Major Changes in Municipal Tax and Metropolitan Inhabitant Tax in 2018
Updated: December 10, 2019
About the self-medication tax system (exceptions for medical expense deductions)
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.
The self-medication tax system will be a selection system with normal medical expense deductions.
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.
Differences in calculation of deductibles from normal medical expense deductions
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.
Please check the Ministry of Health, Labor and Welfare website for details.
You can check the target items and the conditions for receiving deductions on the above site.
Amendments to Employment Income Deductions
From 2017 onwards, the calculation method for employment income deductions related to employment income will be revised as shown in the table below.
| Amount of income from salary, etc. (amount paid on the withholding certificate for employment income) | Employment income deduction |
|---|---|
| 1,800,000 yen or less | Income amount x 40% 650,000 yen if less than 650,000 yen |
| More than 1,800,000 yen and up to 3,600,000 yen | Income amount x 30% + 180,000 yen |
| More than 3,600,000 yen and up to 6,600,000 yen | Income amount x 20% + 540,000 yen |
| Over ¥6,600,000 and up to ¥10,000,000 | Income amount x 10% + 1,200,000 yen |
| Over 10,000,000 yen | 2,200,000 yen (upper limit) |
Inquiries about this page
Inagi City Citizens Department Taxation Division
2111 Higashi Naganuma, Inagi City, Tokyo
Phone: 042-378-2111 Fax: 042-370-7055
