In the 2020 tax reform, individuals will meet certain requirements, such as a total transaction value of land and its goods of 5 million yen or less, between July 1, 2020 and December 31, 2022. A special measure has been newly created to deduct 1 million yen from the individual's long-term transfer income when transferring unused land (Note 1).
Note 1: Low unused land, etc. refers to low unused land stipulated in Article 13, Paragraph 4 of the Basic Law on Land in the city planning area (for residential use, business use or other uses, or The degree of use is said to be significantly inferior to the degree of use of land used for the same or similar use in the surrounding area) or the land that is deemed to be significantly inferior to the degree of use of land used) or the
- For details of special measures,Ministry of Land, Infrastructure, Transport and Tourism website (outside site)Please see.
- Underlying laws and regulations: Enforcement of the Special Taxation Measures Law and the Special Taxation Measures Law
- In order to receive this special measure, it is necessary to file a final tax return at the relevant tax office with all necessary documents.
- In Yokohama-shi, we issue "confirmation such as low unused land" among documents necessary for final income tax return.
From July 1, 2020 to December 31, 2022
Transfer requirements subject to special measures
- The person who transferred it (seller) must be an individual.
- About use such as low unused land after transfer and use of the low unused land after transfer, separate table "list of presentation documents for grant of confirmation such as low unused land in municipalities and confirmation matter" (PDF: 75KB), but transfer of thing which the mayor was confirmed.
- Transfers whose ownership period exceeds 5 years on January 1 of the transfer year.
- All or part of the low unused land, etc. transferred by the individual during the year from Article 33 to Article 33-3 of the Special Taxation Measures Law, Article 36-2, Article 36-5, Article 37 , Article 37-4 or Article 37-8.
- Not transfer to a person who has a special relationship with the individual, such as the spouse of the individual prescribed in Article 23-2 of the Enforcement Order of the Special Taxation Measures Law.
- The total amount of consideration for the transfer of assets on low unused land and the low unused land shall not exceed 5 million yen.
- The transfer of the low unused land, etc. shall not be subject to the special measures prescribed in Article 58 of the Income Tax Law or Article 33-4 or Article 34 to Article 35-2 of the Act.
- This special measure has not been applied to the transfer of land that was written from the land that was a single stroke in the previous year or two years before that year or the right to exist on the land in the previous year or two years before.
Details of low unused land subject to application
Low unused land subject to this special measure refers to low unused land stipulated in Article 13, Paragraph 4 of the Basic Law on Land in the city planning area (for residential use, business use, and other uses) (Reconfirming the degree of use on the same use or similar use in the surrounding area, etc.) or the PDF deemed to be significantly inferior to the degree of use of land used in the attached table) or unused document
Low unused land is specifically land with vacant lots (including land that is used without making certain capital investment) and vacant houses and vacant stores.
However, for coin parking, although a certain amount of capital investment is made and used for business purposes, if it is confirmed that the intention to build buildings etc. after the transfer and use it more advanced is confirmed, the use of the previous land The degree of use is significantly inferior to the degree of use of land used for the same use or similar use in the surrounding area, and it is judged that it corresponds to low unused land.
Use after transfer subject to application
If the land remains unused after the transfer, it will not be accepted as use after the transfer subject to this special measure. Therefore, if you use land without making certain capital investment after the transfer, this special measure will not be applied.
Documents to be submitted
- Separate Form 1-1
- Copy of sales contract
- any of the following documents
- Advertising that shows that residential land and building dealers are vacant lots, vacant houses, and vacant stores.
- Documents confirming the date of discontinuation of use of electricity, water or gas (the date of discontinuation must be at least one month before the sales contract)
- [If neither of the above can be submitted] Separate Form 1-2
- any of the following documents
- Separate form 2-1 (when transferred by brokerage of residential land and building dealer)
- Separate form 2-2 (when transferred by relative transaction without going through a residential land and building dealer)
- [If neither of the above can be submitted] Separate form 3 (when the residential land and building dealer confirms the use after the transfer)
- Registration certificate pertaining to the land for which the application was made
- Documents showing current land conditions
- Location map (specify the boundaries of the land to be applied for)
- Public map (specify the boundaries of the land to be applied for)
- Photos from two or more directions
- Other documents may be requested depending on the situation.
