Overview of 2024 tax deduction and points to note (again)
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 again and pick up points to note in brief.
- 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.
About additional tax reduction for dependents who immigrate to / emigrate from Japan (national income tax)
According to the Q&A issued by National Tax Agency (see 8-4 and 8-5), additional tax reduction for taxpayers’ dependents (national income tax) will be applied as follows, if they immigrate to or emigrate from Japan within year 2024:
- Dependents who leave Japan with deleting their Japanese address before December 31 of 2024 will be out of the additional tax reduction of year 2024.
- Dependents who start residing in Japan before December 31 of 2024 can be counted as the additional tax reduction of year 2024.
However, please confirm it to your employer or a tax accountant if you and your dependents leave Japan within year 2024.
About additional tax reduction for dependents who immigrate to / emigrate from Japan (resident tax)
Additional tax reduction for taxpayers’ dependents (resident tax) will be applied as follows, if they immigrate to or emigrate from Japan within year 2024:
- Dependents who leave Japan with deleting their Japanese address before December 31 of 2023 will be out of the additional tax reduction of year 2024.
- Dependents who start residing in Japan before December 31 of 2023 can be counted as the additional tax reduction of year 2024.
The amount of resident tax is decided according to the previous year’s income. So 2024’s additional tax reduction for resident tax is also decided according to whether or not they lived in Japan in 2023.
For detailed information..
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