Income Tax Act

If a Resident pays, in any year, insurance premiums or installments under a new life insurance policy or similar contract (for those under the contracts set forth in paragraph (5), items (i) through (iii), limited to those relating to the part under which the insurer promises to pay a fixed amount of insurance proceeds, mutual aid benefits, or other benefits (hereinafter referred to as "insurance proceeds or similar benefits" in this Article) due to survival or death (referred to as the "survival or death portion" in paragraph (3)) and others prescribed by Cabinet Order, and excluding the nursing care and medical insurance premiums prescribed in the following paragraph and the new individual pension insurance premiums prescribed in paragraph (3); hereinafter referred to as "new life insurance premiums" in this paragraph and the following paragraph), or insurance premiums or installments under an old life insurance policy or similar contract (excluding the old individual pension insurance premiums prescribed in paragraph (3) and others prescribed by Cabinet Order; hereinafter referred to as "old life insurance premiums" in this paragraph), the amount prescribed in each of the following items for the category of case set forth in that item is allowed as a deduction from the Resident's gross income, retirement income, or timber income for the year:

if new life insurance premiums are paid (excluding the case set forth in item (iii)): the amount prescribed in each of the following sub-items for the category of case set forth in that sub-item:

if the total amount of new life insurance premiums paid during the year (or, if in that year the Resident received a distribution of surplus or a rebate under a new life insurance policy or similar contract, or applied surplus to be distributed or a rebate to be received under a new life insurance policy or similar contract to the payment of new life insurance premiums, the balance remaining after deducting the amount of that surplus or rebate (limited to the amount calculated pursuant to Cabinet Order as the amount of the portion relating to new life insurance premiums); hereinafter the same applies in this item and item (iii), (a)) is 20,000 yen or less: that total amount;

if the total amount of new life insurance premiums paid during the year exceeds 20,000 yen but is not more than 40,000 yen: the total of 20,000 yen and the amount equivalent to 50% of the amount arrived at when 20,000 yen is deducted from that total amount;

if the total amount of new life insurance premiums paid during the year exceeds 40,000 yen but is not more than 80,000 yen: the total of 30,000 yen and the amount equivalent to 25% of the amount arrived at when 40,000 yen is deducted from that total amount;

if the total amount of new life insurance premiums paid during the year exceeds 80,000 yen: 40,000 yen;

if old life insurance premiums are paid (excluding the case set forth in the following item): the amount prescribed in each of the following sub-items for the category of case set forth in that sub-item:

if the total amount of old life insurance premiums paid during the year (or, if in that year the Resident received a distribution of surplus or a rebate under an old life insurance policy or similar contract, or applied surplus to be distributed or a rebate to be received under an old life insurance policy or similar contract to the payment of old life insurance premiums, the balance remaining after deducting the amount of that surplus or rebate (limited to the amount of the portion relating to old life insurance premiums); hereinafter the same applies in this item and (b) of the following item) is 25,000 yen or less: that total amount;

if the total amount of old life insurance premiums paid during the year exceeds 25,000 yen but is not more than 50,000 yen: the total of 25,000 yen and the amount equivalent to 50% of the amount arrived at when 25,000 yen is deducted from that total amount;

if the total amount of old life insurance premiums paid during the year exceeds 50,000 yen but is not more than 100,000 yen: the total of 37,500 yen and the amount equivalent to 25% of the amount arrived at when 50,000 yen is deducted from that total amount;

if the total amount of old life insurance premiums paid during the year exceeds 100,000 yen: 50,000 yen;

if both new life insurance premiums and old life insurance premiums are paid: the total of the amounts prescribed in each of the following sub-items for the category of premiums paid set forth in that sub-item (or 40,000 yen, if that total exceeds 40,000 yen):

new life insurance premiums: the amount prescribed in (a) through (d) of item (i) for the category of case set forth in (a) through (d) of that item into which the total amount of new life insurance premiums paid during the year falls;

old life insurance premiums: the amount prescribed in (a) through (d) of the preceding item for the category of case set forth in (a) through (d) of that item into which the total amount of old life insurance premiums paid during the year falls.

