Notification of revision of the residence tax system (for fiscal 2024)

Contents of tax system revision of personal municipal tax, prefectural tax carried out from 2024 are as follows.

• Unification of taxation methods for dividend income, transfer income, etc. of listed stocks, etc.
• Start of taxation of forest environmental tax
• Additional abolition related to earthquake reconstruction, etc. in the per capita rate tax
• Review of dependent deductions for relatives residing abroad
• Fixed-amount tax reduction for personal residence tax for FY2024

　Regarding dividend income, transfer income, etc. of listed stocks, etc., it was possible to select different taxation methods for income tax and personal residence tax, respectively, but from the 2024 taxation, the taxation method selected in income tax will be applied to personal residence tax, and the taxation method will match between income tax and personal residence tax.
　Along with this, in the “Resident Tax” column in the “Resident Tax / Business Tax” column in the “Resident Tax” column in Table 2 of the income tax final return, the “Not required to declare all specified dividends, specified stocks, etc.” With regard to dividend income, transfer income, etc. of listed stocks, etc., it is no longer possible to select a taxation method different from income tax by filing personal residence tax.

　From fiscal 2024, the forest environmental tax, which is a national tax levied on individuals with Address in Japan, will be charged 1,000 yen per person per year. The Forest Environmental Tax is a national tax that is levied on individuals with Address in Japan from fiscal 2024, based on the Act on Forest Environmental Tax and Forest Environment Transfer Tax (Act No. 3 of 2019) as local financial resources necessary for forest maintenance.
　About collection, it is performed in conjunction with collection of personal city, prefectural tax per capita rate.
Click here for more information about the Forest Environmental Tax.

The taxation of forest environmental tax will begin in fiscal 2024.

　Based on the principles of the Great East Japan Earthquake Reconstruction Basic Law, 1,000 yen per year (500 yen for municipal tax and 500 yen for prefectural tax) was added to promote emergency disaster prevention and reduce disaster damage business, but ended in FY2023. As a result, the per capita rate of Yokohama City in 2024 will be 3,900 yen for municipal tax and 1,300 yen for prefectural tax.

　For relatives residing outside Japan who are subject to dependent deductions, relatives residing outside Japan between the ages of 30 and 70 have a total income of 480,000 yen or less during the previous year (special spouse) Of those who are 1.33 million yen or less in the case of special deductions, dependent deductions (dependency deductions, spouse deductions, spouse special deductions, tax exemption determination) Only if any of the following 1 to be applicable 1 to 1 to apply.

1. Those who have become non-residents due to studying abroad (*1)
2. Persons with disabilities
3. A person who has received more than 380,000 yen payment from the taxpayer to cover living expenses or education expenses in the year (* 2)

※If you fall under 11, you will need a document issued by a foreign government or a foreign local government that proves that you are resident with a qualification equivalent to the status of residence of study abroad.
※2 In the case of 3, a document is required in the current remittance-related documents that clearly indicate that the amount sent is 380,000 yen or more.
(Note) It is necessary to attach these various certificates at the time of year-end adjustment or final tax return.

　The Tax Reform Charter, which was approved by the Cabinet on December 22, 2023, stipulates that a fixed amount tax reduction will be implemented with personal residence tax for 2024. The outline of the system is as follows.
　From the amount of personal residence tax income percent for 2024, 10,000 yen will be reduced per person (*), spouse subject to deduction (excluding foreign residents) or dependent relatives (excluding foreign residents). .
※　Only when the total income pertaining to personal residence tax is 18.05 million yen or less.
For more information, please refer to the following page.

About special tax credit (fixed tax reduction) of individual municipal inhabitant tax and prefectural inhabitant tax for 2024