Last updated: December 10, 2019
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.
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.
(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.
(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.
You can check the eligible items and conditions for receiving deductions on the above website.
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 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) |
Inagi City Citizens Department Taxation Division Phone: 042-378-2111
