Income Tax Act

If a person stated as a relative for withholding deduction (limited to a specified relative as prescribed in Article 84-2, paragraph (1) (Special Deduction for Specified Relatives); hereinafter the same applies in this Article) (hereinafter referred to as a "covered person" in this Article) in a salary income earner's return for deduction for dependents, etc. or return for deduction for dependents, etc. regarding secondary salaries filed by a Resident (hereinafter referred to as a "covered Resident" in this Article) is subject to the provisions of Article 185, paragraph (1), item (i) or (ii) (Amount Withheld from a Salary or Other Wage Other Than a Bonus) or Article 186, paragraph (1), item (i) or paragraph (2), item (i) (Amount Withheld from Bonuses), with another person as a relative for withholding deduction stated in a salary income earner's return for deduction for dependents, etc. or return for deduction for dependents, etc. regarding secondary salaries filed by the covered person, the provisions of Article 185, paragraph (1), items (i) and (ii) and Article 186, paragraph (1), item (i) and paragraph (2), item (i) apply by deeming that the covered person is not stated as a relative for withholding deduction in the salary income earner's return for deduction for dependents, etc. or return for deduction for dependents, etc. regarding secondary salaries filed by the covered Resident.

If a Resident has filed a salary income earner's return for deduction for dependents, etc. which states that the Resident falls under the category of a Person with a Disability, widow, single parent, or working student (if that working student is a person set forth in Article 2, paragraph (1), item (xxxii), (b) or (c) (Definitions), limited to a Resident who, in addition to stating in that return that the Resident falls under the category of a working student, has submitted or presented the documents prescribed in Article 194, paragraph (4) (Salary Income Earner's Return for Deduction for Dependents, etc.)), the provisions of Article 185, paragraph (1), item (i) (Amount Withheld from a Salary or Other Wage Other Than a Bonus) and Article 186, paragraph (1), item (i) and paragraph (2), item (i) (Amount Withheld from Bonuses) apply by deeming that the return states one relative for withholding deduction for each of those categories that the Resident falls under, and if that return states that there is a Person with a Disability or a cohabiting Person with a Particular Disability among the Resident's spouse in the same household or dependents (if that Person with a Disability or cohabiting Person with a Particular Disability is a relative residing outside Japan, limited to a Person with a Disability or cohabiting Person with a Particular Disability for whom the documents prescribed in paragraph (5) of that Article have been submitted or presented), by deeming that the return states one additional relative for withholding deduction for each such person.

If social insurance premiums as prescribed in Article 74, paragraph (2) (Social Insurance Premium Deduction) or small enterprise-based mutual aid premiums and similar payments as prescribed in Article 75, paragraph (2) (Deduction for Small Enterprise-Based Mutual Aid Premiums and Similar Payments) are deducted at the time a salary or other wage is paid, for the purpose of applying the provisions of Article 185 (Amount Withheld from a Salary or Other Wage Other Than a Bonus) or Article 186 (Amount Withheld from Bonuses), a salary or other wage is deemed to have been paid in the amount equivalent to the balance remaining after deducting the sum total of the amount of those social insurance premiums and the amount of those small enterprise-based mutual aid premiums and similar payments from the amount equivalent to the amount of that salary or other wage, and if no balance remains, that salary or other wage is deemed not to have been paid.

If the person paying a salary or other wage through whom a Resident filed a salary income earner's return for deduction for dependents, etc. applies the provisions of Article 185, paragraph (1), item (i), (a) through (d) (Amount Withheld from a Salary or Other Wage Other Than a Bonus) and Article 186, paragraph (1), item (i), (b) and paragraph (2), item (i) (Amount Withheld from Bonuses) to the salary or other wage it pays to that Resident, and processes its calculations concerning the amounts of salary or other wage paid using office machines, the amount of tax set forth in column A of Appended Table 2 as prescribed in those provisions may be replaced with the amount calculated by a method that the Minister of Finance specifies as being equivalent to the method by which that amount of tax was calculated.

