Japan Mulling 1.5-M.-Yen Tax Threshold for Students

Tokyo, Dec. 12 (Jiji Press)--Japan is considering raising the annual income cap for dependent children with part-time jobs, including university students, under a special tax deduction program from 1.03 million yen to 1.5 million yen, it was learned Thursday.

The government and the ruling parties are looking to apply the revision to the program to reduce tax burdens on people with dependent children and relatives, from next year. The measure is expected to be included in the tax system reform package for fiscal 2025 due out soon.

On Wednesday, the ruling bloc of the Liberal Democratic Party and Komeito proposed in a meeting with the opposition Democratic Party for the People that the income ceiling be raised to 1.3 million yen, effective from 2026.

The DPFP responded by demanding that the limit be boosted to 1.5 million yen, the same as in a similar special tax deduction scheme for taxpayers with dependent spouses, for implementation in 2025.

Under the special tax deduction program for families with young dependents, taxpayers with children and other dependents aged 19-22 are eligible to deduct up to 630,000 yen from their annual taxable income.

[Copyright The Jiji Press, Ltd.]