Housing Taxes: Real Estate Acquisition Tax 2

Real Estate Acquisition Tax 

Special 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.

1. 45,000 yen
2. Assessed value per square meter of site*1 x 2 times the floor area of the house (up to a maximum of 200 square meters) x 3%*2

*1 For residential land, the amount after applying the special exception to the tax base until March 31, 2024.
*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≫

• When a new house is built after the acquisition of land:

A new house is built within 3 years of the date of acquisition of the 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).

• When a new house is built before the land is acquired:

The leaseholder acquires the land on which the house is located within one year of construction.

• When land and a house are acquired after the house is newly built:

A house that hasn't been used since being built and its grounds must be acquired by the same person within one year of construction.

• When an existing house is acquired after the acquisition of land:

The land acquirer acquires a house on the land within one year.
​(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)).

• When you had acquired an existing home before the acquisition of the land:

A person who acquired a house on leased land acquires the land on which the house is located within one year thereafter.
​(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.