[{"data":1,"prerenderedAt":1401},["ShallowReactive",2],{"compare-pair-united-kingdom-vs-japan":3,"compare-united-kingdom-japan":104},{"kind":4,"page":5},"article",{"id":6,"title":7,"bestForA":8,"bestForB":12,"body":16,"countryA":36,"countryASlug":37,"countryB":38,"countryBSlug":39,"description":22,"excerpt":40,"extension":41,"extraRows":42,"faqs":51,"flagA":64,"flagB":65,"heroImage":66,"lastUpdated":67,"meta":68,"metaDescription":69,"metaTitle":70,"navigation":71,"path":72,"relatedCompares":73,"seo":80,"stem":81,"verdict":82,"winners":86,"__hash__":103},"compare\u002Fcompare\u002Funited-kingdom-vs-japan.md","United Kingdom vs Japan taxes",[9,10,11],"Founders comparing 25% UK corporation tax with Japan's higher combined company stack","Investors who want 18%\u002F24% CGT rather than Japan's asset-class mix","Families modelling a 40% IHT cap against Japan's 55% top band",[13,14,15],"People whose work or customers are in Japan","Households that benefit from Japan's spouse inheritance credit","Residents who prefer 10% consumption tax to 20% VAT",{"type":17,"value":18,"toc":32},"minimark",[19,23,26,29],[20,21,22],"p",{},"Japan and the United Kingdom both look like 45% personal-tax countries on a one-line table. The extras are what you actually pay.",[20,24,25],{},"Japan’s national income tax runs from 5% to 45%, with a 2.1% reconstruction surtax on the income-tax amount. Inhabitant tax is a separate local charge of about 10%, generally based on the previous year’s income for someone with a Japanese domicile or similar connection on 1 January. Employment-income deductions and social insurance change the net. The UK uses 20%, 40% and 45% in England, Wales and Northern Ireland, 48% at the top in Scotland, a GBP 12,570 personal allowance, and National Insurance on employment. Neither system is a flat professional rate.",[20,27,28],{},"Company tax favours the UK on the published stack. UK corporation tax is 19% on small profits and 25% on the main rate. Japan’s national corporation-tax rate is 23.2%, with local corporate taxes on top and illustrative combined rates around 29.74% before the 2026 defense surcharge. Listed-security gains in Japan are commonly 20.315%. UK individuals pay 18% or 24% from 6 April 2026 after a GBP 3,000 annual exempt amount. Japan’s consumption tax at 10% (8% reduced) is the one clear indirect-tax win against UK VAT at 20%.",[20,30,31],{},"Inheritance is where families should slow down. UK IHT is 40% above a GBP 325,000 nil-rate band and a possible GBP 175,000 residence nil-rate band, with worldwide assets in play for long-term UK residents. Japan’s table runs from 10% to 55% after ¥30 million plus ¥6 million per statutory heir, and the 55% band is a real rate on large deemed shares. A spouse credit can zero a large part of a surviving spouse’s inheritance, which has no exact UK equivalent. A four-year UK foreign-income-and-gains claim may help a new UK resident after a decade abroad. It does not solve Japanese inhabitant tax or a 55% Japanese inheritance band.",{"title":33,"searchDepth":34,"depth":34,"links":35},"",2,[],"United Kingdom","united-kingdom","Japan","japan",null,"md",[43,47],{"label":44,"valueA":45,"valueB":46},"Local personal layer","National Insurance on employment","Inhabitant tax about 10%",{"label":48,"valueA":49,"valueB":50},"Inheritance tax","40%","10% - 55%",[52,55,58,61],{"question":53,"answer":54},"Is Japan or the UK higher tax?","Japan is often higher once inhabitant tax and the reconstruction surtax are included, and its inheritance tax can exceed the UK's 40% on large estates. The UK has higher VAT at 20% versus Japan's 10% consumption tax.",{"question":56,"answer":57},"What is Japanese inhabitant tax?","It is a separate local tax, typically about 10% in total (4% prefectural and 6% municipal), assessed mainly on the prior year's income for people with a domicile or similar connection in Japan on 1 January.",{"question":59,"answer":60},"How do the inheritance taxes compare?","The UK charges 40% above the nil-rate bands and can include worldwide assets for long-term residents. Japan uses 10% to 55% after a ¥30 million plus ¥6 million per statutory heir exemption, with a substantial spouse credit.",{"question":62,"answer":63},"Does the UK offer new-resident relief that Japan lacks?","A qualifying UK newcomer can claim the four-year foreign-income-and-gains regime after ten consecutive non-UK tax years. Japan has its own non-permanent resident rules, which are a different design and should not be treated as the same relief.","🇬🇧","🇯🇵","\u002Fimages\u002Fcorp-card-bg.jpg","September 2026",{},"United Kingdom vs Japan tax comparison for 2026. Compare income tax, inhabitant tax, corporation tax, capital gains, consumption tax and inheritance tax.","UK vs Japan taxes (2026): inhabitant tax, IHT and company rates",true,"\u002Fcompare\u002Funited-kingdom-vs-japan",[74,77],{"title":75,"path":76},"United Kingdom vs Singapore","\u002Fcompare\u002Funited-kingdom-vs-singapore",{"title":78,"path":79},"Japan vs Singapore","\u002Fcompare\u002Fjapan-vs-singapore",{"title":7,"description":22},"compare\u002Funited-kingdom-vs-japan",[83,84,85],"Both national personal scales reach 45%. Japan then adds a 2.1% reconstruction surtax on income tax and inhabitant tax of about 10%. The UK adds National Insurance on employment and a 48% Scottish top rate on non-savings income. A Japanese salary is rarely the 45% headline on its own.","Succession is the sharper split. Japan inheritance tax runs from 10% to 55% after a basic exemption of ¥30 million plus ¥6 million per statutory heir, and it can cover worldwide assets in many residence and nationality cases. UK inheritance tax is 40% above the nil-rate bands, with worldwide assets in scope for long-term UK residents.","Choose the UK for a more predictable 18%\u002F24% individual CGT rate and a 25% main company rate. Choose Japan when the domestic market, family ties or employment are the reason to be there. Inhabitant tax, social insurance and inheritance exposure should be modelled before treating Japan as 'the same 45% as the UK'.",[87,91,94,97,101],{"taxType":88,"winner":89,"note":90},"Personal income tax","A","Both national tops are 45%, but Japan's inhabitant tax of about 10% and reconstruction surtax usually make the combined personal burden heavier than UK income tax plus National Insurance at many salary levels.",{"taxType":92,"winner":89,"note":93},"Corporate tax","UK corporation tax is 19% or 25%. Japan's national rate is 23.2%, with combined effective rates often around 29.74% before the 2026 defense surcharge.",{"taxType":95,"winner":89,"note":96},"Capital gains tax","UK individuals pay 18% or 24% from 6 April 2026. Japan commonly taxes listed-security gains at 20.315% and uses higher rates on short-term real estate.",{"taxType":98,"winner":99,"note":100},"Consumption tax \u002F VAT","B","Japan's consumption tax is 10% (8% reduced). UK VAT is 20%.",{"taxType":48,"winner":89,"note":102},"UK IHT is a flat 40% above thresholds. Japan ranges from 10% to 55% and can be heavier on large estates even after the statutory-heir exemption.","CWYTBTchm373bXZK58Ee8CID7o6F8Zi4iXAJAlg2Jxc",{"a":105,"b":697},{"index":106,"details":220},{"id":107,"title":108,"bestFor":109,"body":115,"country":36,"countryFacts":122,"countrySlug":37,"description":119,"excerpt":40,"extension":41,"faqs":128,"flag":64,"heroImage":40,"howItWorks":138,"lastUpdated":142,"meta":143,"metaDescription":144,"metaTitle":145,"navigation":71,"otherTaxes":146,"pageType":176,"path":177,"relatedFormations":178,"relatedGuides":182,"seo":183,"stem":184,"summaryCards":185,"taxBracketSections":198,"taxBrackets":199,"taxRates":200,"taxSlug":40,"taxType":40,"visas":214,"watchOut":215,"__hash__":219},"taxes\u002Fcountry\u002Funited-kingdom\u002Findex.md","Taxes in United Kingdom",[110,111,112,113,114],"Employees","Founders","Investors","Property owners","Expats",{"type":17,"value":116,"toc":120},[117],[20,118,119],{},"The United Kingdom is a mature, rules-heavy tax system rather than a low-tax jurisdiction. The main planning work is understanding which taxes apply to your mix of salary, dividends, gains, property and company profits.",{"title":33,"searchDepth":34,"depth":34,"links":121},[],{"region":123,"currency":124,"taxTreaties":125,"euBlacklist":126,"fatfStatus":127},"Europe","GBP","100+","No","Compliant",[129,132,135],{"question":130,"answer":131},"Is the United Kingdom a high-tax country?","Yes. The UK has a broad tax base with income tax, National Insurance, VAT, corporation tax, capital gains tax and inheritance tax. The exact burden depends on your residence, income mix and whether you are an employee, founder or investor.",{"question":133,"answer":134},"Does the UK have a wealth tax?","No. The UK does not levy a general annual net wealth tax, but asset owners can still face CGT, IHT, ATED, stamp duty and council tax.",{"question":136,"answer":137},"What should founders watch first?","For founders, the big items are corporation tax, VAT, employer National Insurance, dividend planning and whether Making Tax Digital or payroll registration applies.",[139,140,141],"UK tax is layered. Individuals pay income tax on wages, self-employment, rental income, pensions and savings, while companies pay corporation tax on profits, and estates can face inheritance tax on death or on certain lifetime transfers.","The headline personal allowance is GBP 12,570 for 2026\u002F27. Dividend income gets a separate GBP 500 allowance, and Scotland uses separate non-savings and non-dividend income tax rates.","VAT is 20% in most cases, employer National Insurance is 15%, and Making Tax Digital for Income Tax starts in April 2026 for many sole traders and landlords with qualifying income above GBP 50,000.","May 2026",{},"United Kingdom tax overview for residents, expats, founders and investors. Compare income tax, wealth tax, inheritance tax, capital gains tax, corporate tax, dividend tax, VAT and payroll costs.","Taxes in United Kingdom: income, wealth, corporate and dividend tax (2026)",[147,151,155,158,161,164,168,172],{"title":148,"slug":149,"icon":150},"Income tax","income-tax","💼",{"title":152,"slug":153,"icon":154},"Wealth tax","wealth-tax","💰",{"title":48,"slug":156,"icon":157},"inheritance-tax","🏛️",{"title":95,"slug":159,"icon":160},"capital-gains-tax","📈",{"title":92,"slug":162,"icon":163},"corporate-tax","🏢",{"title":165,"slug":166,"icon":167},"Dividend