International Inheritance Consulting
International Inheritance Tax Return Support
Past Consultation Cases and Track Record
Our service price for Inheritance tax filing in Japan
FAQ
International Inheritance Consulting
Regarding the System for Reporting Overseas Assets
We provide total support for inheritance tax returns in Japan that include foreign assets in the estate
Inheritance Tax Return Plan for international inheritance
- 1Professional support team for international inheritance cases
- 2We have extensive experience in the international inheritance cases
- 3Network of overseas experts
Chester Tax Corporation handles many Japanese inheritance tax returns involving foreign countries.
We can also handle overseas inheritance procedures in cooperation with local experts.
As described in this homepage, there is the limited number of tax accountants who specialize in inheritance tax return in Japan, and there are a few tax accountant offices in Japan that can specialize in handling inheritance tax returns involving foreign countries, such as cases where the heir resides overseas or has an inheritance abroad.
[Simple Flowchart] Check Requirement for International Inheritance Tax Declaration in Japan !
You can check whether or not you are subject to Japanese inheritance tax with the flow check sheet below.
Whether you fall under A or B, please feel free to consult with us if you have any concerns or think you are subject to taxation in light of the above flowchart.
Note 1: Temporary resident: An heir who is a foreign national and has an address in Japan at the time of inheritance and has a status of residence such as student, medical services, research, business management, etc. (Note 2), and who has an address in Japan for a total of less than 10 years in aggregate within 15 years prior to the time of inheritance.
Note 2: Status of residence listed in the above column of the Attached Table 1 of the Immigration Control and Refugee Recognition Act (status of residence listed in Appended Table 2 is not Applicable)
A professional team dedicated to international inheritance cases
Head of International Inheritance Department
Tax accountant
清水 真枝 Shimizu Masae
Chester Tax Co. has a professional team dedicated to international inheritance cases.
Each office has a staff member in charge, and Shimizu, who is a tax accountant, is the general manager.
As the tax accountant of the International Inheritance Department, Shimizu has been involved in many cases of international inheritance, for which few precedents exist among the inheritance tax return cases and require a high level of judgment. She can also handle projects that are communicated in English, so please feel free to consult with us.
Regarding support in English
We have professional staff members who are proficient in English and capable of assisting you.
We are also able to communicate smoothly with native speakers who do not speak Japanese.
Support for tax filing abroad
Our partner in the USA.
In international inheritance cases, it is not uncommon to require tax filings both in Japan for inheritance tax and abroad.
In such cases, Chester Tax Accounting Firm has partnerships with overseas accounting firms and can provide assistance. Below, we would like to introduce one of our partner firms:
Ikuko Sano
Esq.: Founder / Managing Attorney
Admitted in CA, HI, NY.
Firm Name ： Sano & Associates, P.C.
HP ： https://www.sano-associates.com/
<Reference> Our Published Books
"Practical Inheritance Tax for Overseas Assets and Residents Abroad"
Author: Masae Shimizu, Chester Tax Accounting Firm
Publisher: Seibunsha
This book provides easy-to-understand explanations of practical knowledge regarding international inheritance involving inheritance of overseas assets and individuals residing abroad.
It covers determination of tax obligations, evaluation of overseas assets, preparation of inheritance certificates, declaration procedures, as well as explanations of specific international inheritance systems (such as probate procedures) and gifts to residents abroad.
"Japanese Inheritance Tax Filing for International Inheritance: Past Consultation Cases and Track Record"
〇 Cases where a decedent with a foreign nationality died abroad and Japanese inheritance tax return is required.
〇 Cases where there is non-resident heir who cannot speak Japanese
〇 Cases where inheritance tax assessment is required for real estate located abroad
〇 Cases where probate procedure is required by a lawyer
〇 Cases where QDOT trusts, joint accounts, etc. exist in the inherited property
〇 Cases where it is required to communicate in English with executor of the will or trustee of the trust who is organizing an inheritance abroad
〇 Cases where there are trust assets managed by an overseas financial institution that are not distributed until the heir reach the age of 20
〇 Cases where Korean and Taiwanese citizens need to obtain Korean or Taiwanese family registers or certificates
〇 Cases where after the overseas procedures are completed and the assets are distributed, it turns out that the inheritance tax exceeds the basic exemption limit when do the calculation, but the deadline for filing the return has already passed.
