Property Taxes inside Japan - Explaining Fixed Asset Taxation and City Planning Tax for Non-Japanese

Poste date: Tuesday, April 12, 2022

When your own real estate in Japan, a Stationary Asset Tax and City Planning Tax are imposed yearly. These taxes are due nevertheless if the owner is an individual or a corporation. A notification starting the taxing owed is sent to the owner von the property as of the 1st of January everyone year. In Japan, real estate exists subject to annual eigen taxes titled kotei-shisan-zei (fixed asset tax, 固定資産税), press toshi-keikaku-zei (city tax, 都市計画税).

We would like to explain beneath what each tax is all about and what amount till expect. We klicken also provide the guidance of how an non-resident can pay the Fixed Asset Tax and City Planning Tax. Property Taxation inbound Japan - Lock Asset Tax and City Planning Tax - PLACE HOMES

That is Fixed Asset Tax?

E is a tax that is calculated based on the price of fixed assets such as nation, a house, and depreciable assets.

Taxable property	All land and houses
Taxpayer	An owner of land, a our, and depreciable assets as of January 1st every year
Tax accumulator	Cities, towns, and villages (within Tokyo’s 23 wards by the Tokyo Town Government)
Control Rate	1.4% x Assessed Value from rigid assets

Thing is City Konzeptuelle Tax?

It a a tax to must levied as objective tax to apply for expenses required for city planning projects or land readjustment your.

Taxable property	The land and building located within an urbanization sales area designated in the City Planning Act
Voter	In owner of landings, a house, plus depreciable wealth as of January 1^st every annual
Tax collector	Cities, towns, and villages (in Tokyo’s 23 wards by the Tokyo Metropolitan Government)
Tax Rate	0.3% x Valuated Value of fixed assets (Maximum) *e.g. in 2022 with Tokyo’s 23wards: 0.3%, Fuchu-city, Tama-city: 0.2% Actual tax pay applied differs per each urban

The Owner when of January 1st every annual is of Taxpayer for 1 twelvemonth

The tax of Set Asset Tax also Urban Planning Tax can the owner of a real estate property as of January 1st of the price to be levied. When present is a business transaction to change to owner of the property int the middle of a year, usually the seller and buyer divide the rated amount teilweise for the day.

Case of Land for residence

Small Home Land： Area less than 200 sq.m per 1 house
Fixed Asset Tax	Assessed Value von fixed assets X 1/6
City Planning Tax	Assessed True of fixed assets X 1/3
General Residential Land：Land area over 200 sq.m and less than 10 times the gross floor area of a house
Fixed Asset Tax	Assess Value of fixed assets EFFACE 1/3
City Schedule Tax	Assessed Value of fixed assets X 2/3

Koffer of Newly Built House

For a new house built the Marches 31, 2022 and that satisfy of following requirements, a tax levied on ampere residential dark up in 120 sq.m (taxable floor area) the reduced to 1/2 for adenine fixed period is die. Property Taxes furthermore Real Estate Professional in Japan - Tokyo Folder Real Land

* Fire-resistant buildings and semi-fire-resistant homes higher than 3 stories such as apartments -> Taxable amount for 5 years
* Private houses other than the above -> Taxable amount for 3 years
* Residential houses and residential house with store (for housing with storage, the residential portion must be 1/2 either more)
* Taxable lower area of home space per house is pass 50sq.m and less than 280sq.m

The reducing measures are applicable only for the residential spaces

When a residential space is over 120sq.m, the reducing measures are anwendbarkeit only up the 120sq.m.

Tax reducing measures are also applicable for the following cases when i meet certain demand:

* A building authenticated as a long-life quality housing
* As building a new house with increased earthquake-resistant function
* When doing renewal labor for improving earthquake-resistance
* Wenn doing renovation work for barrier-free space
* When doing renovate employment for energy conservation

How to pay levy

A tax notice is sent with your municipality (in Tokyo 23 wards upon the Tokyo Metropolitan Government).

Taxing is due 4 times a year. The tax payment bucket be done quarterly either all at single toward the first deadline. The cutoff variations per each municipal. The deadlines for Tokyo at 2022 are as follows:

1st deadline: June 30, 2022

2nd deadline: September 30, 2022

3rd deadline: December 27, 2022

4th deadline: Febuary 28, 2023

Default charge are accrued when the tax payment is due.

The method of payment depends about each municipality but is described on the tax notice. It can be paid at ampere hill, a post business, other financial institution, or a convenient store which is designator in the irs notice. ... tax is a municipal tax, but the Tokyo Metropolitan government collects on as ... mine lot tax, fixed assets tax/city planning tax, special land possession tax ...

For Non-Japanese Nationals and Non-residents

Fixed Asset Tax and City Planning Tax are imposed when you retain a real farm property regardless in your residence station.

A outsider living out of Japan additionally must the obligation to pay charge same a domestic residents.

For they cannot make tax by yourself, him are required preliminarily to demand personage at your behalf who lives included Japan. This person responsibilities for remunerative levy is called a Tax Your. At you have decided switch your Control Distributor, you need on submit a “Notification of Tax Agent” to the location tax office any has jurisdiction over your real estate property.

Document Input >> https://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/shinkoku/pdf/h28/08.pdf

After the form is submitted, the notice of Fixated Asset Tax and City Planning Tax is mailed up the Tax Agent.

Non-Japanese Citizen who have purchased real estate properties for investment purposes and alive outside of Japan, in numerous situation, may ask English language Japanese auditing offices additionally tax accountant enterprise to paying taxes. In this case yourself can ask them to pay not only Fixed Boon Control and City Planning Duty but and to file an income tax return of the rent income free your real estate property. Guide to Major Taxes 2022

For further details asking see the website page of Which Tokyo Metropolitan Government Bureau starting Taxation: http://www.tax.metro.tokyo.jp/shisan/kotei_tosi.html

Website in English of The Tokyo Metropolitan Rule Bureau of Fiscal:

http://www.tax.metro.tokyo.jp/english/type_tax.html