Real Estate Acquisition TaxSpecial Exception for Reduction on Residential Land If the house meets the same floor area and other requirements as described in the Special Provisions for Tax Base on Acquisition of Certain Residential Property and the acquisition of land meets one of the requirements in the table below, the larger amount of either 1. or 2. can be deducted from the tax for the residential land.
*2 Tax rate until March 31, 2024 under the special exception for reduced tax rates for land and housing acquisitions In principle, the collection of real estate acquisition tax is deferred if a new residential house is built within three years of the acquisition of the land. ≪Requirements for special exemptions for residential land≫
(Provided that the land acquirer holds the land until a new house is built or the new house is built by the person who acquires the land from the land acquirer.) * However, if certain unforeseeable circumstances arise that make it difficult to acquire the property within three years as stipulated by the government ordinance, the period will be extended to four years (until March 31, 2024).
(This also applies to cases where an existing house that does not conform to the new earthquake-proof standard is acquired and renovated within 6 months of acquisition to conform to the earthquake-proof standard (see Note 2 above)).
(This also applies to cases where an existing house that does not conform to the new earthquake-proof standard is acquired and renovated within 6 months of acquisition to conform to the earthquake-proof standard (see Note 2 above)). How to Calculate Tax Assessed value of fixed assets (tax base) x Tax rate = Tax amount ➡ Final tax amount Notes:
Assessed value of fixed assets Residential land: Special exception to halve the taxable base Housing: Deduction available under certain conditions Tax rate Reduced from 4% to 3%. Tax amount Reduction measures are available for certain residential land. Real Estate Acquisition TaxReal estate acquisition tax is a tax paid when real estate is acquired. In principle, the tax amount is calculated by multiplying the assessed value of fixed property by a tax rate of 4%. In the case of a newly constructed building that has not yet been assessed for property tax, the value of the building is calculated based on the standards for calculating the value of fixed property by the prefectural governor. The principle method of determining the tax amount is as follows.
Special Tax Rate Reduction for Land and Housing Acquisitions The tax rate applicable to the acquisition of land and housing is subject to a special tax rate of 3% until March 31, 2024. ≪Reduced tax rate on land≫ Eligible property ・・・ Land and housing Basic tax rate ・・・ 4.0% Until March 31, 2024 ・・・ 3.0% Special Taxation Standards for Residential Land and Land Whose Assessed Value Is Determined on the Basis of Residential Land If residential land is acquired by March 31, 2024, the tax base for residential land will be reduced by one-half. ≪Special provisions for tax base on acquisition of certain houses≫ For houses that meet the requirements shown in the table below, the amount shown in the "Deduction Amount" section will be deducted from the assessed taxable value: tax base = assessed taxable value - deduction amount Types of houses 1. New housing (Note 1) Requirement(s): Floor area of 50 ㎡ or more but less than 240 ㎡. (40 ㎡ to 240 ㎡ or more for rental housing other than single-family houses) Amount deducted: 12 million yen (13 million yen for certified excellent long-term housing, but only until March 31, 2024) 2. Existing (used) housing (Note 2 & 3) Requirement(s): (1) Floor area of 50 ㎡ to 240 ㎡ or more (2) To be used for one's own residence (3) One of the following is applicable
Date built: January 1, 1964 to December 31, 1972 ⇒ Amount deducted: 1.5 million yen Date built: January 1, 1973 to December 31, 1975 ⇒ Amount deducted: 2.3million yen Date built: January 1, 1976 to June 30, 1981 ⇒ Amount deducted: 3.5million yen Date built: July 1, 1981 to June 30, 1985 ⇒ Amount deducted: 4.2 million yen Date built: July 1, 1985 to March 31, 1989 ⇒ Amount deducted: 4.5 million yen Date built: April 1, 1989 to March 31, 1997 ⇒ Amount deducted: 10 million yen Date built: On and after April 1, 1997 ⇒ Amount deducted: 12 million yen (Note 1) Taxation on residential high-rise buildings (tower condominiums, etc. exceeding 60 meters in height)
(Note 2) Special exception for reduction for acquisition of existing Houses nonconforming to seismic standards
(Note 3) There are measures designed to reduce the real estate acquisition tax imposed on the buyer-reseller when the buyer-reseller purchases an existing (used) house, makes improvements to certain housing quality, and then resells the house.
Registration and License TaxRegistration and license tax is a tax imposed when registering land, buildings, etc. For ownership registration, the tax amount is calculated by multiplying the assessed taxable value of the property by the designated tax rate. The amount of tax for mortgage registrations is calculated by multiplying the amount of the claim (the amount of the mortgage or other loans) by the designated tax rate. Tax payment is to be made when applying for registration. If the building is newly constructed and does not yet have a property tax assessment, the assessed value is calculated based on the New Building Value Approval Standard Table by the Legal Affairs Bureau.
