In accordance with the 2024 tax reform, the following fixed tax reductions income tax and inhabitant tax reductions has been implementing for salaries and bonuses paid in June 2024.
The details of each item related to the fixed tax reduction related after year end tax adjustment calculations are as follows.
How to check the “Outstanding balance (after year-end tax)” of the fixed tax reduction and display of the tax certificate notes(摘要欄)
Items added to the “Year end tax summary”
How to check the “Outstanding balance (after year-end tax)” of the fixed tax reduction and display of the tax certificate notes(摘要欄)
You can view the details and history of the employees' fixed tax reductions on the “Manage employees > Payroll / Year end > Special tax deductions” screen.
After the YTA calculation, numbers and amounts will be displayed in the “Final head count (after year-end tax),” “Final balance (after year-end tax),” and “Outstanding balance (after year-end tax)” fields.
The “Outstanding balance (after year-end tax)” is the amount that could not be deducted out of the “Final balance (after year-end tax)” after the YTA calculation.
If there is any amount that could not be deducted from the “Final balance (after year-end tax)” at the time of YTA calculation, it will be displayed as “Outstanding balance (after year-end tax): XXXX yen”.
If there is no amount that could not be fully deducted, “Outstanding balance (after year-end tax): 0 yen” will be displayed.
The “Outstanding balance (after year-end tax)” will be shown in the “控除外額” of the tax certificate.
Refer to these for examples of how to display 摘要欄 on the tax certificates.
As shown in the example above, if the eligible head count has been changed from the “Eligible head count” as of June 1, 2024 to the eligible head count at the time of year-end tax adjustment, the eligible head count will be displayed in the “Final head count (after year-end tax)”. The “Final balance (after year-end tax)” will be automatically calculated based on the final head count.
The amount of fixed tax reduction that was not fully deducted in the year-end tax adjustment will be shown in the “Outstanding balance (after year-end tax)”.
The “Consumed amount” is the monthly-only fixed tax reduction consumed amount tentatively deducted for June through December 2024 payroll/bonuses.
When you calculate YTA, this “Consumed amount” does not include the deduction amount of the fixed tax reduction at the time of the YTA calculation.
The final amount of the fixed tax reduction after the YTA calculation will be displayed in the “Special tax deduction” section of Manage employees > Payroll / Year end > Year end tax summary.Notes: For employees who cannot fully deduct the fixed taxed reduction balance (balance) from their 2024 income tax amount, please check the following website. And please ask your local municipal office.
The Cabinet Secretariat website “新たな経済に向けた給付金・定額減税一体措置 (external site) *Japanese only
Examples of display in the notes (摘要欄) of the tax certificates
(e.g.) “Special tax deduction (所得税の定額減税額): 30,000 yen” and “Outstanding balance (after year-end tax): 0 yen”
(e.g.) “Special tax deduction (所得税の定額減税額): 71,550 yen” and “Outstanding balance (after year-end tax): 18,450 yen”
(e.g.) “Special tax deduction (所得税の定額減税額): 0 yen” and “Outstanding balance (after year-end tax): 30,000 yen”
(e.g.) The employee qualifies for the fixed tax reductions for “非控除対象配偶者”
【What is “非控除対象配偶者” ?】
The employee's own total income exceeds 10 million yen and is less than or equal to 18.05 million yen. The spouse of the same household who is not entitled to the spouse deduction and spouse special deduction.
*In the above case, this same household spouse is included in the calculation of the year end tax reduction.
(e.g.) The employee's 非控除対象配偶者 is disabled
(e.g.) The employee is not eligible for the fixed tax reduction at the time of year end tax adjustment
*If the employee's salary income is already over 20 million yen, the “Year end tax eligibility: Ineligible” and the notes (摘要欄) is left blank.
【Supplement】
The employee's own salary income exceeds 20 million yen
If the employee's own salary income exceeds 20 million yen, he/she is not subject to year-end tax adjustment and is not eligible for the fixed tax reduction.
If his (her) spouse's income is less than 480,000 yen, “Is this spouse a member of the same household?: Yes” will be displayed for the spouse in “Manage employees > Payroll / Year end > Family members (wizard)”. However, the “Is this spouse a member of the same household?” item is irrelevant.
*Even if his (her) salary income is less than 20 million yen, he (she) will not be eligible for the fixed tax reduction if his (her) income exceeds 18.05 million yen due to “Secondary income declaration” in the year-end tax adjustment.
The employee's dependent is a non-resident
As soon as that dependent is registered as a non-resident, he (she) is determined to be ineligible for the fixed tax reduction.
If the spouse's income is less than 480,000 yen, “Is this spouse a member of the same household?”: Yes” will be displayed for the spouse in “Manage employees > Payroll / Year end > Family members (wizard)”. However, when registered as the non-resident, this should also be determined as not eligible for the fixed tax reduction.
The “Is this spouse a member of the same household?” item is irrelevant.
Items added to the “Year end tax summary”
The following three items have been added to the “Calculation item” section of “Manage employees > Payroll / Year end > Year end tax summary” for the purpose of calculating the fixed tax reductions.
・Special tax deduction
・Total special tax deduction amount
・Income tax after special deduction
The “Special tax deduction” is the final amount of the fixed tax reduction deducted from the adjusted income tax at the time of year-end tax adjustment.
This tax amount will be entered in the “源泉徴収時所得税減税控除済額” in the notes (摘要欄) of the tax certificates.
The “Total special tax deduction amount” displays the maximum amount of the fixed tax reduction for income tax at the time of year-end tax adjustment.
As shown in the example above, only when the “Total special tax deduction amount” is not fully deducted, the same amount as the “Final balance (after year-end tax)” in “Manage employees > Payroll /Year end > Special tax deductions” will be displayed.
“Total special tax deduction amount” = ‘源泉徴収時所得税減税控除額’ + ‘控除外額’ in the notes (摘要欄) of tax certificates
If the “Final head count (after year-end tax)” is fully deducted, the “Total special tax deduction amount” item will not be displayed, as shown in the example below.In this case, the following calculation is used.
“Final balance (after year-end tax)” = ‘Special tax deduction’ = ‘源泉徴収時所得税減税控除額’ + ‘控除外額: 0 yen’ in the notes (摘要欄) of tax certificates
The “Income tax after special deduction” will be displayed as the amount obtained by subtracting the “Special tax deduction” from the “Adjusted income tax”.
If the amount cannot be deducted, “JPY 0” will be displayed.
Click here for the Japanese version of this manual.
2024年 管理者用マニュアル 年末調整計算後の定額減税関連
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