tax","dividend-tax","💸",{"title":169,"slug":170,"icon":171},"VAT \u002F sales tax","vat-sales-tax","🧾",{"title":173,"slug":174,"icon":175},"Crypto tax","crypto-tax","🪙","country","\u002Fcountry\u002Funited-kingdom",[179],{"title":180,"path":181,"flag":64},"UK Ltd","\u002Fformation\u002Fuk-ltd",[],{"title":108,"description":119},"country\u002Funited-kingdom\u002Findex",[186,189,192,195],{"label":148,"value":187,"note":188},"45%","48% in Scotland",{"label":152,"value":190,"note":191},"0%","No annual net wealth tax",{"label":92,"value":193,"note":194},"25%","19% small profits rate",{"label":95,"value":196,"note":197},"24%","Top individual rate",[],[],[201,204,205,206,207,209,211],{"label":148,"value":202,"badge":203},"45% \u002F 48% Scotland","Progressive",{"label":152,"value":190},{"label":48,"value":49},{"label":95,"value":196},{"label":92,"value":208},"25% (19% small profits)",{"label":165,"value":210},"10.75% \u002F 35.75% \u002F 39.35%",{"label":212,"value":213},"VAT","20%",[],[216,217,218],"Scotland has different income tax bands and rates for wages, pensions and most other non-savings income, so UK income tax is not one single national table.","Inheritance Tax thresholds are frozen through 2030\u002F31, and the rules moved to a long-term UK residence test from 6 April 2025.","The UK is not a low-tax jurisdiction once VAT, payroll National Insurance and capital taxes are included.","byvqWezuGDgHVOZKMRw6p8LoVUoPzcJWNBEciCp3N_c",{"income-tax":221,"corporate-tax":319,"capital-gains-tax":396,"dividend-tax":470,"wealth-tax":547,"inheritance-tax":621},{"id":222,"title":223,"bestFor":224,"body":228,"country":36,"countryFacts":235,"countrySlug":37,"description":232,"excerpt":40,"extension":41,"faqs":236,"flag":64,"heroImage":246,"howItWorks":247,"lastUpdated":142,"meta":251,"metaDescription":252,"metaTitle":253,"navigation":71,"otherTaxes":254,"pageType":262,"path":263,"relatedFormations":264,"relatedGuides":266,"seo":267,"stem":268,"summaryCards":269,"taxBracketSections":283,"taxBrackets":284,"taxRates":300,"taxSlug":149,"taxType":148,"visas":313,"watchOut":314,"__hash__":318},"taxes\u002Fcountry\u002Funited-kingdom\u002Fincome-tax.md","Income tax in United Kingdom",[110,225,226,227,114],"Freelancers","Landlords","Contractors",{"type":17,"value":229,"toc":233},[230],[20,231,232],{},"UK income tax is broad and detail-heavy. Salaries, freelance income, rental income, pensions and savings all need to be checked against the correct band, allowance and filing route.",{"title":33,"searchDepth":34,"depth":34,"links":234},[],{"region":123,"currency":124,"taxTreaties":125,"euBlacklist":126,"fatfStatus":127},[237,240,243],{"question":238,"answer":239},"Do you pay income tax in the UK on salary?","Yes. Salary is taxed through PAYE after the personal allowance, with the rate depending on your band and, if you live in Scotland, on Scottish income tax rates.",{"question":241,"answer":242},"Do expats pay UK income tax?","Many expats do, if they are UK tax resident or have UK taxable income. Residence, workdays, treaty relief and split-year rules all matter.",{"question":244,"answer":245},"Is there a personal income tax return in the UK?","Many people with untaxed income file Self Assessment. For MTD-affected sole traders and landlords, reporting becomes digital and quarterly from April 2026.","\u002Fimages\u002Fuk.jpeg",[248,249,250],"UK income tax applies to employment income, self-employment profits, rental income, most pensions and savings interest. Dividends have their own tax rates and are not taxed as ordinary earned income.","For England, Wales and Northern Ireland in 2026\u002F27, the rates are 20% up to GBP 50,270, 40% up to GBP 125,140 and 45% above that. Scotland uses separate starter, basic, intermediate, higher, advanced and top rates.","The personal allowance is GBP 12,570 and is reduced by GBP 1 for every GBP 2 of income above GBP 100,000. Sole traders and landlords with qualifying income above GBP 50,000 enter Making Tax Digital for Income Tax from 6 April 2026.",{},"United Kingdom income tax guide for 2026\u002F27. See the GBP 12,570 personal allowance, 20% \u002F 40% \u002F 45% rates, Scottish tax differences, National Insurance and Making Tax Digital.","United Kingdom income tax: rates, brackets and expat rules (2026)",[255,256,257,258,259,260,261],{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"tax","\u002Fcountry\u002Funited-kingdom\u002Fincome-tax",[265],{"title":180,"path":181,"flag":64},[],{"title":223,"description":232},"country\u002Funited-kingdom\u002Fincome-tax",[270,274,277,279],{"label":271,"value":272,"note":273},"Personal allowance","GBP 12,570","Frozen for 2026\u002F27",{"label":275,"value":213,"note":276},"Basic rate","England, Wales, NI",{"label":278,"value":187,"note":188},"Top rate",{"label":280,"value":281,"note":282},"Payroll NI","8% \u002F 15%","Employee \u002F employer",[],[285,287,290,293,296],{"band":286,"rate":190,"note":271},"Up to GBP 12,570",{"band":288,"rate":213,"note":289},"GBP 12,571 to GBP 50,270","Basic rate in England, Wales and Northern Ireland",{"band":291,"rate":49,"note":292},"GBP 50,271 to GBP 125,140","Higher rate in England, Wales and Northern Ireland",{"band":294,"rate":187,"note":295},"Over GBP 125,140","Additional rate in England, Wales and Northern Ireland",{"band":297,"rate":298,"note":299},"Scotland","19% to 48%","Separate non-savings, non-dividend rates apply",[301,303,304,307,310],{"label":88,"value":302,"badge":203},"20% to 45%",{"label":271,"value":272},{"label":305,"value":306},"Scottish top rate","48%",{"label":308,"value":309},"Employee National Insurance","8%",{"label":311,"value":312},"Employer National Insurance","15%",[],[315,316,317],"The UK has a separate dividend allowance and savings rules, so not all investment income is taxed the same way as salary.","Employee and employer National Insurance can materially raise the real cost of wages, even when the income tax band looks manageable.","Making Tax Digital for Income Tax starts on 6 April 2026 for qualifying sole traders and landlords, with lower thresholds coming in 2027 and 2028.","0UEXXiH2ThothRR1KwF_rNQ4Wq0dGbbFWO1cfE58l8I",{"id":320,"title":321,"bestFor":322,"body":327,"country":36,"countryFacts":334,"countrySlug":37,"description":331,"excerpt":40,"extension":41,"faqs":335,"flag":64,"heroImage":40,"howItWorks":345,"lastUpdated":142,"meta":349,"metaDescription":350,"metaTitle":351,"navigation":71,"otherTaxes":352,"pageType":262,"path":360,"relatedFormations":361,"relatedGuides":363,"seo":364,"stem":365,"summaryCards":366,"taxBracketSections":380,"taxBrackets":381,"taxRates":382,"taxSlug":162,"taxType":92,"visas":390,"watchOut":391,"__hash__":395},"taxes\u002Fcountry\u002Funited-kingdom\u002Fcorporate-tax.md","Corporate tax in United Kingdom",[111,323,324,325,326],"Agencies","SaaS businesses","Holding companies","Trading groups",{"type":17,"value":328,"toc":332},[329],[20,330,331],{},"UK corporate tax is straightforward on the headline rate and less straightforward in practice. Thresholds, associated companies, VAT, payroll and withholding rules all affect the real cost of running a company.",{"title":33,"searchDepth":34,"depth":34,"links":333},[],{"region":123,"currency":124,"taxTreaties":125,"euBlacklist":126,"fatfStatus":127},[336,339,342],{"question":337,"answer":338},"Does the UK have a corporation tax?","Yes. The UK charges corporation tax on company profits, with a 25% main rate and a 19% small profits rate.",{"question":340,"answer":341},"Do all companies pay 25%?","No. Smaller companies can pay 19%, and companies with profits between GBP 50,000 and GBP 250,000 may qualify for marginal relief.",{"question":343,"answer":344},"Are UK company dividends taxed at source?","Ordinary UK company dividends usually are not subject to withholding tax, although the shareholder may still owe dividend tax personally.",[346,347,348],"UK companies pay corporation tax on taxable profits. The main rate is 25% if profits are above GBP 250,000, the small profits rate is 19% if profits are GBP 50,000 or less, and marginal relief applies between the two.","Associated companies reduce the GBP 50,000 and GBP 250,000 thresholds, so group structures can move a company into a higher effective rate faster than expected.","UK-resident companies are generally taxed on worldwide profits. Returns are usually due 12 months after the end of the accounting period, and the tax bill is usually due 9 months and 1 day after the period end.",{},"United Kingdom corporate tax guide for 2026. See the 25% main rate, 19% small profits rate, marginal relief, VAT, payroll costs and filing deadlines.","United Kingdom corporate tax: company tax rates and deadlines (2026)",[353,354,355,356,357,358,359],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Funited-kingdom\u002Fcorporate-tax",[362],{"title":180,"path":181,"flag":64},[],{"title":321,"description":331},"country\u002Funited-kingdom\u002Fcorporate-tax",[367,370,374,378],{"label":368,"value":193,"note":369},"Main rate","Profits over GBP 250k",{"label":371,"value":372,"note":373},"Small profits rate","19%","Profits up to GBP 50k",{"label":375,"value":376,"note":377},"Marginal relief","GBP 50k-250k","Thresholds shrink with associates",{"label":212,"value":213,"note":379},"Usually separate",[],[],[383,385,386,389],{"label":384,"value":193,"badge":368},"Corporation tax",{"label":371,"value":372},{"label":387,"value":388},"Marginal relief band","GBP 50,000 to GBP 250,000",{"label":212,"value":213},[],[392,393,394],"Large companies with taxable profits above GBP 1.5 million pay Corporation Tax in instalments, not just at year end.","UK dividends generally have no withholding tax, but interest and some royalties can be subject to 20% withholding, with a proposal to raise UK interest withholding to 22% from 6 April 2027.","Payroll National Insurance, VAT and Companies House filings can matter almost as much as the corporation tax rate itself.","AOgmaIaLMLG74xQhN15LQac0Yu-BYSkx3h3Eyhx9CIU",{"id":397,"title":398,"bestFor":399,"body":403,"country":36,"countryFacts":410,"countrySlug":37,"description":407,"excerpt":40,"extension":41,"faqs":411,"flag":64,"heroImage":40,"howItWorks":421,"lastUpdated":142,"meta":425,"metaDescription":426,"metaTitle":427,"navigation":71,"otherTaxes":428,"pageType":262,"path":436,"relatedFormations":437,"relatedGuides":439,"seo":440,"stem":441,"summaryCards":442,"taxBracketSections":455,"taxBrackets":456,"taxRates":457,"taxSlug":159,"taxType":95,"visas":464,"watchOut":465,"__hash__":469},"taxes\u002Fcountry\u002Funited-kingdom\u002Fcapital-gains-tax.md","Capital