Your income tax will be reduced if you have a dependent (child, parents, etc.). This is called the “dependent exemption.” Even if the dependents live in a foreign country, the tax payer can receive the exemption for dependents by submitting certain documents.
A dependant is a relative, other than a spouse, supported by the taxpayer, provided that the dependant’s income does not exceed JPY 480,000 for the year. The dependant is not required to live with the taxpayer but should receive financial support from the taxpayer as part of the taxpayer’s household.
How much tax will be reduced by the exemption for dependents?
Suppose your tax rate is 10%, and you have a mother and one 19-year-old child.
Your income tax will be reduced by (380,000+63,000)*10%=101,000 per year.
Amount of exemption for dependents
Children between 16 and 19 years old: 380,000 yen
Children between the ages of 19 and 23: 630,000 yen
Parents over 70 years old: 480,000 yen to 580,000 yen
If you have not received this deduction in the past, you can receive a refund for up to 5 years retroactively.
101,000*5 years = 505,000 yen
The above is a significantly simplified explanation of the requirements. In reality, there are various other detailed requirements, and you need to submit quite a lot of documents.
If you are interested in getting a tax refund, don’t hesitate to contact our office.
for your reference.