Major Changes in Municipal Tax and Metropolitan Inhabitant Tax in 2017

The self-medication tax system (special exemption for medical expense deductions) is an effort to maintain and improve health and prevent illness. When purchasing pharmaceuticals and over-the-counter drugs that have been diverted from medical use, you can receive an income deduction for the purchase cost.

If you receive an income deduction under the self-medication tax system (a special case for medical expense deductions), you cannot receive an income deduction for ordinary medical expense deductions. please note.

In the case of the self-medication tax system (special exception for medical expense deduction)

(Purchase cost of eligible switch OTC drugs for one year) - (amount covered by insurance, etc.) - (12,000 yen) = (deductible amount)
Note: The upper limit of deduction is 88,000 yen.

For regular medical expense deductions

(1 year medical expenses paid to hospitals, etc.) - (amount covered by insurance, etc.) - (5% of annual income [up to 100,000 yen]) = (deduction amount)
Note: The maximum deduction amount is 2,000,000 yen.

From 2016 onwards, the calculation method for employment income deductions related to employment income will be revised as shown in the table below.

Dividends, etc. received by individuals from corporations, etc. are taxed as dividend income together with other income (employment income, real estate income, etc.) as comprehensive taxation. , As a special exception, when dividends are paid, the "residence tax dividend rate" is taxed separately from other income and is collected as a special tax. Since the taxation relationship ends due to the special collection of "residence tax dividend percent", there is no need to declare dividend income, etc. of listed stocks, etc. (system that does not require declaration). Alternatively, you can choose separate taxation and file a tax return.
Note: Declared dividend income, etc. from listed stocks, etc. is included in the total income amount and total income amount, which is the basis for the application of exemption for dependents and spouses, the determination of tax exemption, and the calculation of national health insurance premiums. Please be careful.
Note: By the date the tax payment notice is sent, by submitting a municipal tax / metropolitan tax declaration form separately from the final tax return, taxation methods different from income tax etc. (system not requiring declaration, comprehensive taxation, separate declaration tax) can be selected.