Capital Gain Tax
A capital gain is the profit realised on the sale of a property. Capital gains tax is charged on the taxable portion of the gain. Any gain is declared on your income tax statement as ‘other income‘ and is taxed separately to your own income. Both residents and non-residents (eg. those living overseas) are liable to pay this tax, although non-residents are not required to pay the municipal tax. Also, both foreign and domestic investors may be liable to pay consumption tax to the Japanese tax office upon the sale of Japanese property. This may include private individuals who were renting out their property to a tenant.
Taxes on Gifts and Inheritances
( 1 ) Gift Tax
Those who acquired property as a gift must file a return to pay gift tax in the period from February 1 to March 15 of the year following the acquisition of the property. The taxable value is the amount after deducting the basic allowance (¥1,100,000) and the special spouse allowance (¥20,000,000).
The donee who receives a gift from the parents or grandparents has an option to apply the inheritance tax adjustment system in which the donee pays smaller amount of tax on gifts and settles the final amount as inheritance tax later.
( 2 ) Inheritance Tax
Those who acquired properties by inheritance or bequest, and the total value of the properties exceeds the basic deductible allowance, must file a return to pay inheritance tax within, in principle, ten months after the date of the acquisition. The person who died is called the ancestor, and the person who inherited property is called the inheritor. The scope of property subject to inheritance tax varies depending on whether the inheritor’s address (domicile) is within or outside of Japan.
Sakura / Cherry Blossom Forecast of Kyoto in 2019
Flowering date : 22 March
First day of cherry blossoms reaching full bloom : 31 March
(6th forecast announced on March 7, 2019)
Flowering date : 23 March
First day of cherry blossoms reaching full bloom : 31 March
(information and image based on announcement on 21 Feb.)
Sakura of this year seems to be somewhat earlier than the normal year. It is expected to be late than last year which was quite early. There is no big change from the forecast announced in the previous 1/24 announcement, but there are points several days earlier in western Japan.
It was warm winter in 2018/2019 because the condition of cold air continued hardly flows near Japan. For this reason, breakdown of dormancy is slow and flower bud growth is seen to be slow.
In the middle of February, a strong cold will flow and the temperature will be lower, but after that the spring will be coming soon as the temperature is expected to be quite high.
For this reason, Sakura's flowering is expected to be faster than normal, but it will not be a record quickness because the break-through of dormancy is slow due to the warm winter.
Flowering date : 24 - 26 March
First day of cherry blossoms reaching full bloom : 2 April
(information and image based on announcement on 7 Feb.)
(information and image based on announcement on 16 Jan.)
Kyoto City Government estimated that there would be need for 40,000 hotel rooms by 2020, however, calculations by the Kyoto Shimbun found that the total number of hotel rooms located in Kyoto City has already exceeded 40,000, and will surpass 50,000 within two years. In response to an increasing number of foreigners visiting in Japan, a hotel construction boom, also called the "hotel bubble," has been ongoing in Kyoto. This has caused...
The government greatly simplifies the procedures for business succession by sole proprietors.
Currently it is necessary to conduct a new start-up procedure other than inheritance due to death in many industries. The government will summarize the reform plan in the middle of 2019, the government will allow the current law to be handed over to the new sole proprietors without new permission and approval as well as to inherit it. The Government aims to cover not only children, but also business succession to third parties such as relatives such as grandchildren and brothers and employees.
In the current system, in food and beverage industry, liquor retailing business, cleaning industry, hotel industry and beauty care business are inheritance, in principle, submit one application form and several related documents to the national government and municipalities to take over the business. However, if the former sole proprietors takes over in the lifetime, new sole proprietors will open up new business after the previous proprietors has left the business.
For example, in the inheritance of a restaurant business, in principle, the heir will inherit the business in accordance with the application form and family register certificate. However, in the succession to live, submission of a business license application form and arrangement map of sales facilities, inspection by the public health center and application fee fee will be required. It takes time to be permitted even after the inspection, sometimes being obliged to be closed.
Same as Hotel industry, if new sole proprietors apply hotel license, start new business after purchase Hotel, Ryokan or Guesthouse, it will require to apply new license again, will take approximately 2 months and hotel will not be able to run during this period.
After reform of plan in middle of 2019, after the enforcement of this Act, it may easy to start new business by new solo proprietors.
However, in parallel, in hotel business, we still need to check new Act will include business succession by property by property, or all properties by solo proprietor. We support M&A, purchase business with license, establish new business and company in Japan.
Table of cost for Incorporation of Kabushiki Kaisha and Gojo Kaisha in Japan
This is roughly idea of how much and what is different between Kabushiki Kaisha and Godo Kaisha when you incorporate company in Japan. The total price will be less than what showing on table, but are idea of how much it will cost including scrivener fee.
There are each advantages and disadvantages in types of company, please discuss with scrivener that which type will be more suitable for your idea of company, what the purpose of incorporating company, how you want to manage and how you want to grow up your business in Japan.
There is idea of buying real estate under company name, may use company to save tax payment, application of Business Manager visa or inheritance tax measures. Also if you are planning to purchase property for hotel, guesthouse, Minshuku or Minpaku business as investment in Japan, you may better to use company name for application of license, and sell the property with hotel license by higher price in the future.
We work with team of judicial scrivener for incorporate, tax accountant for tax payment, architect for designing, constructor for renovation work, administrative scrivener for hotel license, and management company for running guesthouse. If you are planning to purchase property in Japan, for any investment use, please contact us in advance and check what is best way to own property in Japan.
List of Accommodations which have received permission from Kyoto City based on the Hotel and Ryokan Management Law(30 April 2018)
Ministry of Land, Infrastructure, Transport and Tourism
In order to understand the trends of the real-estate market timely and appropriately, MLIT collects real-estate related indeces and other data and publishes the “Monthly marketing report on real-estate market”.(Last update date:March 7, 2018)
１．Trends in Land Ownership Transfer
２．Trends in the Housing Market
３．Trends in the Rental Office Market
４．Trends in the Real Estate Securitization Market
５．Trends in Lending by Domestic Banks
Based on the Housing Accommodation Business Law (New Minpaku Law) to be enforced in June, citizens and business operators who wish to operate "Minpaku" who can accommodate travelers in ordinary houses are accepted at prefectures and government ordinance cities on the 15th March 2018. Citizens also visited the counters for Kyoto city's opening notification within the city medical health sanitation center in Nakagyo ward, and the inquiries were flooded with telephone calls. The city is expecting notification of thousands of cases.
Kyoto Minpaku Law
On February 23, 2018, before the enforcement of the housing accommodation business law (New Pinpaku law) at the Kyoto city city council plenary session, ordinance passed and established that private housing business in the exclusive residential area was scheduled from January 15th to March 15th in the low season of tourism. In order to respond to troubles, etc., in principle, oblige to place administrators within the range that can be run within 10 minutes from a private accommodation facility (about 800 m), post and asked to explain a business plan before notification to neighboring residents in advance. Meanwhile, even within a residential area, if a Machiya or landlord who satisfies certain conditions reside, it will be allowed to operate until maximum of 180 days in a year under the new Pinpaku law.