- Power of Attorney (in case of proxy/agent is required. The format does not matter. )
- Reply envelope (if you wish to receive a confirmation letter by mail. Please fill in the address and attach the required amount of stamp. )
Separate form 1-1 Low unused land confirmation application (word: 27KB)
Separate form 1-2 Use before transfer of low unused land (word: 22KB)
Separate form 2-1 About use after transfer of low unused land (when we transfer by mediation of residential land building dealer) (word: 25KB)
Separate form 2-2 About use after transfer of low unused land (when we transfer by relative transaction without going through residential land building dealer) (word: 23KB)
Separate form 3 About use after transfer of low unused land (when residential land and building dealer confirms use after transfer) (word: 23KB)
- The seal and signatures of applicants have been abolished on April 1, 2021.
- Forms before April 1, 2021 are also acceptable.
Submission of Application Form
- Please bring or mail application and required documents, please bring or mail to your application (Housing and Architecture Bureau's application form. Please contact us in advance when submitting.
- Please consider the tax return procedure period and apply in advance.
- If there are any omissions in the application form or incomplete attached documents, it is necessary to correct or add additional documents.
- The “Confirmation Form for Low Unused Land” does not guarantee the application of special measures. Please contact your local tax office for information on whether or not this special provision can be applied.
- The “Confirmation Form for Low Unused Land” does not determine whether development or construction is possible for the low unused land. Please confirm with designers whether it is land where construction is possible.
City of Yokohama, Housing and Architecture Bureau Planning Division
10 City Hall 24F, 6-50 Honmachi, Naka-ku, Yokohama
Phone number: 045-671-36555
Issuance of confirmation letter
Please show identification card (driver's license, etc.) that can identify you.
If you receive it from proxy/agent's power of attorney and identification card (driver's license, etc.) that can identify you.
Please submit a reply envelope at the time of application. AttachAddress and name of the applicant should be attached to the reply envelope with the required amount of stamp.
If you wish to mail it to proxy/agent City, if you wish to mail it to you, please write your Address andproxy/agent's name stated in the power of attorney is required. Please submit the power of attorney at the time of application.
If it is a transfer of an unoccupied house or vacant lot, will it be applied regardless of the use after the transfer?
It is necessary to have a specific usage plan and plan after the transfer.
Other requirements include transfer that is low unused land before transfer, the seller is an individual, the ownership period exceeds 5 years, and does not exceed 5 million yen.
It is a requirement that the ownership period exceeds 5 years. Can you include the ownership period of the land acquired by inheritance?
Regarding the calculation of long-term transfer income, the calculation of the ownership period will be carried over even if there is inheritance, so in principle, the land acquired by inheritance will have a total ownership period of more than 5 years as the heir. If so, the requirements are met.
In the case of sharing by multiple people, if there is a person whose ownership period is 5 years or less and more than 5 years, is this special measure applicable?
Of the co-owners, those who own less than 5 years are not eligible, but those who own more than 5 years are subject to this special measure.
The transfer between July 1, 2020 and December 31, 2022 is subject to this special measure. Is the transfer date the sales contract date? Does it refer to the date of delivery or the date of transfer of ownership in the registry?
The date of transfer subject to this special measure is, in principle, the date on which the asset was delivered to the buyer, etc. based on the transfer contract such as buying and selling, but the transfer was made on the date of the effect of the sales contract etc. Can also be.
Is it possible to use it together with the 30 million yen deduction system for unoccupied houses?
Even if the transfer of land, etc. is applicable to both the vacant house 30 million yen deduction and this special measure, it cannot be applied repeatedly.
Is there any case where this special measure cannot be applied depending on the usage after the transfer?
In the following cases, confirmation documents cannot be issued in principle because they do not meet the requirements of this special measure.
・When the state of land, etc. after the transfer remains low unused land, etc.
・If it is determined that the usage after the transfer cannot be realized by other laws or regulations,
・When the buyer resells to a third party without using the land after the transfer
・In addition, when it is judged that land use after transfer does not conform to the purpose of the system, etc.
For more information, please consult with Housing and Architecture Bureau for details.
I intend to build a house in the future, but at this time there is no specific architectural plan.
Not applicable if there is no specific usage plan or plan.
Ministry of Land, Infrastructure, Transport and Tourism website (outside site)
Special measures to control the occurrence of unoccupied houses (special deduction of 30 million yen for transfer income of unoccupied houses)
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