Earthquake insurance premium deduction: the full amount up to JPY 50,000 paid per year, capped at JPY 50,000Money you pay for earthquake insurance can also be subtracted when your tax is figured out
This is an income deduction available when you have paid premiums or contributions for the earthquake-related portion of certain non-life insurance contracts. If the earthquake insurance premium paid in a year is JPY 50,000 or less, the full amount is deducted; if it exceeds JPY 50,000, the deduction is a flat JPY 50,000. It is claimed through the year-end adjustment or the tax return filing (kakutei shinkoku).
Key points
- Earthquake insurance premiums: the full amount if the annual payment is JPY 50,000 or less, and a flat JPY 50,000 if it exceeds JPY 50,000
- Old long-term non-life insurance premiums (transitional measure): the full amount if JPY 10,000 or less per year; payment × 1/2 + JPY 5,000 if over JPY 10,000 and up to JPY 20,000; JPY 15,000 if over JPY 20,000
- Requirements for old long-term non-life insurance premiums: contracts concluded on or before December 31, 2006, with a maturity refund or similar, an insurance period of 10 years or more, and no change to the contract on or after January 1, 2007
- If you have both earthquake insurance premiums and old long-term non-life insurance premiums, the deduction is the total of the amounts calculated for each (maximum JPY 50,000)
- The filing destination is the tax office with jurisdiction or your employer. Attach or present documents certifying the amounts paid (or a printout of the electronic record). These are not needed if the deduction was already applied in the year-end adjustment
What to do in practice
- Keep the deduction certificate sent by the insurance company until the year-end adjustment or tax return filing
- If you pay both earthquake insurance premiums and old long-term non-life insurance premiums under a single contract, note that you must choose the deduction for only one of them
Money you pay for earthquake insurance on your house and belongings can be subtracted, up to a limit, from the amount used to figure out your tax. People who work for a company can use it in the company's year-end procedure, and others can use it when they file a tax return (kakutei shinkoku). The certificate sent by the insurance company is important.
- ○Applies: Earthquake insurance payments up to JPY 50,000 a year can be fully subtracted
- ○Applies: It can also be used in the year-end adjustment
- ×Does not apply: You can apply at any time even without the certificate
Points
- If you paid JPY 50,000 or less for earthquake insurance in a year, you can subtract all of it
- Even if you paid more than JPY 50,000, you can subtract only up to JPY 50,000
- Keep the certificate from the insurance company safe until the end of the year
What the words mean
- Year-end adjustment (年末調整)
- A procedure where the company sums up and settles your tax for the year
- Deduction certificate (控除証明書)
- A paper sent by the insurance company to show you paid the insurance money
- National Tax Agency (NTA): National Tax Agency (NTA): No.1145 Earthquake insurance premium deduction
Tax-saving information introduces systems permitted by law. Each has conditions for application, and this is not encouragement of tax avoidance. Please consult a tax accountant or other professional before applying.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.