イー・ワーク社会保険労務士法人

The government implements "Flat-amount Cut of Personal Income" from June 2024. In line with this, companies will make special deduction of their employees' income tax and resident tax for fiscal 2024.

【1】Reduction of income tax 
Withholding tax for fiscal 2024 will be reduced.

＜1＞Applicable employees
Employees whose income is no more than 20 million yen (taxable income no more than 18.05 million yen) are applicable. Flat-amount deduction will be started from June payroll.

＜2＞Special deduction in line with Flat-amount Tax Cut
�@ Employee: 30,000 yen
�A Spouse and family members who depend on the employee's livelihood: 30,000 yen per person
The total amount of tax reduction for the employee and dependents will be deducted.

＜3＞Method
Tax will be deducted from payrolls on or after June 1.
If the total amount cannot be deducted from a payroll for one month, remaining amounts will be deducted from payrolls or bonuses in the next month and after and will be adjusted at the end of the year. Deducted amount will be stated in the salary statement of the individual month.

【2】Reduction of resident tax
Amounts will be determined based on fiscal 2023 withholding tax.
＜1＞Applicable employees
Same as income tax.

＜2＞Special deduction in line with Flat-amount Tax Cut
�@ Employee: 10,000 yen
�A Spouse and family members who depend on the employee's livelihood: 10,000 yen per person
The total amount of tax reduction for the employee and dependents will be deducted.

＜3＞Method
Amounts of resident tax after Flat-amount Tax Cut for individual employees will be notified by local governments.
Applicable period: July 2024 - May 2025