gains tax in United Kingdom",[400,112,226,401,402],"Shareholders","Crypto holders","Business owners",{"type":17,"value":404,"toc":408},[405],[20,406,407],{},"UK capital gains tax is now a real planning tax for investors and business owners. The headline rates changed again in 2026, so disposal timing, reliefs and allowances matter.",{"title":33,"searchDepth":34,"depth":34,"links":409},[],{"region":123,"currency":124,"taxTreaties":125,"euBlacklist":126,"fatfStatus":127},[412,415,418],{"question":413,"answer":414},"What is the UK capital gains tax rate?","For most individuals in 2026\u002F27, the rate is 18% if you are a basic-rate taxpayer and 24% if you are a higher or additional-rate taxpayer.",{"question":416,"answer":417},"Is there an annual CGT allowance?","Yes. The annual exempt amount is GBP 3,000 for 2026\u002F27.",{"question":419,"answer":420},"Are UK homes taxed on capital gains?","Usually no, if the property qualifies as your main home. However, letting, business use or an overseas residence position can create taxable gains.",[422,423,424],"UK capital gains tax applies when individuals dispose of chargeable assets such as shares, funds, second homes, cryptoassets and other investment assets. Your income tax band helps determine the rate.","From 6 April 2026, gains are charged at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. Trustees and personal representatives generally pay 24%, and Business Asset Disposal Relief is 18% from the same date.","The annual exempt amount is GBP 3,000. Main homes are often exempt under private residence relief, but business use, letting and non-UK residence can change the result.",{},"United Kingdom capital gains tax guide for 2026\u002F27. See the GBP 3,000 allowance, 18% and 24% rates, Business Asset Disposal Relief and main-home exemptions.","United Kingdom capital gains tax: rates, allowance and reliefs (2026)",[429,430,431,432,433,434,435],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Funited-kingdom\u002Fcapital-gains-tax",[438],{"title":180,"path":181,"flag":64},[],{"title":398,"description":407},"country\u002Funited-kingdom\u002Fcapital-gains-tax",[443,446,450,452],{"label":444,"value":445,"note":273},"Annual exempt amount","GBP 3,000",{"label":447,"value":448,"note":449},"Basic rate CGT","18%","From 6 April 2026",{"label":451,"value":196,"note":449},"Higher rate CGT",{"label":453,"value":448,"note":454},"BADR rate","Business disposals",[],[],[458,459,460,462],{"label":444,"value":445},{"label":447,"value":448},{"label":461,"value":196},"Higher and additional rate CGT",{"label":463,"value":448},"Business Asset Disposal Relief",[],[466,467,468],"Business Asset Disposal Relief rose to 18% for disposals on or after 6 April 2026.","Carried interest received from 6 April 2026 is taxed as income and subject to National Insurance contributions instead of CGT.","Losses, residence status and asset type can change the effective rate, especially for property and business disposals.","C9X8UP_1xWVKEfN68WqacuwZ5iy3JTlKiAtMYiEdtOM",{"id":471,"title":472,"bestFor":473,"body":476,"country":36,"countryFacts":483,"countrySlug":37,"description":480,"excerpt":40,"extension":41,"faqs":484,"flag":64,"heroImage":40,"howItWorks":494,"lastUpdated":142,"meta":498,"metaDescription":499,"metaTitle":500,"navigation":71,"otherTaxes":501,"pageType":262,"path":509,"relatedFormations":510,"relatedGuides":512,"seo":513,"stem":514,"summaryCards":515,"taxBracketSections":529,"taxBrackets":530,"taxRates":531,"taxSlug":166,"taxType":165,"visas":541,"watchOut":542,"__hash__":546},"taxes\u002Fcountry\u002Funited-kingdom\u002Fdividend-tax.md","Dividend tax in United Kingdom",[400,111,474,112,475],"UK company owners","Family companies",{"type":17,"value":477,"toc":481},[478],[20,479,480],{},"UK dividend tax is easy to underestimate because the allowance is small and the rates jump sharply with your income band. For owner-managers, dividend timing and salary mix still matter.",{"title":33,"searchDepth":34,"depth":34,"links":482},[],{"region":123,"currency":124,"taxTreaties":125,"euBlacklist":126,"fatfStatus":127},[485,488,491],{"question":486,"answer":487},"What is the UK dividend tax rate?","For 2026\u002F27, the UK dividend tax rates are 10.75%, 35.75% and 39.35%, depending on your income tax band.",{"question":489,"answer":490},"Is there a dividend allowance?","Yes. The dividend allowance is GBP 500 for 2026\u002F27.",{"question":492,"answer":493},"Do UK companies withhold dividend tax?","Ordinary UK company dividends usually do not have withholding tax. The shareholder may still owe personal dividend tax later.",[495,496,497],"Dividend tax applies after your personal allowance and the separate dividend allowance. Dividends from ISA holdings stay tax-free, but dividends from ordinary company shares can still be taxable once you are above the allowance.","For 6 April 2026 to 5 April 2027, dividend tax rates are 10.75% for basic-rate taxpayers, 35.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers.","Ordinary UK company dividends are usually paid without withholding tax. Scotland and Wales use the same dividend tax rates as the rest of the UK.",{},"United Kingdom dividend tax guide for 2026\u002F27. See the GBP 500 dividend allowance, 10.75% \u002F 35.75% \u002F 39.35% rates and withholding tax rules.","United Kingdom dividend tax: rates and allowance (2026)",[502,503,504,505,506,507,508],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Funited-kingdom\u002Fdividend-tax",[511],{"title":180,"path":181,"flag":64},[],{"title":472,"description":480},"country\u002Funited-kingdom\u002Fdividend-tax",[516,520,523,526],{"label":517,"value":518,"note":519},"Dividend allowance","GBP 500","For 2026\u002F27",{"label":275,"value":521,"note":522},"10.75%","After allowance",{"label":524,"value":525,"note":522},"Higher rate","35.75%",{"label":527,"value":528,"note":522},"Additional rate","39.35%",[],[],[532,533,535,537,539],{"label":517,"value":518},{"label":534,"value":521},"Basic rate dividend tax",{"label":536,"value":525},"Higher rate dividend tax",{"label":538,"value":528},"Additional rate dividend tax",{"label":540,"value":190},"Withholding tax on ordinary dividends",[],[543,544,545],"The dividend allowance is only GBP 500, so even modest portfolios can produce a tax bill once the allowance is used up.","Dividends sit on top of your other income when HMRC decides which band you are in.","REIT and PAIF distributions can have separate withholding rules, so not every payment that looks like a dividend is taxed the same way.","FDeSLNSPpInsWYK0HQskztbj8982WUTTnSJ58r4bHMc",{"id":548,"title":549,"bestFor":550,"body":554,"country":36,"countryFacts":561,"countrySlug":37,"description":558,"excerpt":40,"extension":41,"faqs":562,"flag":64,"heroImage":40,"howItWorks":571,"lastUpdated":142,"meta":576,"metaDescription":577,"metaTitle":578,"navigation":71,"otherTaxes":579,"pageType":262,"path":587,"relatedFormations":588,"relatedGuides":590,"seo":591,"stem":592,"summaryCards":593,"taxBracketSections":604,"taxBrackets":605,"taxRates":606,"taxSlug":153,"taxType":152,"visas":615,"watchOut":616,"__hash__":620},"taxes\u002Fcountry\u002Funited-kingdom\u002Fwealth-tax.md","Wealth tax in United Kingdom",[551,113,112,552,553],"High-net-worth individuals","Family offices","Trustees",{"type":17,"value":555,"toc":559},[556],[20,557,558],{},"The UK does not charge a general wealth tax, but that does not make it a light-tax environment for assets. Most planning is about avoiding the wrong wrapper, not about escaping a wealth-tax return that does not exist.",{"title":33,"searchDepth":34,"depth":34,"links":560},[],{"region":123,"currency":124,"taxTreaties":125,"euBlacklist":126,"fatfStatus":127},[563,565,568],{"question":133,"answer":564},"No. The UK does not have a general annual net wealth tax on individuals.",{"question":566,"answer":567},"What taxes hit wealth instead?","The main substitutes are inheritance tax, capital gains tax, ATED for certain enveloped homes, stamp duty on some property purchases and council tax on residential property.",{"question":569,"answer":570},"Is company ownership a wealth-tax solution?","Not automatically. Putting assets in a company can trigger ATED, corporation tax, dividend tax and other rules, so the wrapper matters as much as the headline rate.",[572,573,575],"The UK does not levy a broad annual tax on net wealth. That is why most UK tax summaries list net wealth or worth tax as not applicable.",{"Wealth planning in the UK is really a mix of other taxes":574},"inheritance tax on death and some lifetime transfers, capital gains tax on disposals, Annual Tax on Enveloped Dwellings for certain companies that own high-value UK homes, and property taxes such as SDLT and council tax.","For many owners the key question is not whether there is a wealth tax, but whether assets should sit personally, in a company, in a trust or inside a relief-eligible structure.",{},"United Kingdom wealth tax guide for 2026. The UK has no general annual net wealth tax, but inheritance tax, capital gains tax, ATED and property taxes still matter.","United Kingdom wealth tax: does the UK have one? (2026)",[580,581,582,583,584,585,586],{"title":148,"slug":149,"icon":150},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Funited-kingdom\u002Fwealth-tax",[589],{"title":180,"path":181,"flag":64},[],{"title":549,"description":558},"country\u002Funited-kingdom\u002Fwealth-tax",[594,596,598,600],{"label":152,"value":190,"note":595},"No general net wealth tax",{"label":48,"value":49,"note":597},"Estates and gifts",{"label":95,"value":196,"note":599},"On disposals",{"label":601,"value":602,"note":603},"ATED","GBP 500k+","Enveloped dwellings",[],[],[607,610,611,612],{"label":608,"value":190,"badge":609},"Net wealth tax","None",{"label":48,"value":49},{"label":95,"value":196},{"label":613,"value":614},"ATED scope","GBP 500,000+",[],[617,618,619],"A zero wealth-tax rate does not mean low asset taxation. UK residents can still face IHT, CGT and property-related taxes that are economically similar to wealth taxation.","ATED mainly affects companies and other non-natural persons that own UK residential property above GBP 500,000, with reliefs for genuine commercial use.","The UK moved inheritance-tax residence rules away from domicile from 