Japan: Certain overseas-held assets excluded from scope of inheritance tax, gift tax

Concerning the scope of the inheritance tax and gift tax

Concerning the scope of the inheritance tax and gift tax

The 2021 tax reform has revised the scope of the inheritance tax and gift tax.

The 2021 tax reform includes measures intended to promote employment of highly skilled foreign talent in Japan. Specifically, overseas assets acquired by non-Japanese nationals who reside overseas or who temporarily reside in Japan are excluded from the scope of taxable assets for purposes of the inheritance tax and gift tax when the underlying inheritance or gift involves a decedent or donor who is a non-Japanese national and is domiciled in Japan for employment or certain other allowed reasons—regardless of their residence period.

Read a July 2021 report [PDF 212 KB] prepared by the KPMG member firm in Japan

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.