Can you explain?Difference between "comprehensive taxation" and "separation tax" for income tax | @Dime at Dime

Do you know that income tax is taxed for income earned in one year, but there are two systems in the taxation method?In most cases, if the income is only salaried from the company, the tax calculation is relatively easy, but there are scenes that can help you understand the tax method, such as when a special income occurs.

Therefore, in this article, we will explain the outline of "comprehensive taxation" and "separation tax" in the calculation of income tax and the income subject to separation tax.Focusing on why two methods are adopted should deepen understanding of the system.

Income tax has two taxation methods

There are two types of income tax tax on "comprehensive taxation" and "separation tax", and is classified by the content of income.First, let's check the difference between each tax method and both.

Total taxation

Comprehensive taxation is a taxation method that calculates the income tax by totaling various income.The income tax is calculated by multiplying the amount of income (income amount) that is subject to comprehensive taxation (income amount).

The tax rate uses a "progressive tax system", which is higher as taxable income is higher, and is divided into seven stages.The minimum tax rate is 5 % from 1,000 yen to 1,949,000 yen, and the maximum tax rate is 45 % over 40 million yen, and the deduction amount is high depending on the income amount.

Income to be overall taxes include dividend income, real estate income, forest income, salary income, business income, temporary income, miscellaneous income.

Declaration separation tax

The declaration separation tax is a taxation method that calculates income tax by multiplying a specific income at a unique tax rate.If you add a comprehensive tax calculation, the income that will significantly increase the tax burden will reduce the burden by using your own tax rate.In the case of a tax return tax, it is necessary to file a tax return.

What is the difference from withholding taxation?

Separation taxation is a taxable system that can be said to be a special case for separation tax.In the tax calculation, those who completely separate from other income and pay the income are completed by paying the income tax in advance by withholding.In other words, the income subject to the withholding tax is not required.Interest income of deposits and deposits is subject to withholding tax.

What is the income to be taxable?

So, what kind of income is the tax return tax?Here, we will introduce the income subject to the separation of declaration.There are some income that can be selected for the taxation method and the presence or absence of declaration, so please check the official website of the National Tax Agency for details.

Retirement income

Income such as retirement allowance and lump -sum payment received at the time of retirement is subject to taxation.Retirement allowance has a strong reward meaning and is important as a living fund for retirement, so the tax burden is reduced by separation tax.

The amount of retirement income is calculated in principle according to "(income amount before the withholding tax) -retirement income deduction) x 1/2".The retirement income deduction amount is "400,000 yen x years of service (800,000 yen if it is less than 800,000 yen)" if the number of years of service is 20 years or less.X (years of service -20 years).

Dividend income

Dividend income refers to income due to shares dividends and income distributions for investment trusts.Generally, dividend income is subject to comprehensive taxation, but in certain cases, the declaration separation tax can be selected.The amount of dividend income is calculated by subtracting the interest of the borrowed money for acquiring shares, etc., from the income amount (the amount before the withholding amount).

If dividend income is a comprehensive taxation in principle, "dividend deduction" can be applied except for a certain one.

Forest income

The forest income is the income obtained when the forest is cut down or transferred on a standing tree.In principle, the amount of forest income can be obtained by "total income -necessary expenses -special deduction amount (up to 500,000 yen)".

In addition, the calculation of the tax amount uses the "separation 5 -minute -5 -square tax method" for the purpose of reducing the burden on income tax.The formula of "taxable forest income x 1/5 x tax rate x 5" is used, and the tax amount is cheaper than the case where the method is not applied.

If you cut or transfer within 5 years after acquiring the forest, you will be classified as business income or miscellaneous income.In addition, if the entire forest, including land, is transferred, transfer income will be transferred.

Transfer income

Transfer income is the income earned when the asset is transferred.Of the transfer income, separation tax is the income obtained by selling land, buildings, and shares, and does not include business assets or forests.The principle calculation method of the transfer income amount is "income amount- (acquisition cost+transfer cost) -special deduction amount", but it may differ depending on the contents of the assets sold.

Sentence / OKI