What is year end adjustment in Japan?

年末調整 (Nenmatsu chōsei → Year end adjustment)
Year-end adjustment is the process of adjusting the excess or deficiency of income tax by comparing the one-year income tax payable by the employee with the amount of income tax deducted from the employee’s monthly salary or bonus

Links:

• 年末調整とは
• https://ja.wikipedia.org/wiki/%E5%B9%B4%E6%9C%AB%E8%AA%BF%E6%95%B4

List of documents required to apply for tax exemption

• MARUFU form - tax exemption for dependents (給与所得者の扶養控除申告書)
• Application form for exemption for Spouse (給与所得者の基礎控除申告書 兼 給与所得者の配偶者控除等申告書 兼 所得金額調整控除申告書)
• Application form for tax exemption for insurance premium (給与所得者の保険料控除申告書)
• Additional required documents (as attachment)
  • Income withholding-tax certificate (給与所得の源泉徴収票)
  • Remittance statement
  • Dependent relationship certificate (関係証明書)
  • Japanese translation of dependent relationship certificate (関係証明書 翻訳版)
  • Copy of passport of dependent(s)
  • Copy of national id card of dependent(s)

Even if some documents are not applicable to you, i.e. KIHAISHO form (exemption for Spouse), you still need to fillup (only basic details i.e. name, address) and submit

Details are below with images and description

Tax exemption for dependents

If you have dependent(s), the money spent/sent to dependent will be elligible for tax exemption.

The form needs to be filled up and submitted (dependent): 給与所得者 の 扶養控除 申告書

• Romaji: Kyūyo shotoku-sha no fuyō kōjo shinkoku-sho
• English meaning: declaration form for tax exemption for dependents (or tax return for dependents or deduction for dependents)
• 給与所得者 (Kyūyo shotoku-sha) => Salaried employee
• 扶養控除 (fuyō kōjo) => Tax exemption for dependents
• 申告書 (shinkoku-sho) => Declaration form

The form is also known as MARUFU

Why is it called MARUFU?

• ◯ : maru
• 扶 (フ ・ fu) : aid, help, assist

How to fillup MARUFU form? See below ↓

MARUFU form Japanese

(Image is .svg format, zoom to see clearly -> ctrl + ‘+’)

MARUFU form English

(Image is .svg format, zoom to see clearly -> ctrl + ‘+’)

How to fillup MARUFU form

(Image is .svg format, zoom to see clearly -> ctrl + ‘+’)

Sample of MARUFU form filled up

Following information used in the sample

• フリガナ: ハッサン　エムディ　タリク
• あなたの氏名: HASSAN MD TAREQ
• あなたの生年月日: 平 ２ 年 ◯ 月 ◯ 日
• 世帯主の氏名 : HASSAN MD TAREQ
• あなたとの続柄: 本人
• あなたの住所又は居所:

〒115-004

東京都 北区 赤羽南 2丁目 16番 11号 
DIAMOND TRADING LTD-◯◯◯

• 配偶者の有無: 無
• 従たる給与についての扶養控除等申告書の提出 (提出している場合には、印を付けてください): <blank>
  • Use ◯ if you have 2 income sources (primary salary and subordinate salary)
  • About subordinate salary: https://www.nta.go.jp/taxes/shiraberu/taxanswer/gensen/2520.htm

B. 控除対象扶養親族(16歳以上)(平17.1.1以前生)

• フリガナ: エムディ ホビボル ラハマン
• 氏名: MD HOBIBOR RAHMAN
• あなたとの続柄: 父
• 生年月日: 昭 32 ◯ ◯
• 老人扶養親族: その他 (dependent is nor living together with me, neither aged between 19~21)
• 令和２年中の所得の見積額: ０ 円
• 非居住者である親族: ◯
• 生計を一にする事実: 10......0
• 住所又は居所: BOALIA, BARAGANGDIA-7050, DAULATPUR, KUSHTIA, BANGLADESH

Tax exemption for spouse

• 給与所得者の基礎控除申告書 兼 給与所得者の配偶者控除等申告書 兼 所得金額調整控除申告書
• Romaji: Kyūyo shotoku-sha no kiso kōjo shinkoku-sho ken kyūyo shotoku-sha no haigūshakōjo-tō shinkoku-sho ken shotoku kingaku chōsei kōjo shinkoku-sho
• English meaning: application for Basic Exemption of Employment Income Earner and Application for Exemption for Spouse of Employment Income Earner and Application for Exemption of Amount of Income Adjustment
• Links:
  • https://mag.smarthr.jp/procedure/detail/kyuuyoshotokusha-kisokoujoshinkokusho-2020/
  • https://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/gensen/annai/1648_73_gaikokugo.htm

