Main changes to municipal tax and metropolitan tax in 2020

Regarding the unification of taxation methods regarding dividend income, etc. from listed stocks, etc.

The taxation method for income related to specified dividends, etc. and specified stock transfer income has been made consistent with income tax.
As a result, it will no longer be possible to select different taxation methods for income tax and resident tax .
When you declare income related to specific dividends, etc. and specific stock transfer income amount for income tax, these incomes are also included in income for resident tax.
This will affect the application of dependent deductions and spousal deductions, tax exemption determinations, calculations of National Health Insurance taxes, late-stage elderly medical insurance premiums, long-term care insurance premiums, etc., as well as various administrative services. Please note that there may be cases.

Regarding the review of dependent deductions for relatives residing overseas

From FY2020, the requirements for relatives residing overseas to be eligible for dependent deductions have been tightened, and in principle, those aged 30 to under 70 will be excluded . However, the following persons may be eligible for dependent deductions, etc.

• Persons who became non-residents due to studying abroad
• handicapped
• Those who receive payments of 380,000 yen or more to cover living expenses or educational expenses in that year from taxpayers who declare dependent deductions, etc.

Regarding the establishment of forest environmental tax

Forest environment tax is a national tax created to finance measures related to forest maintenance and promotion, and is levied on individuals residing in Japan.
From 2020, an annual tax of 1,000 yen will be levied together with the per capita individual residence tax, which will be collected by the city along with municipal tax and metropolitan tax.
In addition, an annual amount of 1,000 yen is added to the per capita amount as a financial resource for disaster prevention measures based on the lessons learned from the Great East Japan Earthquake, but this will end in 2025.