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Main contents of 2004 taxation system revision

Last update date January 4, 2019

  1. House, land taxation system: 1 house taxation system (municipal tax, prefectural tax, income tax)/2 land taxation system (municipal tax, prefectural tax, income tax)
  2. Finance, the securities taxation system (municipal tax, prefectural tax, income tax)
  3. The corporation taxation system
  4. The pension taxation system (municipal tax, prefectural tax, income tax): The abolition of review/2 old age person subtraction of 1 deduction from the pension
  5. Personal residence tax: Revision of abolition/3 tax-free limit of tax-free measures of per capita rate for wife of review/2 living equivalence of 1 per capita rate
  6. Property tax
  7. Expansion of the taxation independence right: Discussion, agreement of abolition/2 legal outside tax of tax rate limit of 1 property tax

1 house taxation system (municipal tax, prefectural tax, income tax)

(1)Special subtraction (home loan reduction of taxes) of the income amount of a tax when we have house borrowed money

About special subtraction of the income amount of a tax when we had house borrowed money, limit of the year-end balances such as house borrowed money and subtraction rate was said as follows during subtraction period when we lived by 2008 from 2004. (applied about income tax after share in 2004.)

Subtraction period when we lived by 2008 from 2004, limit of the year-end balances such as house borrowed money and subtraction rate
The residence yearSubtraction periodThe year-end balances such as house borrowed moneyThe application year, subtraction rate

2004

Ten yearsPart 50 million yen or less
  • It is 1% from the first year to the tenth year
2005Same as abovePart 40 million yen or less
  • It is 1% from the first year to the eighth year
  • The ninth year and 0.5% of tenth year
2006Same as abovePart 30 million yen or less
  • It is 1% from the first year to the seventh year
  • It is 0.5% from the eighth year to the tenth year
2007Same as abovePart 25 million yen or less
  • It is 1% from the first year to the sixth year
  • It is 0.5% from the seventh year to the tenth year
2008Same as abovePart 20 million yen or less
  • It is 1% from the first year to the sixth year
  • It is 0.5% from the seventh year to the tenth year

(2)The foundation of carrying forward subtraction system of transfer loss of property for the residence

Among losses when we transferred property for the residence between January 1, 2004 and December 31, 2006, system admitted carrying forward subtraction of transfer loss as limit with the balance when the balances of home loan to affect transferred property exceeded transfer value was founded.

(3)Expansion of carrying forward subtraction system of transfer loss in case of replacement by purchase of property for the residence

It was targeted for application of carrying forward subtraction, and, about transfer loss in case of replacement by purchase of property for the residence, case without the balance of home loan to affect transferred property was added, and deadline for application was extended until December 31, 2006. (applied about transfer after January 1, 2004.)

2 land taxation systems (municipal tax, prefectural tax, income tax)

(1)Land, tax rate of capital gain of building

About land, tax rate of capital gain of building, the next measures were taken.

(a) Tax rate for long-term capital gains was reduced by 20% (3.4% of municipal tax, prefectural tax 1.6%, income tax 15%).
(i) Reduction tax rate for creation of excellence residential area was reduced by 14% (2.7% of partial municipal tax transfer gain 20 million yen or less, prefectural tax 1.3%, income tax 10%), and deadline for application was extended until 2009.
(u) 1 million yen special subtraction of long-term capital gains was abolished.
(e) Tax rate for short-period capital gains was reduced uniformly by 39% (6% of municipal tax, prefectural tax 3%, income tax 30%).

(2)The abolition of the profit and loss total with land, capital gain (long-term capital gains, short-period capital gains) of building and other income

About loss amount of money that we produced in calculation of capital gain amount of money, the profit and loss total with other income was abolished.
※(1) mentioned above, revision of (2) are applied about transfer after January 1, 2004.

Reduction of tax rate for unlisted stock-style transfer gain

Tax rate for unlisted stock-style transfer gain was reduced by 20% (3.4% of municipal tax, prefectural tax 1.6%, income tax 15%). (applied about transfer after January 1, 2004.)

