- 14 Mar 2002
- 21,057
- 18,914
In Japan, owning temples or shrines can offer significant tax benefits. Religious corporations are permitted to operate a variety of businesses. Due to concerns about unscrupulous buyers, authorities seek to implement stricter regulations on purchasing religious properties.
A surge in religious properties coming up for sale has Japanese authorities worried that prospective buyers are not interested in them for heavenly purposes. Instead, they fear that many are out to dodge taxes or even launder money. [...] Cases of temple or shrine properties being extensively repurposed have triggered public outrage. In Osaka, a temple sold in 2020 was later razed, and dozens of graves were relocated to make way for a property development. In Kyoto, a case about a temple demolished and turned into a parking lot made headlines this year. Owning a temple, shrine or church recognised as a religious corporation in Japan can confer sizeable tax benefits. Businesses under such corporations that offer religious services, such as funerals, do not have to pay taxes, while other non-religious businesses also enjoy preferential tax rates. A wide range of undertakings are allowed, from restaurants to hair salons to hotels. According to the agency's data, Japan had about 180,000 religious sites with corporation status as of the end of 2023. The number of so-called inactive corporations - such as those with no religious events for over a year - jumped by a third to more than 4,400.