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Asahi Shimbun
2 hours ago
- Business
- Asahi Shimbun
Chinese company accused of bogus refund claim on consumption tax
Tax authorities have penalized a Hong Kong-based freight company for submitting a fraudulent refund claim on the consumption tax, the first such case to come to light. As the number of foreign companies required to pay the consumption tax is rapidly increasing, tax authorities have been struggling to keep track of dubious filings. According to sources, the international freight company hired a Japanese logistics firm to deliver goods, paid the charge, including the consumption tax, and claimed a refund on the grounds that the taxable amount was negative. The procedure was handled by a tax accountant firm in Osaka, which acted as the company's 'tax agent,' the sources said. However, an investigation by the Tokyo Regional Taxation Bureau found suspicions that the Chinese company had falsified a bill required for the refund and inflated the payment amount. The company was hit with about 30 million yen ($200,000) in back taxes and penalties in 2023. In principle, foreign companies are not obligated to pay corporate taxes unless they have a base in Japan. However, if they sell goods or provide services in Japan, the consumption tax is levied based on transaction amounts. Even if companies are based overseas, they must pay the consumption tax by subtracting the tax amount paid on purchases from the amount received on sales. If the resulting amount is negative, they are eligible for a refund. According to Tokyo Regional Taxation Bureau documents, 8,148 foreign companies were required to pay only the consumption tax in 2024, including those eligible for refunds, a sharp increase from 4,086 companies in 2023 and 1,538 in 2022. A factor behind the increase is the invoice system introduced in 2023. The 'qualified invoice' contains the company's registration number, transaction details, tax amounts and other data. Japanese firms doing business with foreign companies in Japan need an invoice issued by the latter when paying the consumption tax. As a result, a growing number of foreign companies are registering with the National Tax Agency for issuing invoices. Tax authorities have increased surveillance of foreign companies suspected of failing to pay the consumption tax, such as game and app distributors, since around 2021. The monitoring system is far from robust, however. Of about 56,000 officials in charge of national taxes across Japan, only 50 or so at the Tokyo Regional Taxation Bureau are responsible for investigating foreign companies. 'We simply do not have the resources to investigate every foreign company,' a tax official said. Shigeru Ino, a professor of tax law at Asia University, said enhancing the collection of the consumption tax, which accounts for the largest share of tax revenue, is essential. 'We need to improve the monitoring system for foreign companies and strengthen the accountability of tax agents who handle procedures on their behalf,' said Ino, a former regional commissioner of the Sapporo Regional Taxation Bureau.
Japan Forward
11-07-2025
- Business
- Japan Forward
Property Prices on Kaminarimon Street Jump 29%, Driven by Foreign Investment
On July 1, Japan's National Tax Agency released its annual land value assessments, revealing a sharp 29% increase in property prices on Kaminarimon Street in Asakusa 1-chome, Taito Ward, Tokyo. This marked the third-largest rise among all tax office jurisdictions nationwide. Land values in the area are now approximately 1.9 times higher than pre-pandemic levels. Experts attribute much of this growth to a wave of short-term rental properties targeting foreign tourists and a surge of overseas capital, particularly from China. "My Chinese friends treat the money they bring to Japan as if they can afford to lose it," said a Chinese man this spring while speaking to a local real estate agent during his search for a property in Asakusa to convert into a short-term rental. He ultimately purchased a roughly 40-year-old building near Kaminarimon for about ¥500 million (approximately $3.4 million USD), paying the full amount upfront. The building is believed to be intended for short-term rental use. According to the real estate agency involved, foreign investors began buying up properties for short-term rentals around three years ago as the pandemic began to subside. "They seem to treat it like a high-stakes gamble, with little concern for actual market value," one company representative said. Short-term rentals, where travelers stay in private residences for a fee, have been legal under the Private Lodging Business Act since June 2018. Since then, the number of registered properties has steadily grown. As of May 2025, around 32,000 properties were registered nationwide, with more than one-third located within Tokyo's 23 wards. In Taito Ward, home to Asakusa, listings have surged roughly 80% compared to May 2019. According to the Japan Tourism Agency, 465,351 people stayed in short-term rentals across Japan in February and March 2025. This was a 48.7% increase over the same period the previous year. Foreign nationals made up more than half of those guests, with Chinese travelers comprising the largest share at 16%, followed by South Koreans at 14% and Americans at 12%. The boom in short-term rentals is beginning to impact local residents. A 45-year-old office worker living near Asakusa said her rent rose by ¥4,000 (about $30) when she renewed her lease in November 2024. "I've lived here for seven years, and this was the first time my rent went up. I was shocked," she said. The influx of short-term visitors has also led to complaints from neighbors, including issues with noise and improper garbage disposal. "As the number of short-term rentals increases, so do the complaints," said an official at the Taito Public Health Center. Naoto Oshige, a senior researcher at the Urban Future Research Institute, says foreign investment is clearly fueling the rise in land prices. He explained that the weak yen and low interest rates are making Japan increasingly attractive to overseas buyers. He also noted that this trend is likely to continue for the foreseeable future. ( Read the article in Japanese . ) Author: Rei Yamamoto, The Sankei Shimbun
Japan Times
05-07-2025
- Business
- Japan Times
Japan's roadside land prices rise for fourth year in a row
