Overview of 2024 tax deduction and points to note
The special tax deduction is applied to the income tax and resident tax of the year 2024 （令和6年）.
We’d like to overview it and pick up points to note.
- Japanese residents registered as of June 1st 2024 can receive a tax reduction for their incomes in 2024. It is 30,000JPY for income tax and 10,000JPY for resident tax. However, residents whose incomes are over a 20 million JPY are out of the tax reduction of this time.
- (Note) You need to be a Japanese resident as of June 1st 2024. If you were not a Japanese resident on June 1st 2024, then you cannot apply the income tax reduction of this year.
- If a taxpayer has dependent family members (spouse, children, parents, and so on), then additional tax reduction is given for each of them.
- (Note1) Children under 16 years old are counted as dependent family members for the additional tax reduction in 2024.
- (Note2) But non-residents are not counted as a dependent family member for the additional tax reduction in 2024.
- Employers are in charge of tax reductions for their employees through reducing Gensen Choshu (源泉徴収, tax withholding).
- (Note) If you end your employment in the middle of year 2024, it is possible that you leave some or full of unrealized tax reduction. In this case you can receive the tax reduction through the tax return.
- Retirement incomes (退職所得) can be applied to reduce if a part of tax reduction is left unrealized.
- (Note) Pension’s Lump-Sum Withdrawal Payments (LSWP, 脱退一時金) are regarded as one of retirement incomes by Japanese income tax code. But for most cases LSWP’s income taxes can be almost fully refunded even without 2024 tax reduction.
For detailed information..
- About 2024 tax reduction (National Tax Agency’s website)
- Japanese leaflet (by NTA)
- English leaflet (by NTA)
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