Gift tax in Japan
The annual exemption, progressive rates, the recipient’s liability, and filing.
Gift tax is paid by the recipient on gifts received in a calendar year above a ¥1.1M annual basic exemption (across all donors, not per donor), at progressive rates reaching 55%, with a return due about February 1–March 15 of the following year.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- The recipient pays; the ¥1.1M exemption is per recipient per year, across all donors.
- Rates are progressive up to 55%.
- Different tables apply to gifts from direct ancestors to adult descendants.
- A return is due about February 1–March 15 of the following year.
The annual exemption
Under calendar-year (暦年) gift taxation, a recipient can receive up to ¥1.1M of gifts tax-free per year. Crucially, this exemption is per recipient across all donors combined, not a fresh ¥1.1M for each person giving to you. Gifts above the exemption are taxed at progressive rates reaching 55%, with a separate, gentler table for qualifying gifts from direct ancestors to adult descendants.
Filing and records
The recipient files a gift-tax return about February 1–March 15 of the following year when gifts exceed the exemption. Foreign gifts, gifts between family, and settlement-type (相続時精算課税) elections have their own rules, and valuation matters. Keep records of donor, date, amount, and valuation, and get advice for large or cross-border gifts.
Who this is for
- People receiving large gifts
- Families planning transfers
What this is not
- Detailed estate planning (get advice)
- The ¥1.1M exemption is per recipient across all donors, not per donor.
Frequently asked questions
Do I need to file a tax return in Japan?
Many employees do not, because tax is settled by year-end adjustment (年末調整). You generally must file (確定申告) if you have side income over ¥200,000, two or more employers, self-employment income, sizeable investment or crypto gains, or you want to claim deductions like large medical costs or a first-year mortgage credit. Filing season is Feb 16 – Mar 15 via e-Tax. When unsure, check the NTA guidance or ask a 税理士.