Is it necessary to declare a below-1.1M JPY annual tax-free gifting?

[alberto]

Very simple question, but I didn't find the answer here before: About the 1.1M JPY annual tax-free gifting, is it necessary to declare this gift when it is below 1.1M JPY even though there is no taxes to pay? Or can I just receive the money from someone else and declare nothing? Thank you!

[TokyoBoglehead]

Very simple question, but I didn't find the answer here before: About the 1.1M JPY annual tax-free gifting, is it necessary to declare this gift when it is below 1.1M JPY even though there is no taxes to pay? Or can I just receive the money from someone else and declare nothing? Thank you!

No reporting necessary.

[alberto]

Perfect, thank you! One more really simple question. What period is considered for the annual 1.1M JPY tax-free gifting, natural year or Japanese fiscal year?

[TokyoWart]

Perfect, thank you! One more really simple question. What period is considered for the annual 1.1M JPY tax-free gifting, natural year or Japanese fiscal year?

The calendar year old (same as your taxes)

[sutebayashi]

One extra detail, because they are talking about it on the news today - if the gift is coming to you from someone who then passes away, the gift could be regarded as part of an inheritance, depending on how many years before the death occurs. Currently gifts 3 years prior to the death are assessed as part of the inheritance, but they are going to extend this out to 7 years, apparently.

So a gift might only be tax free, so long as the giver doesn't die for the next 3 - 7 years.

(How they expect to police this, I really don't know... )

[alberto]

Thank you!

[alberto]

One last question now that I think about it..., if I have been less than 10 years in Japan and I don't have the permanent or spouse visa (I have the highly skilled foreign professional visa), then does the same as in the inheritance tax apply to the gift tax so that I may be able to receive any amount of foreign gift without paying taxes??

[Tkydon]

One extra detail, because they are talking about it on the news today - if the gift is coming to you from someone who then passes away, the gift could be regarded as part of an inheritance, depending on how many years before the death occurs. Currently gifts 3 years prior to the death are assessed as part of the inheritance, but they are going to extend this out to 7 years, apparently.

So a gift might only be tax free, so long as the giver doesn't die for the next 3 - 7 years.

(How they expect to police this, I really don't know... )

Yes, if you (currently) receive a gift within 3 years prior to the decedent's death, then the gift is added back into the decedent's Estate, Inheritance Taxes are calculated on the total value of the Estate after Deductions, and then the Credit for Gift Tax already paid is deducted from the amount of Inheritance Tax payable.

If this is increased to 7 years, you would be liable for Inheritance Tax on any gift received within 7 years before the death of the decedent, with Tax Credit for Gift Tax already paid.