Basic exemption for inheritance tax?

What the Law Says

The Inheritance Tax Act sets a basic exemption amount that reduces the taxable value of an estate before tax is calculated.

The basic exemption applies automatically to every inheritance case in Japan. It consists of a fixed base amount plus an additional amount for each statutory heir.

Statutory heirs include spouses, children, parents, and other relatives defined under the Civil Code — even if they renounce their inheritance, they still count toward the per-heir calculation unless formally excluded by court order.

This exemption is applied before calculating the taxable estate value. Any amount below the exemption threshold is not subject to inheritance tax.

Statutory Text

The amount of inheritance tax shall be calculated by applying the tax rates prescribed in the following table to the value of the property inherited, after deducting the basic exemption amount provided for in paragraph (2).

— Inheritance Tax Act, s. 15 — Calculation of Tax Amount

Statutory Text

The basic exemption amount referred to in the preceding paragraph shall be thirty million yen plus six million yen multiplied by the number of statutory heirs.

— Inheritance Tax Act, s. 15, para. 2 — Basic Exemption Amount

What to Do

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