No.15001 Cases where inheritance tax is imposed
1 Framework of inheritance tax
If the total value of properties acquired by inheritance or bequest (Note 1) and properties acquired under taxation by settlement at the time of inheritance (after subtracting the amount of debt, etc., and if there are properties acquired from the decedent as a gift related to taxation for calendar year during the period subject to additional tax (Note 2), the value of those properties at the time of gift (Note 3) is added) exceeded the amount of basic exemption, inheritance tax is imposed on the excess amount (total taxable estate).
In this case, a declaration and payment of inheritance tax is required within ten months from the day following the day when the death of the decedent (Note 4) was notified.
(Note 1) The value of properties acquired by the gift on or after January 1, 2024 to which taxation by settlement at the time of inheritance is applied is the amount remaining after deducting the amount of basic exemption.
(Note 2) The period subject to additional tax refers to the period subject to properties donated related to taxation for calendar year that is added to the taxable value for inheritance tax purposes. The period subject to additional tax varies depending on the date of the commencement of inheritance as shown in the table below.
| Date of the commencement of inheritance of the decedent | Period subject to additional tax |
|---|---|
| Until December 31, 2026 | Within 3 years before the commencement of inheritance (from the date 3 years prior to the date of death to the date of death) |
| From January 1, 2027 to December 31, 2030 | Between January 1, 2024 and the date of death |
| On and after January 1, 2031 | Within 7 years before the commencement of inheritance (from the date 7 years prior to the date of death to the date of death) |
(Note 3) For properties other than the properties acquired by the gift within 3 years prior to the commencement of inheritance, the amount remaining after deducting 1 million yen from the total value of the properties is added.
(Note 4) Decedent refers to the deceased person.
2 The amount of basic exemption and net estate
If the net estate amount exceeds the amount of basic exemption, inheritance tax will be imposed, so a declaration and payment of inheritance tax need to be made.
Net estate amount represents the total amount of gross estate amount and properties donated under taxation by settlement at the time of inheritance, after subtracting the tax-exempt properties, funeral expenses and debts and adding the properties donated related to taxation for calendar year subject to additional tax, as shown in the above diagram.
The amount of basic exemption is calculated as 30 million yen + (6 million yen x Number of statutory heirs)3 People with obligation to pay inheritance tax and taxable properties
People with obligation to pay inheritance tax and scope of taxable properties are as follows:
| People with obligation to pay inheritance tax and scope of taxable properties | |
|---|---|
| People subject to inheritance tax | Scope of taxable properties |
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(1) A person who acquires properties by inheritance or bequest and has an address in Japan at the time of inheritance. (This does not apply if the person is a temporary resident and the decedent is a foreigner or non-resident.) |
All properties acquired |
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(2) A person who acquires properties by inheritance or bequest and does not have an address in Japan at the time of inheritance, in addition to the following: (a) The person has Japanese citizenship at the time of inheritance and one of the following applies: (ⅰ) The person had an address in Japan within the last ten years before the commencement of inheritance; or (ⅱ) The person did not have an address in Japan within the last ten years before the commencement of inheritance (excluding the case where the decedent is a foreigner or non-resident). (b) The person does not have Japanese citizenship at the time of inheritance (excluding the case where the decedent is a foreigner, non-resident or non-resident foreigner). |
All properties acquired |
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(3) A person who acquires properties in Japan by inheritance or bequest and has an address in Japan at the time of inheritance (excluding those who fall under (1) above). |
Properties in Japan |
|
(4) A person who acquires properties in Japan by inheritance or bequest and does not have an address in Japan at the time of inheritance (excluding those who fall under (2) above). |
Properties in Japan |
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(5) A person who does not fall under any of (1) to (4) above, but acquires properties by donation, for which taxation by settlement at the time of inheritance is applied. |
Properties to which taxation by settlement at the time of inheritance is applied |
(Notes)
| 1. | A "temporary resident" refers to a person who has a status of residence (i.e. a status of residence as listed in the above column of the Attached Table 1 of the Immigration Control and Refugee Recognition Act) at the time of commencement of inheritance, and had an address in Japan for a total of ten years or less within the last 15 years before the commencement of inheritance. |
| 2. | A "decedent who is a foreigner" refers to a decedent who has a status of residence (i.e. a status of residence as listed in the above column of the Attached Table 1 of the Immigration Control and Refugee Recognition Act) at the time of commencement of inheritance, and had an address in Japan. |
| 3. | A "decedent who is a non-resident" refers to a decedent who does not have an address in Japan at the time of commencement of inheritance, and who falls under either of the following categories: (1) a person who had an address in Japan any time within the last ten years before the commencement of inheritance, and who did not keep their Japanese citizenship any time within that period; or (2) a person who did not have an address in Japan within the last ten years before the commencement of inheritance. |
| 4. | A "non-resident foreigner", in the case where properties were acquired by inheritance or bequest between April 1, 2017 and March 31, 2022, refers to a person who did not keep his/her address in Japan or Japanese citizenship continuously from April 1, 2017 through the time of inheritance or bequest. |
| 5. | Association or foundation without legal personality, or corporation in which the equity interest is not specified may be subject to inheritance tax. |
| 6. | With regard to (1) and (2) in the table above, the rules may be different if the decedent had applied for the "special provisions to allow postponement of tax payment for exit tax system". |
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