Japanese taxes

1.　Gift Tax

　Japanese Gift tax is levied on an individual donee with regard to property donated

by another individual.

　

　(Japanese Civil Law)

　A gift is a contract that is concluded by declaration of donor's intention to give

property to another person without compensation , and by that other person accepting

the donor's declaration .

　A gift by a verbal contract with no document ca be withdrawn by the persons

concerned. The executed portion of a gift contract cannot be withdrawn.

　A gift contract between a married couple can be withdrawn by either of them at

anything during the marriage so long as the withdrawal does not infringe on the righ

of a third party.

　

　(Japanese Gift Tax)

　Gift tax is computed and levied annually.

　When a taxpayer of gift tax is domiciled in Japan at the time of the gift , the entire

property is subject to gift tax, wherever the property may be situated.

When a taxpayer is not domiciled in Japan at the time of the gift ,only the

property which is situated in Japan is gift tax.

A taxpayer can be deducted by the basic allowance for gift tax and the spouse

allowance for gift tax from the annual taxable value.

This basic allowance for gift tax is \600,000.

The spouse allowance for gift tax is the value of a residential house acquired by

gift from a taxpayer's spouse or the money acquired similarly for purchasing such

a house.

It's deductible only once in a taxpayer's life as a spouse of a donor with a maximum

of　\20,000,000. Moreover ,the allowance is deductible only if a taxpayer has held

the status of spouse to the donor for 20 years or longer!! Yes, same spouse!!

The taxable amount after deduction of the basic allowance and the spouse

allowance should be apportioned according to the amount shown in the left hand

column of the table. Then the tax rate shown in the right hand column is applied to

each portion of the taxable amount.

　　　　　　　　　　　　 Rate of gift of tax　(\)