Taxation

as of January 2016

a) Income Tax and Corporation Tax:
(for the money and prizes earned in Japan)

  1. 1.Owners are not obliged to pay tax in Japan. However, an Owner who holds permanent establishment (i.e., office) in Japan must pay tax as a self-assessment.
  2. 2.Trainers are not obliged to pay tax in Japan.
  3. 3.For Jockey, Exercise Rider and Groom, twenty percent (20.24%) 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 2014 is obliged to pay by self-assessment a consumption tax of eight percent (8%) on the money and prizes of 2016. It is each individual’s personal responsibility to file tax as appropriate to their status.

"Customs Duty"

The law of Japan requires that a customs duty of JPY3,400,000 (about US$28,333) is to be levied per horse for any racehorses temporarily imported within the borders of Japan. 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.

The Owner must also abide by the following additional requirements:
 - After the race, the horse must not be used for another purpose in Japan.
 - After the export quarantine, the horse must depart from Japan as promptly as possible.

  • *The currency exchange used in this page is US$1.00= JPY120.