Extension of carrying forward period of money of loss

Carrying forward period of money of loss was extended for seven years from five years. Retention period of account book documents which affected corporation tax and Ausschlussfrist were extended again (applied about loss amount of money that we produced during the fiscal year when it started after April 1, 2001.) to this.

Review of 1 deduction from the pension

Extra measures of people of deduction from the pension 65 years or older were abolished. In addition, person of old age special measures to add the minimum security sum of deduction from the pension of people 65 years or older 500,000 yen as the addition in particular were taken. 

The amount of deduction from the pension after revision
The amount of pension incomeThe amount of deduction from the pension
(under 65 years old) 1.3 million yen or less700,000 yen
(65 years or older) 3.3 million yen or less1.2 million yen
(under 65 years old) 4.1 million yen or less more than 1.3 million yenIncome amount of money *25% +375,000 yen
(65 years or older) 4.1 million yen or less more than 3.3 million yen
7.7 million yen or less more than 4.1 million yenIncome amount of money *15% +785,000 yen
More than 7.7 million yenIncome amount of money *5% +155.5 ten thousand Japanese yen

The abolition of 2 old age person subtraction

Person subtraction was abolished at old age for person (total income amount of money 10 million yen of the previous year or less at 65 years or older) at old age.
(1, 2 revisions mentioned above are applied about municipal tax, prefectural tax after share in income tax, 2006 after share in 2005.)

Review of 1 per capita rate

Tax rate division (a population of 500,000 or more 3,000 yen, 2,500 yen less than 500,000 more than a population of 50,000 people, other 2,000 yen) according to population stage was abolished about per capita rate of inhabitants' tax after share in 2004, and tax rates were unified to 3,000 yen.
(note) Yokohama-shi does not have effect by this revision because is 3,000 yen conventionally.

Wife of 2 living equivalence ※The abolition (husband bearing duty to pay tax of ※ per capita rate and wife having Address with living as one in the same city (ward) municipalities) of tax exemption measures of per capita rate to correspond to this

When tax-free measures of per capita rate of municipal tax, prefectural tax for wife of living equivalence were abolished progressively from 2005, and income amounts of money exceeded constant amount of money (e.g.,: part income 1 million yen), it was decided that the following per capita rate was imposed.
For 2005 → 2,000 yen (municipal tax 1,500 yen, prefectural tax 500 yen)
It is afterward for 2006 → 4,000 yen (municipal tax 3,000 yen, prefectural tax 1,000 yen)

Revision of 3 tax exemption limits

Tax-free limit was reduced about municipal tax, prefectural tax after share as follows in 2004.

(1)Tax-free limit of per capita rate: Income amount of money <= 350,000 yen X ※Number of 1 family + ※Amount of 2 addition 220,000 yen (240,000 yen before revision)

(2)Tax-free limit of income percent: Income amount of money <= 350,000 yen X ※Number of 1 family + ※Amount of 2 addition 350,000 yen (360,000 yen before revision)
※The number of 1 family is the total number of person, spouse targeted for subtraction and support relatives.
※The amount of 2 addition is added only when we have spouse targeted for subtraction or support relative.

The handling of owner about incidental facilities for business that tenant was attached to

We considered incidental facilities (interior) for business that tenant was attached to house after April 1, 2004 to be depreciable assets, and it was decided to consider the tenant to be owner, and to be able to impose property tax (for depreciable assets).

The abolition of tax rate limit of 1 property tax

Tax rate limit of property tax was abolished.

Discussion, agreement of 2 legal outside tax

About discussion, agreement of the legal outside tax, the next measures were taken.

(1)After April 1, 2004, discussion, agreement to the Minister of Internal Affairs and Communications was dispensed with about case to intend to reduce reduction of tax rate, shortening of taxation period, tax burden including the abolition of legal outside tax, and to change contents of the existing legal outside tax.

(2)About legal outside tax that authorized a few tax payers would pay most of the yield of taxes, procedure to hear opinion of tax payer before the regulations establishment in assembly was founded. (the regulations are applied about the legal outside tax voted for after April 1, 2004.)

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