“I want a soundproof room in my dream home for my new life… but will this increase my taxes?”
When setting up a full-scale soundproof environment for a move or new construction, an unexpected blind spot is “taxes.” Since you’re creating another “room” inside the house, many people worry that the appraised value for fixed asset tax will go up.
The conclusion is: For most “Unit-Type” soundproof rooms, your fixed asset tax will not increase.
However, there are cases where some “Construction-Type” or “Large-Scale Renovations” may be subject to taxation. In this article, we’ll explain the “boundaries you should know” regarding soundproof rooms and taxes in an easy-to-understand way.
“Three Criteria” for Whether Fixed Asset Tax Applies#
There are three major criteria that local governments use to determine if something is “part of a house (fixed asset)”:
- Enclosure from Outside Air: Does it have walls and a roof and is it partitioned from the outside?
- Fixation to Land/Building: Is it firmly fixed to the land or building through foundations, etc.?
- Utility: Is it in a state that can be used for its purpose (performance, work, etc.)?
Among these, “Fixation to Land/Building” is the deciding factor for soundproof rooms.
Cases Where Tax Is Not Charged: Unit-Type (Assembly-式)#
This applies to so-called “Unit-Type/Standard Models” such as Yamaha’s “Avitecs” or Kawai’s “Nasal.”
- Judgment: Usually not taxed.
- Reason: These products are treated as “furniture” or “movable property.” This is because they are assembled with bolts and can be disassembled and transported at any time (treated as movable partitions).
- Points for Peace of Mind: Legally, it’s the same as placing a closet or a large bookshelf in the room. Even if it is screwed to the floor, it is generally not considered a fixed asset if it is “easily removable.”
Cases Where Tax May Be Charged: On-site Construction (Built-in)#
This applies to “soundproof construction” where the room itself is renovated into a soundproof room, or construction methods where materials are directly pasted onto the building’s skeleton.
- Judgment: High possibility of being taxable (increase in building value).
- Reason: The walls of the room themselves become thicker, and insulation and soundproofing materials are integrated with the building, which is seen as “increase in value of the house through renovation.”
- Reference Amount: Fixed asset tax is roughly 1.4% of the appraised value (standard tax rate). For example, if it’s considered a 1-million-yen increase in value, the annual tax would increase by several thousand to 10,000 yen.
Wisdom for Tax Saving and Risk Management Before Installation#
1. Benefits of Choosing a Unit-Type#
Not only for tax purposes but also because unit-types can be sold or relocated in the future, they have high liquidity as assets. For those who “don’t want to increase fixed asset tax” or “might change their family structure in the future,” unit-types are the lowest-risk choice.
2. Dealing with Declarations and Inspections#
If you have a soundproof room (unit-type) installed at the time of new construction, you may be asked “What is this?” during the local government’s house inspection. In that case, clearly state: “It’s an assembly-type box treated as furniture. It can be easily disassembled and relocated.”
3. Note on “Depreciable Assets” for Businesses#
If installed for business purposes (music school or studio) rather than a personal residence, unit-type soundproof rooms costing over 150,000 yen must be recorded as “depreciable assets” and declared separately.
Representative Examples of “Unit-Types” You Can Install Without Worrying About Tax#
Latest unit-type soundproof rooms are attractive not only for their performance but also for their “ease of handling as assets.” Check the official manufacturer sites for the size that fits your room.
Summary: Achieve Your Ideal Environment Without Fear of Tax Risks#
It would be a shame to give up on a soundproof room for your new life because of tax concerns.
If it’s a “Unit-Type Soundproof Room” placed in a personal home, there is almost no need to worry about fixed asset tax. Please feel secure in creating your own ultimate creative space.
*The content of this article is based on general interpretations. For final tax judgments, please check with your local government, tax office, or a tax accountant.
Related Articles#
- [Basics] : What Is the Useful Life of a Soundproof Room? Concept of Depreciation and Asset Value
- [Practical Guide] : Are Used Soundproof Rooms a Good Deal? Pros, Cons, and Tips for Choosing Without Failure
- [Introduction Guide] : Detailed Explanation of Pros and Cons of Introducing Unit-Type Soundproof Rooms