As of January 2019
a) Income Tax and Corporation Tax:
(for the money and prizes earned in Japan)
- 1.Owners are not obliged to pay tax in Japan. However, there is a possibility that an Owner who holds permanent establishment (i.e., office) in Japan would pay tax as a self-assessment.
- 2.Trainers are not obliged to pay tax in Japan.
- 3.For Jockey, Exercise Rider and Groom, twenty percent (20.42%) tax will be deducted at the source on money and prizes earned by the individual.
b) Consumption Tax:
Any person who had taxable earnings exceeding JPY10 million in Japan during 2017 or has paid any salary, allowance, or pension for retirement exceeding JPY10 million to resident of Japan from January to June of 2018 is obliged to pay by self-assessment a consumption tax of eight percent (8%) on the money and prizes of 2019. It is each individual’s personal responsibility to file tax as appropriate to their status.
The law of Japan requires that a customs duty of JPY3,400,000 (about US$29,565) is to be levied per horse for any racehorses temporarily imported within the borders of Japan (TPP customs duty may be applied). This customs duty is waived for horses that are planning to race in Japan, under the precondition that the horse is again exported as promptly as possible after the race.
Owners must deposit the above amount of money as bond with the customs house during the period of stay in Japan. This money will be returned when the horse is again exported from Japan following the race.