- July 9, 2023
- Posted by: Aki Kojima
- Category: Individual & Self-Employed
Hello, dear readers! Today, we’re venturing into Japan’s intricate world of personal tax deductions. With the guidance of a professional Zeirishi (Japanese tax consultant), we’ll uncover the various expenditures that can legally reduce your taxes. So, let’s dive right in!
- 1 Types of Spending that Reduce Personal Taxes
- 1.1 Miscellaneous Loss Deduction
- 1.2 This deduction is for you if you’ve faced losses due to disasters, theft, or embezzlement.
- 1.3 Health Promotion Deduction (Self-medication tax)
- 1.4 Social Insurance Premium Deduction
- 1.5 Small Business Mutual Aid Contribution Deduction
- 1.6 Life Insurance Premium Deductible
- 1.7 Earthquake Insurance Premium Deduction
- 1.8 Contribution Deduction
- 1.9 Disability Deduction
- 1.10 Single Parent Exemption
- 1.11 Working Student Deduction
- 1.12 Spousal Deduction
- 1.13 Special Spousal Deduction
- 1.14 Deduction for Dependents
- 1.15 Basic Deduction
- 2 Conclusion
Types of Spending that Reduce Personal Taxes
In Japan, specific expenditures can significantly reduce your taxes. Here are 16 of them, as explained by our expert Zeirishi:
Miscellaneous Loss Deduction
This deduction is for you if you’ve faced losses due to disasters, theft, or embezzlement.
Medical Expense Deduction
Medical expenses, even those incurred for family members, can be deducted from your income tax.
Health Promotion Deduction (Self-medication tax)
Preventive medicine expenses, like buying cold brew, are deductible. However, you can’t claim both this and the medical expense deduction.
Social Insurance Premium Deduction
Deductions can be made for social insurance premiums.
Small Business Mutual Aid Contribution Deduction
This is for future savings, similar to social insurance.
Life Insurance Premium Deductible
Life insurance premiums can be deducted.
Earthquake Insurance Premium Deduction
Are you preparing for natural calamities? Your earthquake insurance premiums are deductible.
Donations, including hometown tax, are deductible.
If you or a family member is disabled, this deduction is applicable.
10. **Widow (Husband) Deduction**: Widows or widowers meeting specific criteria can claim a deduction.
Single Parent Exemption
Single parents with qualifying criteria can claim a deduction.
Working Student Deduction
Working students can claim a specific deduction.
If you have a spouse, this deduction is for you.
Special Spousal Deduction
This is for spouses with a lower income.
Deduction for Dependents
Deductions are based on the age of dependent children.
Everyone can claim a tax-free portion for living expenses.
Tax deductions can seem complex, but you can easily navigate them with the proper knowledge and guidance. Remember, consulting with a professional Zeirishi to maximize your benefits is always best. If you found this guide helpful, please share it with others who might benefit. And as always, stay informed and make the most of your financial journey in Japan!