6 April 2025, so cross-border wealth planning needs residence-based advice.","BXkUg182It8d34ZY7hbPBNKQoK4AiKWt6iEaOmWOeLg",{"id":622,"title":623,"bestFor":624,"body":627,"country":36,"countryFacts":634,"countrySlug":37,"description":631,"excerpt":40,"extension":41,"faqs":635,"flag":64,"heroImage":40,"howItWorks":645,"lastUpdated":142,"meta":649,"metaDescription":650,"metaTitle":651,"navigation":71,"otherTaxes":652,"pageType":262,"path":660,"relatedFormations":661,"relatedGuides":663,"seo":664,"stem":665,"summaryCards":666,"taxBracketSections":681,"taxBrackets":682,"taxRates":683,"taxSlug":156,"taxType":48,"visas":691,"watchOut":692,"__hash__":696},"taxes\u002Fcountry\u002Funited-kingdom\u002Finheritance-tax.md","Inheritance tax in United Kingdom",[625,113,626,553,114],"Estate planners","Family businesses",{"type":17,"value":628,"toc":632},[629],[20,630,631],{},"UK inheritance tax is one of the biggest planning points for property owners, family businesses and international families. The current rules depend on thresholds, spousal transfers, lifetime gifts and residence status.",{"title":33,"searchDepth":34,"depth":34,"links":633},[],{"region":123,"currency":124,"taxTreaties":125,"euBlacklist":126,"fatfStatus":127},[636,639,642],{"question":637,"answer":638},"What is the UK inheritance tax rate?","The standard rate is 40% on the part of the estate above the available threshold.",{"question":640,"answer":641},"How much can I leave tax-free?","The main nil-rate band is GBP 325,000. A further residence nil-rate band of up to GBP 175,000 may apply if a qualifying home passes to direct descendants.",{"question":643,"answer":644},"Do gifts avoid inheritance tax?","Not always. Many gifts are potentially exempt transfers and become taxable if the donor dies within seven years. Transfers into most trusts can be immediately chargeable.",[646,647,648],"Inheritance Tax is charged on the value of a person’s estate on death, and on some lifetime transfers. The standard rate is 40% on the part of the estate above the available threshold.","The nil-rate band is GBP 325,000 and the residence nil-rate band can add up to GBP 175,000 when a qualifying home is left to direct descendants. Unused allowances can usually transfer to a surviving spouse or civil partner.","Lifetime gifts can become taxable if the donor dies within seven years. From 6 April 2025, domicile was replaced by long-term UK residence for IHT purposes, which matters for overseas assets and trusts.",{},"United Kingdom inheritance tax guide for 2026. See the 40% rate, GBP 325,000 nil-rate band, GBP 175,000 residence nil-rate band, seven-year gift rules and the 2025 residence changes.","United Kingdom inheritance tax: thresholds, gifts and residence rules (2026)",[653,654,655,656,657,658,659],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Funited-kingdom\u002Finheritance-tax",[662],{"title":180,"path":181,"flag":64},[],{"title":623,"description":631},"country\u002Funited-kingdom\u002Finheritance-tax",[667,670,674,678],{"label":668,"value":49,"note":669},"Inheritance tax rate","On taxable estate value",{"label":671,"value":672,"note":673},"Nil-rate band","GBP 325,000","Frozen through 2030\u002F31",{"label":675,"value":676,"note":677},"Residence nil-rate band","GBP 175,000","For direct descendants",{"label":679,"value":190,"note":680},"Spouse exemption","Usually exempt",[],[],[684,686,687,688],{"label":685,"value":49},"Standard inheritance tax",{"label":671,"value":672},{"label":675,"value":676},{"label":689,"value":690},"Lifetime gifts","Potentially 0% to 40%",[],[693,694,695],"The nil-rate band, residence nil-rate band and taper threshold are frozen through 2030\u002F31.","From Budget 2025, the combined 100% Agricultural Property Relief and Business Property Relief allowance is also frozen at GBP 1 million for 2030\u002F31.","The UK long-term residence rules now matter more than domicile for many cross-border estates.","piN4KL5VliEvgactLYlHiO2y37kqckbeMkRbSWz_7Gg",{"index":698,"details":795},{"id":699,"title":700,"bestFor":701,"body":703,"country":38,"countryFacts":713,"countrySlug":39,"description":707,"excerpt":40,"extension":41,"faqs":717,"flag":65,"heroImage":40,"howItWorks":727,"lastUpdated":733,"meta":734,"metaDescription":735,"metaTitle":736,"navigation":71,"otherTaxes":737,"pageType":176,"path":746,"relatedFormations":747,"relatedGuides":748,"seo":749,"stem":750,"summaryCards":751,"taxBracketSections":769,"taxBrackets":770,"taxRates":771,"taxSlug":40,"taxType":40,"visas":787,"watchOut":788,"__hash__":794},"taxes\u002Fcountry\u002Fjapan\u002Findex.md","Taxes in Japan",[110,111,112,113,702],"Cross-border families",{"type":17,"value":704,"toc":711},[705,708],[20,706,707],{},"Japan is a full-rate tax system with a national and local layer. The headline income-tax bracket is only part of the answer: residence tax, the reconstruction surtax, social insurance, payroll withholding and the timing of local assessments all affect what an employee or founder actually pays.",[20,709,710],{},"The system is also highly fact-sensitive for international people. Permanent residents generally report worldwide income, non-permanent residents have a limited remittance-based rule for certain foreign-source income, and non-residents are usually taxed on Japanese-source income. For companies, national corporation tax is only one part of the combined burden.",{"title":33,"searchDepth":34,"depth":34,"links":712},[],{"region":714,"currency":715,"taxTreaties":716,"euBlacklist":126,"fatfStatus":127},"Asia","JPY","Extensive",[718,721,724],{"question":719,"answer":720},"Is Japan a high-tax country?","Generally yes. Japan combines progressive national income tax, a 10% standard inhabitant-tax layer, payroll social insurance, 10% consumption tax, corporate taxes, property taxes and inheritance or gift tax.",{"question":722,"answer":723},"What is the top income-tax rate in Japan?","The top national individual income-tax rate is 45% on taxable income of ¥40 million or more. The 2.1% reconstruction surtax applies to the income-tax amount, and inhabitant tax is a separate local layer.",{"question":725,"answer":726},"Does Japan have a wealth tax?","Japan does not currently levy a broad annual personal net-wealth tax on financial assets. Real estate can still attract fixed asset tax and city planning tax, while investment income, transfers, inheritance and gifts are taxed under separate rules.",[728,729,730,731,732],"Japan generally taxes permanent residents on worldwide income. A non-permanent resident is a non-Japanese resident with a domicile or residence in Japan for five years or less during the preceding ten years; foreign-source income can be outside Japanese tax when it is neither paid in Japan nor remitted to Japan, subject to the detailed rules.","Personal income tax is progressive from 5% to 45% on taxable income. The 2.1% Special Income Tax for Reconstruction is added to income tax through 2037, while the standard income-based inhabitant tax is 10% split between prefectural and municipal taxes.","Japanese companies generally pay 23.2% national corporation tax, together with local corporate inhabitant tax, enterprise tax and other corporate levies. For fiscal years beginning on or after April 1, 2026, the Defense Special Corporate Tax adds 4% to the standard corporate-tax amount above its ¥5 million basic deduction.","Japan has no broad annual personal net-wealth tax. Property owners can still face fixed asset tax, city planning tax, real-estate acquisition tax, registration and license tax, stamp tax, and substantial inheritance or gift tax.","Consumption tax is 10% for most taxable goods and services and 8% for qualifying food, beverages excluding alcohol and eating-out services, and subscribed newspapers. Employers and workers must also model health insurance, employees' pension, employment insurance and other payroll costs.","August 2026",{},"Japan tax overview for expats, employees, founders and investors. Compare income tax, residence tax, corporate tax, capital gains, dividends, property taxes, inheritance tax and consumption tax.","Taxes in Japan: income, corporate, capital gains and inheritance tax (2026)",[738,739,740,741,742,743,744,745],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Fjapan",[],[],{"title":700,"description":707},"country\u002Fjapan\u002Findex",[752,755,757,760,763,765],{"label":148,"value":753,"note":754},"5% - 45%","National rates; plus 2.1% surtax and local tax",{"label":152,"value":595,"note":756},"Property ownership taxes still apply",{"label":92,"value":758,"note":759},"23.2%","National headline rate before local taxes",{"label":95,"value":761,"note":762},"20.315%","Common listed-securities rate",{"label":165,"value":761,"note":764},"Listed shares; other dividends differ",{"label":766,"value":767,"note":768},"Consumption tax","10% \u002F 8%","Standard and reduced rates",[],[],[772,774,778,782,784,785,786],{"label":773,"value":753,"badge":203},"National income tax",{"label":775,"value":776,"note":777},"Special reconstruction surtax","2.1% of income tax","Generally applies through 2037",{"label":779,"value":780,"note":781},"Inhabitant tax","About 10%","Standard 4% prefectural and 6% municipal income-based rates",{"label":783,"value":761},"Listed securities gains",{"label":92,"value":758},{"label":48,"value":50},{"label":766,"value":767},[],[789,790,791,792,793],"Japan's residence categories are not the same as immigration status. A visa or residence card does not by itself determine whether worldwide income, remitted foreign income or Japanese-source income is taxable.","Inhabitant tax is generally based on the prior year's income and the taxpayer's status on January 1. A person leaving Japan can therefore still have a current-year local-tax bill after departure.","The 23.2% corporate figure is only the national headline rate. Local taxes, per-capita levies, enterprise tax, payroll, consumption tax compliance and the 2026 defense surcharge can materially change the company cost.","Crypto gains are generally miscellaneous income rather than a simple 20.315% capital-gains item. Trading frequency, business status, exchanges, valuation and foreign reporting can change the analysis.","Japan's inheritance and gift rules can reach foreign assets in cross-border cases. Nationality, residence history, temporary-resident status, the donor or decedent, and the location of the property all