood frame structure must be depreciated in 20% of 20 = 4 years.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>For second hand properties you can deduct 80 percent of the age. So for example a concrete apartment built in 1980 and bought in 2011 can be depreciated in 47 - (31 x 80%) = 47 - 24.8 = 22 years. The depreciation amount is 1/22 = 4.5% of the building value a year. When calculating the amount of years and the percentage depreciation the results are truncated down. It is not possible to depreciate a building more than its useful life, so a 40 year old wood frame structure must be depreciated in 20% of 20 = 4 years.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>To reduce the income tax burden sometimes several strategies are suggested to maximize the depreciation. However there are also downsides to this approach. For example the building value on a new property is higher, so the taxable depreciation is higher as well. Unfortunately such a new property will suffer a real market depreciation as well. Another strategy is to purchase a very old wooden frame structure on cheap land, allowing to depreciate almost the full purchase price in just 4 years. However capital gains tax will need to be paid when selling the property, so this might only be interesting for temporary residents who are now paying a high income tax rate, but are expected to leave Japan and so will fall into the 15% capital gains rate when selling. Also such old wooden structures might incur high maintenance costs and are hard to manage as they are normally only found outside Tokyo.</div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>To reduce the income tax burden sometimes several strategies are suggested to maximize the depreciation. However there are also downsides to this approach. For example the building value on a new property is higher, so the taxable depreciation is higher as well. Unfortunately such a new property will suffer a real market depreciation as well. Another strategy is to purchase a very old wooden frame structure on cheap land, allowing to depreciate almost the full purchase price in just 4 years. However capital gains tax will need to be paid when selling the property, so this might only be interesting for temporary residents who are now paying a high income tax rate, but are expected to leave Japan and so will fall into the 15% capital gains rate when selling. Also such old wooden structures might incur high maintenance costs and are hard to manage as they are normally only found outside Tokyo<ins class="diffchange diffchange-inline">. The loophole for claiming a tax deduction for property outside Japan was closed in 2021</ins>.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Income Tax ===</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Income Tax ===</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=53&oldid=prevErik: /* Income Tax */2021-07-28T09:43:54Z<p><span dir="auto"><span class="autocomment">Income Tax</span></span></p>
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 09:43, 28 July 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l118" >Line 118:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>|40% of base exceeding 18,000,000</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>|40% of base exceeding 18,000,000</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>|}</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>|}</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">A 2.1% Tohoku reconstruction tax on the tax amount is added to the final bill.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>When filing personal income tax you are required to fill out two forms for the real estate income:</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>When filing personal income tax you are required to fill out two forms for the real estate income:</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=52&oldid=prevErik: /* Possession Tax */2021-07-28T09:40:42Z<p><span dir="auto"><span class="autocomment">Possession Tax</span></span></p>
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 09:40, 28 July 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l5" >Line 5:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Paid once a year. The invoice normally arrives on June 1st and needs to be paid by the end of June. It is possible to pay in 4 quarterly installments.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Paid once a year. The invoice normally arrives on June 1st and needs to be paid by the end of June. It is possible to pay in 4 quarterly installments.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline">Normally about 0</del>.<del class="diffchange diffchange-inline">3</del>% <del class="diffchange diffchange-inline">to </del>0.<del class="diffchange diffchange-inline">5</del>% <del class="diffchange diffchange-inline">of the market value each year, (peaks as high as 1</del>.<del class="diffchange diffchange-inline">2</del>%<del class="diffchange diffchange-inline">)</del></div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins class="diffchange diffchange-inline">The exact number is computed using a complex formula that takes 4 different assessments (2 for the building, 2 for the land) and then multiplies some assessments by 1</ins>.<ins class="diffchange diffchange-inline">4</ins>%<ins class="diffchange diffchange-inline">, others by </ins>0.<ins class="diffchange diffchange-inline">3</ins>%. <ins class="diffchange diffchange-inline">There is often a 20</ins>% <ins class="diffchange diffchange-inline">discount on </ins>the <ins class="diffchange diffchange-inline">tax for </ins>land and <ins class="diffchange diffchange-inline">possible other discounts depending on the zoning, and possibly the alignment of stars</ins>. <ins class="diffchange diffchange-inline">The assessed </ins>values differ wildly from the real market value. <ins class="diffchange diffchange-inline">In Tokyo alone we have seen variations between 20% to 120%, making the annual possession tax a rather random number, </ins>on <ins class="diffchange diffchange-inline">average about 0</ins>.<ins class="diffchange diffchange-inline">3% to 0</ins>.<ins class="diffchange diffchange-inline">5% </ins>of the <ins class="diffchange diffchange-inline">market value each year</ins>.</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline">Computed as a percentage of </del>the <del class="diffchange diffchange-inline">assessed </del>land and <del class="diffchange diffchange-inline">building values</del>. </div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline">Assessed </del>values <del class="diffchange diffchange-inline">can </del>differ wildly from the real market value.</div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline">More information can be found </del>on <del class="diffchange diffchange-inline">this [http://tochi</del>.<del class="diffchange diffchange-inline">mlit</del>.<del class="diffchange diffchange-inline">go.jp/english/tax/02_01_01.html page] </del>of the <del class="diffchange diffchange-inline">Ministry of Land, Infrastructure, Transport and Tourism</del>.