How to levy property tax in Japan?

Methods of collecting property tax in Japan;

1. In Japan, the real estate retention tax is divided into two parts, namely the fixed assets tax and the urban planning tax. Land in Japan is privately owned. After buying it, it will be owned by several generations. Of course, asset tax will be paid from generation to generation. At present, the standard rate of fixed assets tax in Japan is 1.4%, and the upper limit of urban planning tax is 0.3%. The actual tax rates in different regions are slightly different in the specific implementation process.

2. The tax basis of land and houses is market value, which is called "appropriate current price" in Japan. Japan generally conducts a basic evaluation every three years. The year of evaluation is called the base year, and the price of that year is called the base year value. In the next two years, if there is no big change, it will generally not be revalued.

3. Fixed assets tax: nominal tax rate 1.4%, but the calculation is quite complicated. It is based on the professional investigation and calculation of reconstruction costs plus depreciation rate. And the amount in the tax year is called "fixed assets assessment", which is close to the actual value. On average, it is about 70% to 80% of the price of new houses, and the land and the houses above it are taxed separately.

Extended data

Conditions for Japan's exemption from property tax

Land with a valuation of less than 300,000 yen and buildings with a valuation of less than 200,000 yen are exempt from property tax; Buildings for special purposes such as government, royal family, cemeteries and schools are also exempt from property tax. Under normal circumstances, a two-story building with a land area of 150 square meters in Tokyo has a total property tax of 68,000 yen.

Real estate transfer income tax is a tax levied on the income from the transfer or lease of real estate, including income tax and resident tax. Income tax is national tax, and resident tax is local tax.

The purpose of levying real estate transfer tax is mainly to curb land speculation and real estate speculation and stabilize the real estate market. The income tax rate of real estate transfer held for more than five years is 15%, and the resident tax rate is 5%; For the income from the transfer of real estate held for less than five years, the income tax rate is 30% and the resident tax rate is 9%.

Japanese property tax collection rules

1, the property tax collection standard is divided into two cases: ad valorem or rent:

(1) For ad valorem taxation, the tax basis is the residual value after deducting 10%-30% from the original value of the property;

(2) If rent is levied (i.e. real estate is leased), the tax basis shall be the rental income of real estate. The specific reduction range of ad valorem 10%-30% shall be determined by the people's governments of provinces, autonomous regions and municipalities directly under the central government.

2. The property tax rate is proportional. If assessed according to the residual value of the property, the annual tax rate is1.2%; If assessed according to the rental income of real estate, the annual tax rate is 12%.

3. The calculation of property tax payable is divided into the following two situations, and its calculation formula is:

(1) Original value based on attribute:

Taxable amount = original value of the property × (1- 10% or 30% )× tax rate (1.2%)

(2) Based on real estate rental income:

Taxable amount = real estate rental income × tax rate (12%)

Refer to Baidu Encyclopedia-Real Estate Tax

Reference People's Daily Online-Overseas Property Tax Japan's "Property Tax"

Refer to People's Network —— Five "Dilemmas" Faced by Full Landing of Real Estate Tax