Prices of land facing major roads in Japan as of Jan. 1 rose 2.7% from a year before on average, up for the fourth consecutive year, the National Tax Agency said Tuesday. Roadside land prices, used to calculate inheritance and gift taxes, logged their steepest increase since the current calculation method was introduced in 2010, reflecting a spike in demand for homes and hotels, as well as resort facilities targeting visitors to Japan. Prices were up in 35 of the country's 47 prefectures. Tokyo registered the largest increase of 8.1%, likely due to a fall in the office vacancy rate and rising land demand for stores and hotels, followed by Okinawa Prefecture at 6.3%. Roadside land prices fell in the remaining 12 prefectures, including the prefectures of Niigata and Gifu, down by four from a year before. The pace of decline slowed in seven prefectures. A total of 35 prefectural capitals marked rises in their highest roadside land prices. On the other hand, one city registered a decline, while prices were unchanged in 11 cities. The city of Saitama logged the steepest increase in highest roadside prices among the 35 prefectural capitals, at 11.9%, followed by the city of Chiba at 11.2%, apparently reflecting redevelopment projects near Omiya Station in Saitama and Chiba Station in Chiba, which are both major train stations. The plot of land in front of the Kyukyodo stationery shop in Tokyo's upscale Ginza district had the highest per-square-meter roadside land price in the country at a record ¥48.08 million, maintaining the top position for 40 years in a row. The price was up by 8.7%. The latest data incorporated for the first time the impact of a massive earthquake that rocked the Noto Peninsula in the central Japan prefecture of Ishikawa on Jan. 1, 2024. The roadside land price plunged 16.7% in the Asaichi-dori morning market street in the Ishikawa city of Wajima, which was among the hardest-hit areas in the disaster. Meanwhile, a plot in the village of Hakuba in Nagano Prefecture registered the steepest price increase among the sites with the highest roadside land prices in all areas of the country, at 32.4%, against a 32.1% increase in the previous year. According to the village's statistics, the number of tourists visiting Hakuba in 2024 surged to 2.71 million, up 1.9 times from 2021. "Many skiers mainly from Australia, Europe and the United States come here for our high-quality powder snow," said Yojiro Fukushima of the village's tourism bureau. "We recently see a lot of foreign visitors in the summertime as well," he added. Located at the foot of a ski resort, the Kitanomine area in the city of Furano in Hokkaido logged the second biggest increase, at 30.2%, while the Kaminarimon-dori street in Tokyo's Asakusa district, a popular sightseeing spot, had the third sharpest rise, at 29.0%, against a 16.7% rise in the previous year.
Asahi Shimbun
02-07-2025
- Business
- Asahi Shimbun
Cost of land still rising as foreign investors snatch up properties
U.S. investment fund Blackstone Inc. purchased the Tokyo Garden Terrace Kioicho complex for about 400 billion yen from Seibu Holdings Inc. in February. (Asahi Shimbun file photo) Japan's average land price rose for the fourth consecutive year, with hubs for foreign tourists logging some of the sharpest increases. The price of land used for tax calculation purposes in 2025 rose 2.7 percent year on year on a nationwide average, the National Tax Agency said July 1. It was the largest rate of increase since current calculation methods were adopted in 2010. In the village of Hakuba in Nagano Prefecture, which hosts one of the nation's most popular ski resorts among international tourists, the cost of land jumped 32.4 percent from a year earlier. This was the steepest increase in the nation for the second year in a row. A tax accountant familiar with the local market said foreign investors have snapped up closed 'ryokan' inns on the cheap and converted them into accommodations targeting foreign tourists since about 10 years ago. The city of Osaka is home to 90 percent of the nation's 'minpaku' private lodgings based on the Law on National Strategic Special Zones. Under it, overseas tourists are allowed to stay at unoccupied apartment units and other similar facilities. About 40 percent of those facilities in Osaka are operated by Chinese individuals or businesses. The National Tax Agency's announcement revealed that the price of land climbed 17.9 percent from a year earlier in the city's Naniwa Ward where there were 1,036 private lodgings based on the law as of the end of March. Analysts attributed the rise primarily to increased transactions of apartments and other facilities that can be converted into private lodgings. Osaka as a whole had 5,587 private lodgings based on the law at the end of 2024. Of these, 2,305 were affiliated with Chinese individuals or businesses, according to a survey by Yoshihisa Matsumura, who is a professor of tourism geography at Hannan University. Chinese investors, many from Beijing, Shanghai and other major cities, often purchase an entire existing apartment building or rebuild an old house, spending tens of millions of yen to hundreds of millions of yen per property. Overseas real estate investors have increased their presence in Japan. Real estate think tank Urban Research Institute Corp. reported that foreign-affiliated companies poured a combined 1.36 trillion yen ($9.51 billion) into domestic properties in fiscal 2024, double the amount of the previous year. The 'wagaya Japan' real estate information website for foreigners mainly receives inquiries from English-speaking countries. In recent years, many outside Japan have wanted to acquire properties for investment returns or as vacation homes. One sought a property with a view of Mount Fuji, while another wanted to live in a town with an active streetcar. 'Customers seem to be attracted by Japan's health care and educational environments as well as security,' said Haruki Noma, president of the company that operates the website. Noma said he does not think the popularity of Japan is a passing fad as many people actually want to relocate to the country. Tokyo attracted the largest amount of real estate investments in the world during the first three months of 2025, overtaking New York, according to the real estate service company Jones Lang LaSalle. In Japan, demand for office space in urban centers remains strong due partly to a shift away from remote work in the years following the novel coronavirus pandemic. The office vacancy rate in Tokyo was 2.5 percent during the January-March period, according to Jones Lang LaSalle. Comparatively, it was 15.8 percent in New York, 12.4 percent in Beijing and 8.9 percent in London for the same period. Kenichiro Yunome of the Urban Research Institute said he expects Japan to continue attracting foreign investments. 'As the global economy faces uncertainties due to U.S. tariffs and other factors, Japan is seen as a comparatively 'safe asset' with its stable economy and real estate market,' Yunome said. (This article was written by Yuta Hanano and Takashi Ichida.)
