The Japanese National Tax Tribunal has determined that U.S. survivor’s pensions are acquired by the spouse upon the decedent’s death in accordance with the provisions of the U.S. Code of Federal Regulations. The Tribunal has also determined that said pensions fall under the category of “rights to periodic payments not based on a contract.” Furthermore, since there are no tax-exempt provisions under the law that exempt the right to receive U.S. survivor’s pensions from inheritance tax, the Tribunal has concluded that such pensions constitute deemed inheritance property and are subject to inheritance tax.
It should be noted that legal action has been initiated in the Tokyo District Court concerning this matter.