Act on Special Measures Concerning Taxation

With regard to the application of the provisions of Article 190 of the Income Tax Act to the salary or other wage of a resident whose payment has become fixed during 2024, the amount of tax listed in item (ii) of that Article is the amount equivalent to the amount after deducting the special deduction for year-end adjustment from the amount equivalent to that amount of tax; provided, however, that this does not apply where the estimated amount of the resident's total income for that year relating to income tax for that year exceeds 18,050,000 yen.

The special deduction for year-end adjustment prescribed in the preceding paragraph is 30,000 yen (or, if there are any of the following persons, the amount obtained by adding 30,000 yen per such person to 30,000 yen). In this case, if that amount exceeds the amount of tax listed in Article 190, item (ii) of the Income Tax Act obtained by applying the provisions of Article 190 of that Act (including, where the provisions of Article 41-2-2 or any other provisions specified by Order of the Ministry of Finance apply, those provisions) to the salaries or other wages whose payment has become fixed during 2024, the special deduction for year-end adjustment is the amount equivalent to that amount of tax:

a spouse eligible for deduction (meaning a spouse eligible for deduction prescribed in Article 2, paragraph (1), item (xxxiii)-2 of the Income Tax Act, limited to a resident) stated in the salary income earner's return for deduction for spouse, etc. prescribed in Article 195-2, paragraph (3) of that Act;

a claimable dependent stated in the salary income earner's return for deduction for Dependents, etc.;

a spouse in the same household (excluding a person listed in item (i)) stated in the return prescribed in paragraph (4);

a dependent (excluding a person listed in item (ii)) stated in the return prescribed in paragraph (4).

With regard to the application of the provisions of Article 2, paragraph (1), item (xlv) of the Income Tax Act where the provisions of paragraph (1) apply, the phrase "through Chapter VI (Withholding at the Source)" in that item is deemed to be replaced with "through Chapter VI (Withholding at the Source) and Article 41-3-8, paragraph (1) of the Act on Special Measures Concerning Taxation (Deduction, etc. of the Amount of Special Deduction in Year-End Adjustment in 2024)".

A resident who receives payment of a salary or other wage in Japan must, if the resident seeks to apply the provisions of paragraph (1) with regard to the special deduction for year-end adjustment prescribed in paragraph (2) relating to the persons listed in item (iii) or item (iv) of that paragraph in calculating the amount of excess or deficiency prescribed in Article 190 of the Income Tax Act, submit, by the date on which the resident receives the last payment of a salary or other wage for that year from the person paying the salary or other wage (or, if receiving payment of salaries or other wages from two or more persons paying the salary or other wage, the principal person paying the salary or other wage), a return stating the names and individual numbers (or, for a person who does not have an individual number, the name) of the persons listed in item (iii) or item (iv) of paragraph (2) and other matters specified by Order of the Ministry of Finance, via that person paying the salary or other wage, to the district director having jurisdiction over the place for tax payment under Article 17 of that Act for the income tax on the salary or other wage.

With regard to the application of the provisions of Article 198, paragraph (4) of the Income Tax Act and Article 41-3-12, paragraph (6) where the provisions of the preceding paragraph apply, the phrase "the following returns" in Article 198, paragraph (4) of that Act is deemed to be replaced with "the following returns or the return prescribed in Article 41-3-8, paragraph (4) of the Act on Special Measures Concerning Taxation (Deduction, etc. of the Amount of Special Deduction in Year-End Adjustment in 2024)", and the phrase "or a return listed in any of the items of Article 198, paragraph (4) of the Income Tax Act" in Article 41-3-12, paragraph (6) with ", a return listed in any of the items of Article 198, paragraph (4) of the Income Tax Act or the return prescribed in Article 41-3-8, paragraph (4)".

The provisions of paragraphs (6) through (9) of the preceding Article apply mutatis mutandis to the submission of the return prescribed in paragraph (4).