〇 Cases where the overseas real estate is applied to the special exemption for small-scale building land, etc.
〇 Cases where an inheritance tax return and income tax return are required due to the inheritance or sale of overseas real estate.
Chester Certified Public Tax Accountant's Co. can handle even the above cases.
Our service price for Inheritance tax filing in Japan
Depending on the situation, from 20% to 50% will be added to the following prices.
*See below for cases where 50% is added.
Basic price
| Total amount of inheritance | Amount of compensation |
|---|---|
| ～100 million yen | 200,000~550,000 yen 220,000~605,000 yen（tax included） |
| 100～150 million yen | 700,000 yen 770,000 yen（tax included） |
| 150～200 million yen | 900,000 yen 990,000 yen（tax included） |
| 200～250 million yen | 1.15 million yen 1.265 million yen（tax included） |
| 250～300 million yen | 1.4 million yen 1.54 million yen（tax included） |
| 300～400 million yen | 1.7 million yen 1.87 million yen（tax included） |
| 400～500 million yen | 2 million yen 2.2 million yen（tax included） |
| 500 million yen～ | Estimation will be done separately after a free simplified trial calculation report is created |
※ Depending on the situation, the price amount may be added from 20% to 50%.
※ However, the additional amount is calculated as 200,000 yen if it is less than 200,000 yen (excluding tax)
※ Examples of situations where an additional 50% charge may apply include:
When the decedent is a foreign national and certain properties are settled outside of Japan.
When communication with foreign countries is necessary.
When the majority of the inheritance consists of overseas assets
※ The total amount of inheritance, which is the basis for calculating the basic price, is the total amount of positive assets as well as the total amount of the inheritance before deductions for debts such as loans, special exemption for small-scale building land, spousal exemptions, life insurance tax exemption limit, etc.
Besides, additional prices will be charged in the following cases.
- ・In cases where English documents (trust, court documents, status-related documents, etc.) need to be translated and declared due to a request from the tax office, etc., fees will be charged for outside vendors.
- ・If it is necessary to outsource the translation in a language other than English, fee will be charged separately for the external translator.
- ・In the event that we are unable to communicate with a local expert in the evaluation of property outside of Japan, and it is necessary to request an expert other than ours to perform the evaluation.
Additional price
(per land use unit）
66,000 yen（tax included）
(per company)
165,000 yen（tax included）～
(two or more) ※
※ The case where there are 5 heirs or more, the price for 5 heirs will be charged.
※However, if the request date is within 3 months of the filing deadline, an additional from 20% to 50% of the total price will be charged separately.
Other Price
・Price for attending a tax audit (in the case of a tax audit after filing a tax return) ⇒ 50,000 yen per day
・In the cases of only hearing the opinions about the attachment of documents ⇒ 25,000 yen per day
・In the cases where additional amended tax return needed to be created after filing a tax return for undivided assets⇒ Estimation will be done separately
・Actual travel and transportation expenses for site surveys and visits
・The commission and actual expenses for requests to obtain documents such as family registers and certificates of financial institution balance on behalf of the client.
・In the cases of other special circumstances that require more work than usual, such as investigation and review
・A separate fee will be charged after an estimate is made for the cases where
(the case where bankbook research is necessary due to numerous deposit transfers in the past, the case where the scale of land or unlisted shares are large, or the case where the filing deadline is less than 6 months away).
Consumption tax will be charged separately.
FAQ
Can you handle international inheritance cases nationwide?
Yes, we can handle requests from all over the world through online interviews.
If you would like to meet with a member of our team in person, you may do so at our Yaesu or Yokohama offices.
However, if you are not comfortable meeting with us online from your home, we can arrange for you to meet with us at one of our offices near your home. (In this case, we may connect you online with a member of our international inheritance team at the office you visit.)
