1. Introduction
At the time of year-end adjustment, taxpayers are required to submit “Application for (Change in) Exemption for Dependents of Employment Income Earner (Dependent Form).” The Dependent Form for 2020 is partly amended in accordance with the income and inhabitant tax reform. In this News, we will mention the contents of revisions related to the Dependent Form for 2020.
2. Point of Amendment
The column of “single parent receiving child-rearing allowance” was newly added in the Dependent Form for 2020. A single parent who receives child-rearing allowance for children sharing the same household needs to fill out this section. A single parent falling under this section will be exempt from inhabitant tax. (Income conditions are also met.)
3. Amendment of Basic Exemption
The basic exemption under individual income tax is increased by JPY100,000 from 2020. In addition to this amendment, the income caps for taking other income deductions are also increased by JPY100,000. Please pay attention when entering the estimated income amount in the Dependent Form.
4. Amendment of employment income deduction
Along with the amendment of basic exemption, the employment income deduction is decreased by JPY100,000. Although the amount of employment income deduction differs depending on the taxpayer’s gross income, the total deduction amount (employment income deduction and basic exemption) remains the same for those whose income only come from employment income.
5. Conclusion
The new Dependent form will be effective from the year-end adjustment for 2020. It is recommended to understand the contents of the reform deeply so that you can prepare for the year-end adjustment procedure from 2020.
Please note that this News only introduces general outlines and does not include professional advice. So please make sure not to make any decisions without taking professional advice individually. If you have any questions, please feel free to contact us.
(Reference)
National Tax Agency
2019 Year-End Adjustment Guide (Japanese)
Query on the phone+81-3-6821-9455