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

By failing to prepare you are preparing to fail. － Benjamin Franklin

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 heard the term ‘fixed tax cut in 2024’. I already described the outline of this fixed tax cut in the last blog, so I will explain what tasks employers must complete in this blog.

If  you would like to know the outline of this fixed tax cut, the following is helpful for you.

What Is the Fixed Amount Tax Cut 2024 in Japan?

1. Collect the Information of Employees

This tax cut, which will be implemented based on individuals’ circumstances on June 1st, 2024, requires employers to gather specific details about their employees, such as new births, children’s independence, and so on.

2. Calculate a Fixed Amount of Tax Cut Individually

All employers have to calculate a fixed amount of tax cut individually according to the above information.

3. Deduct Tax Cut from Salary Paied First in June

The tax cut must be conducted by deducting from salaries paid first in June. If the individual whole amount of the tax cut is more than the monthly withholding tax, employers have to deduct the tax cut through several months until the deduction amount reaches the whole amount of the tax cut. Plus, employers have to show monthly tax cut amounts in salary slips.

4. If Calculations Become Wrong

This tax cut will be adjusted at the time of year-end tax adjustment if tax cut calculation becomes wrong by mistake.

Our accounting and tax office has been actively assisting foreign business owners in Japan with accounting and tax matters. Also, not only in the tax and accounting field, our office can support your business in Japan in the fields of visa, registration, social insurance, and law by networking with specialists. Plus, we have networked with specialists in web marketing, building websites, and business consulting suitable for Japanese customers. All services are provided in English. Please feel free to reach out to us through the inquiry form.