Telephone no.: 2180-9028/6988-9301 (Hong Kong) / 170-9880-9301 (China)
TAXATION

Non-resident Tax Declaration

 

Non-resident in Japan receiving income in Japan must declare tax through tax agent. We act as your tax agent and help you to pay property acquisition tax, property tax and income tax in japan

 

Purchase Cost

 

Purchase cost accounts for 5-8% of property price. If the property price is 50 million yen, purchase cost is around 2.5 – 4 million yen including stamp duty, service charge, fire & earthquake insurance fee and property registration tax. Tax rate is variable in different prefectures.

 

◆ Tax and Purchase Cost

1. Service charge Property price X 3% + 60,000 yen + tax
2. Stamp duty A stamp on contract
Stamp duty at 1.1 – 5 million yen --- 1,000 yen
Stamp duty at 5.1 – 10 million yen --- 5,000 yen
Stamp duty at 10.1 – 50 million yen --- 10,000 yen
Stamp duty at 50.1 -1 billion yen --- 30,000yen
Stamp duty at 1 billion yen - 5billion yen --- 60,000 yen
3. Property registration fee Property registration tax
Appraised value X 2%
Service charge of judicial scrivener
Appraised value below 20 million yen --- 50,000 - 80,000 yen
Appraised value at 20-50 million yen --- 60,000 - 80,000 yen
Appraised value above 50 million yen --- 80,000 -100,000 yen
Note: in the condition of full payment
4. Insurance fee Fire and earthquake insurance (5-year plan) of a flat is about 20,000 – 50,000 yen
* The above-mentioned costs from 1-4 account for 5-8% of property price

 

◆ 6 – 18 months after settlement

Property acquisition tax 3-4% of appraised value

◆ Ordinary expenditure

1. Fixed asset tax 1.4% of appraised value → 1.4% X 1/3 for land, 1.4% for construction
(1.4% X 1/6 if the land area is below 200m2)
2. City planning tax 0.3% of appraised value → 0.3% X 1/3 for land, 0.3% for construction
3. Management fee Studio flat only
4. Construction Maintenance fee for pool fund Studio flat only
5. Maintenance fee Whole block building owner has to bear all maintenance cost
Big-scale maintenance including wall, roof water-proof maintenance and pipe exchange must be held once every 10 years
6. Renovation and other urgent maintenance fee After tenant moves out, owner has to bear room cleaning fee, exchange of basic facilities like wallpaper, flooring, air-conditioner, water-boiler, etc if necessary
7. Property management fee 5% + tax of gross rent
8. Remittance charge For once per 3 or 6 months, owner bears remittance charge. For once per 12 months, we bear remittance charge
9. Tax declaration fee Around 40,000 – 100,000 yen

Net income < 380,000 yen --- No income tax

・Depreciation can be considered as expenditure in some conditions.
● Calculation of Depreciation
1. Land and construction price on the contract
2. {Settlement price-(appraised land value/0.7)}÷ life span
3. [Settlement price×{appraised construction value/(appraised land value+appraised construction value)}]÷ life span
1. is the principle calculation. If price is not written on the contract, the smallest amount of either 2 or 3 can be selected.

 

◆ Legal life span (for residence use)

Construction Legal life span Deprecation rate (fixed amount)
SRC, RC 47 years 0.022
Iron & steel 34 years 0.030
Light iron & steel 27 years 0.038
Wood 20 years 0.050

Calculation of life span of second hand property
(Legal life span-age)+(age×0.2)=Life span
(Not applicable for age less than 1 year) ex.
Ex. The life span of a RC building at 21 years old, 、(47 years-21 years)+(21 years×0.2)=30 years (no decimal)
・ No 100,000 or 650,000 yen allowance for WHITE tax declaration form, but simple journal
・ Enjoy 100,000 or 650,000 yen allowance for BLUE tax declaration form, but you have to provide other applications to tax bureau. BLUE tax declaration is processed by registered tax account generally.

1. Rental income acquired from property or other companies
2. Double accounting journal
3. You have to provide full financial reports including profit & loss and balance sheet, during tax declaration period between 15th Feb and 15th March every year

You can enjoy allowance of 650,000 yen if you fulfill the below conditions either 1 or 2
1. There are 10 rooms or above.
2. There are 5 whole block buildings.

 

◆ Income tax

Annual net income Tax rate Allowance
Below 1,950,000 yen 5% -
1,950,001-3,300,000 yen 10% 97,500 yen
3,300,001-6,950,000 yen 20% 427,500 yen
6,950,001-9,000,000 yen 23% 636,500 yen
9,000,001-18,000,000 yen 33% 1,536,500 yen
Over 18,000,000 yen 40% 2,796,000 yen

Ex; The calculation of income tax for annual income of 2 million yen is as follows.
2,000,000 yen X 10% - 97,500 yen = 102,500 yen

 

◆ Property transfer tax

Settlement price – (acquisition cost + sale cost) - allowance = property transfer income
Acquisition cost: Purchase price (deduct depreciation cost), agency service charge
Sale cost: agency service charge, advertising fee, measurement fee
Allowance: not applied on investment property

 

◆ Income tax

Category Income tax
Hold within 5 years 30%
Hold over 5 years 15%