When the Minister of Finance has made the specification referred to in the preceding paragraph, the Minister issues public notice of it.

If a person paying a salary or other wage via whom a Resident has submitted a salary income earner's return for deduction for Dependents, etc. makes the last payment of salary or other wage for the year to that Resident, whose amount of salary or other wage that it has been decided will be paid during the year, as prescribed in item (i), is 20 million yen or less (except where the Resident is expected to submit that declaration to a person other than that payer after that time and by December 31 of that year), and the total amount of income taxes set forth in that item is in excess of or falls short of the amount of tax set forth in item (ii) as calculated based on the circumstances at the time the last payment of salary or other wage for the year is made, the payer must make an Appropriation of the excess amount to the income taxes to be withheld when making the last payment of salary or other wage for the year, and must withhold the shortfall when making the last payment of salary or other wage for the year and pay it over to the national government by the 10th day of the month following the month in which the day of withholding falls.

the total amount of income taxes withheld or to be withheld pursuant to Article 183, paragraph (1) (Obligation to Withhold Taxes) from the salary or other wage that it has been decided will be paid to the Resident during the year (including, if the Resident has during the year submitted another salary income earner's return for deduction for Dependents, etc. via another person paying a salary or other wage, the salary or other wage specified by Cabinet Order out of the salary or other wage that it has been decided that other person paying a salary or other wage will pay to the Resident during the year; the same applies in the following item);

the amount of tax calculated by applying Article 89, paragraph (1) (Tax Rates) with the amount remaining after deducting the total of the following amounts from the amount of salary or other wage after the salary income deduction found in Appended Table V according to the amount of salary or other wage that it has been decided will be paid to the Resident during the year (or, if that amount includes a fractional amount of less than 1,000 yen or the whole of that amount is less than 1,000 yen, the amount after rounding down that fractional amount or the whole amount) deemed to be the amount of taxable total income:

the amount of social insurance premiums as prescribed in Article 74, paragraph (2) (Social Insurance Premium Deduction) (referred to as "social insurance premiums" in (b)) and the amount of small enterprise-based mutual aid premiums and similar payments as prescribed in Article 75, paragraph (2) (Deduction for Small Enterprise-Based Mutual Aid Premiums and Similar Payments) (referred to as "small enterprise-based mutual aid premiums and similar payments" in (b)) that are deducted from that salary or other wage;

the amount that would be deducted if Articles 74 through 77 applied to the amount of social insurance premiums and the amount of small enterprise-based mutual aid premiums and similar payments paid during the year (in each case excluding those set forth in (a), and limited to those stated in a salary income earner's return for insurance premium deduction submitted by the Resident during the year (for the amount of social insurance premiums and the amount of small enterprise-based mutual aid premiums and similar payments prescribed in Article 196, paragraph (2) (Salary Income Earner's Return for Insurance Premium Deduction), limited to those for which the documents prescribed in that paragraph have been submitted or presented)), and to the amount of new life insurance premiums and the amount of old life insurance premiums prescribed in Article 76, paragraph (1) (Life Insurance Premium Deduction), the amount of nursing care and medical insurance premiums prescribed in paragraph (2) of that Article, the amount of the new individual pension insurance premium and the amount of the old individual pension insurance premium prescribed in paragraph (3) of that Article, and the amount of earthquake insurance premiums prescribed in Article 77, paragraph (1) (Earthquake Insurance Premium Deduction) (limited to those of these amounts that are stated in that declaration and for which the documents prescribed in Article 196, paragraph (2) have been submitted or presented);

