I know this has been discussed many times here, and I apologize for flooding this forum with yet another post to clarify the specifics of inheritance tax calculation.
The long and short:
- My mom (no connection to Japan) is about to pass
- My brother (no connection to Japan) and I will inherit 50/50
- Her total estate is about 4,000,000USD
- I was told by one Japanese CPA that the total assets for calculation would be 6億 with two statutory heirs (brother and me)
- Another said 3億 with one statutory heir (me)
- Following posts here, I would have thought…
- Taxable estate in Japan only: My share: $2,000,000 × ¥150 = ¥300,000,000.
- Subtract basic deduction: Deduction = ¥30,000,000 + ¥6,000,000 × 2 heirs = ¥42,000,000. ¥300,000,000 − ¥42,000,000 = ¥258,000,000.
- Divide into statutory shares: Two children → divide in half. ¥258,000,000 ÷ 2 = ¥129,000,000 per statutory share.
- Apply rate table to each share: ¥129,000,000 falls in the ¥100m–¥200m bracket (Rate = 40%, Deduction = ¥17,000,000); Tax per share = (¥129,000,000 × 40%) − ¥17,000,000 = ¥51,600,000 − ¥17,000,000 = ¥34,600,000
- Recombine and allocate: Two shares → ¥34,600,000 × 2 = ¥69,200,000 (the “total tax”).
Since only my inheritance is taxable, I would pay this “total tax”. Does this seem accurate?
by Better-Tumbleweed936