Tokyo pushes back on ‘death tax’ that deters expats

Bloomberg

Considering a work stint in Japan? You’d better make it short, and you’d better stay alive.
That’s because the government subjects long-term foreign residents to inheritance tax of up to 55 percent on their worldwide assets—meaning heirs could be forced to give up their family homes or businesses, even if they’ve never set foot in Japan.
Now, Tokyo Governor Yuriko Koike is trying to ease the impact of the rule as part of her bid to make the city a global financial hub. Her government released a report urging the rule to be reviewed, together with other measures aimed at attracting asset managers to the Japanese capital instead of rival centers such as Hong Kong and Singapore.
Yet there’s no guarantee that PM Shinzo Abe’s government will heed Koike’s call on the tax, since it only just amended the law in April.
“Japan doesn’t seem to want long-term residents anymore,” said Paul Hunter, secretary general of the Tokyo-based International Bankers Association, which represents about 50 overseas financial institutions and has been lobbying against the rule.