D e d u Step (1) Calculate income for each income category Step (3) Carry forward and deduct prior

period losses c Step (4) Calculate total income t Step (2) net down losses where possible taxed at marginal rates T i a o Coupon income/rishi shotoku N x n e a t t f Dividend income/haitou shotoku t i o i o r n n Real estate income/fudousan shotoku g c a o a Business income/jigyou shotoku r f t r y p Salary/kyuuyo shotoku Total income/soushotoku m r a o o r v Short f g term e i i Capital gains/jouto shotoku r t n Long s a term o l x 1/2 f a One time income/ichiji shotoku n r n d a e Sundry, miscellaneous t t income/zasshotoku l e o s l s o s s e s Short Income from short term real estate s e term transfer/tanki jouto shotoku / Sale of land and s s buildings/tochitou, kenbutsutou o no joutoshottoku S o n Long Income from long term real estate e r term transfer/chouki jouto shotoku e p k a o i r f a Forestry, mountain income/sanrin Forestry, mountain income/sanrin t shotoku shotoku t s s e u u n s t d a Retirement income/taishoku shotoku Retirement income/taishoku shotoku a r n x y a t l Income from the sale of shares and Income from the sale of shares and i similar/kabushikotou ni kakaru jouto similar/kabushikotou ni kakaru jouto o o shotoku shotoku s n s e Business income from futures Business income from futures s transactions, sundry income/sakimono transactions, sundry
torihiki ni kakaru jigyou shotoku, zasshoku income/sakimono torihiki ni kakaru jigyou shotoku, zasshoku

Japanese income tax flowchart

Step (5) Claim tax deductions Step (6) Calculate taxable income Step (7) Apply tax rates according to income type Step (8) take tax credits, credit withheld income tax and file tax return if required

Sundry losses/zasson koujo Medical expenses/iryouhi koujo Social insurance deduction/shakai hokenryou koujo Small scale business mutual aid payments/kyousaitou kakekin koujo life insurance deduction/seimei hoken ryou koujo earthquake insurance deduction/jishin hoken ryou koujo donations deduction/kifukin koujo disabled persons deduction/shougaisha koujo widow, widowers deduction/kafu koujo working student deduction/kinrou gakusei koujo spouse deduction/haiguusha deduction spouse special deduction/haiguusha tokubetsu kuujo dependents deduction/fuyou koujo basic deduction/kiso koujo

Taxable total income/kazei sou shotoku

marginal tax rate

C r e d i t w i t h h o l d i n g t a x a t
Taxable retirement income/taishoku shotoku

F i l e f i n a l t a x r e t u r n

Taxable income from short term real estate transfer/tanki jouto shotoku

Rate for separate taxation

T a x c r e d i t s

Taxable income from long term real estate transfer/chouki jouto shotoku Taxable forestry, mountain income/sanrin shotoku

Rate for separate taxation

1/5 x separate tax rate

Rate for separate taxation

Taxable income from the sale of shares and similar/kabushikotou ni kakaru jouto shotoku Taxable business income from futures transactions, sundry income/sakimono torihiki ni kakaru jigyou shotoku, zasshoku

Rate for separate taxation

s o u r c e

Rate for separate taxation