Main Changes in the Municipal Resident Tax and Tokyo Metropolitan Resident Tax for Fiscal Year 2024

Regarding the Unification of Taxation Methods for Dividend Income from Listed Stocks, etc.

The taxation method for specific dividends and specific stock transfer income has been aligned with Income Tax.
As a result, it will no longer be possible to choose different taxation methods for Income Tax and resident tax.
When declaring income related to specific dividends and specific stock transfer income for Income Tax, this income will also be included in the resident tax.
Consequently, this may affect the application of deductions such as dependent deductions and spouse deductions, non-taxable determinations, and the calculation of National Health Insurance Tax, Late-Stage Elderly Medical Care Insurance premiums, Long-Term Care Insurance premiums, and various administrative services, so please be cautious.

Review of Dependent Deductions for Relatives Living Abroad

Starting from the fiscal year 2024, the requirements for dependents living abroad eligible for the dependent deduction will be tightened, and as a general rule, individuals aged 30 to 69 will be excluded. However, the following individuals can still be considered for the dependent deduction.

• Those who have become non-residents due to studying abroad
• Persons with Disabilities
• Persons who have received payments of 380,000 yen or more from taxpayers declaring dependent deductions, for living expenses or educational expenses in that year.

About the Establishment of the Forest Environment Tax

The Forest Environment Tax is a national tax established to fund measures related to the maintenance and promotion of forests, and it is imposed on individuals who have a residence in the country.
Starting from the fiscal year 2024, an annual fee of 1,000 yen will be levied in addition to the per capita levy of the Municipal Resident Tax, and the city will collect it along with the Municipal Resident Tax and Tokyo Metropolitan Resident Tax.
Additionally, as a funding source for disaster prevention measures learned from the Great East Japan Earthquake, an additional annual fee of 1,000 yen has been added to the per capita levy, but this will end in the fiscal year 2023.

Resident Tax Flat Rate and Forest Environment Tax Amount

Tax Item	Until fiscal year 2023	From fiscal year 2024
Municipal Resident Tax Per Capita Rate (Municipal Resident Tax)	3,500 yen	3,000 yen
Resident Tax Per Capita Rate (Tokyo Metropolitan Resident Tax)	1,500 yen	1,000 yen
Forest Environment Tax (National Tax)	-	1,000 yen
Total	5,000 yen	5,000 yen