What kind of information should I provide when making an inquiry?
The subsequent communication will be much smoother if the following information is provided.
・Number of heirs
・Total amount of inheritance
・Amount of inheritance in Japanese yen
・Applicable foreign nationals (heirs or the decedent), and their nationalities.
・Addresses of heirs and the decedent (domestic or overseas, and since when)
The heir and local inheritance agent do not speak Japanese, would it be possible for you to handle the case?
Yes, we can handle it.
We have tax accountants who can communicate in English, so we can provide services in English.
In addition, we can also exchange emails in English and provide English documents.
However, in principle, we do not accept consultations over the phone in English due to the limited number of English-speaking staffs.
※ Interpreters may be required for languages other than English, so please consult with us for further information.
I need an inheritance tax assessment for real estate and other inherited assets located overseas. Could you possibly provide it?
Yes, Chester Certified Public Tax Accountant's Co. has been involved many international cases, so we can handle the valuation of inheritance assets located overseas without any problems in cooperation with local experts.
However, additional fees may be incurred depending on the nature of the assets.
Is there an English-speaking lawyer who can handle the dispute as well? (This includes cases where a Japanese attorney is needed for inheritance procedures outside of Japan.)
Yes, Chester Group's CST LAW OFFICES has some English-speaking attorneys who can make referrals.
I do not plan to return to Japan. Is it possible to complete the procedures in Japan just by exchanging emails?
Yes. It is possible to file a tax return only by exchanging emails and other means of communication without ever meeting.
Since few tax returns require original documents, most of the documents are sent as email attachments.
The heir is underage and may need legal proceedings. Can you possibly handle the case in cooperation with a judicial scrivener or lawyer?
We will determine whether we can handle the case in cooperation with our affiliated judicial scriveners and lawyers, so please contact us first.
Inheritance tax in Japan is expensive and I do not want to pay it. Is there any way to reduce the tax?
If you intentionally exclude the assets located overseas with the thought that nobody knows, when it was found out later for some reason, you would be subject to a large penalty.
We will work to keep the assessed value down within a reasonable range, taking risks and other factors into consideration.
International Inheritance Consulting
■ Tax planning
Our fee for tax planning depends on the value of assets.
Estimation and a first consultation are free of charge, so please feel free to contact us.
Applicability to international inheritance
We provide inheritance tax consulting services such as the following cases.
■ 1. If there are foreign estates
Recently, Japanese investors have been investing abroad. Even if the inherited assets are located abroad, they are subject to Japanese inheritance tax in case that a decedent or heirs have a domicle in Japan.
If the heir is subject to inheritance tax or estate tax in another country, the foreign tax credit would be applicable, which might be deducted from Japanese inheritance tax.
Moreover, if there is foreign real estate such as land or the buildings, it is required to appraise the property’s local fair market value since evaluation method in Japan is not applicable. We have a lot of past cases of handling inheritance tax returns with foreign estates, and we have knowledge about the case that there are foreign estates.
■ 2. If the decedent or heir has lived abroad for a certain period of time
Past tax reforms have expanded the scope of Japanese inheritance taxation to include foreign assets. On the other hand, there have been cases where foreigners who are only temporarily staying and working in Japan are unexpectedly subject to inherince tax.
To prevent this from happening, the tax reform in 2018 have changed whether foreign estates are taxable or not, depending on the nationality and Japanese residency record or visa of the decedent and heirs. See the framework in the table below.
"Temporary resident Ⓐ" : An heir or a donee who is a foreign national and has an address in Japan at the time of inheritance or donation and has a status of residence such as student, medical services, research, business management, etc. (*), and who has an address in Japan for a total of less than 10 years in aggregate within 15 years prior to the time of inheritance or donation.
*Status of residence listed in the above column of the Attached Table 1 of the Immigration Control and Refugee Recognition Act (status of residence listed in Appended Table 2 is not Applicable)"Decedent who is a foreigner/ Donor who is a foreigner Ⓑ" is a person who has a status of residence (*) such as student, medical seivices, research, business management, etc and has a domicile in Japan at the time of inheritance or donation.