matter.","hzMRaJJW5l9ckeHX4RQwlMrOUDSvN61370YabpKU2nc",{"income-tax":796,"corporate-tax":920,"capital-gains-tax":1015,"dividend-tax":1104,"wealth-tax":1194,"inheritance-tax":1278},{"id":797,"title":798,"bestFor":799,"body":802,"country":38,"countryFacts":812,"countrySlug":39,"description":806,"excerpt":40,"extension":41,"faqs":813,"flag":65,"heroImage":40,"howItWorks":823,"lastUpdated":733,"meta":830,"metaDescription":831,"metaTitle":832,"navigation":71,"otherTaxes":833,"pageType":262,"path":841,"relatedFormations":842,"relatedGuides":843,"seo":844,"stem":845,"summaryCards":846,"taxBracketSections":859,"taxBrackets":860,"taxRates":886,"taxSlug":149,"taxType":148,"visas":911,"watchOut":912,"__hash__":919},"taxes\u002Fcountry\u002Fjapan\u002Fincome-tax.md","Income tax in Japan",[110,114,225,800,801],"High earners","Cross-border workers",{"type":17,"value":803,"toc":810},[804,807],[20,805,806],{},"Japan income tax is a layered residence-and-source system. The first question is whether the taxpayer is a permanent resident, non-permanent resident or non-resident; the second is how salary, business, investment, rental and foreign income is classified.",[20,808,809],{},"For employees, payroll withholding and year-end adjustment make the process look simple, but local inhabitant tax is generally based on the previous year's income. People arriving, leaving or working across borders should model both the national return and the local assessment rather than relying on the tax withheld from one payslip.",{"title":33,"searchDepth":34,"depth":34,"links":811},[],{"region":714,"currency":715,"taxTreaties":716,"euBlacklist":126,"fatfStatus":127},[814,817,820],{"question":815,"answer":816},"What are Japan's income-tax brackets?","National income tax has seven brackets from 5% to 45% on taxable income. The 45% rate starts at ¥40 million, before the 2.1% reconstruction surtax and the separate local inhabitant tax.",{"question":818,"answer":819},"Do foreign residents pay tax on worldwide income in Japan?","Permanent residents generally do. Non-permanent residents have a narrower rule for certain foreign-source income that is not paid in Japan or remitted to Japan, while non-residents are generally taxed only on Japanese-source income.",{"question":821,"answer":822},"How is salary taxed in Japan?","Employers normally withhold national income tax and perform a year-end adjustment after applying the employment-income deduction and other deductions. Inhabitant tax is generally assessed separately on the prior year's income, and social insurance is withheld in addition to tax.",[824,825,826,827,828,829],"Japan classifies individuals as residents or non-residents for tax purposes. A person with a domicile in Japan or a residence in Japan for one year or more is generally a resident; a non-Japanese resident with a domicile or residence in Japan for five years or less during the preceding ten years is generally a non-permanent resident.","Permanent residents are generally taxed on worldwide income. Non-permanent residents are taxed on Japanese-source income and certain foreign-source income, including foreign income paid in Japan or remitted to Japan; salary for work performed in Japan is Japanese-source even if the employer pays it abroad.","Non-residents are generally taxed on Japanese-source income. When Japanese work income is not fully settled through withholding, a non-resident can have to file and pay 20.42% on the relevant salary amount. Tax treaties can reduce or remove domestic withholding when their conditions and filing procedure are met.","Residents calculate taxable income by classifying salary, business, rental, investment, pension and miscellaneous income, subtracting the available deductions, and applying the national progressive table. Employers commonly withhold salary tax and perform a year-end adjustment, but self-employed people and many taxpayers file an annual return.","Individual inhabitant tax is a separate local tax. Its standard income-based rates are 4% prefectural and 6% municipal, assessed mainly on the prior year's income for people with a domicile or similar connection in Japan on January 1. Certain self-employed businesses also pay individual enterprise tax at 3% to 5%.","Very high-income individuals can also fall under a minimum-tax-style additional income-tax rule. From income years beginning in 2025, the rule compares ordinary income tax and reconstruction surtax with 22.5% of the amount by which the relevant base income exceeds ¥330 million.",{},"Japan income-tax guide for expats, employees and freelancers. See the 5% to 45% national brackets, 10% inhabitant tax, reconstruction surtax, non-permanent-resident rules and salary deductions.","Japan income tax: rates, brackets, residence and expat rules (2026)",[834,835,836,837,838,839,840],{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Fjapan\u002Fincome-tax",[],[],{"title":798,"description":806},"country\u002Fjapan\u002Fincome-tax",[847,849,851,855],{"label":773,"value":753,"note":848},"Seven progressive brackets",{"label":779,"value":780,"note":850},"Standard local income-based layer",{"label":852,"value":853,"note":854},"Reconstruction surtax","2.1%","Applied to the income-tax amount through 2037",{"label":856,"value":857,"note":858},"Non-resident salary","20.42%","Common withholding or self-assessed rate for Japanese work income",[],[861,865,869,872,876,880,883],{"band":862,"rate":863,"note":864},"¥1,000 - ¥1,949,000","5%","National taxable income; deduction ¥0",{"band":866,"rate":867,"note":868},"¥1,950,000 - ¥3,299,000","10%","National rate; deduction ¥97,500",{"band":870,"rate":213,"note":871},"¥3,300,000 - ¥6,949,000","National rate; deduction ¥427,500",{"band":873,"rate":874,"note":875},"¥6,950,000 - ¥8,999,000","23%","National rate; deduction ¥636,000",{"band":877,"rate":878,"note":879},"¥9,000,000 - ¥17,999,000","33%","National rate; deduction ¥1,536,000",{"band":881,"rate":49,"note":882},"¥18,000,000 - ¥39,999,000","National rate; deduction ¥2,796,000",{"band":884,"rate":187,"note":885},"¥40,000,000 and above","National rate; deduction ¥4,796,000",[887,889,892,895,897,899,903,907],{"label":773,"value":753,"badge":888},2026,{"label":890,"value":187,"note":891},"Highest bracket tax","Top national marginal rate before surtax and local tax",{"label":779,"value":893,"note":894},"4% + 6%","Standard prefectural and municipal income-based rates",{"label":852,"value":776,"note":896},"Generally applies from 2013 through 2037",{"label":856,"value":857,"note":898},"Subject to source and treaty rules",{"label":900,"value":901,"note":902},"Employment-income deduction","¥650,000 minimum","For employment income from FY2025 and after, with a general cap of ¥1.95m",{"label":904,"value":905,"note":906},"Individual enterprise tax","3% - 5%","Selected business categories",{"label":908,"value":909,"note":910},"Very-high-income additional rule","22.5% comparison rate","Relevant base income above ¥330m; not a normal seventh bracket",[],[913,914,915,916,917,918],"The 5% to 45% table is the national rate on taxable income, not an all-in effective rate. The reconstruction surtax, inhabitant tax, social insurance, deductions and credits change the final result.","The non-permanent-resident rule is not a blanket exemption for foreign income. Remittances, payments in Japan, salary for work performed in Japan, residence history and mixed funds require careful tracing.","Inhabitant tax is usually collected one year in arrears. The January 1 status test means that leaving Japan during the year does not automatically erase the local tax attributable to the preceding year's income.","A one-employer salary can often be settled through withholding and year-end adjustment, but foreign salary, rental income, crypto, securities, side work and large deductions can create a filing obligation.","The ordinary 45% table does not cap every possible liability for the highest earners. The additional high-income rule can apply above the ¥330 million base-income threshold, and the calculation is a comparison rather than a simple 22.5% surcharge on all income.","Social insurance is not income tax. Employees and employers generally share salary-based health and employees' pension contributions, while self-employed people may use national health insurance and national pension.","Hgl8Ew1Xdf-7aSy9fQWDTbwdU6U2Evde8Jv4s0_0tqQ",{"id":921,"title":922,"bestFor":923,"body":928,"country":38,"countryFacts":938,"countrySlug":39,"description":932,"excerpt":40,"extension":41,"faqs":939,"flag":65,"heroImage":40,"howItWorks":949,"lastUpdated":733,"meta":955,"metaDescription":956,"metaTitle":957,"navigation":71,"otherTaxes":958,"pageType":262,"path":966,"relatedFormations":967,"relatedGuides":968,"seo":969,"stem":970,"summaryCards":971,"taxBracketSections":985,"taxBrackets":986,"taxRates":987,"taxSlug":162,"taxType":92,"visas":1007,"watchOut":1008,"__hash__":1014},"taxes\u002Fcountry\u002Fjapan\u002Fcorporate-tax.md","Corporate tax in Japan",[111,924,925,926,927],"Operating companies","Japanese subsidiaries","Cross-border groups","R&D businesses",{"type":17,"value":929,"toc":936},[930,933],[20,931,932],{},"Japan corporate tax is a stack rather than a single percentage. The national 23.2% rate is the useful starting point, but company size, local taxes, enterprise tax, capital, payroll, ownership and the new defense surcharge determine the practical cost.",[20,934,935],{},"For international groups, the source-of-income and permanent-establishment analysis comes before the rate comparison. A Japanese subsidiary generally faces the full local framework, while a foreign company may have a narrower but still significant Japanese-source and withholding exposure.",{"title":33,"searchDepth":34,"depth":34,"links":937},[],{"region":714,"currency":715,"taxTreaties":716,"euBlacklist":126,"fatfStatus":127},[940,943,946],{"question":941,"answer":942},"What is Japan's corporate-tax rate?","The standard national corporation-tax rate is 23.2%. Qualifying companies with paid-in capital of ¥100 million or less can generally apply 15% to the first ¥8 million of annual taxable income, but local taxes and eligibility conditions change the combined result.",{"question":944,"answer":945},"What is Japan's effective corporate-tax rate?","A standard-rate large-company example is about 29.74% before the April 2026 defense surcharge and about 30.64% when that surcharge applies. Actual rates vary by company