Q. What should I enter for my income breakdown?

A. Please refer to the content below and enter the information

Please refer to the National Tax Agency’s website for the types of earnings and detailed calculation methods. No. 1300 Overview of earnings categories (Japanese) ｜ National Tax Agency

Income amount

This refers to income received from your current workplace, such as the salary and bonuses. Employment income also includes the salary and any bonuses received from your previous job this year.

Pension income

This applies to public pensions such as the national pension, employee’s pension, and mutual aid pension. There is no need to enter tax-exempt pensions such as disability pensions and survivors’ pensions.

Miscellaneous earnings (besides public pension)

This applies to earnings that do not fall under any of the other categories, such as pensions based on a life insurance contract, interest earnings, lecture fees, royalties, and manuscript fees.

Business earnings

This refers to earnings from business and includes sectors such as agriculture, forestry, aquaculture, manufacturing, wholesale, retail, and services. The business earnings amount is the amount obtained after subtracting necessary expenses from the total income amount. Necessary expenses are the required cost of sales, selling expenses, administration expenses, and other expenses associated with obtaining income from the above types of business.

Dividend earnings

This refers to earnings from surplus received by shareholders and investors from corporations, distribution of profits, distribution of surplus, distribution of monies from investment corporations, and distribution of profits from specified trusts issuing beneficiary certificates and investment trusts. The dividend earnings amount is the amount obtained after subtracting the loan interest in acquiring things such as shares from the income amount. Some dividend earnings are not included in the income amount, so please check the National Tax Agency website for details.

Real estate earnings

This refers to earnings from leasing real estate, establishing and leasing real estate rights such as superficies, and leasing ships and aircraft. The real estate earnings amount is the amount obtained after subtracting necessary expenses from the total income amount. Necessary expenses include repair expenses, non-life insurance premiums, property taxes and depreciation expenses related to the leased real estate.

Resignation earnings

This refers to lump-sum payments based on the social insurance system as well as earnings from lump-sum pensions and severance pay received due to resignation. The resignation earnings amount is the amount equivalent to half of the sum obtained after subtracting the resignation earnings deductible amount from the income amount.

Earnings other than the above

Earnings other than the above are as follows. The method for calculating earnings depends on the conditions, so please check the National Tax Agency website.

Capital gains

This refers to earnings from the transfer of assets such as land, buildings, shares, and golf memberships.

Timber earnings

This refers to earnings from the logging and transfer of timber (with a holding period exceeding 5 years).

Occasional earnings

This refers to earnings from prize money, lottery winnings, payouts from horse racing and bicycle racing bets, life insurance lump-sums, maturity returns from non-life insurance, money and goods donated by corporations, and reward money for finding lost property.

Besides those listed above, interest earnings subject to comprehensive taxation or self-assessed separate taxation (総合課税又は申告分離課税の対象となる利子所得), dividend earnings related to listed stock selected for self-assessed taxation (申告分課税を選択した上場株式等に係る配当所得), capital gains related to general stock to which self-assessed separate taxation is applied or capital gains related to listed stock (申告分離課税の適用を受けた一般株式等に係る譲渡所得等又は上場株式等に係る譲渡所得), and miscellaneous earnings related to futures trading (先物取引に係る雑所得) also apply as other earnings.

Please check the National Tax Agency website for details.