Question:

Is inheritance tax levied on foreign expatriates staying in Japan temporarily?

Answer:

Under the FY 2017 tax reform, when a foreign employees temporarily living in Japan n due to an intra-company transfer or other reasons, inheritance tax will be imposed only on assets in Japan, and not on assets outside Japan, regardless of whether the foreigner is a decedent or an heir.

In this case, “foreign employees temporarily living in Japan” are those other than a permanent resident of Japan or a spouse of Japanese National etc. and have domestic address less than 10 years within the past 15 years. Most of the foreign resident with a working visa are applicable to this status.