(6) Taxation Systems Related to Cultural Activities
Tax Systems Applicable to the Promotion of Arts and Culture and the Protection of Cultural Properties
Category
Description
Non-profit corporations set up for the purpose of planning and/or
staging artistic performances and/or exhibitions or of implementing
projects to preserve or use cultural property may be authorized as
Designated Public Benefit Corporations by the Minister of
Education, , Sports, Science and Technology. Apr 1976~
Institutions
officially
recognized as
contributing to
the
public welfare
purposes
Non-profit corporations that provide subsidies for dissemination of
the arts or that are set up for the purpose of providing grants for the
protection of cultural property or of conducting international
exchange or cooperation may be authorized as Designated Public
Benefit Corporations by the Minister of Education, Culture, Sports,
Science and Technology.
The Japan Arts Council, and National Language Research Institute,
national art museums, national museums, and national research
institutes of cultural properties. are authorized as Designated
Nonprofit Corporations by the Minister of Education, Culture,
Sports, Science and Technology.
Among registered museums stipulated within the Museums Law,
those Non-profit corporations that mainly aim at establishment and
operation that satisfy certain requirements may be authorized as
Designated Non-profit Corporations by the Minister of Education,
Culture, Sports, Science and Technology.
Inheritance Tax
Exemptions
Registered art
works
Inheritance Tax Exemptions Inheritance tax is not imposed on
donations of inherited properties or the like to corporations that
mainly aim to disseminate the arts or to protect cultural properties
and that are so authorized by the Minister of Education, Culture,
Sports, Science and Technology. This also applies to donations
made to the Japan Arts Council, National Language Research
Institute, national art museums, national museums, and national
research institutes of cultural properties. Inheritance tax: exempt
Apr 1977~
Years enforced
Apr 1976~
Corporation tax: A
contribution made by a
corporation is generally
calculated as a charitable
donation, with an amount
of equivalent value also
being calculated as a loss
Apr 1989~
Apr 2001~
Income tax: the value of
the
contribution is deducted
from the individual's
income
Apr 1997~
Inheritance tax: exempt
When a person who has inherited an estate wishes to make payment
in kind using an enrolled art work, the priority level for payment in
Exception to payment in
kind is Level 1 (similar that of government bonds, real estate, and
kind
similar property), making payment in kind easier with an enrolled
art work than with an art work that is not enrolled.
Apr 1977~
Dec 1998~
Donations to
Designated
Organizations
Donations solicited by public benefit corporations as funds to
restore important cultural properties or to construct disaster
prevention facilities for the same may be individually designated as
Designated Donations by the Minister of Finance.
Designated
Charitable
Trusts
Charitable trusts set up for the purpose of work (limited to the
provision of subsidies) related either to the dissemination and
advancement of the arts or to the preservation and/or use of cultural
property may become Authorized Designated Charitable Trusts
with the certification and authorization of the Minister of
Education, Culture, Sports, Science and Technology.
Exemtion from :
Income tax
Pensions awarded to Persons of Cultural Merit, money awarded by
the Japan Art Academy as its Imperial Prize or Japan Art Academy
Prize, or money awarded in recognition of an outstanding
contribution to the arts shall be exempt from income tax of the
individual concerned.
Corporation tax: the full
value of the donation
made by a corporation is
calculated as a loss
Income tax: the value of
the donation is deducted
from the individual's
income
Apr 1965~
Income and corporation
taxes: Incurred losses are
treated in the same way
as for Designated Public
Benefit Corporations.
Inheritance tax: if losses
are incurred using money
acquired via an
inheritance or a bequest,
the basic taxable
threshold for inheritance
tax does not apply.
Oct 1987~
Oct. 1988~
Income tax: exempt
Tax Incentives Applicable to the Protection of Cultural Property
Category
Exemption from tax
on
capital gains income
Description
If an individual transfers a movable asset or building designated
as an important cultural property to the national or local
government by December 31 of 2002, the associated capital gains
shall not be subject to income tax.
