Buying property in Japan can look attractive to Singaporean investors because of the weak yen, no Additional Buyer’s Stamp Duty, relatively transparent ownership rules, and the ability for foreigners to own freehold property. But the real question is not just, “Can I buy Japan property?” It is:
How much does it really cost to buy, hold, rent out, and eventually sell a property in Japan?
For Singaporean investors, the headline purchase price is only one part of the equation. You should also budget for agent commission, registration tax, judicial scrivener fees, stamp duty, real estate acquisition tax, annual fixed asset tax, city planning tax, property management fees, rental income tax, and potential capital gains tax when you sell.
This guide gives you a practical breakdown of the main Japan property taxes and transaction costs to understand before buying.
Quick answer: how much extra should I budget when buying Japan property?
As a rough working estimate, many buyers should prepare around 6% to 10% of the purchase price for upfront transaction costs, depending on whether the property is new or resale, whether financing is used, the property value, the assessed tax value, and the professional fees involved.
For example, if you are buying a ¥50 million Tokyo condominium, you should not assume that ¥50 million is the full cost. A more realistic cash planning number may be closer to ¥53 million to ¥55 million or more, before considering renovation, furniture, vacancy, loan fees, or post-purchase tax bills.
The most important thing to understand: some Japan property taxes are not calculated on the market price, but on the assessed value used by the authorities, which may differ from the actual purchase price.
1. Agent commission when buying property in Japan
For many resale transactions in Japan, the real estate agent commission is commonly calculated as:
3% of purchase price + ¥60,000 + consumption tax (for properties above $4m yen)
This is often one of the largest upfront costs after the deposit and purchase price.
For a ¥50 million property, the agent commission before consumption tax would be:
¥50,000,000 × 3% + ¥60,000 = ¥1,560,000
After 10% consumption tax, this becomes:
¥1,716,000
This is why Singaporean buyers should not compare only the listed price across Japan properties. A property that looks affordable on paper can become meaningfully more expensive once agent fees, taxes, registration costs, and holding costs are included.
2. Stamp duty on the sale and purchase agreement
Japan imposes stamp duty on certain legal documents, including real estate sale and purchase agreements.
The amount depends on the contract value. In practice, the stamp duty is usually not the biggest cost item, but it should still be included in your acquisition budget.
Reduced rates apply till 31 March 2027
| Listed contract amount | tax amount | |
|---|---|---|
| Over 100,000 yen | Items under 500,000 yen | 200 yen |
| Over 500,000 yen | Items under 1,000,000 yen | 500 yen |
| Over 1,000,000 yen | Items under 5 million yen | 1,000 yen |
| Over 5 million yen | Items under 10 million yen | 5,000 yen |
| Over 10 million yen | Items under 50 million yen | 10,000 yen |
| Over 50 million yen | Items under 100 million yen | 30,000 yen |
| Over 100 million yen | Items up to 500 million yen | 60,000 yen |
| Over 500 million yen | Items up to 1 billion yen | 160,000 yen |
| Over 1 billion yen | Items under 5 billion yen | 320,000 yen |
| Items exceeding 5 billion yen | 480,000 yen | |
For Singaporean buyers, this is conceptually similar to paying stamp duty on a formal legal document, although Japan’s system and rates are different from Singapore’s Buyer’s Stamp Duty or ABSD framework.
The key point: Japan does not have Singapore-style ABSD, but that does not mean buying property in Japan is tax-free.
3. Registration and licence tax
When you buy real estate in Japan, the ownership transfer must be registered. Registration and licence tax applies to the registration of real estate ownership transfer and other related registrations.
JETRO notes that Japan has “a registration and license tax levied for the registration of real estate/companies and the issue of business licenses,” along with stamp duty on stipulated documents. (JETRO)
This cost is usually handled with the support of a judicial scrivener, known in Japanese as a shiho-shoshi. The judicial scrivener assists with the legal registration process and charges a professional fee. (¥50,000 to ¥200,000)
For buyers, the total registration-related cost usually includes:
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Registration and licence tax
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Judicial scrivener professional fees
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Administrative disbursements
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Additional mortgage registration costs, if financing is used
The exact amount depends on the assessed value, property type, loan structure, and whether the property is land, building, or condominium unit, a good estimate is between 0.5% to 2% of the purchase price.