Where a resident who receives payment of a salary or other wage in Japan has submitted to the person paying the salary or other wage a return to be submitted pursuant to the provisions of Article 45-3-2, paragraph (1) or Article 317-3-2, paragraph (1) of the Local Tax Act with regard to the salary prescribed in Article 45-2, paragraph (1) of that Act during 2024 (including a return to be submitted pursuant to the provisions of Article 45-3-2, paragraph (3) or Article 317-3-2, paragraph (3) of that Act, and limited to a return containing a statement concerning a dependent (excluding a person listed in paragraph (2), item (ii); the same applies hereinafter in this paragraph); hereinafter referred to as a "salary income earner's return for Dependents, etc. under the Local Tax Act" in this paragraph and the following paragraph) (including providing the matters to be stated in the salary income earner's return for Dependents, etc. under the Local Tax Act by the electronic or magnetic means prescribed in Article 45-3-2, paragraph (5) or Article 317-3-2, paragraph (5) of that Act in lieu of submitting the salary income earner's return for Dependents, etc. under the Local Tax Act), then, with regard to the application of the provisions of this Article, a return prescribed in paragraph (4) containing a statement concerning the dependent is deemed to have been submitted on the date on which the salary income earner's return for Dependents, etc. under the Local Tax Act was so submitted (or, if that date is before June 1 of that year, on June 1 of that year); provided, however, that this does not apply if the return was submitted (including the provision of the matters to be stated in the return by the electronic or magnetic means prescribed in paragraph (7) of the preceding Article as applied mutatis mutandis pursuant to the preceding paragraph in lieu of submitting the return) before the date on which the salary income earner's return for Dependents, etc. under the Local Tax Act was so submitted.

In the case referred to in the main clause of the preceding paragraph, the matters stated in the salary income earner's return for Dependents, etc. under the Local Tax Act referred to in that paragraph that correspond to the matters prescribed in paragraph (4) are deemed to have been stated in the return prescribed in that paragraph.

A resident who receives payment of a salary or other wage in Japan and seeks to apply the provisions of paragraph (1) (excluding a resident who has submitted to the person paying the salary or other wage a salary income earner's return for basic deduction prescribed in Article 195-3, paragraph (2) of the Income Tax Act relating to the salary or other wage referred to in that paragraph (including providing the matters to be stated in the salary income earner's return for basic deduction by the electronic or magnetic means prescribed in Article 198, paragraph (2) of that Act in lieu of submitting the salary income earner's return for basic deduction) and any other person specified by Order of the Ministry of Finance) must notify the person paying the salary or other wage (or, if receiving payment of salaries or other wages from two or more persons paying the salary or other wage, the principal person paying the salary or other wage) of the estimated amount of total income referred to in paragraph (1), by the date on which the resident receives the last payment of a salary or other wage for that year from that person paying the salary or other wage.

The amount of income tax to be collected pursuant to the provisions of Part IV, Chapter III-2 of the Income Tax Act on the specified public pension or retirement package specified by Cabinet Order relating to the income tax for 2024 (referred to as the "first public pension or retirement package subject to the special deduction" in the following paragraph) that a resident who is a person receiving payment of public pensions or retirement packages prescribed in Article 35, paragraph (3) of that Act that are specified by Cabinet Order (each hereinafter referred to as a "specified public pension or retirement package" in this paragraph, the following paragraph and paragraph (5)) first receives from the person paying the specified public pension or retirement package on or after June 1, 2024 is the amount equivalent to the amount after deducting the special pension deduction from the amount equivalent to that amount of income tax (hereinafter referred to as the "pre-deduction withholding tax on the first public pension or retirement package subject to the special deduction" in this paragraph and the following paragraph). In this case, if the special pension deduction exceeds the pre-deduction withholding tax on the first public pension or retirement package subject to the special deduction, the amount to be deducted is the amount equivalent to the pre-deduction withholding tax on the first public pension or retirement package subject to the special deduction.