Income tax: exempt
Apr 1972 to Dec
2002 (from 1975
for local
governments)
If an individual transfers a non-designated tangible cultural
property, which has a value judged equal to that of an important
tangible cultural property or is an important tangible folk
property, by December 31 of 2002 to the either the national
government or to specific IAIs (a national museum, a national art
museum, or national science museum), half of the capital gains
shall be deducted.
Income tax: levied on
50% of the capital gains
(100% exempt from
Apr 1972 to Dec 1992)
Jan 1993~
Dec 2002
Income tax: special
deduction of 20 million
Corporation tax: loss of
20 million
Apr 1970~
Corporation tax: the
Apr 2001
An individual or corporation that transfers land designated as an
important cultural property together with its building(s) or
transfers land designated as a historical site, place of scenic
Special deductions
beauty, or a natural monument to the national or local government
from capital gains tax
or to specific IAIs (a national museum or national science
museum), either a special deduction or a loss of 20 million shall
be sanctioned.
Designated donations
Years enforced
Within a year after applying to donate a national treasure or
important cultural property to national museum, national art
value of the donation is
museum, or national science museum, if a corporation makes a
calculated as a loss
donation (of money or other assets) to meet expenses required for
the collection or conservation of the national treasure or important
cultural property concerned, the entire value of the latter donation
may be calculated as a loss due to an individual designation by the
Minister of Finance.
Reduction of
inheritance tax
Exemption from land
tax (for the time
being, no levy of land
tax since fiscal 1998)
Designated
donations
In case a private house and its grounds are designated as an
important cultural property, the inheritance valuation for the
inheritance tax shall be reduced for the portion of the house and
grounds used by the owner for habitation.
60% deduction of the
inheritance valuation
No land tax is levied on important cultural properties, important
tangible folk cultural properties, historical sites, places of scenic
beauty, or natural monuments; on certain plots of land associated
with cultural properties designated by local governments; or on
certain plots of land within a preservation district for a group of
historic buildings.
Land tax: exempt
Among cultural properties in the non-taxable category, the
amount of taxable value shall be reduced for land and other
property associated with certain types of cultural properties that
merit preservation and utilization.
The taxable value is
reduced to half the
value of the land and
other property.
For land and other property associated with a building registered
as a registered tangible cultural property, the amount of taxable
value shall be reduced.
The taxable value is
reduced to half the
value of the land or
other property.
A house and/or its premises that are designated as an important
cultural property, important tangible folk cultural property,
historical site, place of scenic beauty, natural monument or that
are authorized as an important art work shall be exempt from
fixed assets taxes, special property tax, and city planning tax.
Fixed assets taxes,
special property tax,
and city planning tax:
exempt
Apr 1950~
Fixed assets taxes and
city planning tax:
exempt
Apr 1998~
A suitable tax reduction
up to 50%, depending
on the circumstances of
the municipality
concerned
Apr 1998~
A suitable tax reduction
up to 50%, depending
on the circumstances of
the municipality
concerned
Jan 1997
A historic building (excluding those used for "businesses that may
affect public morals") that is in a preservation district for a group
of important historic buildings and is so proclaimed by the
Exemption/Reduction Minister of Education shall be exempt from fixed assets taxes and
of
city planning tax.
fixed Assets taxes,
Special Property tax, For the premises of a historic building (excluding those used for
"businesses that may affect public morals") that is in a
and City Planning
preservation district for a group of important historic buildings
tax
and is so proclaimed by the Minister of Education, the fixed assets
taxes and city planning tax shall be appropriately reduced by up to
50%. (Notification of the Ministry of Home Affairs)
For a house that is a registered tangible cultural property, taxes
shall be appropriately reduced by up to 50%. (Notification of the
Ministry of Home Affairs)
Jan 1985~
Jan 1992~