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Personal Income Tax on Capital Gains from Transfer of Land

holding period: 5 years or less

holding period: more than 5 years

Separate taxation by the amount that is the greater of the following:

(a)

Capital gains x 40%

(b)

110% of the difference between

[1]

the tax amount on the taxable income including the capital gains: and

[2]

the tax amount on the taxable income excluding the capital gains

plus inhabitant tax calculated similarly (tax rate in (a) is 12% instead of 40%)

Separate taxation on the capital gains net of special deduction of 1 million, by the following tax rates
     - 20%(plus 6% for inhabitants tax)

left.jpg (869 ???)

(for reference) Tax rates before 1999 ;

right.jpg (867 ???)

-Portion not exceeding 60 mil. yen ya00.gif (844 ???) 20% (plus 6% for inhabitants tax)
-Portion exceeding 60 mil. Yen ya00.gif (844 ???) 25% (plus 7.5% for inhabitants tax)

(Special measures)
(a)

Special reduced rates for the transfer of land for the development of high quality residential project, etc.

-Portion not exceeding 40 million yen ya00.gif (844 ???)  15% (plus 5% for inhabitants tax)
-Portion exceeding 40 million yen ya00.gif (844 ???)  20% (plus 6% for inhabitants tax)
(b) Special reduced rates for the transfer of residential property held more than 10 years
-Portion not exceeding 60 million yen ya00.gif (844 ???)  10% (plus 4% for inhabitants tax)
-Portion exceeding 60 million yen ya00.gif (844 ???)  15% (plus 5% for inhabitants tax)
etc.
(Special deductions)
-Special deduction for the transfer of land for expropriation

50 million yen

-Special deduction for the transfer of land for designated land readjustment projects

20 million yen

-Special deduction for the transfer of land for designated residential land development projects

15 million yen

-Special deduction for the transfer of land for the rationalization of agricultural land holding

8 million yen

-Special deduction for the transfer of residential property

30 million yen


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