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Help with end of year company tax form
Posted: Mon Dec 13, 2021 6:59 am
by KCLenny
Hi all. Got my end of year tax form thing from my company and trying to figure out what I can and can’t declare on it. Last year I only put health insurance because that was the only thing I was paying. But this year I’m also paying residence tax so can that be put on there too?
Specially I’m talking about the section of the form in the picture.
Thanks in advance.
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 2:04 am
by Roger Van Zant
By "health insurance", you mean private health insurance, right?
You cannot claim for the kenko hoken element of shakai hoken, unless you spend over 100,000 yen in a year, I believe.
Claiming for residence tax?! Man, if you manage to wangle that, let me know! I'd be super happy to hear that!
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 3:03 am
by taneandy
Yes you get a deduction for shakai hoken payments, though my understanding is that any deductions for your own shakai hoken payments are already automatically applied by your employer so there is not need to write them in the indicated section. (The exception might be if you were unemployed and paid kokumin nenkin for some of the year.)
That section is for claiming deductions for any other shakai hoken payments you have made.
One example seems to be if you are paying kokumin nenkin for a dependent family member such as a child over the age of 20 who is university student.
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 5:19 am
by ClearAsMud
No deduction for residence tax exists in Japan (I too wish it weren't so).
The form from which you've clipped the image is probably titled something like "Deductions for Insurance Payments Made by Salaried Employees." Only insurance matters are involved, and the marked section in your image applies only to non-company-related social-insurance payments, which are pretty limited in scope, as noted by taneandy. The company normally asks you to attach the annual statement you receive -- usually in the form of a postcard -- from the insuring agency (e.g. 日本年金機構) regarding total premiums paid, although kaigo hoken may only require the name of the responsible local government (the instructions will tell you what to do).
By writing 国民健康保険 in the space as you have done, you are implying that your company doesn't provide health insurance, which is not a common situation. They're required to if you're a full-time employee and the company has five or more full-time employees. Are special circumstances involved (such as the partial-year payments mentioned by taneandy)? Is the company taking pension payments out of your income as it's supposed to? If you joined the company partway through the year, you should be able to claim both national health insurance and national pension payments in this section.
As a side note, 「本人」is standard on forms like this when referring to yourself, although I can't imagine 「私」 actually causing any problems.
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 5:25 am
by KCLenny
ClearAsMud wrote: ↑Tue Dec 14, 2021 5:19 am
No deduction for residence tax exists in Japan (I too wish it weren't so).
The form from which you've clipped the image is probably titled something like "Deductions for Insurance Payments Made by Salaried Employees." Only insurance matters are involved, and the marked section in your image applies only to non-company-related social-insurance payments, which are pretty limited in scope, as noted by taneandy. The company normally asks you to attach the annual statement you receive -- usually in the form of a postcard -- from the insuring agency (e.g. 日本年金機構) regarding total premiums paid, although kaigo hoken may only require the name of the responsible local government (the instructions will tell you what to do).
By writing 国民健康保険 in the space as you have done, you are implying that your company doesn't provide health insurance, which is not a common situation. They're required to if you're a full-time employee and the company has five or more full-time employees. Are special circumstances involved (such as the partial-year payments mentioned by taneandy)? Is the company taking pension payments out of your income as it's supposed to? If you joined the company partway through the year, you should be able to claim both national health insurance and national pension payments in this section.
As a side note, 「本人」is standard on forms like this when referring to yourself, although I can't imagine 「私」 actually causing any problems.
My company is a sole proprietorship so usually company rules of needed to provide all the benefits don’t apply to me unfortunately.
My kokuminkenkohoken is for me and my wife, and wife is my dependant and doesn’t have an income. And our combined health care costs for the year are just over ¥100,000.
Also I only have kokuminnenkin but haven’t actually started paying it yet because it’s too expensive and I was told I had 2 years to pay it. (Side note, I’m finally moving apartment next month and will be ¥30,000 better off every month).
So was putting the kokuminkenkohoken and amount actually necessary at all?
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 5:53 am
by ClearAsMud
Oh, I see. No, nothing to write if nothing's been paid yet. Since kokumin hoken is handled individually (unless my memory is off), I think you should probably have two entries on the form, one for yourself and one for your wife.
