Real Estate Related Tax

A key to increasing returns from real estate investments is minimizing tax costs. Deloitte Tohmatsu Tax Co. provides support to clients to achieve that goal by offering advice on the selection of investment vehicles, and the development of the most effective tax investment structures.

Real Estate Related Tax

Development of investment structures
• We advise investors on potential tax efficient structures and calculate the effective tax rate for each investor.
We advise on the appropriate tax strategy for each transaction step, i.e., from the establishment of investment vehicles (e.g., J-REITs, SPCs or TKs), acquisition and management of property through the implementation of an exit strategy. 

Tax due diligence
• We analyze whether or not there are any potential tax risks from the acquisition of investment vehicles.

Tax advisory services
We provide the following diverse range of advisory services related to real estate investments:
Possibility of off-balance sheet real estate securitization
• Trust taxation
Entity classification issues on investment vehicles to ensure a pass-through or pay-through treatment
Reduction in indirect tax
• Tax treatment of capital expenditures and financing related costs
Application of tax treaties by foreign investors
Pro and con analysis of different arrangements for consumption tax purposes (including tax status management)

Preparation of tax returns and other documents
We prepare tax returns for corporate tax, consumption tax and depreciable assets tax purposes, and other documents, such as legally required records and tax treaty related applications, for investment vehicles and each investor. 

Tax accounting and reporting services regarding investment vehicles
• Development of appropriate accounting policies and preparation of accounting records based on the latest tax law and accounting standards
Calculation and reporting of the amount of dividends distributed to investors
Timely and accurate reporting in accordance with rules applicable to each structure (including reporting on a tax consolidated basis)