"Decedent who is a non-resident/ Donor who is a non-resident Ⓒ" is a person "who did not have a domicile in Japan at the time of inheritance or donation and who has not had Japanese nationality at any time during the period of domicile in Japan within 10 years prior to inheritance or donation," or "a person who has not had a domicile in Japan within 10 years prior to the commencement of inheritance".
■ 3. If an heir who does not have Japanese nationality is married to Japanese
In case that a decedent and heirs have foreign nationalities and an heir has lived in Japan, there might be inheritance tax to pay in Japan regardless of nationality of the decedent and heirs. (e.g. international marriage and domicile in Japan)
In this case, please pay special attention to the problem such as dual citizenship or conflict between each country's law for inheritance procedures as heritage division.
The most frequent case mentioned above is "an heir or decedent live abroad".
If heirs live abroad, they do not have registered personal seal to be placed on Agreement on Division of Estates in Japan. Therefore, for example, you should bring Agreement on Division of Estates into embassy of Japan in the USA and obtain Signature Certificate in the United States. The inheritance tax return is due ten months after the date of death, so please proceed the procedures as soon as possible.
Points to note
We are a certified tax accountant office, and the scope of our service is basically related to TAX. If it is almost certain that the total amount of assets located in Japan and abroad exceeds basic exemption of inheritance tax, please contact us.
* Basic exemption of inheritance tax = JPY30Million + Number of legal heir × JPY6Million
If amount of estates does not exceed basic exemption mentioned above, the filing of tax return is not required.
Regarding the System for Reporting Overseas Assets
■ 1. What is the Foreign Property Reporting System?
In recent years, an increasing number of people have been transferring assets from Japan to foreign countries, and the number of tax filers failing to report income and inheritance taxes on foreign assets has been increasing rapidly.
In response to this situation, the Foreign Property Report System was enacted in the 2012 tax reform to strengthen proper taxation of foreign property.
Specifically, persons who own property abroad worth 50 million yen or more are now required to submit a report to the tax office every year, regardless of whether or not they need to file a final tax return, showing what and how much foreign property they own.Translated with DeepL.com (free version)
■ 2. What form must be submitted?
However, it is considered that the evaluation is not required to be as precise as the calculation of inheritance tax assessed value, and if the "market value" is not known, it is acceptable to enter the value, book value, or face value assigned by a public institution, similar to the fixed asset tax assessed value in Japan.
This is because the purpose of the foreign property report system is to capture foreign property, and if the taxpayer prepares the report with the main objective of ensuring that there are no omissions in the lineup (item listing), the taxpayer will have met the minimum requirements of the tax authorities.
■ 3. Note the penalties for forgetting to submit the form
If you have foreign property worth 50 million yen or more, you are required to submit a foreign property report to the tax office regardless of whether or not you need to file a final tax return, and if you do not, you will be penalized.
In particular, the term "imprisonment for not more than one year" suggests that the tax office intends to put considerable effort into capturing foreign assets.
Special Provisions for Additional Tax
If the tax office later discovers that the taxpayer has failed to report foreign property, the following additional tax exemptions are available.
１．if foreign property is included in the foreign property report, the additional tax for underreporting and nonreporting will be reduced by 5%.
This is a preferential measure.
２．5% additional tax on underreporting or nonreporting will be added to the tax on the portion of the foreign property report that is not submitted or not stated.
※In the case of willful failure to submit a foreign property report or false statements, a penalty of up to one year in prison or a fine of up to 500,000 yen will be imposed.
■ 4. We can assist with the preparation and submission of the Foreign Property Reporting System!
In many cases, having assets outside Japan of 50 million yen or more means that there is a high probability that inheritance tax will be imposed in Japan.
At Chester Tax Corporation, we can assist you in submitting the Foreign Property Report before your death and provide you with advice on how to prepare for the upcoming inheritance tax.