If a Resident pays, in any year, insurance premiums or installments under a nursing care and medical insurance policy or similar contract (limited to those relating to the part under which the insurer promises to pay insurance proceeds or similar benefits due to being admitted to a hospital or clinic and paying medical expenses prescribed in Article 73, paragraph (2) (Medical Expense Deduction) or any other event prescribed by Cabinet Order (referred to as an "event on which medical or similar expenses are paid" in paragraphs (6) and (7)) and others prescribed by Cabinet Order, and excluding new life insurance premiums; hereinafter referred to as "nursing care and medical insurance premiums" in this paragraph), the amount prescribed in each of the following items for the category of case set forth in that item is allowed as a deduction from the Resident's gross income, retirement income, or timber income for the year:

if the total amount of nursing care and medical insurance premiums paid during the year (or, if in that year the Resident received a distribution of surplus or a rebate under a nursing care and medical insurance policy or similar contract, or applied surplus to be distributed or a rebate to be received under a nursing care and medical insurance policy or similar contract to the payment of nursing care and medical insurance premiums, the balance remaining after deducting the amount of that surplus or rebate (limited to the amount calculated pursuant to Cabinet Order as the amount of the portion relating to nursing care and medical insurance premiums); hereinafter the same applies in this paragraph) is 20,000 yen or less: that total amount;

if the total amount of nursing care and medical insurance premiums paid during the year exceeds 20,000 yen but is not more than 40,000 yen: the total of 20,000 yen and the amount equivalent to 50% of the amount arrived at when 20,000 yen is deducted from that total amount;

if the total amount of nursing care and medical insurance premiums paid during the year exceeds 40,000 yen but is not more than 80,000 yen: the total of 30,000 yen and the amount equivalent to 25% of the amount arrived at when 40,000 yen is deducted from that total amount;

if the total amount of nursing care and medical insurance premiums paid during the year exceeds 80,000 yen: 40,000 yen.

If a Resident pays, in any year, insurance premiums or installments under a new individual pension insurance policy or similar contract (limited to those relating to the survival or death portion; hereinafter referred to as "new individual pension insurance premiums" in this paragraph) or insurance premiums or installments under an old individual pension insurance policy or similar contract (excluding, for a contract to which a special provision is attached for the payment of insurance proceeds or similar benefits due to the person's illness, physical injury, or any other similar event, the insurance premiums or installments relating to that special provision; hereinafter referred to as "old individual pension insurance premiums" in this paragraph), the amount prescribed in each of the following items for the category of case set forth in that item is allowed as a deduction from the Resident's gross income, retirement income, or timber income for the year:

if new individual pension insurance premiums are paid (excluding the case set forth in item (iii)): the amount prescribed in each of the following sub-items for the category of case set forth in that sub-item:

if the total amount of new individual pension insurance premiums paid during the year (or, if in that year the Resident received a distribution of surplus or a rebate under a new individual pension insurance policy or similar contract, or applied surplus to be distributed or a rebate to be received under a new individual pension insurance policy or similar contract to the payment of new individual pension insurance premiums, the balance remaining after deducting the amount of that surplus or rebate (limited to the amount calculated pursuant to Cabinet Order as the amount of the portion relating to new individual pension insurance premiums); hereinafter the same applies in this item and item (iii), (a)) is 20,000 yen or less: that total amount;

if the total amount of new individual pension insurance premiums paid during the year exceeds 20,000 yen but is not more than 40,000 yen: the total of 20,000 yen and the amount equivalent to 50% of the amount arrived at when 20,000 yen is deducted from that total amount;

if the total amount of new individual pension insurance premiums paid during the year exceeds 40,000 yen but is not more than 80,000 yen: the total of 30,000 yen and the amount equivalent to 25% of the amount arrived at when 40,000 yen is deducted from that total amount;

if the total amount of new individual pension insurance premiums paid during the year exceeds 80,000 yen: 40,000 yen;

if old individual pension insurance premiums are paid (excluding the case set forth in the following item): the amount prescribed in each of the following sub-items for the category of case set forth in that sub-item:

if the total amount of old individual pension insurance premiums paid during the year (or, if in that year the Resident received a distribution of surplus or a rebate under an old individual pension insurance policy or similar contract, or applied surplus to be distributed or a rebate to be received under an old individual pension insurance policy or similar contract to the payment of old individual pension insurance premiums, the balance remaining after deducting the amount of that surplus or rebate (limited to the amount of the portion relating to old individual pension insurance premiums); hereinafter the same applies in this item and (b) of the following item) is 25,000 yen or less: that total amount;

if the total amount of old individual pension insurance premiums paid during the year exceeds 25,000 yen but is not more than 50,000 yen: the total of 25,000 yen and the amount equivalent to 50% of the amount arrived at when 25,000 yen is deducted from that total amount;

if the total amount of old individual pension insurance premiums paid during the year exceeds 50,000 yen but does not exceed 100,000 yen: the sum of 37,500 yen and an amount equivalent to one-quarter of the amount obtained by deducting 50,000 yen from that total amount;

if the total amount of old individual pension insurance premiums paid during the year exceeds 100,000 yen: 50,000 yen.