size, income bands, local government, capital structure and incentives.",{"question":947,"answer":948},"Does Japan apply Pillar Two?","Yes. Japan has enacted a 15% global minimum-tax framework for qualifying multinational and large domestic groups meeting the €750 million consolidated-revenue threshold and related statutory conditions.",[950,951,952,953,954],"A corporation established in Japan is generally taxed in Japan on its worldwide income. A foreign corporation is usually taxed on Japanese-source income, with the precise corporate-tax, local-tax and permanent-establishment result depending on the business structure and the applicable treaty.","Japan's corporate tax stack includes national corporation tax, local corporation tax, corporate inhabitant tax, enterprise tax and special corporate enterprise tax. Corporate inhabitant tax can include an income-based component and a per-capita levy based on capital and employees.","The standard national corporation-tax rate is 23.2%. A qualifying company with paid-in capital of ¥100 million or less can generally use a 15% national rate on the first ¥8 million of annual taxable income, while the excess is normally taxed at 23.2%; group ownership and high-income exclusions matter.","For fiscal years beginning on or after April 1, 2026, the Defense Special Corporate Tax applies at 4% to the standard corporation-tax amount after a ¥5 million basic deduction. The 2026 effective-rate examples therefore need to be read alongside the ordinary local-tax stack and this new surcharge.","Japan has enacted OECD Pillar Two measures for qualifying multinational and large domestic groups with consolidated revenue of at least €750 million in at least two of the previous four years. The ordinary Japanese rate, local taxes, foreign tax credits and top-up-tax rules must be modelled together.",{},"Japan corporate-tax guide for founders and international groups. See the 23.2% national rate, 15% SME band, combined effective rates, defense surcharge, local taxes and Pillar Two.","Japan corporate tax: 23.2% rate, SME rules and 2026 surcharge",[959,960,961,962,963,964,965],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Fjapan\u002Fcorporate-tax",[],[],{"title":922,"description":932},"country\u002Fjapan\u002Fcorporate-tax",[972,975,978,982],{"label":973,"value":758,"note":974},"Standard national rate","Ordinary corporations",{"label":976,"value":312,"note":977},"Qualifying SME first ¥8m","Reduced national rate, subject to conditions",{"label":979,"value":980,"note":981},"Large-company effective rate","30.64%","Standard-rate example including the 2026 defense surcharge",{"label":983,"value":312,"note":984},"Global minimum tax","For qualifying large multinational groups",[],[],[988,991,994,998,1000,1004],{"label":989,"value":758,"badge":990},"Standard national corporation tax","Headline",{"label":992,"value":312,"note":993},"Qualifying SME first ¥8 million","Reduced national rate through business years beginning by March 31, 2027",{"label":995,"value":996,"note":997},"Certain high-income SMEs first ¥8 million","17%","Special rule for qualifying businesses with annual income above ¥1 billion",{"label":979,"value":980,"note":999},"Standard-rate example after April 1, 2026 defense surcharge",{"label":1001,"value":1002,"note":1003},"Qualifying SME effective bands","21.94% \u002F 23.73% \u002F 34.43%","JETRO standard-rate examples before applying the defense-tax deduction",{"label":1005,"value":312,"note":1006},"Pillar Two minimum","For in-scope €750m groups",[],[1009,1010,1011,1012,1013],"The 23.2% rate is not Japan's combined company burden. Local corporate inhabitant tax, enterprise tax, special corporate enterprise tax, per-capita levies and payroll costs can be material even when taxable profit is low.","The reduced SME rate is not available merely because a company is small in everyday language. Paid-in capital, parent-company ownership, group aggregation, income size and the fiscal-year start date must be checked.","For a fiscal year beginning on or after April 1, 2026, the defense surcharge is calculated from the standard corporation-tax amount and has a ¥5 million basic deduction. It is not simply a flat extra 4% of accounting profit.","A foreign company can create Japanese tax exposure through a permanent establishment, Japanese-source income, a dependent agent, real-estate activity or withholding obligations even without incorporating a Japanese subsidiary.","Pillar Two is a separate compliance layer. Large groups need jurisdictional effective-tax-rate calculations, data, notifications and possible top-up tax rather than relying on the headline Japanese corporation-tax rate.","cyIj0vHnxiV-el4sIf-LqQ_l7IiuNL-ZHbWsgiRzYHQ",{"id":1016,"title":1017,"bestFor":1018,"body":1020,"country":38,"countryFacts":1030,"countrySlug":39,"description":1024,"excerpt":40,"extension":41,"faqs":1031,"flag":65,"heroImage":40,"howItWorks":1041,"lastUpdated":733,"meta":1047,"metaDescription":1048,"metaTitle":1049,"navigation":71,"otherTaxes":1050,"pageType":262,"path":1058,"relatedFormations":1059,"relatedGuides":1060,"seo":1061,"stem":1062,"summaryCards":1063,"taxBracketSections":1077,"taxBrackets":1078,"taxRates":1079,"taxSlug":159,"taxType":95,"visas":1096,"watchOut":1097,"__hash__":1103},"taxes\u002Fcountry\u002Fjapan\u002Fcapital-gains-tax.md","Capital gains tax in Japan",[112,113,401,1019,702],"Traders",{"type":17,"value":1021,"toc":1028},[1022,1025],[20,1023,1024],{},"Japan separates financial-asset gains from real-estate and crypto income. The 20.315% securities rate is attractive as a headline, but it should not be applied to every investment without checking the asset class, holding period and taxpayer's residence status.",[20,1026,1027],{},"Property owners and mobile investors should also track acquisition costs, sale expenses, foreign withholding and the possibility of exit tax. The right answer often depends more on classification and timing than on the headline percentage.",{"title":33,"searchDepth":34,"depth":34,"links":1029},[],{"region":714,"currency":715,"taxTreaties":716,"euBlacklist":126,"fatfStatus":127},[1032,1035,1038],{"question":1033,"answer":1034},"What is Japan's capital-gains tax rate on shares?","The common individual rate on listed shares and many other securities is 20.315%, made up of 15.315% national tax and 5% local inhabitant tax. Designated accounts, loss offsets and filing elections can affect the final calculation.",{"question":1036,"answer":1037},"How are property gains taxed in Japan?","Long-term land and building gains generally face 20.315%, while short-term gains generally face 39.63%. The ownership test uses January 1 of the sale year, and home-sale deductions or other special regimes may apply.",{"question":1039,"answer":1040},"Does Japan tax crypto like stock-market gains?","Usually not. Cryptoasset profits are generally miscellaneous income and are taxed under the progressive income-tax system unless the facts support business income or another classification.",[1042,1043,1044,1045,1046],"Japan does not use one universal capital-gains rate. Listed shares, investment trusts and many financial instruments are generally subject to separate self-assessment taxation at 15.315% national tax, including the reconstruction surtax, plus 5% local inhabitant tax, producing 20.315%.","Individuals can use a designated securities account where a broker calculates and withholds tax. Listed-share losses can in appropriate cases be carried forward or offset against certain listed dividends, but the election and filing rules matter.","Gains from Japanese land and buildings are separated by the ownership period measured on January 1 of the sale year. Long-term gains after more than five years use 15% national tax plus 5% local tax, while short-term gains of five years or less use 30% national tax plus 9% local tax.","Real-estate gains are calculated after acquisition costs, selling expenses and available special deductions. A qualifying sale of a main home can use a ¥30 million special deduction, while replacement, loss, non-resident and related-party rules can change the result.","Cryptoasset gains from selling or using digital assets are generally classified as miscellaneous income unless they arise as part of a business or another income category. That usually puts them into the progressive income-tax system, with inhabitant tax and reconstruction surtax also relevant.",{},"Japan capital-gains tax guide for investors and crypto holders. See the 20.315% securities rate, property holding-period rules, 39.63% short-term rate, home relief and crypto treatment.","Japan capital gains tax: shares, property and crypto (2026)",[1051,1052,1053,1054,1055,1056,1057],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Fjapan\u002Fcapital-gains-tax",[],[],{"title":1017,"description":1024},"country\u002Fjapan\u002Fcapital-gains-tax",[1064,1067,1070,1074],{"label":1065,"value":761,"note":1066},"Listed securities","15.315% national and 5% local",{"label":1068,"value":761,"note":1069},"Long-term property","Owned for more than five years at the relevant January 1 test",{"label":1071,"value":1072,"note":1073},"Short-term property","39.63%","30% national plus 9% local, before detailed reliefs",{"label":1075,"value":203,"note":1076},"Crypto gains","Generally miscellaneous income, not the securities flat rate",[],[],[1080,1082,1085,1088,1092],{"label":1065,"value":761,"badge":1081},"Separate taxation",{"label":1083,"value":761,"note":1084},"Long-term land and buildings","15% national plus 5% local, before special reliefs",{"label":1086,"value":1072,"note":1087},"Short-term land and buildings","30% national plus 9% local, before special reliefs",{"label":1089,"value":1090,"note":1091},"Cryptoassets","Progressive income rates","Generally miscellaneous income",{"label":1093,"value":1094,"note":1095},"Main-home special deduction","Up to ¥30 million","Eligibility and filing conditions apply",[],[1098,1099,1100,1101,1102],"20.315% is a common rate for listed securities, not a promise that every asset sale is taxed at 20.315%. Real estate, crypto, private-company interests, carried interests and business disposals have different classifications and reliefs.","Property holding period is tested using January 1 of the sale year. A sale that looks like a five-year holding period from the purchase and sale dates can still be short-term under the statutory test.","Crypto-to-crypto