Ｑ. Calculation for property tax
Ａ. For business in Japan you need land, factory, building, machine or equipment etc. It needs paying tax below for possession of these assets.
Tax for acquisition real estate
- Tax for acquisition of real estate like land or building they have to be paid to prefecture.
- Each land or building is registered on the real estate register managed by city. The address, owner, appraised value (approximately 50-70% of market price are registered.
- Tax rate is 3-4% of appraised value.
- It is imposed for land, building, depreciable assets for business (machine or equipment appraised value is over decided amount）and to be paid to city.
- The appraised value of land or building is changed every 3 years according to regional current price.
- Every 1st January, appraised value of depreciable asset is depreciated for life time decided for each asset by specific measure(depreciate by fixed sum or fixed rate )
- Tax rate is 1.4％ of these appraised value.
【Life time of major asset and depreciate rate】
|asset||Life time||Fixed sum||Fixed rate|
|Steel frame and reinforced concrete
（for factory, warehouse）
|Ditto （for office）||50||2.0％||4.0％|
|Equipment for measure（using electric or electronics）||5||20.0％||50.9％|
|Equipment for producing food||10||10.0％||25.0％|
|Equipment for metal working||10||10.0％||25.0％|
|Equipment for producing transportation machine||10||10.0％||25.0％|
|Office equipment, calculation machine, copy machine etc.||5||20.0％||50.0％|
City planning tax
- There are areas using for downtown in Japan. These areas are used for building public facility or developing matched to regional needs.
- In this reason some cities impose city planning tax to corporations and residents for the resources using these plans above.
- Tax rate is 0.2-0.3% of appraised value of land and building.