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Lower employment income deductions for 2020?

Posted: Mon Nov 16, 2020 2:27 am
by seb
So I was checking the rate for my simulation spreadsheet, and found information on the JETRO website:
https://www.jetro.go.jp/en/invest/setti ... page7.html

In the 3.7.2 section, they put a new table for FY2020 onward. It seems they reduced the basic deduction by 100,000¥. I wonder if the Blue Sheet deduction for indie business had the same change?

Re: Lower employment income deductions for 2020?

Posted: Mon Nov 16, 2020 3:21 am
by mule96
The Basic Exemption (基礎控除) increases from 380,000 to 480,000 so if you earn less than 8.5 Mill JPY there shouldnt be a change in the effective tax. For higher amounts it seem to depend on if you have dependents or not.

https://money-viva.jp/money-news/0019/

According to the above for individual businesses there also seem to be an decrease in the deduction of 100,000, but that can be avoided if you file in electronically it seems (?).

Re: Lower employment income deductions for 2020?

Posted: Mon Nov 16, 2020 3:47 am
by seb
thank you very much for the answer. I am pretty sure my accountant files electronically for me, but I'll double check with him this year.