swaps, spending crypto, staking, lending, mining and airdrops can create taxable events or valuation questions. The annual exchange report does not always contain every transaction needed for the return.","Foreign brokers and foreign withholding can create both Japanese reporting and double-tax-credit issues. Treaty relief does not automatically correct a missing Japanese return.","A resident leaving Japan with securities and other assets worth at least ¥100 million can fall within Japan's exit-tax rules, subject to residence history and other conditions.","dCuclpnuuvi0wrLV6aNKy2d1dji73zXm1xbWMHlEMGo",{"id":1105,"title":1106,"bestFor":1107,"body":1109,"country":38,"countryFacts":1119,"countrySlug":39,"description":1113,"excerpt":40,"extension":41,"faqs":1120,"flag":65,"heroImage":40,"howItWorks":1130,"lastUpdated":733,"meta":1136,"metaDescription":1137,"metaTitle":1138,"navigation":71,"otherTaxes":1139,"pageType":262,"path":1147,"relatedFormations":1148,"relatedGuides":1149,"seo":1150,"stem":1151,"summaryCards":1152,"taxBracketSections":1166,"taxBrackets":1167,"taxRates":1168,"taxSlug":166,"taxType":165,"visas":1186,"watchOut":1187,"__hash__":1193},"taxes\u002Fcountry\u002Fjapan\u002Fdividend-tax.md","Dividend tax in Japan",[112,111,400,552,1108],"Cross-border investors",{"type":17,"value":1110,"toc":1117},[1111,1114],[20,1112,1113],{},"Japan dividend tax is mainly a withholding-and-election question. The common 20.315% listed-share figure is easy to quote, but the 3% major-shareholder test, unlisted-company rules, NISA, foreign withholding and corporate received-dividend deductions can all change the result.",[20,1115,1116],{},"Investors should keep dividend vouchers, broker statements and treaty evidence. The right filing method can affect loss offsets and credits, while a withholding-only outcome is not always the best outcome for a resident with a broader portfolio.",{"title":33,"searchDepth":34,"depth":34,"links":1118},[],{"region":714,"currency":715,"taxTreaties":716,"euBlacklist":126,"fatfStatus":127},[1121,1124,1127],{"question":1122,"answer":1123},"How are listed dividends taxed in Japan?","Listed-share dividends received by an individual below the 3% major-shareholder threshold are commonly withheld at 20.315%, consisting of 15.315% national tax and 5% local tax. Other filing choices may be available.",{"question":1125,"answer":1126},"What is Japan's dividend withholding rate for unlisted shares?","Unlisted dividends are generally subject to 20.42% national withholding for income tax and the reconstruction surtax. The final resident tax and return position depend on the recipient and the applicable declaration method.",{"question":1128,"answer":1129},"Can dividends be tax-free in Japan?","Qualifying dividends held through the NISA system can be exempt, subject to the account, security, annual-limit and receipt conditions. Dividends outside NISA remain subject to the ordinary rules.",[1131,1132,1133,1134,1135],"Dividends received by an individual from listed shares are generally subject to 15.315% national income tax, including the reconstruction surtax, plus 5% local inhabitant tax when the recipient is below the major-shareholder threshold. The combined source withholding is 20.315%.","Dividends from unlisted shares, and dividends from listed shares received by an individual who owns 3% or more of the issued shares, are generally withheld at 20.42% for national income tax and reconstruction surtax, with no local tax withheld at source under that rule.","Residents can have choices for listed dividends, including a withholding-only route, aggregate taxation or separate self-assessment taxation. Separate taxation can be useful when coordinating qualifying listed-share losses, while aggregate taxation can be relevant where the dividend tax credit is valuable.","Dividends received by Japanese companies are governed by a corporate received-dividend deduction regime. The deductible percentage depends on the relationship between payer and recipient, so a corporate shareholder should not assume that an individual 20.315% rate is the final company tax result.","Non-residents are generally subject to Japanese withholding on Japanese-source dividends, commonly 15.315% for qualifying listed-share dividends and 20.42% for other dividends. A tax treaty can reduce the rate or provide an exemption if the required application is filed in time.",{},"Japan dividend-tax guide for shareholders and founders. See the 20.315% listed-share rate, 20.42% unlisted withholding, 3% major-shareholder rule, NISA and treaty relief.","Japan dividend tax: listed shares, withholding and NISA (2026)",[1140,1141,1142,1143,1144,1145,1146],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Fjapan\u002Fdividend-tax",[],[],{"title":1106,"description":1113},"country\u002Fjapan\u002Fdividend-tax",[1153,1156,1159,1162],{"label":1154,"value":761,"note":1155},"Listed-share dividends","15.315% national and 5% local withholding",{"label":1157,"value":857,"note":1158},"Unlisted dividends","National withholding; local tax may be settled separately",{"label":1160,"value":857,"note":1161},"Major listed shareholder","Generally 3% or more of issued shares",{"label":1163,"value":1164,"note":1165},"Tax-free investing","NISA eligible","Qualifying dividends and gains can be exempt in the right account",[],[],[1169,1172,1175,1178,1181,1183],{"label":1170,"value":761,"badge":1171},"Listed shares below 3%","Common withholding",{"label":1173,"value":857,"note":1174},"Unlisted shares","National withholding at source",{"label":1176,"value":857,"note":1177},"Listed shares at or above 3%","Major-shareholder rule",{"label":1179,"value":1180},"National portion on listed shares","15.315%",{"label":1182,"value":863},"Local portion on listed shares",{"label":1184,"value":190,"note":1185},"NISA dividends","Only for qualifying holdings and account conditions",[],[1188,1189,1190,1191,1192],"20.315% is the usual source-tax figure for qualifying listed-share dividends, not necessarily the final liability. A tax return, local tax, dividend tax credit, loss offset, foreign tax credit or treaty claim can change the result.","The 3% major-shareholder threshold is important. A large listed holding can move dividends out of the ordinary listed-share withholding regime and into the 20.42% national withholding and aggregate-income rules.","NISA is an account-based exemption, not a general exemption for Japanese residents' investment income. The security, account, annual limit and receipt method must satisfy the NISA rules.","Foreign dividends can carry foreign withholding before the Japanese assessment. Keep payer statements and treaty documentation because the foreign-tax-credit calculation is separate from Japanese withholding.","A corporate shareholder is not simply taxed like an individual. The received-dividend deduction, ownership level, payer type and cross-border withholding should be reviewed before deciding how much profit to distribute.","vmK5LixIULWt2dH9ihYPpcC4nMG0h4eIrRJwRfq3P0Y",{"id":1195,"title":1196,"bestFor":1197,"body":1199,"country":38,"countryFacts":1209,"countrySlug":39,"description":1203,"excerpt":40,"extension":41,"faqs":1210,"flag":65,"heroImage":40,"howItWorks":1219,"lastUpdated":733,"meta":1225,"metaDescription":1226,"metaTitle":1227,"navigation":71,"otherTaxes":1228,"pageType":262,"path":1236,"relatedFormations":1237,"relatedGuides":1238,"seo":1239,"stem":1240,"summaryCards":1241,"taxBracketSections":1256,"taxBrackets":1257,"taxRates":1258,"taxSlug":153,"taxType":152,"visas":1270,"watchOut":1271,"__hash__":1277},"taxes\u002Fcountry\u002Fjapan\u002Fwealth-tax.md","Wealth tax in Japan",[112,113,552,401,1198],"Remote founders",{"type":17,"value":1200,"toc":1207},[1201,1204],[20,1202,1203],{},"Japan has no broad annual personal net-wealth tax, which makes the headline answer simple. The practical answer is more detailed: property owners pay recurring local taxes, investors pay tax on income and disposals, and families must model inheritance and gift tax.",[20,1205,1206],{},"For a property owner, the acquisition and registration costs may matter more than the annual fixed asset tax. For a family office, the absence of a wealth tax does not remove reporting, valuation, foreign-asset, succession or source-of-funds obligations.",{"title":33,"searchDepth":34,"depth":34,"links":1208},[],{"region":714,"currency":715,"taxTreaties":716,"euBlacklist":126,"fatfStatus":127},[1211,1213,1216],{"question":725,"answer":1212},"Japan does not currently levy a broad annual personal net-wealth tax on financial assets or crypto. It does levy property ownership taxes and taxes income, gains, inheritances and gifts under separate systems.",{"question":1214,"answer":1215},"How much is property tax in Japan?","The standard fixed asset tax rate is 1.4% of the assessed value of land, buildings and qualifying business-use depreciable assets. City planning tax can add up to 0.3% for land and buildings in designated areas.",{"question":1217,"answer":1218},"Are shares and crypto taxed as wealth in Japan?","Not as a general wealth tax. Dividends, securities gains, crypto income and transfers can still be taxable, and ownership can affect inheritance, gift, reporting and exit-tax exposure.",[1220,1221,1222,1223,1224],"Japan does not currently impose a general annual personal net-wealth tax on bank balances, listed securities, private-company interests or crypto holdings merely because a person owns them. Investment income and disposals can still be taxed under income and capital-gains rules.","The main recurring ownership tax is fixed asset tax. Land, buildings and business-use depreciable assets are generally taxed to the owner as of January 1 at a standard rate of 1.4%, subject to valuation rules, exemptions and local administration.","City planning tax is a municipal tax on land and buildings in designated city-planning areas. The standard rate is up to 0.3%, and it can sit alongside fixed asset tax rather than replace it.","Buying or transferring property can trigger real-estate acquisition tax, registration and license tax, stamp tax and consumption-tax issues. Owning a property can also create rental-income tax, imputed-income issues for some non-residents, and inheritance or gift tax on later transfers.","For businesses, fixed asset tax, enterprise tax, corporate inhabitant tax per-capita levies and business-office tax can create