In the case referred to in the preceding paragraph, if there is any amount of the special pension deduction that could not be fully deducted even after deducting it from the pre-deduction withholding tax on the first public pension or retirement package subject to the special deduction (hereinafter referred to as the "special pension deduction not deducted at the first payment" in this paragraph), the amount of income tax to be collected pursuant to the provisions of that Chapter on each second or later public pension or retirement package subject to the special deduction is the amount equivalent to the amount obtained by successively deducting the special pension deduction not deducted at the first payment (up to the amount equivalent to the pre-deduction withholding tax on the second or later public pension or retirement package subject to the special deduction in each case) from the amount equivalent to the amount of income tax to be collected pursuant to the provisions of Part IV, Chapter III-2 of the Income Tax Act (hereinafter referred to as the "pre-deduction withholding tax on the second or later public pension or retirement package subject to the special deduction" in this paragraph) on the specified public pensions or retirement packages relating to the income tax for 2024 that are specified by Cabinet Order (hereinafter each referred to as a "second or later public pension or retirement package subject to the special deduction" in this paragraph) that the resident referred to in the preceding paragraph receives from the person paying the first public pension or retirement package subject to the special deduction after the date on which the resident received payment of the first public pension or retirement package subject to the special deduction.

The special pension deduction prescribed in the preceding two paragraphs is 30,000 yen (or, if there are any of the following persons, the amount obtained by adding 30,000 yen per such person to 30,000 yen):

a spouse for withholding deduction stated in the return for Dependents, etc. by a recipient of a public pension or retirement package (meaning the return for Dependents, etc. by a recipient of a public pension or retirement package prescribed in Article 203-6, paragraph (8) of the Income Tax Act; the same applies in the following item), whose estimated amount of total income is 480,000 yen or less;

a claimable dependent stated in the return for Dependents, etc. by a recipient of a public pension or retirement package.

With regard to the application of the provisions of the Income Tax Act and other laws and regulations concerning income tax where the provisions of paragraph (1) or paragraph (2) apply, the amount equivalent to the amount after the deduction under paragraph (1) or paragraph (2) is deemed to be the amount of income tax to be collected pursuant to the provisions of Part IV, Chapter III-2 of the Income Tax Act, respectively.

Where the resident referred to in paragraph (1) who receives payment of a specified public pension or retirement package has submitted to the person paying the specified public pension or retirement package a return to be submitted pursuant to the provisions of Article 45-3-3, paragraph (1) of the Local Tax Act or Article 317-3-3, paragraph (1) of that Act with regard to the public pensions or retirement packages prescribed in Article 45-3-3, paragraph (1) of that Act during 2024 (including a return to be submitted pursuant to the provisions of Article 45-3-3, paragraph (2) or Article 317-3-3, paragraph (2) of that Act, and limited to a return containing a statement concerning a dependent (excluding a person listed in paragraph (3), item (ii); the same applies hereinafter in this paragraph and the following paragraph); hereinafter referred to as a "return for Dependents, etc. by a recipient of a public pension or retirement package under the Local Tax Act" in this paragraph and the following paragraph) (including providing the matters to be stated in the return for Dependents, etc. by a recipient of a public pension or retirement package under the Local Tax Act by the electronic or magnetic means prescribed in Article 45-3-3, paragraph (4) or Article 317-3-3, paragraph (4) of that Act in lieu of submitting the return for Dependents, etc. by a recipient of a public pension or retirement package under the Local Tax Act; the same applies in the following paragraph), the provisions of this Article apply by deeming the dependent to be a person listed in that item.

In the case referred to in the preceding paragraph, the name of the dependent and other matters specified by Order of the Ministry of Finance, out of the matters stated in the return for Dependents, etc. by a recipient of a public pension or retirement package under the Local Tax Act referred to in that paragraph (or, where a return under Article 45-3-3, paragraph (2) or Article 317-3-3, paragraph (2) of the Local Tax Act has been submitted, the matters to be stated as prescribed in those provisions), are deemed to have been stated in the return for Dependents, etc. by a recipient of a public pension or retirement package prescribed in paragraph (3), item (i).

Beyond what is provided for in Article 41-3-3, paragraphs (3) through (7) and Article 41-3-4 through the preceding Article, matters necessary for determining to whom a spouse in the same household or a dependent belongs in the case where the spouse of one resident falls under a spouse in the same household of that resident and also falls under a dependent of another resident and in other cases, the technical replacement of terms in the provisions of the Income Tax Act and other laws and regulations where the provisions of this Section apply, and other necessary matters concerning the application of the provisions of this Section are specified by Cabinet Order.