Japan Raises Income Cap for Spouses in New Tax Reform Package
Tokyo, Dec. 8 (Jiji Press)--The ruling Liberal Democratic Party and its ally, Komeito, adopted Thursday a fiscal 2017 tax system reform package, including changes in the criteria for receiving spousal tax deductions and the unification of taxation on beer and quasi-beer.
The ruling camp regards the change in the tax benefit for married couples as the first step in the reform of the income tax system it plans to carry out over several years.
The fiscal 2017 package will raise the annual income cap of working spouses, mainly wives, who can receive the tax exemption, from 1.03 million yen to 1.5 million yen.
Under the reform, when spouses have an annual income of 1.5 million yen or less, householders, mainly husbands, can deduct 380,000 yen from their annual taxable incomes.
For people having an income of between over 1.5 million yen and 2.01 million yen, their partners will receive tax breaks in nine stages depending on the spouses' income amounts, so the couples do not face a sharp decrease in their after-tax incomes.[Copyright The Jiji Press, Ltd.]