Frequently Asked Questions (Municipal Resident Tax - Tokyo Metropolitan Resident Tax)

QuestionTaxation occurred despite offsetting income with carryover losses (such as capital losses from stock transfers or losses from the sale of real estate from previous years) or having an income of 0 due to special deductions.

Response

The non-taxable determination for the per capita levy is based on the total income amount. The total income amount refers to the income before offsetting carryover losses and the income before receiving special deductions. If the total income amount exceeds the non-taxable standard for the per capita levy, the per capita levy will be taxed. Additionally, the dependency determination is also based on the total income amount, so if it exceeds 480,000 yen, the application of the tax law's dependent deduction will no longer be applicable.