How to reduce paying income tax?

Cracaphat
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How to reduce paying income tax?

Post by Cracaphat »

Years ago we joined the Small Business Mutual Aid program (小規模企業共済) to reduce paying tax.
But aside from the usual suspects of Ideco and Nisa, are there any other ways of reducing? Our
accountant suggested paying more into SBMA.
Thanx.
zeroshiki
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Re: How to reduce paying income tax?

Post by zeroshiki »

Insurance can be claimed as a deduction.
Furusato Nozei is not technically tax savings but you pre-pay your tax and get a gift in return.
A mortgage can also be claimed (they changed it up a lot recently but if you buy brand new, you can get 0.7% of your loan as a deduction)
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RetireJapan
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Re: How to reduce paying income tax?

Post by RetireJapan »

Cracaphat wrote: Fri Nov 15, 2024 6:52 am Years ago we joined the Small Business Mutual Aid program (小規模企業共済) to reduce paying tax.
But aside from the usual suspects of Ideco and Nisa, are there any other ways of reducing? Our
accountant suggested paying more into SBMA.
Thanx.
There is also the セフティ共済 business insurance/emergency savings scheme. Your accountant should be able to explain it and tell you whether it would be suitable for you.
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Cracaphat
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Re: How to reduce paying income tax?

Post by Cracaphat »

Thanks RJ and zeroshiki for your suggestions. That セフティ共済 was the first time to hear of. Been wondering from time about the Nozei too.
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RetireJapan
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Re: How to reduce paying income tax?

Post by RetireJapan »

Cracaphat wrote: Fri Nov 15, 2024 12:34 pm Thanks RJ and zeroshiki for your suggestions. That セフティ共済 was the first time to hear of. Been wondering from time about the Nozei too.
I would max out iDeCo and the small medium business scheme first before looking at the safety kyosai thing.
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Wales4rugbyWC23
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Re: How to reduce paying income tax?

Post by Wales4rugbyWC23 »

You might want to think about the 100,000 yen health allowance, some things that are not covered by the national health insurance but are deductable. For example I paid for a three year braces' plan for my son's teeth up front and got it all as a deductable for one year. Teeth implants and eye laser surgery I think are also covered for things like this.
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Re: How to reduce paying income tax?

Post by captainspoke »

Wales4rugbyWC23 wrote: Sat Nov 16, 2024 5:31 am... a three year braces' plan for my son's teeth up front and got it all as a deductable for one year. ...
TIL: the cost for braces is deductible. (the kid who had braces back when is now 32)
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Re: How to reduce paying income tax?

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Cracaphat
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Re: How to reduce paying income tax?

Post by Cracaphat »

Wales4rugbyWC23 wrote: Sat Nov 16, 2024 5:31 am You might want to think about the 100,000 yen health allowance, some things that are not covered by the national health insurance but are deductable. For example I paid for a three year braces' plan for my son's teeth up front and got it all as a deductable for one year. Teeth implants and eye laser surgery I think are also covered for things like this.
Thanks Wales4rugbyWC23. Will look into that. I like acupuncture with long Chinese needles, but that's pretty expensive each time.
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Re: How to reduce paying income tax?

Post by Cracaphat »

adamu wrote: Sat Nov 16, 2024 5:43 am Do you earn a salary?

https://retirewiki.jp/wiki/Employment_Income_Deduction
Self-employed, so kinda.
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