Income tax and residence tax deduction from June, 2024

ohayo gozaimasu! sabi dito sa kaisha namin na mababawasan daw ang income tax at residense tax para sa 2024. may nakakaalam po ba nito dito sa timog? hindi naexplain samin sabi lang nila mababawasan. thanku po sa makakasagot :blush:

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Ohayo! First time kong narinig ito, pero ilang internet search ay ito ang lumabas. Translated from Tax Office webpage.

https://www.nta.go.jp/publication/pamph/gensen/teigakugenzei_kyuyoshotoku.htm

Regarding the fixed amount tax reduction for income tax for 2024 (for salaried employees)

Due to the 2024 tax reform, a special fixed-amount deduction (fixed-amount tax reduction) will be implemented for income taxes for 2024. In principle, the fixed amount tax reduction for salaried employees will be provided by deducting the fixed amount tax reduction amount from the withholding tax amount for salaries, etc. paid on or after June 1, 2024, as shown below.
This page mainly explains the fixed amount tax reduction that will be applied when paying salaries, etc. after June 1, 2024.

Those who can receive fixed amount tax reduction

Those who can receive a fixed amount tax reduction are those who fall under any of the following.

  • Those who are taxpayers of income tax for 2024 (limited to residents)
  • Those whose total income related to income tax for 2024 is 18,050,000 yen or less (Note)

(Note) Even for those whose total income is expected to exceed 18.05 million yen, a fixed amount of tax reduction will be deducted from the withholding tax amount on salaries, etc. paid after June 1st. In this case, the final annual income tax amount and fixed tax reduction amount will be settled in the year-end adjustment or final tax return.

Fixed amount tax reduction amount

The fixed amount tax reduction amount is the sum of the following A and B.
*If the total amount exceeds your income tax amount, the limit will be that income tax amount.

A. The person (limited to residents) 30,000yen
B. Spouse or dependent relative living in the same household (limited to residents) 30,000yen/person

Thanks for the link @nick!

@edelyn I made an easy to understand outline. Might have mistakes!

Tax reduction?

Para sa 2024, bababa ng fixed amount ang babayarang income tax at residence tax.

Kailan ang simula?

Simula sa suweldo ng June.

Para kanino ito?

Para sa Japan resident na may suweldo na hindi tataas sa 18,050,000/yr.

Magkano ang fixed amount na pagbaba?

Total na 40,000 na bawas (pinagsamang income tax at residence tax):

  • 30,000 na income tax
  • 10,000 na residence tax

Paano gagawin ito?

Kung 10,000 ang income tax per month, hindi ka magbabayad ng income tax ng 3 buwan (10,000 x 3 months = 30,000). Kung 5,000 ang income tax, hindi ka magbabayad ng income tax ng 6 months (5,000 x 6 months = 30,000).

Kung 10,000 ang residence tax/month, hindi ka magbabayad ng residence tax ng 1 buwan (10,000 x 1 month = 10,000). Kung 5,000 naman, hindi ka magbabayad ng 2 buwan (5,000 x 2 months = 10,000).

Ibig sabihin babawasan ang income tax at residence tax mo hanggang naubos na yung fixed amount na kailangang ibawas (30,000 income tax at 10,000 residence tax).

Paano kung may dependent?

Ang bawat isang dependent ay katumbas ng 40,000 na pinagsamang bawas sa income tax at residence tax. Kunyari, kung may 3 kang dependent (asawa at 2 anak), ito ang magiging bawas sa tax:

  • Ikaw (40,000)
  • Dependents (40,000 x 3 = 120,000)

May 160,000 na bawas ang tax mo (40,000 + 120,000).

Kasali ba dito ang dependent sa Pilipinas?

Hindi. Kasali lang dito ang mga residente sa Japan.

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@mysndf arigato! mas madaling maintindihan yan :smiley:
@edelyn inedit ko topic title para mas madaling i search

ung income tax ko hindi tumataas ng 5,000, mga 4,200 kada buwan. sayang hindi puede dependent sa pinas :cry:

thank you sa replies :smiling_face_with_three_hearts: :heart_eyes:

kung hindi mo nagamit ang 40,000 na tax deduction, ibibigay sa iyo ang natira sa nenmatsu chosei sa katapusan ng taon

mysndf, minor correction. dahil yearly ang computation ng residence tax.

kung 120,000/yr ang binabayaran mong residence tax (which means 10,000/month), tatanggalin na kaagad yung 10,000 sa 120,000, at yung natitira lang ang babayaran mo sa loob ng 11 months. sa june ay walang babayaran.

120,000-10,000=110,000 (11 months worth ng residence tax)
110,000÷11months=10,000/month (for 11 months starting july)

kung 60,000/yr naman ang residence tax (or 5,000/month), ganon din wala kang residence tax sa june at ang mga susunod na buwan ay ganito

60,000-10,000=50,000 (11 months worth ng residence tax)
50,000÷11months=4,545/month (for 11 months starting july)

hope that helps :smile:

thanks for the correction!

I believe this is the news about this topic