4. Real estate acquisition tax
Real estate acquisition tax is a one-time tax imposed after acquiring property in Japan.
This tax is not always paid at completion. In many cases, the bill may arrive months after the purchase, which can surprise foreign buyers who thought all costs had already been settled.
For residential property, the tax is generally based on the assessed value rather than simply the purchase price. Various reductions may apply depending on the property type, size, age, and whether it qualifies for residential relief.
Current Tax rate: 3% of the Assessed Value, effective till 31 March 2027
For Singaporean investors, this is one of the most important post-completion items to budget for because it may arrive after the excitement of the purchase is over.
Practical takeaway: even after you complete your Japan property purchase, keep cash aside for the real estate acquisition tax bill.
5. Fixed asset tax: Japan’s annual property tax
Fixed asset tax is an annual tax paid by owners of land, buildings, and depreciable assets in Japan.
MLIT states that fixed asset tax is imposed on the owner of fixed assets, including land and buildings, based on the assessed value of fixed assets. The standard tax rate is 1.4%. (MLIT)
JETRO similarly states that land, structures, and depreciable assets for business use are subject to fixed asset tax of 1.4%, payable by owners as of 1 January each year. (JETRO)
This means that if you own the property on 1 January, you are generally the taxpayer for that year’s fixed asset tax.
For condominium investors, this tax is usually manageable, but it should be included when calculating net rental yield. A property that looks like it has a 4% gross yield may have a much lower net yield after fixed asset tax, city planning tax, management fees, repair reserve fund contributions, leasing fees, insurance, and income tax.
6. City planning tax
City planning tax is another recurring tax that may apply to land and buildings located within designated city planning areas.
MLIT states that city planning tax is imposed on the owner of land or buildings in certain urbanized areas, with a limited tax rate of 0.3%. (MLIT)
JETRO also states that city planning tax is levied at 0.3% on land and structures within city planning zones. (JETRO)
For Tokyo property investors, city planning tax is commonly relevant because many properties are located in urbanized zones.
The key point is that annual ownership cost is not just one tax. It can include:
Fixed asset tax + city planning tax + building management fees + repair reserve fund + property management fees + insurance + tax filing costs
This is why net yield matters more than gross yield.
7. Rental income tax for non-resident owners
If you are a Singaporean buying Japan property as an investment and renting it out, you need to understand how rental income is taxed in Japan.
Japan’s National Tax Agency states that income from renting out real estate located in Japan is treated as domestic-source income. For a non-resident renting out property, the lease amount multiplied by 20.42% should be withheld as withholding tax. (National Tourism Agency)
The same NTA page also states that tax is not withheld on rent paid by individuals who rent the land and house for themselves or their relatives to reside in. (National Tourism Agency)
This point is important because the withholding treatment may differ depending on whether the tenant is a company or an individual using the property personally.
The National Tax Agency also states that non-residents are required to file a final tax return during the filing period from 16 February to 15 March of the following year, and that the withholding tax is settled during the final tax return process. (National Tourism Agency)
For non-resident owners, the NTA further states that a tax representative must be appointed when filing the final tax return. (National Tourism Agency)
| Taxable Income | Tax Rate |
| less than 1.95 million yen | 5% of taxable income |
| 1.95 to 3.3 million yen | 10% of taxable income minus 97,500 yen |
| 3.3 to 6.95 million yen | 20% of taxable income minus 427,500 yen |
| 6.95 to 9 million yen | 23% of taxable income minus 636,000 yen |
| 9 to 18 million yen | 33% of taxable income minus 1,536,000 yen |
| 18 to 40 million yen | 40% of taxable income minus 2,796,000 yen |
| more than 40 million yen | 45% of taxable income minus 4,796,000 yen |
Practical takeaway: if you are a Singaporean non-resident owner, do not assume that rental tax is automatically “settled” just because tax was withheld. You may still need tax filing support in Japan.
8. What expenses can reduce taxable rental income?
Rental income tax is not simply applied to gross rent in all cases. Allowable expenses may be deducted when calculating taxable rental income, depending on the circumstances.
