Japan Eyeing Extending Life Insurance Premium Tax Breaks by 1 Year

Tokyo, Dec. 12 (Jiji Press)--Japan's government and ruling parties are considering extending tax breaks regarding life insurance premiums for child-rearing households by one year, people familiar with the matter said Friday.

The government and the coalition of the ruling Liberal Democratic Party and its partner, the Japan Innovation Party, also known as Nippon Ishin no Kai, plan to include the initiative in the fiscal 2026 tax system reform package, to be compiled by year-end.

People can reduce their income tax burdens by deducting from their taxable income a certain amount calculated based on the life insurance premiums they have paid.

Under the fiscal 2025 tax reform, the cap on the deductible amount was raised from 40,000 yen to 60,000 yen for those with dependent relatives aged under 23 as a measure limited to 2026.

The government and the ruling bloc are now considering keeping it in place for 2027.

[Copyright The Jiji Press, Ltd.]