the amounts equivalent to the disability deduction, the widow deduction, the single parent deduction, the working student deduction, and the deduction for Dependents, calculated in accordance with Articles 79 through 82 (Disability Deduction, etc.) and Article 84 (Deduction for Dependents), according to whether there is any cohabiting Person with a Particular Disability, any other Person with a Particular Disability, or any Person with a Disability other than a Person with a Particular Disability stated in that salary income earner's return for deduction for Dependents, etc. (if that cohabiting Person with a Particular Disability, other Person with a Particular Disability, or Person with a Disability other than a Person with a Particular Disability is a relative residing outside Japan, limited to a cohabiting Person with a Particular Disability, other Person with a Particular Disability, or Person with a Disability other than a Person with a Particular Disability for whom the documents prescribed in Article 194, paragraphs (5) and (7) (Salary Income Earner's Return for Deduction for Dependents, etc.) have been submitted or presented) and the number of such persons, whether that declaration states that the Resident is a Person with a Particular Disability or any other Person with a Disability, a widow, a single parent, or a working student (if the working student is a person set forth in Article 2, paragraph (1), item (xxxii), (b) or (c) (Definitions), whether the documents prescribed in Article 194, paragraph (4) have been submitted or presented, in addition to whether that declaration states that the Resident is a working student), whether there is any relative for withholding deduction stated in that declaration (if the Resident is paid a salary or other wage by two or more persons paying a salary or other wage, the relative for withholding deduction prescribed in paragraph (1), item (vi) of that Article, and if a relative for withholding deduction stated in that declaration is a relative residing outside Japan, limited to a relative for withholding deduction for whom the documents prescribed in paragraphs (5) and (7) of that Article have been submitted or presented), the number of those relatives for withholding deduction, and other particulars;

the amount equivalent to the spousal deduction or the special spousal deduction, calculated in accordance with Article 83 (Spousal Deduction) or Article 83-2, according to the estimated amount of the Resident's total income as prescribed in Article 2, paragraph (1), item (xxx) (referred to as "total income" in this item) stated in a salary income earner's return for spousal deduction, etc., whether there is a Claimable Spouse or a spouse whose living expenses are paid from the same resources as the Resident as prescribed in Article 83-2, paragraph (1) (Special Spousal Deduction) stated in that declaration (if that Claimable Spouse or spouse is a person about whom the entry referred to in Article 194, paragraph (5) or Article 195-2, paragraph (2) (Salary Income Earner's Return for Spousal Deduction, etc.) has been made, limited to a Claimable Spouse or spouse for whom the documents prescribed in those provisions have been submitted or presented), whether that Claimable Spouse falls under the category of a Claimable Elderly Spouse, whether that Claimable Spouse or spouse has submitted that declaration as a Resident prescribed in this Article, whether that Claimable Spouse or spouse has submitted, as a Resident prescribed in Article 203-6, paragraph (1) (Return for Dependents, etc. by a Recipient of a public pension or retirement package), a return for Dependents, etc. by a recipient of a public pension or retirement package stating the particulars set forth in item (iii) of that paragraph, and the total income of that Claimable Spouse or spouse or its estimated amount;

the amount equivalent to the special deduction for specified relatives, calculated in accordance with Article 84-2, according to whether there is any specified relative (meaning a specified relative as prescribed in Article 84-2, paragraph (1) (Special Deduction for Specified Relatives); the same applies in (e)) stated in a salary income earner's return for special deduction for specified relatives (if that specified relative is a person about whom the entry referred to in Article 194, paragraph (5) or Article 195-3, paragraph (2) (Salary Income Earner's Return for Special Deduction for Specified Relatives) has been made, limited to a specified relative for whom the documents prescribed in those provisions have been submitted or presented), whether that specified relative has submitted that declaration as a Resident prescribed in this Article, the total income of that specified relative or its estimated amount, and the number of those specified relatives;

the amount equivalent to the basic personal exemption, calculated in accordance with Article 86 (Basic Personal Exemption), according to the estimated amount of the Resident's total income stated in a salary income earner's return for basic personal exemption.

In the case referred to in the preceding Article, if, after an Appropriation of the excess amount prescribed in that Article to the income taxes to be withheld when the last payment of salary or other wage for the year is made, there remains an excess amount that could not be fully covered by that Appropriation (or, if any part of that excess amount has not yet been withheld, the amount remaining after deducting an amount equivalent to the part not yet withheld; referred to as the "overpaid amount" in this Article), the person paying the salary or other wage referred to in the preceding Article is to refund that overpaid amount.