Fiscal Reform for Fiscal Year 2025

From this week, I will introduce several points regarding tax reforms 2025.

First, regarding personal income taxation:

In light of the rising prices and the need to adjust tax burdens and employment measures, the basic deductions for income tax and the minimum guaranteed amount for employment income deductions will increase, along with the establishment of new deductions for college-aged children.

①　Increase in the basic deduction: For individuals with a total income of 23.5 million yen or less,

the basic deduction for income tax will increase from the current 480,000　yen to 580,000 yen, an increase of 100,000　yen. Consequently, necessary measures such as reviewing the withholding tax for public pensions will be implemented. This amendment will apply to income tax after 2025. Additionally, withholdings for salaries and public pensions will apply to salaries or public pensions that are to be paid after January 1, 2026.