Main changes to municipal tax and Tokyo inhabitant tax in 2017

The self-medication tax system (special medical expense deduction) allows individuals who take certain steps to maintain and improve their health and prevent disease to receive an income deduction for the cost of purchasing "switch OTC drugs" (prescription drugs and over-the-counter drugs that have been repurposed for medical use) on or after January 1, 2017.

Self-medication tax system is an option between normal medical expense deduction.

If you receive income deductions under the self-medication tax system (special provisions for medical expense deductions), you cannot receive income deductions under normal medical expense deductions. please note.

Differences in deduction calculation from normal medical expenses deduction

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

(Purchase cost of eligible Switch OTC drugs for one year) - (Amount covered by insurance, etc.) - (12,000 yen) = (Deduction amount)
Note: The maximum deduction amount is 88,000 yen.

For normal medical expense deduction

(Medical expenses paid to hospitals, etc. for one year) - (Amount compensated by insurance, etc.) - (5% of annual income [maximum 100,000 yen]) = (deduction amount)
Note: The upper limit of the deduction amount is 2 million yen.

For details, please visit the Ministry of Health, Labour and Welfare website.

You can check the eligible items and conditions for receiving deductions on the above website.

Revision of salary income deduction amount

The calculation method for employment income deductions for employment income from 2016 onward will be revised as shown in the table below.

For 2016
Amount of income such as salary (amount paid on withholding tax slip for employment income)	Salary income deduction amount
1,800,000 yen or less	Income amount x 40% 650,000 yen if the amount is less than 650,000 yen
More than 1,800,000 yen but less than 3,600,000 yen	Income amount x 30% + 180,000 yen
Over 3,600,000 yen and up to 6,600,000 yen	Income amount x 20% + 540,000 yen
More than 6,600,000 yen but less than 10,000,000 yen	Income amount x 10% + 1,200,000 yen
More than 10,000,000 yen but less than 12,000,000 yen	Revenue amount x 5% + 1,700,000 yen
Over 12,000,000 yen	2,300,000 yen (upper limit)

For 2017
Amount of income such as salary (amount paid on withholding tax slip for employment income)	Salary income deduction amount
1,800,000 yen or less	Income amount x 40% 650,000 yen if the amount is less than 650,000 yen
More than 1,800,000 yen but less than 3,600,000 yen	Income amount x 30% + 180,000 yen
Over 3,600,000 yen and up to 6,600,000 yen	Income amount x 20% + 540,000 yen
More than 6,600,000 yen but less than 10,000,000 yen	Income amount x 10% + 1,200,000 yen
Over 10,000,000 yen	2,200,000 yen (maximum)

Reference matters 2013 to 2013 (before revision)
Amount of income such as salary (amount paid on withholding tax slip for employment income)	Salary income deduction amount
1,800,000 yen or less	Income amount x 40% 650,000 yen if the amount is less than 650,000 yen
More than 1,800,000 yen but less than 3,600,000 yen	Income amount x 30% + 180,000 yen
Over 3,600,000 yen and up to 6,600,000 yen	Income amount x 20% + 540,000 yen
More than 6,600,000 yen but less than 10,000,000 yen	Income amount x 10% + 1,200,000 yen
More than 10,000,000 yen but less than 15,000,000 yen	Revenue amount x 5% + 1,700,000 yen
Over 15,000,000 yen	2,450,000 yen (upper limit)

How to declare and tax dividend income from stocks, etc. and transfer income, etc.

Dividends from stocks, etc. that individuals receive from corporations, etc. are taxed as dividend income together with other income (salary income, real estate income, etc.) under comprehensive taxation, but as an exception, dividend income from listed stocks, etc. is taxed separately from other income and specially collected when the dividends are paid, as "resident tax dividend portion." Since the taxation relationship ends with the special collection of "resident tax dividend portion," there is no need to declare dividend income from listed stocks, etc. (no declaration required system), but you can also choose comprehensive taxation or separate declaration taxation to apply for various income deductions, etc.
Note: Please note that declared dividend income from listed stocks, etc. will be included in the gross income amount or total income amount that is used as the basis for applying dependent deductions and spousal deductions, determining tax exemption, calculating national health insurance premiums, etc.
Note: By submitting a municipal tax/metropolitan resident tax return in addition to your final tax return by the date the tax notice is delivered, you can choose a taxation method different from that for income tax, etc. (no filing required, comprehensive taxation, separate filing taxation).