Despite the population of approximately 100 million people, 40-50 trillion JPY money is paid for insurance every year. That calculates the total of 400,000 JPY per person a year.
There may be various reasons for being fond of insurance, such as
- The risk of family will be serious when the wage-earner dies, because of mostly wives are full-time housewives. (There are fewer working-couples in Japan.)
- Insurance companies also make social contributions, such as being major shareholders of companies and constructing buildings.
- First of all, national characteristic is strongly savings-oriented.
Whereas, it is also in consideration of the existence of Tax incentives which is
- Income tax and personal residence tax will be reduced. (Up to 240,000 JPY per year)
That is, in Japan, under the thoughts of "More people should buy insurances", there is a system that "You've got a benefit of cashback for buying insurances of up to 240,000 JPY worth. 32,000 JPY at the maximum* will come back to you!". (* In the case of income tax rate 20% and personal residence tax 10%)
- Income tax refund of "up to 120,000 JPY deduction × tax rate"
- Residence tax reduction of "maximum 84,000 JPY deduction × tax rate"
However, you must make application at each year-end to receive this benefit. That is the one which is indicated as "Insurance premium deduction" among two of year-end-adjustment document to submit.
- A) Application for Deduction for Insurance Premiums for Employment Income Earner and Application for Special Exemption for Spouse of Employment Income Earner for 2015
- B) Application for (Change in) Exemption for Dependents of Employment Income Earner for 2016
The following Workflow is a mechanism for auto-generation of this "Application form PDF". You work hard on it once, and it will relieve you from working since the next year by data copy (Start in reusing data).
[Year-end-adjustment-Insurance premium Deduction]