PwC’s Japan tax summary states that rental income consists of gross rent from letting real estate to individual or commercial tenants, and that allowable expenses and depreciation are deducted to arrive at the taxable amount. (PwC Tax Summaries)
Potential deductible expenses may include items such as:
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Property management fees
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Building management fees
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Repair reserve fund contributions
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Repairs and maintenance
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Insurance
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Depreciation
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Tax representative or accountant fees
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Loan interest, depending on structure and tax treatment
This is where proper tax advice matters. Two properties with the same gross rent can produce very different taxable income depending on depreciation, expenses, financing, and ownership structure.
9. Capital gains tax when selling Japan property
When you eventually sell your Japan property, Japan may tax the capital gain.
A key concept is the holding period. In Japan, the tax treatment can differ depending on whether the property is considered short-term or long-term for tax purposes. PwC notes that gains are treated based on whether property was held for more than five years as of 1 January of the year of transfer. (PwC Tax Summaries)
For example:
If the Property was purchased on 1 September 2026, and sold on 15 September 2031, the property is only held for 4 years and 4 months as they will consider the time of holding up till 1 January 2031. Hence, to cross the 5 year mark, the sale has to happen after 1 Jan 2032.
This is especially important for Singaporean investors planning a 5- to 6-year exit strategy as the tax rate differs greatly.
5 years or less: 30.6%
Beyond 5 years: 15.3%
For example, if you buy close to the end of a calendar year, the way the five-year holding period is counted may affect when your sale is treated more favourably. This is not something to leave until the year of sale. It should be considered at the time of purchase.
Practical takeaway: if your investment plan depends on selling after five years, confirm the tax timeline before buying, not after.
10. Property management fees
Most Singaporean investors will not self-manage a Japan rental property. You will likely need a local property manager to handle tenant matters, rent collection, repairs, renewals, and communication.
Property management fees are usually charged as a percentage of monthly rent. The rate varies by service scope, property type, and managing company.
For overseas investors, the right property manager is not just a cost item. It is a risk control mechanism.
A good property manager can help with:
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Tenant communication
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Rent collection
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Renewal procedures
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Maintenance coordination
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Vacancy management
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Reporting
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Coordination with tax or administrative representatives
When assessing yield, always calculate net yield after property management cost.
11. Building management fees and repair reserve fund
For condominium units in Japan, owners usually pay monthly building-related fees.
These may include:
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Building management fee
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Repair reserve fund
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Common area maintenance
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Contributions toward future major repairs
This is especially important for older condominiums. A low purchase price may look attractive, but if the repair reserve fund is weak or the building requires major works, future costs may rise.
Before buying, investors should review:
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Monthly management fee
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Monthly repair reserve contribution
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Planned major repair history
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Building management quality
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Owner association financial health
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Delinquency levels, if available
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Long-term repair plan
For Singaporean investors, this is similar to looking beyond the unit and assessing the financial health of the entire development.
12. Fire insurance and earthquake insurance
Japan is exposed to natural disaster risks, including earthquakes, typhoons, and flooding. Fire insurance is commonly arranged when purchasing property. Earthquake insurance may also be considered, although coverage limits and terms should be reviewed carefully.
Insurance cost depends on the property structure, age, location, coverage, and insurer.
For investment property, insurance should not be seen as optional. It is part of your risk management framework.
13. Financing (Mortgage)-related costs
If you are financing the property, additional costs may apply.
These can include:
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Loan arrangement fee
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Bank administrative fee (2.2% of loan amount)
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Guarantee fee, if applicable
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Mortgage registration tax
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Valuation fee (¥35,200)
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Fire insurance requirement
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Foreign exchange conversion cost
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Legal and documentation fees
For Singaporean buyers, financing may also introduce currency risk. If your income and wealth are mainly in SGD, but your property, loan, rent, and expenses are in JPY, your actual return in SGD can differ from the return in yen.
14. Foreign exchange cost and currency risk
Many Singaporean investors are attracted to Japan because the yen has weakened significantly over recent years. A weaker yen can make the entry price look attractive in SGD terms.
