Inheritance Tax: Measures to Take When the Division of Inherited Assets Cannot Be Completed by the Statutory Filing Deadline of 10 Months

A provisional filing and provisional payment based on the statutory inheritance shares under Japanese civil law will be made.

Even if the division of the estate cannot be completed by the statutory filing deadline, it is necessary to file and pay taxes based on the statutory inheritance shares under Japanese civil law within the statutory filing deadline.

• For example, if there are two statutory heirs under Japanese civil law (two children), each will file a return based on a 50% share.
• Taxes must also be paid in accordance with the reported amount.

If the inheritance is reported without being divided, certain inheritance tax exemptions cannot be applied: They cannot be applied until the actual division is determined.

Once the inheritance is officially divided after filing the inheritance tax return, the following actions can be taken.

• If special provisions for inheritance tax apply → “Request for correction” to receive a tax refund
• If the reported amount is insufficient → File an “amended return” to pay the additional tax

※A request for correction is possible within five years from the statutory filing deadline.

【Important points to note when foreign heirs are involved】

Appointment of a tax representative may be required, so we recommend consulting a tax accountant as soon as possible.

Even foreign heirs are subject to Japanese inheritance tax if they inherit property in Japan or other property subject to Japanese inheritance tax.

Even for heirs residing abroad, procedures may become complex due to anti-money laundering measures, etc., if overseas remittances are involved.