Health care costs are a separate thing (you have to submit a return), and the basic formula for calculating the amount is actual expenses paid minus any insurance benefits received minus 100,000 yen. The maximum that can be claimed is 2,000,000 yen, though it would take some doing to get there.
Hope the company grows.
Edit: By health care costs, I mean medical expenses, not insurance premiums.
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 6:34 am
by ClearAsMud
Addendum:
Since I've never been self-employed (just side-gigs), my grasp of sole proprietorships is probably too shaky to be of much use, and when the subject is running companies, someone with more expertise is called for.
A quick search does show that a dependent spouse can be included on an individual's kokumin kenko hoken if the dependent's annual income is less than 1,300,000 yen and does not reach more than one-half of the insured's income. Independent registration only becomes necessary once the income border is crossed.
See the following page for an easy-to-follow explanation in Japanese:
https://www.freee.co.jp/kb/kb-kaigyou/n ... insurance/
So maybe a single entry on the form is enough after all, if you're receiving a single bill. Would someone with experience with sole proprietorships / companies care to chime in?
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 6:58 am
by Beaglehound
From memory, the OP is an employee of said sole proprietorship and is responsible for paying his own pension/health insurance. And those of his wife, who is his dependent. I don’t do a nenmatsu chosei so not sure of the form, but I am guessing this year’s pension and health insurance payments for both the OP and his wife will go in the box. If no pension payments have yet been made, then only the health insurance payments.
To reiterate, as others have said, residence tax is not deductible and any claim for out of pocket health expenses would have to be done through a tax return separate from the nenmatsu chosei. If these expenses are not much over the 100k floor, it may not be worth the hassle (you will only be able to deduct the amount over 100k).
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 7:07 am
by RetireJapan
My wife runs a sole proprietorship with four employees, and they were asked to provide receipts for kokumin kenko hoken and kokumin nenkin for the nenmatsu chosei (as well as other eligible expenses, mainly insurance/dependents).
Re: Help with end of year company tax form
Posted: Tue Dec 14, 2021 8:53 am
by Copyleft
KCLenny wrote: ↑Tue Dec 14, 2021 5:25 am
ClearAsMud wrote: ↑Tue Dec 14, 2021 5:19 am
No deduction for residence tax exists in Japan (I too wish it weren't so).
The form from which you've clipped the image is probably titled something like "Deductions for Insurance Payments Made by Salaried Employees." Only insurance matters are involved, and the marked section in your image applies only to non-company-related social-insurance payments, which are pretty limited in scope, as noted by taneandy. The company normally asks you to attach the annual statement you receive -- usually in the form of a postcard -- from the insuring agency (e.g. 日本年金機構) regarding total premiums paid, although kaigo hoken may only require the name of the responsible local government (the instructions will tell you what to do).
By writing 国民健康保険 in the space as you have done, you are implying that your company doesn't provide health insurance, which is not a common situation. They're required to if you're a full-time employee and the company has five or more full-time employees. Are special circumstances involved (such as the partial-year payments mentioned by taneandy)? Is the company taking pension payments out of your income as it's supposed to? If you joined the company partway through the year, you should be able to claim both national health insurance and national pension payments in this section.
As a side note, 「本人」is standard on forms like this when referring to yourself, although I can't imagine 「私」 actually causing any problems.
My company is a sole proprietorship so usually company rules of needed to provide all the benefits don’t apply to me unfortunately.
My kokuminkenkohoken is for me and my wife, and wife is my dependant and doesn’t have an income. And our combined health care costs for the year are just over ¥100,000.
Also I only have kokuminnenkin but haven’t actually started paying it yet because it’s too expensive and I was told I had 2 years to pay it. (Side note, I’m finally moving apartment next month and will be ¥30,000 better off every month).
So was putting the kokuminkenkohoken and amount actually necessary at all?
I have some friends living in housing complex, some housing are okay, the rent Is based in your income.
I hanged with one single mother and she at the time lived in one 団地 だんち、2LDK for just ¥20.000, i heard you dont need to pay anything to get the key, where she lived was nice.
I think at City Hall you can apply for it.