Income Tax Act

If a Resident has a claimable dependent, the Resident is allowed 380,000 yen (or 630,000 yen, if that dependent is a specified dependent, and 480,000 yen, if that dependent is an elderly dependent) for each claimable dependent as a deduction from the Resident's gross income, retirement income, or timber income for the year.

A deduction under the preceding paragraph is referred to as a deduction for Dependents.

If a Resident has any of the relatives aged 19 or older but under 23 whose living expenses are paid from the same resources as the Resident (other than the Resident's spouse) and children placed with a foster parent prescribed in Article 6-4 (Definitions) of the Child Welfare Act pursuant to Article 27, paragraph (1), item (iii) (Measures to Be Taken by Prefectures) of that Act (excluding one who falls under the category of a relative employed only by a blue-return filer prescribed in Article 57, paragraph (1) (Special Provisions on Necessary Expenses If Relatives Work Exclusively for a Resident) and who receives a salary prescribed in that paragraph, and one who falls under the category of a relative employed only by the Resident prescribed in paragraph (3) of that Article, and limited to one whose total income is 1,230,000 yen or less) who does not fall under the category of claimable dependent (referred to as a "specified relative" in this paragraph and the following paragraph), the Resident is allowed, for each specified relative, the amount specified in each of the following items for the category set forth in that item to which the specified relative belongs, as a deduction from the Resident's gross income, retirement income, or timber income for the year:

a specified relative whose total income is 850,000 yen or less: 630,000 yen;

a specified relative whose total income exceeds 850,000 yen but does not exceed 1,150,000 yen: the amount obtained by deducting from 630,000 yen the amount obtained by multiplying by two the amount of the portion of the specified relative's total income that exceeds 840,001 yen (or, if the amount so obtained is not an amount obtained by deducting 80,000 yen from a whole-number multiple of 100,000 yen, the largest of the amounts obtained by deducting 80,000 yen from a whole-number multiple of 100,000 yen that are less than the amount so obtained);

a specified relative whose total income exceeds 1,150,000 yen but does not exceed 1,200,000 yen: 60,000 yen;

a specified relative whose total income exceeds 1,200,000 yen: 30,000 yen.

The provisions of the preceding paragraph do not apply in any of the following cases:

if the specified relative is subject to the application of the provisions of the preceding paragraph as a Resident prescribed in that paragraph;

if the specified relative is subject to the application of 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) as a Resident who has a relative for withholding deduction (limited to a specified relative) stated in a salary income earner's return for deduction for Dependents, etc. or in a return for deduction for Dependents, etc. regarding secondary salaries (excluding the case where the specified relative who is subject to the application of those provisions as that Resident is a person to whom the provisions of Article 190 (Year-End Adjustment) have been applied, or a person who has filed a Tax Return or has received a determination, with respect to income tax for the year);

beyond the cases set forth in the preceding two items, a case prescribed by Cabinet Order.

A deduction under paragraph (1) is referred to as a special deduction for specified relatives.

In the cases referred to in Article 79, paragraph (1) (Disability Deduction) or Articles 80 through 82 (Widow Deduction and Other Deductions), whether a Resident falls under the category of a Person with a Particular Disability or any other Person with a Disability, a widow, a single parent, or a working student is determined based on the circumstances as of December 31 of that year (or as of the time of the person's death or Absence From Japan, if the person dies or becomes absent from Japan partway through the year; the same applies hereinafter in this Article); provided, however, that if a child of the Resident has already died as of that time, whether that child falls under the category of a child of the Resident prescribed by Cabinet Order as referred to in Article 2, paragraph (1), item (xxxi), (a) (Definitions) is determined based on the circumstances as of the time of that death.

In the cases referred to in Article 79, paragraph (2) or (3), whether a Resident's spouse in the same household or Dependent falls under the category of a Person with a Particular Disability who falls under paragraph (3) of that Article (referred to as a "cohabiting Person with a Particular Disability" in Article 187 (Amount Withheld for Persons Eligible for the Disability Deduction and Similar Deductions), Article 190, item (ii), (c) (Year-End Adjustment), Article 194, paragraph (1), item (iii) (Salary Income Earner's Return for Deduction for Dependents, Etc.), Article 203-3, item (i), (g) (Amount Withheld), and Article 203-6, paragraph (1), item (v) (Return for Dependents, Etc. by a Recipient of a public pension or retirement package)) or any other Person with a Particular Disability, or a Person with a Disability other than a Person with a Particular Disability is determined based on the circumstances as of December 31 of that year; provided, however, that if that spouse in the same household or Dependent has already died as of that time, it is determined based on the circumstances as of the time of that death.

In the cases referred to in Article 79 through the preceding Article, whether a person falls under the category of a Resident's Claimable Elderly Spouse, other Claimable Spouse, other spouse in the same household, or spouse whose living expenses are paid from the same resources as the Resident prescribed in Article 83-2, paragraph (1) (Special Spousal Deduction), or of a Resident's specified dependent, elderly dependent, other claimable dependent, other dependent, or specified relative prescribed in paragraph (1) of the preceding Article (referred to as a "specified relative" in paragraphs (5) through (7)) is determined based on the circumstances as of December 31 of that year; provided, however, that if the person subject to that determination has already died as of that time, it is determined based on the circumstances as of the time of that death.

If the spouse of one Resident falls under the category of that Resident's spouse in the same household and also falls under the category of another Resident's dependent, the spouse is deemed, pursuant to Cabinet Order, to fall under only one of these categories.

If the spouse of one Resident falls under the category of that Resident's spouse whose living expenses are paid from the same resources as the Resident prescribed in Article 83-2, paragraph (1) and also falls under the category of another Resident's specified relative, the spouse is deemed, pursuant to Cabinet Order, to fall under only one of these categories.

If a person falls under the category of dependent or specified relative of two or more Residents, the person is deemed, pursuant to Cabinet Order, to fall under the category of dependent or specified relative of only one of those Residents.

Special provisions on the scope of spouses in the same household, spouses whose living expenses are paid from the same resources as the Resident prescribed in Article 83-2, paragraph (1), dependents, and specified relatives with regard to a spouse who died or a spouse whom the Resident remarried, in the case where a Resident's spouse dies partway through the year and the Resident remarries during that year, are specified by Cabinet Order.

A Resident whose total income is 25,000,000 yen or less is allowed the amount specified in each of the following items for the category of case set forth in that item as a deduction from gross income, retirement income, or timber income for the year:

if the Resident's total income is 23,500,000 yen or less: 620,000 yen;

if the Resident's total income exceeds 23,500,000 yen but does not exceed 24,000,000 yen: 480,000 yen;

if the Resident's total income exceeds 24,000,000 yen but does not exceed 24,500,000 yen: 320,000 yen;

if the Resident's total income exceeds 24,500,000 yen but does not exceed 25,000,000 yen: 160,000 yen.

The deduction under the preceding paragraph is referred to as the basic personal exemption.

If the taxpayer takes both a Casualty Loss deduction and a medical expense deduction, social insurance premium deduction, deduction for small enterprise-based mutual aid premiums and similar payments, life insurance premium deduction, earthquake insurance premium deduction, donation deduction, disability deduction, widow deduction, single parent deduction, working student deduction, spousal deduction, special spousal deduction, deduction for Dependents, special deduction for specified relatives, or basic personal exemption, the Casualty Loss deduction is to be applied first.

The amount to be taken as a deduction as referred to in the preceding paragraph is to be deducted against the amount of the taxpayer's gross income, timber income, or retirement income, in that order.