Topics | Yurakucho CPA Office (Ginza, Tokyo, Japan)

Lower taxes (part 1)

In addition to 'Aoiro Return', there are many ways to reduce your taxes. One of the best ways to do is to reduce your taxable income.

(Taxable income is generally described as 'Gross income minus business expenses or deductions'.)

We cannot cover all the inormation about lowering taxes, but show you some of them.

Medical expenses deductions

This is one of the deductions that many people get. If you go to a hospital and receive medical care, do not forget to receive a receipt for that. If your annual medical expenses exceed JPY 100,000 (some cases it is not necessary), you can reduce your taxes.

It is important to know that:

  • In addition to general medical treatment, deductible medical expenses include dental implants even if Japanese health insurance does not cover.
  • If medical treatment takes a long time and you go to a hospital constantly, it is better to record how much you spent on public transportation (e.g. trains, buses). This is tax deductible.

      • Dependent & Spouse deductions

      If you live with your family, you can get dependent (spouse) deductions. The amount you can reduce your income is JPY 380,000 - JPY 630,000 for each dependent, depending on the age and other conditions.

      Even if you do not live with your family (even your family lives overseas), you still have a chance to get this deduction. You need to prove that they are your dependents and you actually send money to them (financially support them) through certain documents.