Archive For The “Taxes” Category

Kyoto may impose hefty tax on short-term accommodation hosts

Kyoto City is firming up plans to impose a nightly tax on providers of short-term accommodation, or ‘minpaku’-type rentals. If approved, it could go into effect from October 2018. Under the proposal, hosts or providers may be taxed at 200 Yen per night on accommodation that is priced at under 20,000 Yen per person, per…

Kyoto is considering a tax on holiday home owners

Kyoto City is looking into introducing a tax on holiday home owners. In recent years, the number of out-of-town buyers of homes and apartments in the historic city has grown. The homes sit empty for most of the year while the owners do not provide much in the way of tax revenue, leaving locals to…

More details on proposed changes to annual property taxes

More details on proposed changes to annual property taxes

More details have been released on the proposed revision to the annual fixed asset taxes for high-rise apartments. Current tax valuations for the building are based on the size of the apartment, which means an apartment on the 40th floor would have the same fixed asset value as the same-sized apartment on the 1st floor,…

Annual property taxes may soon change for high-rise apartments

In Japan, annual property taxes on apartments are based simply on the floor area and the size of the land ownership share underneath the building, with no consideration given to the height of the floor. This means that the owner of a 100 sqm apartment on the top floor of a high-rise would pay the same…

Tax Agency to crack down on high-rise apartment sales

Tax Agency to crack down on high-rise apartment sales

The National Tax Agency and the Ministry of Internal Affairs and Communications are considering introducing changes to the tax valuation of apartments in high-rises to counter-act a growing trend of wealthy Japanese buying up apartments on high floors to reduce their inheritance taxes. Changes could be introduced from as early as 2018. When calculating inheritance taxes,…

50 landlords in Kyoto investigated for failing to declare taxes

50 landlords in Kyoto investigated for failing to declare taxes

The Osaka Regional Taxation Bureau has identified approximately 50 landlords of rental properties in Kyoto that failed to report over 300 million Yen (2.55 million USD) in rental income over a three year period. From 2014, approximately 50 landlords of rental apartment buildings and the smaller ‘apaato’-type flats located near the Doshisha University campus were…

Tax office to crack down on high-rise apartment buyers

Japan’s National Tax Agency is calling on local tax offices to enforce stricter checks with regards to the purchase of high-rise apartments by wealthy individuals as a way of reducing their inheritance tax burden. The inheritance tax charged on real estate is calculated based on the taxation value of the property rather than the market…

New law may remove tax breaks for abandoned homes

New law may remove tax breaks for abandoned homes

From February 28, 2015, the Act on Special Measures Concerning Vacant Houses will go into effect. This law has been designed to help reduce the number of abandoned homes across the country. Such homes pose fire and hygiene hazards, can invite crime and can be a general blight on the neighbourhood. Under this Act, a…

Proposed revision to taxes to encourage removal of abandoned homes

Proposed revision to taxes to encourage removal of abandoned homes

The Japanese government is considering a revision to the fixed asset tax code in order to encourage the removal of dilapidated and abandoned homes. Currently, the annual fixed asset tax on land is reduced to a sixth of its original level if there is an existing house on the land. This reduction was introduced in…

Why Japanese investors are targeting apartments on high floors

Japan’s inheritance tax rate is set to increase from January 1, 2015. Under the current tax rate, approximately 4% of households are subject to inheritance taxes, but the decrease in the standard deduction from 2015 is going to affect a lot more households. Wise investors are seeking alternative ways to store their fortune, with high-rise…

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