But currency cuts both ways.
If the yen strengthens after you buy, your Japan asset may be worth more in SGD terms. If the yen weakens further, your SGD return may be reduced, even if the property performs well in yen terms.
Investors should consider:
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SGD/JPY exchange rate at purchase
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Exchange rate used for remitting funds
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Rental income conversion back to SGD
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Exit price in yen and SGD
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Loan currency, if borrowing
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Whether to keep a yen reserve for expenses
A Japan property investment should be assessed both in JPY terms and SGD terms.
15. Example: estimated cost stack for a ¥50 million Japan property
Here is a simplified illustration for a Singaporean buying a ¥50 million resale condominium in Japan.
| Cost item | Estimated amount (JPY) | SGD equivalent* |
|---|---|---|
| Purchase price | ¥50,000,000 | S$434,800 |
| Agent commission | About ¥1,716,000 | S$14,900 |
| Stamp duty | About ¥10,000 | S$90 |
| Registration and licence tax | About ¥250,000–¥400,000 | S$2,200–S$3,500 |
| Judicial scrivener fee | About ¥100,000–¥200,000 | S$900–S$1,700 |
| Real estate acquisition tax (Deductions may apply) | About ¥0–¥600,000 | S$0–S$5,200 |
| Fire / earthquake insurance | About ¥30,000–¥100,000 | S$260–S$870 |
| Property tax adjustment at settlement | About ¥50,000–¥150,000 | S$435–S$1,300 |
| Loan-related fees, if any (assume ¥30m loan) | About ¥660,000 | S$435–S$2,600 |
| Total estimated outlay | About ¥52,916,000–¥53,836,000 | S$460,100–S$468,100 |
*Using ¥115 = S$1.
A buyer should therefore avoid thinking, “I have ¥50 million, so I can buy a ¥50 million property.”
A safer way to think is:
Target property price + acquisition costs + post-completion tax bill + repair/furniture budget + cash buffer
Having 110% of the purchase price is the most ideal buffer.
For serious investors, a cash buffer is important because rental income may not start immediately. There may be vacancy, tenant search time, repairs, leasing fees, and initial management setup.
16. Gross yield vs net yield: what Singaporeans should focus on
Many investors are attracted by gross yield.
But in Japan property investing, net yield is the number that matters.
Gross yield is calculated as:
Annual rent ÷ purchase price
Net yield should consider:
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Acquisition costs
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Annual fixed asset tax
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City planning tax
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Building management fee
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Repair reserve fund
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Property management fee
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Leasing fee
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Insurance
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Tax filing cost
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Vacancy
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Repairs
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Income tax
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Currency conversion cost
A Japan property with a 4.0% gross yield may produce a much lower net yield after all costs.
That does not automatically make it a bad investment. It simply means the investment thesis should be clear. Are you buying for income, capital preservation, lifestyle use, long-term Tokyo exposure, currency diversification, or future family use?
Different goals require different properties.
17. Common mistakes Singaporean buyers make
Mistake 1: Comparing Japan property to Singapore property only by price
Japan property may look cheap compared to Singapore, but the markets are very different. Land scarcity, building depreciation, rental practices, financing, taxes, and exit behaviour differ.
Mistake 2: Looking only at gross yield
A high gross yield may hide higher vacancy risk, weaker location, older building issues, or higher future repair costs.
Mistake 3: Forgetting acquisition tax after completion
Real estate acquisition tax may arrive after the purchase. Buyers should keep cash aside for this.
Mistake 4: Underestimating annual holding costs
Fixed asset tax, city planning tax, management fees, repair reserve fund, and property management fees can materially reduce net yield.
Mistake 5: Not planning the exit tax timeline
If you intend to sell after five years, understand how the holding period is counted for Japanese tax purposes.
Mistake 6: Ignoring tax filing obligations
Non-resident owners may need to appoint a tax representative and file a final tax return in Japan. The NTA states that non-residents filing a final tax return are required to appoint a tax representative. (National Tourism Agency)
18. So, is Japan property tax high for Singaporeans?
Japan property tax is not necessarily “high”, but it is layered.
