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Reduction of National Health Insurance Tax of Japan

Reduction of National Health Insurance Tax of Japan

Reduction of National Health Insurance Tax of Japan

If you (a person who supports your household financially mainly) are affected by pandemic of corona virus (covid-19) financially, you may be able to apply for reduction of National Health Insurance tax (国民健康保険料) of Japan.

If you can satisfy all of following requirements, you can reduce amount of payment for National Health Insurance tax.

1) If estimated amount of business income or salaried income in 2020 is reduced by 30% or more compared to 2019.

ex. Amount of your salary in 2019 was 5 million yen and prospective amount of your salary in 2020 is 3.5 million yen.

2) Amount of your annual income in 2019 was 10 million yen or less.

3) In the case you expect reduction of salaried income of 2020 by 30% or more, amount of other kind of income in 2019 was 4 million yen or less.

In the case you expect reduction of business income of 2020 by 30% or more, amount of other kind of income in 2019 was 4 million yen or less.

It means that if you have side income and the amount is enough to support your household, you can not apply for reduction of National Health Insurance tax (=Kokuho= 国保)

ex.
Amount of your salaried income in 2019 was 5 million yen and prospective amount of your salaried income of 2020 is 3.5 million yen.
It means amount of your salary of 2020 is reduced by 30%.
In this case if total amount of your business income and real estate income, income from the transfer of stock etc. of 2019 was 4,000,001 yen, you can not apply for this arrangement.

Amount of reduction or exemption of National Health Insurance tax of Japan

Example.
Amount of National Health Insurance of 2020 is 100,000 yen.
Mr.Husband (Main household supporter)’s income in 2019 was 5 million yen.
Ms.Wife ‘s income in 2019 was 1 million yen.

100,000 yen × 5 million yen / (5 million yen + 1 million yen)  =83,333 yen
(this amount is National Health Insurance tax supported by Mr.Husband)

In the case amount of income in 2019 was 6 million yen, amount of reduction is 4/10

So amount of reduction is 83,333 yen * 4/10 = 33,333 yen.

(This 4/10th defers depending on amount of income in 2019. from 2/10 to 10/10. If amount of income of 2019 was 3 million yen or less, ratio is 10/10th. So you do not need to pay national health insurance tax in 2020.)

Then, 100,000 yen – 33,333 yen = 66,666 yen.

So you can pay National Health Insurance tax of 66,666 yen in 2020.

Closure of business or unemployment and National Health Insurance of Japan

If Mr. Husband closed his business or lost his job, rate of reduction is 10/10th.

So he does not need to pay National Health Insurance tax even if the amount of income in 2019 was more than 10 million yen.

Death or serious disease and Exemption from National Health Insurance tax of Japan

If a person who supports his/her household financially mainly was killed or seriously diseased by pandemic of corona virus (covid-19), the household can apply for exemption from National Health Insurance tax of Japan.

Application for reduction or exemption from National Health Insurance Tax is necessary

In order to apply for these treatments, you need to fill in application form with necessary documents and submit them to government.

You need to prepare documents that can clarify amount of income of 2019 and 2020.

It will take 2 or 3 months until determination of approval or rejection of your application after your application.

These arrangement is different from each ward, city to some extent. Information above is in the case of Chuo ward, Tokyo.

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