Estate Planning Alert provided as an educational service by Yuka Hongo, Estate Planning/Administration Attorney
 
What is the Basic Deduction Amount used to Determine the Inheritance Tax Amount in Japan?
Introduction
The amount that you will pay in inheritance tax in Japan will depend on the basic deduction amount that is subtracted from your aggregate total of assets at death. The formula for calculating the basic deduction amount is 30,000,000 JPY + 6,000,000 JPY * Number of heirs who have the right to succeed to your estate.
 
Calculation of the Basic Deduction Amount and the Inheritance Tax Amount
The value of assets to which the inheritance will be levied in Japan is calculated by subtracting the basic deduction amount from the aggregate total of assets at death, from which any debts or funeral expenses are deducted.

For example, if the total amount of assets of a deceased equals 60,000,000 JPY, and the number of heirs of the deceased who have the right to succeed to your estate is only 1 person, the basic deduction amount will be 30,000,000 JPY + 6,000,000 JPY * 1 = 36,000,000 JPY, which means that the value of assets to which the inheritance tax amount will be levied in Japan is 60,000,000 JPY – 36,000,000 JPY= 24,000,000 JPY.
 
Hotei Sozokunin – Heirs Who Have the Right to Inherit
The Hotei Sozokunin include heir(s) who have the right to inherit assets of the deceased under the Civil Code in Japan. They include the surviving spouse, children, parents of the deceased, brothers/sisters of the deceased, and etc.

Under the formula for calculating the basic deduction amount to be subtracted from the aggregate total of assets, the more Hotei Sozokunin that you have in your family (e.g. surviving spouse and children), the more you will be able to deduct in basic deduction amount, which can help reduce your overall inheritance tax amount to be paid in Japan.
 
Conclusion
It will be good to understand the formula for the basic deduction amount above, and how it will be able to help reduce your overall inheritance tax payment in Japan.
 
 
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Meet Yuka Hongo, Esq.
Yuka Hongo is a respected estate planning attorney based in Honolulu, Hawaii. She has practiced law for 10 years and is fluent in both English and Japanese.
 
Practice Areas: Yuka represents clients in matters related to estate planning such as the preparation of trusts, wills, and Transfer on Death Deeds. She also provides a service in the area of estate administration, including probate.

Education: In 2000, Yuka graduated from Oberlin College (Oberlin, OH), where she earned a Bachelor of Arts Degree in Economics and East Asian Studies. In 2004, she graduated from Loyola Law School (Los Angeles, CA), where she earned her Juris Doctor Degree. In 2022, Yuka graduated from Keio University (Tokyo, Japan) where she earned a Master of Laws Degree.

Court Admissions and Bar Memberships: Yuka is a member of the Hawaii, California, the District of Columbia Bar, and New York Bar Associations.  Yuka is a member of the International Law Section of the Hawaii State Bar.

Additional Qualifications: Yuka is a Certifying Acceptance Agent who can obtain the ITIN tax number for foreigners in the U.S. In addition, she is a life insurance agent and a licensed notary public in Hawaii. Also, Yuka is fully bilingual in Japanese and English and has in-depth experience including complicated translations working with both languages.

Multicultural Background: Yuka has experience living and working in both the U.S. and Japan and has a thorough understanding of both cultures and the people who live in both countries. In addition, she loves working with people from other multicultural backgrounds, and working on international matters.

Accounting Experience: Yuka worked for the Tokyo office of a prominent U.S. accounting firm for the past number of years and has extensive experience working with tax and legal issues that arise from cross-border transactions.

Educational Presentations: Yuka has presented seminars in Japan relating to Transfer on Death Deeds in Hawaii and trusts in the United States.

Residence & Interests: Yuka lives in Honolulu, Hawaii and is single. She enjoys scoping out new eateries and restaurants.
 
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Yuka Hongo, Esq., Estate Planning/Administration Attorney
Hongo Law Office, LLLC
2155 Kalakaua Avenue, #410 • Honolulu, Hawaii 96815
Hawaii (808) 237-9944
yuka.hongo12@gmail.comwww.hongolaw.com
Yuka Hongo, Esq. is licensed to practice law in California, Hawaii, New York and the District of Columbia
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