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
