As of January 2026
a) Income Tax and Corporation Tax
(for the money and prizes earned in Japan)
- 1.Owners are generally not subject to Japanese income tax. However, there is a possibility that an Owner who holds permanent establishment (e.g., an office) in Japan may be required to file a tax return and pay tax via self-assessment.
- 2.Trainers are not obliged to pay tax in Japan.
- 3.For Jockeys, Exercise Riders and Grooms, a withholding tax of 20.42% will be deducted at the source on money and prizes earned by the individual.
b) Consumption Tax
Owners or connections who had taxable earnings exceeding JPY 10 million in Japan during 2024 or has paid any salary, allowance, or pension for retirement exceeding JPY 10 million to resident of Japan from January to June of 2025 are obliged to pay by self-assessment a consumption tax of ten percent (10%) on the money and prizes of 2026. It is each individual’s personal responsibility to file tax returns as appropriate to their status.
c) Customs Duties
Under Japanese law, customs duties are levied on each Horse upon temporary importation into Japan (rates specified under the TPP Agreement shall apply). Owners are required to lodge a security deposit equivalent to the applicable customs duties with the Customs Office for the duration of the Horse’s stay in Japan. This deposit will be refunded in full upon the Horses' re-exportation immediately following the race.
