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Material on Individual Income Taxation

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(Note 1) The major types of revenue are listed. Others include income related to futures trading. As for the taxation method for various incomes, separate withholding taxation at the source, separate self-assessment taxation, and other taxation may be applied in addition to the taxation method described above.
(Note 2) Certain special deductions, etc. may be applied to the calculation of various income amounts and taxable income amounts.
(*1) The 1/2 taxation rule does not apply to retirement allowances paid to corporate directors, etc. who have served for five years or less.
[After the revision of FY 2021] For retirement allowances for those who have served for five years or less (other than corporate officers etc.), the 1/2 taxation rule does not apply to the portion of the allowance that exceeds three million yen after deducting the retirement income deduction(applicable from FY 2022).
*For cooperate officers who have served for five years or less, the 1/2 taxation rule does not apply for the whole allowance (since FY2012 revision).
(*2) For dividend income, interest income from specified bonds, etc. and capital gains from listed shares, etc., tax payments may be completed by only withholding tax under certain conditions (filing a return is not required).
For dividend income from listed shares, etc., taxpayers can select either comprehensive taxation (dividend deduction is applicable) or separate self-assessment taxation when filing a return.
Capital gains and losses from listed shares, etc. can be aggregated with dividend income from listed shares, etc. and interest income from specified bonds, etc.
(*3) For taxpayers who have dependent relatives under 23 years of age or dependents with a particular disability, adjustment is made with deductions for income adjustment to avoid an increase in the tax burden due to the of lowering of the maximum income eligible for the employment income deduction to more than 8.5 million yen, which was made in the FY 2018 revision.
For those who have both salaries and pensions, adjustment is made with the income amount adjustment deduction to avoid an increase in the burden of switching from deductions from employment income / public pensions to basic deductions, which was carried out in the FY 2018 revision.
(*4) The amount of loss related to these incomes shall not be aggregated with the amount of other incomes.


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(Note) The amount of employment revenue of an employment income earner of a single-income household consisting
         of a married couple and two children, one of whom falls within the category of specified dependent relative (age
         19~23 years) and the other within the category of ordinary dependent relative (16~18 years or 23~70 years).