Revision of exemption for dependents of non-residents
〈Tax reforms in the fiscal year 2020, effective on and after January 1, 2023〉
The following measures have been taken with regard to the application of the deduction for dependents to nonresident dependents. This revision is applied to income tax for the 2023 tax year and thereafter.
(1) Non-residents between the ages of 30 and 70 who do not fall under any of the following categories are excluded from the scope of dependents eligible for the deduction for dependents.
A. Those who no longer have a domicile or residence in Japan due to studying abroad
B. disabled person
C. Those who receives more than 380,000 payments to cover living expenses or educational expenses in the year from a resident to whom the tax credit for dependents is applied.
(2) A resident who intends to apply for the exemption for dependents as a nonresident whose dependents are between 30 and 70 years of age and who fall under the category of those listed in (1) A above, for the purpose of calculating withholding tax with respect to wages, etc. and public pensions, etc., shall submit a "Application for (Change in) Exemption for Dependents of Income Taxpayer" (hereinafter referred to as the "Application for Exemption for Dependents"), stating such fact and the fact of such application. In addition to the current documents related to relatives, a resident who wishes to apply for the exemption for dependents as a nonresident who is under 70 years old and falls under the above (1)A shall submit a "Application for (Change in) Exemption for Dependents of Income earner [給与所得者の扶養控除等（異動）申告書]" ("Application for Exemption for Dependents[扶養控除等申告書]") or a "Application for Dependents of Public Pension Recipients[公的年金等の受給者の扶養親族等申告書]", and submit documents proving that the nonresident dependent falls under the person listed in (1)A above, in addition to the current documents related to relatives.
Note: Documents certifying that the non-resident dependent falls under (1)A above" means a copy of a document similar to a visa or a residence card issued by a foreign government or a local public entity in a foreign country, which certifies that the non-resident dependent no longer has a domicile or residence in Japan due to his/her residence in the foreign country with a status equivalent to the status of residence of a college student under the Immigration Control and Refugee Recognition Act (hereinafter referred to as "college student visa").
(3) A resident who intends to apply for the deduction for dependents as a nonresident whose dependents are between 30 and 70 years of age and who fall under the category of those listed in (1)C above in the year-end adjustment of salary, etc. shall submit an Dependent Exemption Application Form (扶養控除等申告書) stating this fact and the fact that he/she falls under the category by the day before the day on which the last salary, etc. for the year is paid. Then, the nonresident alien must submit documents that clarify that the nonresident alien's dependents fall under the category of those listed in (1) C above.
Please refer to the following page of the National Tax Agency for detailed information and special provisions for victims of the Great East Japan Earthquake. *Japanese only