What Is the Fixed Amount Tax Cut 2024 in Japan?

【Koshida Accounting Firm Column Date:

“The hardest thing in the world to understand is income taxes.”-Albert Einstein

 

a man thinking

 

Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

 

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

 

Many of you in Japan may have come across the term ‘fixed tax cut in 2024 ‘. Let’s delve into this topic to understand how it can benefit you.

1. Temporary Individual Income Tax Cut

This temporary individual income tax cut will be conducted only in 2024.

2. What Is The Purpose of the Cut

To stimulate economic activities via individual consumption is this cut.

3. How Much Is the Tax Cut?

30,000 yen per person as a national tax and 10,000 yen as a local tax.

4. Who Can Be Subject to the Tax Cut?

This cut is applicable to individuals who meet the following conditions, ensuring that a wide range of people can benefit from it.
– Japanese resident
– The total annual income is not more than 18,050,000 yen.

5. When can people Get Tax Cut?

Payees will receive the tax cut when they receive their first salaries in June 2024. If you are a sole proprietor and you are taxed prior to tax payment, you can reduce this prior tax payment to get the tax cut.

6. What Should Employers Do to the Tax Cut?

The conditions of the tax cut are different from the original tax deduction such as spouse and dependent deductions; therefore, employers must confirm employees’ families’ information before June 2024.

If you would like to know more detail, the followin blog is helpful for you.

What Tasks Must Employers Do to Japan’s Fixed Amount Tax Cut 2024?

 

 

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