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A Study on the Asset Management and Taxation Types of the Rich in Japan

Author(s)

Cui Shengbo, Zhao Nanting

Affiliation(s)

Xi’an Peihua University, Xi'an, Shaanxi,China

Abstract

The Japanese economy is facing a new phase from a long-term recession over the past 30 years to an annual economic growth of around 2%. With the recovery of the Japanese economy, not only foreigners but also Japanese capital are returning to Japan. Already, the Japanese Composite Stock Price Index has exceeded 39000 points before the bubble burst. Changes in the yen exchange rate are also inducing the inflow of foreign capital into Japan. In this economic trend, investors are paying attention to the Japanese capital market, and in particular, the wealthy in Japan are focusing on the Japanese domestic market to increase their assets. In particular, the Japanese financial market is attracting attention as a relatively safe asset due to the unstable environment at home and abroad. According to this trend, asset management of the wealthy in Japan is also carried out in various ways. Sometimes there are considerable losses due to asset management failures. That is why it has emerged recently to use various tax savings. Companies and individuals show the same behavior. On the contrary, the government sometimes strengthens monitoring in various ways to prevent a decrease in tax revenue. This phenomenon has recently become common in Japan.

Keywords

Japan's Wealthy; Wealth Management; Asset Growth; Tax Savings; Investment Types; Tax Avoidance

References

[1] NOMURA General Laboratory (NRI) (2022), NOMURA General Laboratory Report. [2] IwaisakoToku et al. (2015), Portfolio Selection of Japanese Households,[J] Economic Research Volume 66 No. 3, HITOTUBASI Economic Research Institute, p242-264. [3] Financial Research Society (2018), THE Asset Management Specialized Bank, Everything in Practice, Kinzai, 4th Edition.