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Reduction of tax which relate to real estate

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Following is simply a case in point of tax reduction which relate to real estate acquired

Reduction of real estate acquisition tax Until Mar/31/2015

You need to pay real estate tax when you acquire a real estate in Japan. (

each of transaction) If you meet the request, you can benefit from tax rededication reduction.※1

Model case : Land assessed value ¥7.0 mil Building assessed value ¥7.5 mil

Classification Before reduction of tax After reduction of tax Balance
Land Assessed value*1/2*3% You can select higher tax reduction from following 1 or 2
1. ¥45,000
2. Assessed value perm2*1/2*2*total floor area*3%
¥105,000
Building Assessed*3% Deduct ¥12mil from assessed value ¥225,000
Total Land+Building Land+Building ¥335,000

※1 Application procedure is depend on the local government. please feel free ask us when you need.

※2 Non-residential building deduction rate is 4%

Reduction of registration tax Until Mar/31/2014

Classification Before reduction of tax After reduction of tax Balance
Acquired used house Assessed*2% Assessed*0.3% ¥127,500
Acquired New house Assessed*0.4% Assessed*0.15% ¥18,750
Acquired Land Assessed*2% Assessed*1.5% ※after April/01/13 back to 2% ¥35,000

You need to pay registration tax when you acquire a real estate in Japan. (each of transaction) This tax is computed assessed value of fixed asset multiple tax rate. If you meet the request, you are able to have benefit from tax rededication reduction.

Reduction of fixed asset tax and city planning tax Until Mar/31/2014

After you acquire a real estate, you have to pay fixed asset tax and city planning tax every year. ※2

Classification Before reduction of tax After reduction of tax Balance
Land Fixed Asset :
Assessed Value*1.4%
Assessed Value reduce 1/6 until 200m2
over 200m2 until 10 times of floor area 1/3
¥81,700
Land City Planning Tax :
Assessed Value*0.3%
Assessed Value reduce 1/3 until
200m2 over 200m2 until 10 times of floor area 2/3
¥14,000
Building Fixed Asset :
Assessed Value*1.4%
Reduce the amount of tax until 1/2.
3years for House 5 years for apartment
(until 120m2 of floor area)
¥52,500
Building City Planning Tax :
Assessed Value*0.3%
No reduction program available ¥0
Total Fixed asset tax+City planning tax Fixed asset tax+City planning tax ¥148,200

2 reduction for building is only available which total floor area is over 50m2.

Good deal with smart tax strategy

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