if the Resident has paid new individual pension insurance premiums and old individual pension insurance premiums: the sum total of the amounts specified in the following for the respective categories of premiums paid set forth therein (or 40,000 yen, if that sum total exceeds 40,000 yen):

new individual pension insurance premiums: the amount specified in item (i), (a) through (d) for the category of case set forth in (a) through (d) of that item into which the total amount of new individual pension insurance premiums paid during the year falls;

old individual pension insurance premiums: the amount specified in (a) through (d) of the preceding item for the category of case set forth in (a) through (d) of that item into which the total amount of old individual pension insurance premiums paid during the year falls.

If the total of the amounts to be deducted from the Resident's gross income, retirement income or timber income for the year pursuant to the provisions of the preceding three paragraphs exceeds 120,000 yen, the amount to be deducted from the Resident's gross income, retirement income or timber income for the year pursuant to those provisions is 120,000 yen, notwithstanding those provisions.

The new life insurance policy or similar contract prescribed in paragraph (1) means a contract set forth in the following items that is concluded on or after January 1, 2012 (excluding such a contract concluded before that date that has lapsed and has been reinstated on or after that date; referred to as a "new contract" in this paragraph), or a new contract concluded as a supplement to another insurance policy (including a contract for mutual aid; the same applies in paragraphs (7) and (8)), or, on or after that date, plan rules set forth in item (iv) that have received approval under Article 3, paragraph (1), item (i) (Implementation of Defined-Benefit Corporate Pensions) of the Defined-Benefit Corporate Pension Act or other provisions prescribed by Cabinet Order (referred to as the "approval provisions" in the following paragraph), or plan rules set forth in item (iv) of a corporate pension fund prescribed in item (ii) of that paragraph (referred to as a "corporate pension fund" in the following paragraph) that has received authorization under item (ii) of that paragraph or other provisions prescribed by Cabinet Order (referred to as the "authorization provisions" in the following paragraph) (collectively referred to as "new plan rules" in this paragraph and the following paragraph), under which all of the recipients of insurance proceeds or similar benefits under the new contract or new plan rules are the person who pays the premiums or installments, or that person's spouse or other relatives:

an insurance policy concluded by a life insurance company prescribed in Article 2, paragraph (3) (Definitions) of the Insurance Business Act or a foreign life insurance company, etc. prescribed in paragraph (8) of that Article, under which a fixed amount of insurance proceeds or similar benefits is paid due to survival or death (excluding an insurance policy with an insurance period of less than five years that is prescribed by Cabinet Order (referred to as a "specified insurance policy" in the following paragraph) and one that such a foreign life insurance company, etc. has concluded outside Japan);

a postal life insurance policy prescribed in Article 3 (Government Guarantee) of the Postal Life Insurance Act (Act No. 68 of 1949) prior to its repeal pursuant to the provisions of Article 2 (Repeal of Acts) of the Act on the Development of Relevant Acts Incidental to the Enforcement of the Postal Service Privatization Act and Other Acts (Act No. 102 of 2005) (referred to as a "former postal life insurance policy" in the following paragraph and paragraph (7)), under which a fixed amount of insurance proceeds or similar benefits is paid due to survival or death;

a contract for life mutual aid concluded by an agricultural cooperative engaged in the business referred to in Article 10, paragraph (1), item (x) (Facilities for Mutual Aid) of the Agricultural Co-operatives Act (Act No. 132 of 1947) (excluding a contract for life mutual aid with a mutual aid period of less than five years that is prescribed by Cabinet Order) or any other contract for similar mutual aid prescribed by Cabinet Order (referred to as a "life mutual aid contract or similar contract" in the following paragraph and paragraph (7)), under which a fixed amount of insurance proceeds or similar benefits is paid due to survival or death;

plan rules for a defined-benefit corporate pension prescribed in Article 3, paragraph (1) of the Defined-Benefit Corporate Pension Act, or a similar contract concerning a retirement pension that is prescribed by Cabinet Order.

