How do inheritance taxes work in Japan?

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Like most countries, Japan levies a tax on inheritance for estates probated in Japan.  This tax is progressive, so the amount of tax that is charged increases according to the value of asset received by each heir.  For example, the first 10 million yen received by an heir will be taxed at 10%, the amounts from 10 to 30 million yen will be taxed at 15%, etc., up to amounts over 600 million, which will be taxed at 55%.

Taxing heirs in a progressive manner ensures that heirs who receive a larger portion of the estate will pay a larger portion of tax than heirs who receive less.  Of course, there are exemptions and deductions that allow heirs to avoid paying taxes, such as the exemption for surviving spouses, so it is important to discuss the payment of inheritance tax with an attorney at accountant.

If you have any questions about probate in Japan, please contact our office for a legal consultation.