For gift recipients who selected the inheritance taxation system, gift taxes are imposed after a special deduction of 25 million yen is subtracted from the total value of properties received in one year, from January 1 to December 31.
Please note that this special deduction can only be applied when a taxpayer files a return for gift tax within the statutory due date.
In the event that the special deduction was applied to a portion of the amount prior to the previous year, the remaining amount after subtracting it from 25 million yen will serve as the limit for the special deduction.
Furthermore, the taxation system for settlement at the time of inheritance on property acquired by gift was revised as part of the FY 2023 tax reform, establishing a basic exemption for this system effective January 1, 2024.