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Overseas inheritance and gift tax

Posted: Sun Aug 15, 2021 5:04 pm
by alberto
I have been in Japan for 6 years with a working visa, so if I receive an overseas inheritance, I am not supposed to pay any taxes. But I would like to know if that also applies to the gift tax of an overseas donation. In my home country, gift tax is treated in the same way as inheritance tax, so that's why I ask. If I received a donation, would I be exempted to pay taxes for it within the first 10 years or residence in Japan? Thank you!

Re: Overseas inheritance and gift tax

Posted: Thu Aug 19, 2021 10:22 am
by Moneymatters
EDIT:
Removed incorrect info about residence for inheritance.

I don’t think a gift it will be treated as inheritance in Japan just because it is somewhere else.
But I did find this interesting.

https://www.nta.go.jp/english/taxes/others/02/15002.htm

Re: Overseas inheritance and gift tax

Posted: Thu Aug 19, 2021 12:04 pm
by RetireJapan
Moneymatters wrote: Thu Aug 19, 2021 10:22 am https://retirewiki.jp/wiki/Residency_for_tax_purposes

I think over 5 years in the past 10 is the rule. So you are in scope for paying tax on that inheritance. Over whatever the applicable allowance is for your situation.

And I’m sure gifts will be treated as gift tax.
I believe inheritance tax and gift tax are only levied on permanent residents, spouse visa holders, and people who have been in Japan for over 10 years on a working visa.

Re: Overseas inheritance and gift tax

Posted: Thu Aug 19, 2021 2:11 pm
by Moneymatters
RetireJapan wrote: Thu Aug 19, 2021 12:04 pm
Moneymatters wrote: Thu Aug 19, 2021 10:22 am https://retirewiki.jp/wiki/Residency_for_tax_purposes

I think over 5 years in the past 10 is the rule. So you are in scope for paying tax on that inheritance. Over whatever the applicable allowance is for your situation.

And I’m sure gifts will be treated as gift tax.
I believe inheritance tax and gift tax are only levied on permanent residents, spouse visa holders, and people who have been in Japan for over 10 years on a working visa.
Well. That’ll teach me to shoot from the hip! (It won’t of course. That’s just something I’ve heard other people say.)

It’s basically 10 of the past 15. Naughty step for me.

https://www.nta.go.jp/english/taxes/others/02/15001.htm