Spousal deduction for inheritance tax?

What the Law Says

Japan’s Inheritance Tax Act provides a special deduction for surviving spouses to reduce or eliminate inheritance tax liability, subject to clear statutory conditions.

The spousal deduction allows a surviving spouse to deduct the greater of (i) their actual inherited amount, or (ii) the amount corresponding to their statutory inheritance share — up to a maximum of ¥160 million. This deduction applies only if the spouse inherits property from the deceased and files a proper inheritance tax return.

The deduction is designed to prevent taxation on the spouse’s portion of the estate when it falls within legally defined fairness thresholds. If the spouse’s inheritance does not exceed their statutory share (e.g., 1/2 for one child, 2/3 for no children), and the total does not exceed ¥160 million, the tax on that portion may be reduced to zero.

The deduction must be claimed in the inheritance tax return filed within 10 months of the decedent’s death. Late filing forfeits eligibility unless exceptional circumstances apply.

Statutory Text

Where a spouse inherits property, the amount of inheritance tax shall be calculated after deducting, from the value of the inherited property, the greater of (i) the value of the property actually inherited by the spouse, or (ii) the value corresponding to the spouse’s statutory share of inheritance, provided that such deduction shall not exceed 160 million yen.

— Inheritance Tax Act, s. 19 — Special Deduction for Spouse

Statutory Text

The statutory share of a spouse is one-half where there are lineal descendants, two-thirds where there are lineal ascendants but no descendants, and three-fourths where there are no lineal relatives.

— Civil Code, s. 900 — Statutory Shares of Heirs

What to Do

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