an asset or payroll burden even without a personal net-wealth tax. Large property portfolios therefore need a broader annual-tax model.",{},"Japan wealth-tax guide for investors and property owners. See the current 0% net-wealth position, 1.4% fixed asset tax, city planning tax, property-transfer taxes and succession traps.","Japan wealth tax: net worth, property and asset-tax rules (2026)",[1229,1230,1231,1232,1233,1234,1235],{"title":148,"slug":149,"icon":150},{"title":48,"slug":156,"icon":157},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Fjapan\u002Fwealth-tax",[],[],{"title":1196,"description":1203},"country\u002Fjapan\u002Fwealth-tax",[1242,1244,1248,1252],{"label":608,"value":190,"note":1243},"No broad annual personal net-worth levy",{"label":1245,"value":1246,"note":1247},"Fixed asset tax","1.4%","Standard rate on land, buildings and business depreciable assets",{"label":1249,"value":1250,"note":1251},"City planning tax","Up to 0.3%","Land and buildings in city-planning zones",{"label":1253,"value":1254,"note":1255},"Wealth return","No general return","Property and other tax filings can still apply",[],[],[1259,1262,1264,1266],{"label":1260,"value":190,"badge":1261},"Personal net wealth tax","No general levy",{"label":1245,"value":1246,"note":1263},"Standard local rate on assessed property value",{"label":1249,"value":1250,"note":1265},"Designated planning areas",{"label":1267,"value":1268,"note":1269},"Business-office tax","¥600 \u002F m² + 0.25% payroll","Certain large facilities in designated cities",[],[1272,1273,1274,1275,1276],"No net-wealth tax does not mean that wealth is tax-free. Japanese property, investment income, disposals, business assets, inheritances, gifts and transfers each have their own tax rules.","Fixed asset tax uses local valuation and ownership at January 1. The 1.4% rate applies to an assessed tax base, not automatically to the property's market price, and reliefs can apply to qualifying land and buildings.","City planning tax is geographic. A property outside a designated planning area may not bear it, while a property inside one can bear both fixed asset and city planning tax.","Property acquisition taxes and registration costs can be significant even when the annual ownership tax looks modest. Financing, land classification, building use and local rules matter.","High-net-worth families can still face 55% inheritance or gift tax and cross-border asset-scope rules. Estate planning cannot be reduced to the absence of a wealth tax.","kjT_Fj_F0U29FG5gwruN_7otax5C0sDE_DXve-aRe-s",{"id":1279,"title":1280,"bestFor":1281,"body":1283,"country":38,"countryFacts":1293,"countrySlug":39,"description":1287,"excerpt":40,"extension":41,"faqs":1294,"flag":65,"heroImage":40,"howItWorks":1304,"lastUpdated":733,"meta":1311,"metaDescription":1312,"metaTitle":1313,"navigation":71,"otherTaxes":1314,"pageType":262,"path":1322,"relatedFormations":1323,"relatedGuides":1324,"seo":1325,"stem":1326,"summaryCards":1327,"taxBracketSections":1345,"taxBrackets":1346,"taxRates":1373,"taxSlug":156,"taxType":48,"visas":1393,"watchOut":1394,"__hash__":1400},"taxes\u002Fcountry\u002Fjapan\u002Finheritance-tax.md","Inheritance tax in Japan",[1282,114,113,112,552],"Families",{"type":17,"value":1284,"toc":1291},[1285,1288],[20,1286,1287],{},"Japan's inheritance tax is a serious succession tax rather than a simple estate filing. The key calculations are the net estate, the number of statutory heirs, the deemed statutory shares, the relationship of the recipients and the valuation of land and business assets.",[20,1289,1290],{},"Cross-border families need an additional scope analysis before choosing an ownership structure. Japanese residence and nationality history can make foreign assets relevant, while the spouse credit and small-lot land relief can substantially change the amount ultimately payable when their conditions are met.",{"title":33,"searchDepth":34,"depth":34,"links":1292},[],{"region":714,"currency":715,"taxTreaties":716,"euBlacklist":126,"fatfStatus":127},[1295,1298,1301],{"question":1296,"answer":1297},"Does Japan have inheritance tax?","Yes. Japan applies progressive inheritance tax from 10% to 55% after a basic exemption of ¥30 million plus ¥6 million for each statutory heir. The tax can cover worldwide assets in many resident and nationality situations.",{"question":1299,"answer":1300},"How much can a spouse inherit tax-free in Japan?","A surviving spouse can generally use a credit covering the amount actually inherited up to ¥160 million or the spouse's statutory share, whichever is larger, provided the statutory filing and documentation conditions are met.",{"question":1302,"answer":1303},"When is Japanese inheritance tax due?","The inheritance-tax return and payment are generally due within ten months from the day after the taxpayer learns of the death, usually ten months after the date of death.",[1305,1306,1307,1308,1309,1310],"Japan calculates inheritance tax on the net value of inherited and bequeathed assets after permitted deductions, debts and funeral expenses, with certain lifetime gifts and settlement-at-inheritance gifts added under the statutory rules. The basic exemption is ¥30 million plus ¥6 million multiplied by the number of statutory heirs.","The inheritance-tax rate table runs from 10% to 55% and is applied to each statutory heir's deemed share to calculate the total tax, which is then allocated among the actual recipients. The top 55% rate applies above ¥600 million of a statutory heir's taxable share.","A surviving spouse can generally receive a tax credit so that no inheritance tax is due on the amount actually inherited up to ¥160 million or the spouse's statutory share, whichever is larger. The exemption requires the inheritance-tax return and supporting documents where filing is required.","Qualifying residential and business land can receive the small-residential-lot or small-business-lot reduction, commonly an 80% valuation reduction within statutory area limits. It is a technical relief, not an automatic deduction for every home or rental property.","A person with an address in Japan will often bring worldwide inherited assets into scope, while a non-resident may be limited to Japanese-situs assets in some expatriate cases. Japanese nationality, residence during the preceding ten years, temporary-resident status, and whether the decedent or donor was a foreigner or non-resident can change the result.","A return and payment are generally due within ten months from the day after the taxpayer learns of the death, usually the day after death. Japanese inheritance tax is separate from probate, civil-law succession, valuation, registration and any foreign estate or inheritance tax.",{},"Japan inheritance-tax guide for families and expats. See the 10% to 55% rates, ¥30m plus ¥6m per heir exemption, spouse credit, small-lot land relief, cross-border scope and filing deadline.","Japan inheritance tax: rates, exemptions and spouse relief (2026)",[1315,1316,1317,1318,1319,1320,1321],{"title":148,"slug":149,"icon":150},{"title":152,"slug":153,"icon":154},{"title":95,"slug":159,"icon":160},{"title":92,"slug":162,"icon":163},{"title":165,"slug":166,"icon":167},{"title":169,"slug":170,"icon":171},{"title":173,"slug":174,"icon":175},"\u002Fcountry\u002Fjapan\u002Finheritance-tax",[],[],{"title":1280,"description":1287},"country\u002Fjapan\u002Finheritance-tax",[1328,1330,1334,1338,1342],{"label":48,"value":50,"note":1329},"Progressive rates applied by statutory-share method",{"label":1331,"value":1332,"note":1333},"Basic exemption","¥30m + ¥6m per heir","Net estate threshold",{"label":1335,"value":1336,"note":1337},"Spouse relief","¥160m or legal share","The larger protected amount, subject to filing conditions",{"label":1339,"value":1340,"note":1341},"Filing deadline","10 months","From the day after death is known",{"label":1343,"value":50,"note":1344},"Gift tax range","Rates vary by relationship, age and type of gift",[],[1347,1349,1352,1355,1359,1362,1365,1369],{"band":1348,"rate":867},"Up to ¥10,000,000 of statutory share",{"band":1350,"rate":312,"note":1351},"¥10,000,001 - ¥30,000,000","Less ¥500,000",{"band":1353,"rate":213,"note":1354},"¥30,000,001 - ¥50,000,000","Less ¥2,000,000",{"band":1356,"rate":1357,"note":1358},"¥50,000,001 - ¥100,000,000","30%","Less ¥7,000,000",{"band":1360,"rate":49,"note":1361},"¥100,000,001 - ¥200,000,000","Less ¥17,000,000",{"band":1363,"rate":187,"note":1364},"¥200,000,001 - ¥300,000,000","Less ¥27,000,000",{"band":1366,"rate":1367,"note":1368},"¥300,000,001 - ¥600,000,000","50%","Less ¥42,000,000",{"band":1370,"rate":1371,"note":1372},"Above ¥600,000,000","55%","Less ¥72,000,000",[1374,1376,1378,1380,1382,1384,1386,1389],{"label":1375,"value":50,"badge":203},"Inheritance tax range",{"label":1331,"value":1377},"¥30m + ¥6m × statutory heirs",{"label":1379,"value":867},"Statutory share up to ¥10m",{"label":1381,"value":49},"Statutory share ¥100m - ¥200m",{"label":1383,"value":1367},"Statutory share ¥300m - ¥600m",{"label":1385,"value":1371},"Statutory share above ¥600m",{"label":1387,"value":1336,"note":1388},"Spouse credit","The larger amount, subject to requirements",{"label":1390,"value":1391,"note":1392},"Annual gift exemption","¥1.1 million","Calendar-year basic exemption, subject to the applicable gift regime",[],[1395,1396,1397,1398,1399],"The ¥30 million plus ¥6 million per heir basic exemption is calculated against the net estate and statutory-heir count. It is not a universal ¥30 million allowance for each beneficiary.","The spouse credit is powerful but does not remove the need to model the second death. Passing a large estate to a spouse can defer tax while increasing the taxable estate on the next succession.","The small-lot land relief has residence, ownership, use, relationship and area requirements. A property being a family home or rental property is not enough on its own.","Japan's cross-border scope rules can extend beyond Japanese property. A foreign heir or donor, Japanese nationality, the ten-year residence history and the immigration status at the time of transfer must be checked together.","Lifetime gifts can be pulled back into the inheritance-tax calculation under the calendar-year and settlement-at-inheritance systems. A ¥1.1 million annual gift-tax basic exemption is not a complete estate-planning safe harbour.","785ad4Q2JT3sy39OylugGW6FJJEiz6bqnFmaW2jYvT4",1788594211409]