Special Reconstruction Income Tax (復興特別所得税)

Posted on 08/11/2012 by Koji Takahashi

On November 30, 2011, the Japan Diet approved a bill for taking “Special Measures to secure the financial resources for reconstruction after the Great East Japan Earthquake”. As a result, there will be an increase in the income tax rate effected by the “Special Reconstruction Income Tax” and regulation will be put in force from 2013/1/1 to 2037/12/31 for 25 years whereby a tax rate of 2.1% will be imposed on the standard National Income tax.

Taxable person

National Income Tax payers are supposed to pay the “Special Reconstruction Income Tax”.

Object of taxation

The Special Reconstruction Income Tax will be imposed on incomes from 2013 to 2037. Regarding salaried workers, the tax will be collected by the withholding tax from 2013.

Base of Taxation

The Special Reconstruction Income is calculated based upon income tax.

The amount of tax = Income tax X 2.1%

Note: Residents whose foreign tax credit exceeds income tax can deduct the remaining foreign tax credit from the Special Reconstruction Tax.

Base income tax to calculate the Special Reconstruction Income Tax

Income tax
Resident   Permanet resident Income tax on worldwide income
Non-permanent residen  Income ax on domestic source income and foreign source income

which is sent to Japan

Non-resident Income tax on domestic source income


Filing an income tax return

Regarding income from 2013 to 2047, the income tax return has to be filed together with the Special Reconstruction Income tax return.


Tax payers who file the above tax returns have to pay the income tax together with the Special Reconstruction Income tax by Mach 15.

Withholding tax

Withholding agents have to collect the withholding tax including the Special Reconstruction Income tax. 2.1% of the tax rate is imposed on the existing withholding tax.

The total tax rate

The total tax rate = Income tax rate(%) × 102.1%

Ex 1)

Income   tax rate(%)
10 15 16 18 20
Total   tax rate(%) (Income tax rate×102.1%)  5.105  7.147  10.21  15.315  16.336  18.378  20.42

Ex 2)

Interest income on deposit  20% + 15% × 2.1% (15% is income tax) + 5% (5% is local tax) = 20.315%

Ex 3)

Accountant fee  10% +10% × 2.1% = 10.21%


By Certified Public Accountant & Tax Accountant, Koji Takahashi

Tokyo & Yokohama