Social Insurance Premium Deductions: Who Qualifies and What You Get
Learn how to reduce your taxable income by deducting your pension and health insurance premiums from your yearly taxes.
This scheme allows you to subtract the money you pay for social insurance from your total taxable income, which can lower the amount of tax you owe.
Who it's for
This is available to all employees who pay into pension and health insurance.
What you get
You receive a full deduction of your paid insurance premiums from your taxable income. This reduces the total amount of income that the government uses to calculate your tax obligations.
What it costs you
There is no direct cost to claim this, as your employer typically handles the reporting automatically. To ensure everything is correct, you should check your year-end adjustment (nenmatsu chousei) slip.
The catch to know
If you pay insurance premiums for members of your family, you are eligible to claim those costs as well.
How to apply
- Ensure your employer has recorded your insurance payments correctly.
- Review your year-end adjustment slip provided by your employer.
- Confirm that your family member's premiums are included if you pay them.
- Contact your employer's payroll department if you notice any discrepancies.