Singaporean buyers are often used to thinking about large upfront stamp duties, especially ABSD. Japan does not have Singapore-style ABSD, which can make the entry point feel more attractive. But Japan has multiple smaller cost layers across the purchase, ownership, rental, and sale stages.
The better way to frame it:
Japan may have a more accessible entry price, but investors must calculate the full lifetime cost of ownership.
For long-term investors, the key is not to avoid all costs. The key is to buy the right property with a realistic understanding of taxes, expenses, tenant demand, building quality, and exit strategy.
FAQ: Japan property taxes for Singaporean investors
Can Singaporeans buy property in Japan?
Yes. Foreigners, including Singaporeans, can generally buy property in Japan. Foreign buyers can own land and buildings, subject to normal transaction procedures, taxes, and compliance requirements.
Does Japan have ABSD like Singapore?
No, Japan does not have Singapore-style Additional Buyer’s Stamp Duty. However, buyers still need to budget for Japan property taxes and transaction costs such as agent commission, registration tax, stamp duty, real estate acquisition tax, fixed asset tax, and city planning tax.
What is the annual property tax in Japan?
The two main annual property-related taxes are fixed asset tax and city planning tax. Fixed asset tax has a standard rate of 1.4%, while city planning tax may apply at up to 0.3% in certain city planning areas. (MLIT)
Is rental income from Japan property taxable?
Yes. Rental income from real estate located in Japan is treated as domestic-source income. For non-residents, Japan’s National Tax Agency states that 20.42% withholding tax may apply to rental payments, depending on the tenant and circumstances. (National Tourism Agency)
Do non-resident owners need to file tax returns in Japan?
Yes, non-residents may need to file a final tax return in Japan. The National Tax Agency states that non-residents are required to file a final tax return during the filing period from 16 February to 15 March of the following year, and must appoint a tax representative when filing. (National Tourism Agency)
Is real estate acquisition tax paid at completion?
Not always. Real estate acquisition tax is often billed after the purchase. Buyers should keep cash aside even after completion.
Are Japan property taxes based on purchase price?
Not always. Some taxes are based on assessed values rather than the actual transaction price. This is why buyers should request proper cost estimates before committing.
What is the biggest hidden cost when buying Japan property?
For many foreign buyers, the biggest surprises are real estate acquisition tax after completion, annual holding costs, repair reserve fund increases, vacancy periods, and tax filing obligations.
Should Singaporeans buy Japan property for yield?
It depends on the city, ward, building, tenant demand, age, management quality, and entry price. Tokyo properties may offer lower gross yields than some regional cities, but may provide stronger liquidity and demand resilience. Investors should compare net yield, not just gross yield.
Final thoughts: buy Japan property with the full cost stack in mind
Japan property can be a useful addition to a Singaporean investor’s portfolio, especially for those seeking geographical diversification, yen exposure, Tokyo real estate access, or a long-term lifestyle angle.
But the right question is not simply:
“Is Japan property cheap?”
The better question is:
“After all taxes, fees, vacancy, management costs, repairs, currency movement and exit tax, does this property still make sense for my objective?”
Before buying, Singaporean investors should ask for a full cost breakdown covering acquisition, annual holding, rental income tax, management costs, and exit considerations.
A good Japan property investment is not just about finding a unit. It is about understanding the numbers before you commit.
Refrences
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Japan National Tax Agency: “Income from renting out real estates located in Japan is considered to be income from domestic source.” It also states that for non-residents, rent multiplied by 20.42% should be withheld as withholding tax. (National Tourism Agency)
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Japan National Tax Agency: non-residents are required to file a final tax return between 16 February and 15 March, and must appoint a tax representative when filing. (National Tourism Agency)
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MLIT: fixed asset tax has a standard tax rate of 1.4%, while city planning tax has a limited tax rate of 0.3%. (MLIT)
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JETRO: fixed asset tax is payable by owners of land, structures and depreciable assets as of 1 January each year, and city planning tax is levied at 0.3% within city planning zones. (JETRO)
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PwC Japan Tax Summary: rental income includes gross rent from letting real estate, and allowable expenses and depreciation are deducted to arrive at taxable income. (PwC Tax Summaries)
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