Latest developments of tax reduction bill
This article is the follow-up of the report of the last December.
In March 2025 Japanese Lower Diets (国会) approved the bill to revise Japanese income tax.
1. Non-temporary tax reduction
- Basic exemption will be raised by 100,000yen for every person whose annual income is under 23.5 million yen. For persons whose annual income is under 2 million yen it will be raised further.
- Exemption for salary income will be raised by 100,000yen.
2. Temporary tax reduction
- Additional basic exemptions will be set for 2 years (for employees whose annual incomes are from 2 million to 8.5 million yen)
The tax reduction this time is somewhat milder than the proposal the opposing parties have insisted. The opposing parties have proposed more radical tax reduction plan , but the submitted bill only partially includes it.
Tax reduction is enforced from 2025’s income tax
This tax reduction bill is enforced from year 2025’s income tax.
However, 2025’s resident tax will keep unchanged.
Link
- 「年収103万円の壁」の見直しは (NHK, Japanese)
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