Special Tax Rate Reductions for Housing In the case of the registration of a house with a floor area of 50㎡ or more, the reduced registration and license tax rate will be applied if the house is certified by the mayor of the municipality where the house is located as meeting the requirements in the table below. Further special measures are available for Certified Long-term Quality Housing*1 and Certified Low Carbon Housing*2. *1 Long-term quality housing certified under the provisions of the Act on Promoting the Development of Long-Term Quality Housing, hereinafter referred to as "Certified Long-Term Quality Housing. *2 Low-carbon housing certified in accordance with the provisions of the Act Concerning the Promotion of Low Carbon Emission in Urban Areas, hereinafter referred to as "Certified Low Carbon Housing". It includes housing that is a specified building to be developed through a certified intensive urban development project that is deemed to be a certified low-carbon housing. ≪Overview of the special tax rate reductions for housing≫ Types of registration (1-3) 1. Registration of preservation of ownership ・・・ 0.4% (Basic tax rate)
(1) Be private individuals. (2) Acquire between April 1, 1984 and March 31, 2024 a newly built house or a house that has not been used since its construction and use it for one's own residence. (3) Register it within a year of construction or acquisition. Housing Requirements (Special Taxation Measures Law Enforcement Order) In the case of a newly built house: (1) Private housing with a floor area of 50㎡ or more
2. Registration of transfer of ownership ・・・ 2.0% (Basic tax rate)
(1) Be private individuals. (2) Acquire between April 1, 1984 and March 31, 2024 a house that has not been used since its construction or a house that has been used since its construction -which is specified by a Cabinet Order - and has been used for one's own residence. (3) Register it within a year of acquisition. Housing Requirements (Special Taxation Measures Law Enforcement Order) In the case of a newly built house: (1) Private housing with a floor area of 50㎡ or more In the case of an existing (used) house: When either (1), (2)-1, or (2)-2 below applies, the tax rate will be reduced. (1) Individual residences with a floor area of 50 ㎡or more (2)-1 Those whose construction date on the registry is January 1, 1982 or later. (2)-2 Those that comply with the earthquake safety standards stipulated in the Building Standard Law and other regulations.
3. Registration of mortgage ・・・ 0.4% (Basic tax rate)
(1) Be private individuals. (2) Acquire between April 1, 1984 and March 31, 2024 a newly built house, a house that has never been used since its construction, or a house that has been used since its construction - which is specified by a Cabinet Order - and has been used for one's own residence as specified by a Cabinet Order, and the registration is for the purpose of securing loans necessary for the acquisition of the residential house from a financial institution. (3) Register it within a year of construction or acquisition. Housing Requirements (Special Taxation Measures Law Enforcement Order) In the case of a newly built house: (1) Private housing with a floor area of 50㎡ or more
When either (1), (2)-1, or (2)-2 below applies, the tax rate will be reduced. (1) Individual residences with a floor area of 50 ㎡or more (2)-1 Those whose construction date on the registry is January 1, 1982 or later. (2)-2 Those that comply with the earthquake safety standards stipulated in the Building Standard Law and other regulations.
*1*2 The special provisions for Certified Long-term Quality Housing and Certified Low Carbon Housing are applicable when a private individual builds a new Certified Long-term Quality Housing or Certified Low Carbon Housing within a certain period or acquires one that has never been used after construction, uses it for the individual's residence, and registers the preservation of ownership or the transfer of ownership within a year of acquisition. *3 If a private individual acquires an existing residential building for which certain additions, alterations, etc. have been made by a real estate agent between April 1, 2014 and March 31, 2024, the tax rate for the registration of ownership transfer of the residential building will be reduced to 0.1% when the registration is made within a year of acquisition. Special Tax Rate Reduction for Land The registration and license tax for the transfer of ownership of land is reduced by a time-limited measure. ≪Reduced tax rates on land≫ Registration of transfer of ownership of land
Basic tax rate ・・・ 2.0% From April 1, 2013 to March 31, 2023 ・・・ 1.5% Housing Taxes: Consumption TaxWhen purchasing a house from a real estate company or building a house, as a general rule, consumption tax is imposed on the price as the taxable base. Land is exempt from taxation, but buildings are taxable. In principle, buildings sold after October 1, 2019, will be subject to a 10% consumption tax on the transfer price. A brokerage fee to a real estate company is also subject to consumption tax with the amount of the fee as the taxable base. However, this excludes cases where the seller is an individual who is not a consumption taxable business operator or a tax-exempt business operator. Tax amount = the price of the building x the tax rate of 10% (national tax 7.8% + local tax 2.2%) The Settlement of Taxes and Public Dues It is common practice for the seller and the buyer to settle the property tax and city planning tax associated with the sale and purchase of the house. It should be noted that the settlement of taxes and public dues for the building is included in the consumption taxable amount.
The owner of the property as of January 1 shall be liable for the property tax and city planning tax. Even if the house is transferred to another party after January 1, the taxpayer will remain the same. Therefore, in the sale and purchase of real estate, including housing, it is customary to prorate the property tax and city planning tax on a daily basis based on the date of delivery and settle the taxes between the seller and the buyer. However, this is a "voluntary" settlement between the seller and the buyer in the purchase and sale of a house, and the tax and public dues settlement to be given and received is treated as part of the transfer price of the building. This amount is not considered taxes for tax purposes. Therefore, when consumption tax is imposed on the building, the consumption tax is calculated by including the settlement of taxes and public dues paid by the buyer to the seller in the transfer consideration. Taxes When Buying a HomeWhen buying a house, you will have to pay stamp tax, consumption tax, registration and license tax, real estate acquisition tax, and other taxes. Stamp TaxStamp tax is a tax that is imposed on contracts when a purchase agreement for the sale of a house or a mortgage contract is signed. The amount of tax is determined by the amount of money stated in the contract. In principle, the tax is paid by affixing revenue stamps to the contract and stamping a seal. ≪Stamp Tax ( general tax amount)≫ Sales Contracts and Loan Agreements
Construction Contracts
Tax Reduction for Home Acquisition Stamp tax on sales contracts for the purchase of real estate such as houses and contracts for the construction of houses is reduced as follows from April 1, 2014 to March 31, 2024. Real Estate Transfer Agreement
Construction Contract Agreement
*Only sales contracts for the purchase of real estate and contracts for the construction of housing are eligible for the reduction.
|
Details
AuthorArrows International Realty Corp. Archives
June 2023
Categories
All
|