Japan Deemed Inheritance Tax on Pensions/Annuities

[Deep Blue]

@retirejapan clean up needed in aisle 5

[needhelp]

Follow up question on this issue:
Let's assume Japanese wife pays the tax on the "deemed inheritance" of say a private pension in which she is named as the beneficiary of the foreign husband, who dies before she does. Then she gets a certain amount every month or year from the pension until she dies. Is that monthly or annual amount then taxed again as income? It seems it should not be, since she has inherited it as a de facto lump sum on which she already paid tax, the "deemed inheritance tax."

I also assume that if she pays the tax and dies the next day, and gets nothing from the pension, the GOJ would not give back the tax it levied for an additional life expectancy of 20 years that never came to be....

[IloveJapan]

“Japanese pension law specifically excludes survivors' benefits under the National Pension and EPI/mutual-aid-association-type pensions from all forms of taxation. “

Hi, I was wondering if the Japanese 401k (Ideco) would be included in the above categories that are excluded from inheritance tax?
In other words, if I asked my parents to pay for my Ideco monthly contributions, how would that be taxed?

[RetireJapan]

“Japanese pension law specifically excludes survivors' benefits under the National Pension and EPI/mutual-aid-association-type pensions from all forms of taxation. “

Hi, I was wondering if the Japanese 401k (Ideco) would be included in the above categories that are excluded from inheritance tax?
In other words, if I asked my parents to pay for my Ideco monthly contributions, how would that be taxed?

I don't think that is what the OP said there.

But you can receive up to 1.1m yen a year in gifts, which would be enough to fund your iDeCo and contribute to your NISA if your parents wanted to do that.

[Jay]

Given that here is a basic inheritance tax exemption of ¥30 million-plus ¥6 million for each statutory heir in Japan, I'm wondering if the tax office is figuring that into their calculation regarding the tax amount that they seek to charge for a pension plan, (US social security for example) being paid monthly to the Japanese spouse of a deceased expatriate that had paid into the ss system? The life expectancy angle calculation seems crazy absurd unfair, but at least the deduction if provided, might help provide some breathing room. Off hand it certainly seems appropriate to figure in the deduction, wishful thinking , but I can't find any information about it. I'm grateful if anyone can elucidate on that aspect.

[Kadek Son]

I'm also looking for Japan tax information related to US Pensions inclueding, Regular Pensions, SSA benefits, 401k's, etc.

As an aside, if your spouse is not a USA citizen, she will need to prove that she had permanent residency (green card) in the USA for at least 5 years in order to receive survivors benefits.