Major Changes in Municipal Tax and Metropolitan Inhabitant Tax in 2016

Review of special collection system from public pension is carried out and is applied about special collection to carry out after October, 2016.

In order to level the annual amount of tax collected, the provisional special tax amount (April, June, August) is equivalent to half of the special tax amount (annual tax amount) for the previous year.

Under the system before the change, if you move out of the municipality after the date of assessment (January 1) or if the amount of tax to be specially collected is changed, the special collection from the public pension will be suspended (discontinued) and normal collection will be made. (method to have you pay with tax payment letter of advice) is supposed to be replaced.

In the 2013 tax system reform, from the viewpoint of convenience of tax payment for pensioners and streamlining of collection work in municipalities, "special collection will be continued under certain conditions even if there is a transfer or a change in the tax amount." It was decided.
Application period Apply from special collection to be carried out after October 1, 2016

If you make donations (hometown donations) to prefectures and municipalities (local governments) that have spent in 2015 due to the 2013 tax reform and the 2015 tax reform, it will be applied from 2016. The personal inhabitant tax was revised as follows.

Regarding tax credits related to donations to prefectures and municipalities (hometown tax), the upper limit of the special deduction amount will be raised from 10% to 20% of the income levy on municipal and metropolitan inhabitant taxes from taxation in 2016. (This applies to hometown tax payments made after January 1, 2015.)

The one-stop special system is a system that allows salaried workers who do not need to file a final tax return to receive tax credits for donations without filing a final tax return under certain conditions.

　This system can be applied to hometown donations made after April 1, 2015 by applying to the local government to which the donation is made. If the one-stop exception system is applied, there will be no deduction for income tax, and municipal and metropolitan inhabitant taxes for the following fiscal year will be reduced. If there is a change in the application form, such as a change of address, after applying for the exception, it is necessary to submit a change notification form to the local government to which the donation is made by January 10 of the year following the hometown tax payment.

(Note) Those who paid hometown tax between January 1, 2015 and March 31, 2015 must file a tax return.

Note: Those who are not eligible for the one-stop special system
Please note that those who fall under the following conditions are not eligible for the one-stop special system.

• Those who need to file an income tax return or municipal/prefectural inhabitant tax return for purposes other than receiving donation deductions for the hometown tax payment.
• Those who file income tax returns
• Those who file municipal and metropolitan inhabitant tax returns
• Those who donate to more than 5 organizations

The application deadline for housing loan deductions for income tax has been extended by one and a half years until June 30, 2019. The amount that could not be deducted from income tax out of the mortgage loan deductible amount of income tax will be deducted from municipal tax and metropolitan inhabitant tax within the deduction limit.

(Note 1) This revision of the law newly targets residents from January 2018 to June 2019, and changes the housing loan deduction for residents until the end of 2017. Not a thing.

(Note 2) In order to receive housing loan deductions for municipal and metropolitan inhabitant taxes, it is necessary to file a final tax return for income tax in the first year (year-end adjustment is possible from the second year onwards). For details, please contact your local tax office.