The Star
02-07-2025
- Business
- The Star
Inbound tourism fuels land price surge across Japan
TOKYO: Strong demand from inbound tourism has significantly driven up land prices in tourist destinations nationwide, a trend extending to areas around the 2025 Osaka-Kansai Expo. According to an announcement by the National Tax Agency on Tuesday, land prices rose year-on-year in 35 prefectures, and the national average increased for the fourth consecutive year. A 55-year-old Belgian tourist was seen smiling as she looked at a 'sarubobo' (monkey baby) — a local folk artwork — in Takayama, Gifu Prefecture, on June 25. She said that a guidebook sparked her interest in the culture and nature in the area and that she found the traditional wooden buildings to be amazing. Takayama is popular for its old townscape, which comprises historic sake breweries and traditional houses. Last year, the city, dubbed 'Hida's Little Kyoto,' saw its foreign overnight visitors surge to about 769,700, an increase of 70% compared to the previous year. That number is a record high, significantly surpassing the pre-pandemic figure of about 612,000 in 2019. Reflecting this popularity, land prices in the area along Kami-Sannomachi Shimo-Sannomachi-dori street, located in the central part of the city, rose by 28.3% this year compared to the previous year, the fourth highest increase in the nation. According to the city's historic townscape preservation association, the surge in demand driven by inbound tourism means that buyers are quickly found even for shops on the main street of Kami-Sannomachi that closed due to the ageing of their owners. The trend has left the street with almost no vacant properties. At the Sumiyoshi Ryokan inn with a more than 100-year-old building located along the Miyagawa river, a stream famous for its morning market, more than 90% of guests are inbound tourists. 'We're almost fully booked until September,' said Tsunetada Minami, 50, who manages the inn. 'International travellers are essential for the survival of our business.' Even in Tokyo, where land prices saw the highest increase among all prefectures at 8.1%, it was mainly inbound tourism that was responsible for the rise. Land prices on Kaminarimon-dori street in Asakusa, Tokyo, recorded a 29% increase, the third highest nationwide and the highest in Tokyo. Nakamise-dori shopping street in the district is bustling with foreign tourists posing for photos in kimonos and buying souvenirs. 'Events like Sanja Festival have spread on social media, increasing their popularity among foreigners,' said Shigemi Fuji, 76, chairperson of the Asakusa Tourism Federation. Meanwhile, it has also been pointed out that the number of Japanese visitors to Asakusa has been decreasing. 'Some rickshaw drivers have days when all their passengers are foreign tourists,' said Takashi Sudo, 45, manager of Isshin, which operates a rickshaw service. Although the Osaka-Kansai Expo, which opened in April and is being held on the artificial island of Yumeshima in Konohana Ward, Osaka, had yet to open at the time of the land price assessment, speculation over associated redevelopment projects has still boosted land prices in the ward. The area around Yumeshima Station on the Osaka Metro Chuo Line, saw an 18.2% increase from the previous year. The station, which opened in January, is the closest one to the Expo venue. Land in the area around Bentencho Station, a station where passengers transfer from a JR line to access Yumeshima, also saw an 11% price increases. Near the station, there is a 20,000-square-metre plot of land, which used to be the site of a municipal high school. The city in September last year solicited redevelopment proposals for the site and received 12. 'There is a lot of interest in the area, as it's close to Yumeshima,' a city official said. According to a British company that operates hotels in 10 locations in Osaka, the average rate for a room at its hotels has increased by 30% year-on-year since the Expo opened in April. 'In addition to visitors from Asia, there has been a notable increase in visitors from Europe and the United States,' an official of the company said. 'The Expo is serving as a huge advertisement for promoting the appeal of Osaka to the world.' - The Japan News/ANN
