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.
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