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


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