Inheritance tax rates in Japan are progressive and go up to 55%. There are deductions available based on how many members of the immediate family you have, but for wealthy individuals this does very little to change the resulting inheritance tax bill that is left to your family members when you die.
Inheritance tax bills are owed by the individual beneficiaries of the assets. These family members are often not wealthy, meaning that they are forced to sell off investments from the estate or the family home to release the necessary money to pay the taxes owed. Many investors would like to avoid this scenario at all costs.
| Taxable JPY amount | Tax rate | Tax Deduction | |
| up to | 10,000,000 | 10% | – |
| up to | 30,000,000 | 15% | 500,000 |
| up to | 50,000,000 | 20% | 2,000,000 |
| up to | 100,000,000 | 30% | 7,000,000 |
| up to | 200,000,000 | 40% | 17,000,000 |
| up to | 300,000,000 | 45% | 27,000,000 |
| up to | 600,000,000 | 50% | 42,000,000 |
| above | 600,000,000 | 55% | 72,000,000 |
We use a tried-and-tested combination of real estate assets, life insurance, and sometimes structured finance to manage inheritance tax liabilities for our clients and have secured tax savings running into the millions of dollars (or billions of yen, whichever way you want to think of it….).
Each estate is different and tax planning strategies vary accordingly.
Get in touch with us today to find out which Japanese inheritance tax planning strategy would be right for you and your family and ensure that your assets are protected, even after you are gone.