The old life insurance policy or similar contract prescribed in paragraph (1) means a contract set forth in the following items that was concluded on or before December 31, 2011 (including such a contract concluded on or before that date that has lapsed and has been reinstated after that date), or plan rules set forth in item (v) that have received approval under the approval provisions, or plan rules set forth in that item of a corporate pension fund that has received authorization under the authorization provisions, on or before that date (excluding new plan rules), under which all of the recipients of insurance proceeds or similar benefits under the contract or plan rules are the person who pays the premiums or installments, or that person's spouse or other relatives:

a contract set forth in item (i) of the preceding paragraph;

a former postal life insurance policy;

a life mutual aid contract or similar contract;

an insurance policy concluded by a life insurance company or a foreign life insurance company, etc. prescribed in item (i) of the preceding paragraph, or by a casualty insurance company prescribed in Article 2, paragraph (4) of the Insurance Business Act or a foreign casualty insurance company, etc. prescribed in paragraph (9) of that Article, under which insurance proceeds or similar benefits are paid due to illness, bodily injury, or any other similar cause (excluding one set forth in item (i), one under which the only ground for the payment of insurance proceeds or similar benefits is bodily injury, a specified insurance policy, one that such a foreign life insurance company, etc. or such a foreign casualty insurance company, etc. has concluded outside Japan, and any other one prescribed by Cabinet Order), under which insurance proceeds or similar benefits are paid due to an event on which medical or similar expenses are paid;

plan rules or a contract set forth in item (iv) of the preceding paragraph.

The nursing care and medical insurance policy or similar contract prescribed in paragraph (2) means a contract set forth in the following items that is concluded on or after January 1, 2012 (excluding such a contract concluded before that date that has lapsed and has been reinstated on or after that date; referred to as a "new contract" in this paragraph), or a new contract concluded as a supplement to another insurance policy, under which all of the recipients of insurance proceeds or similar benefits under the new contract are the person who pays the premiums or installments, or that person's spouse or other relatives:

a contract set forth in item (iv) of the preceding paragraph;

a former postal life insurance policy or a life mutual aid contract or similar contract under which insurance proceeds or similar benefits are paid due to illness, bodily injury, or any other similar cause (excluding one set forth in paragraph (5), item (ii) or (iii), one under which the only ground for the payment of insurance proceeds or similar benefits is bodily injury, and any other one prescribed by Cabinet Order), under which insurance proceeds or similar benefits are paid due to an event on which medical or similar expenses are paid.

The new individual pension insurance policy or similar contract prescribed in paragraph (3) means a contract set forth in paragraph (5), items (i) through (iii) that is concluded on or after January 1, 2012 (limited to one that provides for the payment of a pension and is prescribed by Cabinet Order (referred to as an "annuity contract" in the following paragraph), and excluding such a contract concluded before that date that has lapsed and has been reinstated on or after that date; referred to as a "new contract" in this paragraph), or a new contract concluded as a supplement to another insurance policy, that provides for the following requirements:

the recipient of the pension under the contract is to be the person who pays the premiums or installments referred to in the following item or that person's spouse, whichever of them is alive, if either of them is alive;

the premiums or installments under the contract are to be paid periodically over a period of 10 years or more before the date on which the payment of the pension commences;

the pension under the contract is to be paid to the individual specified in item (i) periodically over a period of 10 years or more beginning on or after the date specified in the contract, which is a date on or after the date on which the recipient of the pension reaches 60 years of age, or over the period during which the recipient is alive, and any other requirements prescribed by Cabinet Order.

The old individual pension insurance policy or similar contract prescribed in paragraph (3) means a contract set forth in paragraph (6), items (i) through (iii) that was concluded on or before December 31, 2011 (limited to an annuity contract, and including such a contract concluded on or before that date that has lapsed and has been reinstated after that date), that provides for the requirements set forth in the items of the preceding paragraph.

If, on or after January 1, 2012, a new contract prescribed in paragraph (5), (7) or (8) is concluded as a supplement to an old life insurance policy or similar contract prescribed in paragraph (6) or an old individual pension insurance policy or similar contract prescribed in the preceding paragraph, the provisions of paragraphs (1) through (5), (7) and (8) apply by deeming that old life insurance policy or similar contract or old individual pension insurance policy or similar contract to be a contract concluded on or after that date.

A deduction under paragraphs (1) through (4) is referred to as a life insurance premium deduction.