</div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Acquisition Tax ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Acquisition Tax ==</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=49&oldid=prevErik: /* Capital Gains */2021-05-27T07:28:16Z<p><span dir="auto"><span class="autocomment">Capital Gains</span></span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 07:28, 27 May 2021</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Capital Gains ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Capital Gains ==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>On short term holdings (less than 5 to 6 years) the tax rate on capital gains is quite high at 39% (30% national + 9% local tax). <del class="diffchange diffchange-inline">But there </del>are ways to reduce it to 15% or less. If the dwelling is used as a primary residence <del class="diffchange diffchange-inline"> </del>the first 30 million yen of capital gains is tax free<del class="diffchange diffchange-inline">, and </del>the first 60 million yen gains is taxed at 14% instead of 20%. A couple owning a house jointly gets 60 million tax free. If you own a property more than 6 years the tax rate goes down to 20% (15% national and 5% local tax). If you are not a resident in Japan that means the tax is 15%. Between 5 and 6 years it depends on the time of year. To get the lower tax rate 6 times January 1st must have passed since the purchase.</div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>On short term holdings (less than 5 to 6 years) the tax rate on capital gains is quite high at 39% (30% national + 9% local tax). <ins class="diffchange diffchange-inline">Non-residents pay only the national tax. There </ins>are ways to reduce it to 15% or less. If the dwelling is used as a primary residence the first 30 million yen of capital gains <ins class="diffchange diffchange-inline">per owner </ins>is tax free<ins class="diffchange diffchange-inline">. If you have owned it for over 10 years </ins>the first 60 million yen gains is taxed at 14% instead of 20%. A couple owning a house jointly gets 60 million tax free. If you own a property more than 6 years the tax rate goes down to 20% (15% national and 5% local tax). If you are not a resident in Japan that means the tax is 15%. Between 5 and 6 years it depends on the time of year. To get the lower tax rate 6 times January 1st must have passed since the purchase.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The Capital Gains is calculated by taking the profit (sales price - purchase price - closing costs) and adding the depreciation that was reported for income tax. If no depreciation was reported, a mandatory minimum depreciation is added nonetheless.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The Capital Gains is calculated by taking the profit (sales price - purchase price - closing costs) and adding the depreciation that was reported for income tax. If no depreciation was reported, a mandatory minimum depreciation is added nonetheless.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>On top of the tax <del class="diffchange diffchange-inline">and </del>added 2.1% Tohoku reconstruction charge is levied. This means the effective tax is between 15.315% (non-resident, holding over 6 years) and 39.<del class="diffchange diffchange-inline">819</del>% (resident, short term holding).</div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>On top of the <ins class="diffchange diffchange-inline">national </ins>tax <ins class="diffchange diffchange-inline">an </ins>added 2.1% Tohoku reconstruction charge is levied. This means the effective tax is between 15.315% (non-resident, holding over 6 years) and 39.<ins class="diffchange diffchange-inline">63</ins>% (resident, short term holding).</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Capital Gains ===</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Capital Gains ===</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=48&oldid=prevErik: /* Capital Gains */2021-05-27T06:55:29Z<p><span dir="auto"><span class="autocomment">Capital Gains</span></span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 06:55, 27 May 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l184" >Line 184:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Capital Gains ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Capital Gains ==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>On short term holdings (less than 5 to 6 years) the tax rate on capital gains is quite high at 39% (30% national + 9% local tax). But there are ways to reduce it to 15% or less. If the dwelling is used as a primary residence the first 30 million yen of capital gains is tax free. A couple owning a house jointly gets 60 million tax free. If you own a property more than 6 years the tax rate goes down to 20% (15% national and 5% local tax). If you are not a resident in Japan that means the tax is 15%. Between 5 and 6 years it depends on the time of year. To get the lower tax rate 6 times January 1st must have passed since the purchase.</div></td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>On short term holdings (less than 5 to 6 years) the tax rate on capital gains is quite high at 39% (30% national + 9% local tax). But there are ways to reduce it to 15% or less. If the dwelling is used as a primary residence the first 30 million yen of capital gains is tax free<ins class="diffchange diffchange-inline">, and the first 60 million yen gains is taxed at 14% instead of 20%</ins>. A couple owning a house jointly gets 60 million tax free. If you own a property more than 6 years the tax rate goes down to 20% (15% national and 5% local tax). If you are not a resident in Japan that means the tax is 15%. Between 5 and 6 years it depends on the time of year. To get the lower tax rate 6 times January 1st must have passed since the purchase.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The Capital Gains is calculated by taking the profit (sales price - purchase price - closing costs) and adding the depreciation that was reported for income tax. If no depreciation was reported, a mandatory minimum depreciation is added nonetheless.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The Capital Gains is calculated by taking the profit (sales price - purchase price - closing costs) and adding the depreciation that was reported for income tax. If no depreciation was reported, a mandatory minimum depreciation is added nonetheless.</div></td></tr>
</table>Erikhttps://www.akasakarealestate.com/wiki/index.php?title=Taxes&diff=47&oldid=prevErik: /* Capital Gains */2021-04-20T04:29:09Z<p><span dir="auto"><span class="autocomment">Capital Gains</span></span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: #fff; color: #222; text-align: center;">Revision as of 04:29, 20 April 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l187" >Line 187:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The Capital Gains is calculated by taking the profit (sales price - purchase price - closing costs) and adding the depreciation that was reported for income tax. If no depreciation was reported, a mandatory minimum depreciation is added nonetheless.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The Capital Gains is calculated by taking the profit (sales price - purchase price - closing costs) and adding the depreciation that was reported for income tax. If no depreciation was reported, a mandatory minimum depreciation is added nonetheless.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">On top of the tax and added 2.1% Tohoku reconstruction charge is levied. This means the effective tax is between 15.315% (non-resident, holding over 6 years) and 39.819% (resident, short term holding).</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Capital Gains ===</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #222; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>=== Withholding for Capital Gains ===</div></td></tr>
</table>Erik