Fixed asset tax reduction on new homes may be extended
The government is considering extending the fixed asset tax reduction on new homes for another two years. Currently, the annual fixed asset taxes are halved for the first 3 ~ 5 years on new homes and apartments. Unless extended, the special tax relief measure is set to expire at the end of March 2014.
There are concerns about a slump in new home sales following the planned increase in consumption tax from April 2014. As a result, the government is looking at measures to counter-act any possible downturn in sales activity. Read more
Aussie investors in Niseko investigated for non-payment of taxes
Japan's National Tax Agency has discovered that 10 Australians have neglected to pay capital gains tax on the sale of real estate in Hokkaido's Niseko area. Approximately 56 million Yen (570,000 USD) in tax is owed, with an additional 14 million Yen (140,000 USD) in penalties. Read more
Will the new mortgage tax benefits affect you in 2014?
To counter-act any potential slowdown in sales following the proposed hike in consumption taxes from 5% to 8% next year, the government will be increasing the maximum tax reduction for those who take out a mortgage to buy their own home.
Maximum deductions will increase from 200,000 Yen to 400,000 Yen per year for normal housing. Buyers of new homes and apartments that are certified as long-term superior housing will be eligible for a maximum annual deduction of 500,000 Yen.Read more