Even if this document is not applicable to you (i.e. you are not married yet), you still need to fillup (only basic details i.e. name, address) and submit

Form Japanese

Form English

How to fillup

• A. If the estimated total income for this year is 10 million yen or less and the estimated total income for the spouse’s chronology is 1.33 million yen or less: fill out ①②③
• B. Other than A, and if the estimated total income amount during this year is more than 10 million yen and less than 25 million yen: fill out ①②
• C. If the estimated total income for this year is over 25 million yen: No entry required

※ A ・ B : After each description, if the estimated amount of salary income during this year exceeds 8.5 million yen and meets any of the following three conditions (①②③): fill out ④. For ④:

1. The person is a specially disabled person
2. There are dependent relatives under the age of 23
3. There is a spouse or dependent relative who has the same livelihood as a specially disabled person

Sample of filled up form

Tax exemption for insurance premium

• 給与所得者の保険料控除申告書
  • Romaji: Kyūyo shotoku-sha no hokenryōkōjo shinkoku-sho
  • English meaning: Insurance premium deduction report for salaried workers
• Links
  • https://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/gensen/annai/1648_05.htm
  • https://www.himawari-life.co.jp/customer/useful/kojo/entry/
  • https://zeimo.jp/article/16070

Form Japanese

Form English

How to fillup?

• Ⅰ : fill in your company name
• Ⅱ : fill in your company address.
• Ⅲ : fill in your name.
• Ⅳ : Please put your seal or signature.
• Ⅴ : fill in your address.
• Ⅵ : fill in the blanks if you pay the life insurance premiums. Also, details are as follows:
  1. Insurance company name
  2. Type of insurance
  3. Insurance period
  4. Policyholder’s name
  5. Beneficiary’s name of insurance
  6. Relationship between you and beneficiary
  7. When you agree insurance contract.
     • If you signed an insurance contract on or before 31st December 2011, please encircle “旧”
     • If you signed an insurance contract on or after 1st January 2012, please encircle “新”
  8. Total amount of insurance premiums which you paid in 2020
  9. You do not need to fill in anything here.
  10. You do not need to calculate the insurance deduction.
• Ⅶ : fill in the blanks if you pay the nursing insurance premiums. Also, details are same as Ⅵ 　.
• Ⅷ : fill in the blanks if you pay the individual pension insurance premiums. Also, details are same as　 Ⅵ 　excluding the ⑤. ⑤　Start data of insurance benefit
• Ⅸ : fill in the blanks if you pay the earthquake insurance premiums. Also, details are same as Ⅵ excluding the ⑦. ⑦　Which type do you agree.
  • If you agreed to the earthquake insurance, please mark “地震”
  • If you agreed to the old-long term property damage insurance, please mark “旧長期”
• Ⅹ : fill in the blanks if you pay the national pension premiums or national health insurance premiums. Also, details are as follows.
  1. Type of social insurance
  2. Payment recipient name of insurance premiums
  3. Person’s name is supposed to pay this insurance premium.
  4. Relationship between you and ③
  5. Total amount of insurance premiums which you have paid in 2020
• Ⅺ : fill in the blanks if you pay the small-scale enterprise mutual aid premiums.
  1. If you pay the iDeCo insurance premiums, fill in the amount here.
  2. Total amount of insurance premiums which you have paid in 2020

Sample of filled up form

Additional required documents

Income withholding tax certificate

• If you changed job, then income withholding tax certificate from previous company is needed
• See: Income withholding-tax-certificate (給与所得の源泉徴収票)

Remittance statement

Dependent relationship certificate (関係証明書)

Japanese translation of dependent relationship certificate (関係証明書 翻訳版)

And:

• Copy of passport of dependent(s)
• Copy of national id card of dependent(s)

How to submit?

• Some companies ask employees to fill up forms and sent it (along with required documents) to office and finance/HR people handles the rest (In my case I sent it to office by JP Post mail)
• Some companies use online service, in that case company will provide id and password to the employees and employees will login, fillup, upload documents and submit by themselves (in previous company, I used online portal called PX my portal)