As the year-end approaches, many people have been reaching out to Tsubaki with questions about the Overseas Dependent Deduction . So here it is—a dedicated article explaining what it is and answering common questions to help you understand everything about this important tax deduction!
What exactly is a dependent deduction? What does the “overseas” version of it mean for us foreigners? What should you watch out for? How do you apply? All of that will be answered in this post. While applying for the dependent deduction may sound a bit complicated, it’s actually very simple and just takes a few steps—and it could save you enough to cover a round-trip flight home!
(Updated on April 9, 2025)
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How is tax calculated in Japan?
Before diving into Japan dependent deductions (扶養控除) , it’s important to understand how income tax (所得税) and resident tax (住民税) are calculated. This foundation will help you grasp what deductions (控除) really mean.
In general, income tax in Japan follows the “comprehensive taxation” principle. That means all your yearly income is totaled up and taxed according to a seven-tier tax bracket system.
Of course, aside from comprehensive taxation, there is also “separate taxation” for certain income sources—like profits from stock investments—where the government applies different tax rules.
Here’s the basic process of how comprehensive income tax is calculated:
Put simply, it looks like this:
(Total Income − Business Expenses − Income Deductions) × Tax Rate − Tax Credits = Income Tax
The Japanese government created the income deduction system to account for different household situations, so deductions help adjust the taxable amount to make taxation fairer.
So, if your income and expenses stay the same, the best way to reduce your tax burden is to make use of “income deductions” and “tax credits.” The higher these deductions and credits, the less tax you’ll end up paying.
There are a total of 14 types of income deductions, and the “Overseas Dependent Deduction” we’re talking about in this article is one of them.
What is the Dependent Deduction?
As the name suggests, the dependent deduction allows you to deduct expenses spent supporting your family members from your taxable income. In other words, money you spend on supporting your family doesn’t count as part of your income for tax purposes—kind of like a tax break the government gives you. (Sounds surprisingly generous for Japan, doesn’t it?)
However, not all family-related expenses automatically qualify. You must meet certain conditions set by the Japanese government to enjoy this tax benefit. Let’s go over those now.
Eligible Dependents and Conditions
According to Japan’s National Tax Agency, the following conditions must be met for an overseas dependent to qualify:
- The dependent must be a relative within 6 degrees of kinship to you, or within 3 degrees of kinship to your spouse. Legally adopted children or officially commissioned caretakers of elderly relatives are also included.
- You must be financially supporting the person (even if you don’t live together—remittance of living expenses is acceptable, which is why foreign residents can also apply).
- The dependent’s annual income must not exceed ¥480,000 (this is a gray area, but the Japanese government currently cannot verify foreign dependents’ income).
- The dependent cannot earn any income from a blue-return tax filer (青色申告) and cannot be a white-return filer either (白色申告) (these terms usually refer to business owners or self-employed people, so they generally don’t apply to regular employees).
Tsubaki personally claims one younger sister as a dependent, but you’re free to claim more than one if eligible. Just be aware that claiming too many dependents might impact your resident tax or Furusato Nouzei (ふるさと納税) tax cap. It could also raise flags during tax reviews and might even affect your future application for permanent residency. So proceed with caution!
Deduction Amounts for Dependents
This is the part everyone’s most curious about. The table below shows how much can be deducted from income tax and resident tax. The deduction ranges from ¥380,000 to ¥630,000 for income tax and ¥330,000 to ¥450,000 for resident tax.
Using the lowest income tax rate of 5%, claiming just one dependent can save you around ¥35,500 to ¥54,000!
Age of Dependent | Living Together | Income Tax Deduction | Resident Tax Deduction |
16–18 years old | Yes / No | ¥380,000 | ¥330,000 |
19–22 years old | Yes / No | ¥630,000 (Special deduction for students) | ¥450,000 |
23–69 years old | No | ¥380,000 | ¥330,000 |
23–69 years old | Yes | ¥580,000 | ¥450,000 |
70 years old and above | No | ¥480,000 | ¥380,000 |
70 years old and above | Yes | ¥580,000 (Special elderly dependent) | ¥450,000 |
Required Documents for Overseas Dependent Deduction
When applying for the overseas dependent deduction, you’ll need to submit two types of documents to the government.
If you’re applying through your company’s year-end adjustment (年末調整), submit them to the HR or general affairs department.
If you’re doing it through self-tax declaration (確定申告), then upload them online.
The two required documents are:
- Proof of Relationship with the Dependent
- Proof of Remittance
Proof of Relationship (with Japanese translation)
- A government-issued document proving your relationship + a copy of the dependent’s passport (sometimes the original may be requested).
- A foreign government-issued document that clearly shows the dependent’s full name, date of birth, and address.
In Taiwan, we use a household registration transcript as proof of family relationship. However, please make sure to check what kind of official documents are accepted in your own country to prove family ties. You’ll need to either apply for an original copy yourself, or ask your family back home to send you the original by mail, then make a photocopy to submit with your application.
When Tsubaki submitted the documents, the household registration transcript wasn’t officially translated. Instead, the relationship field and names were simply highlighted with a marker. If you’re concerned, you can provide your own translation—there’s no need for a certified translation or notarization.
Proof of Remittance
- The document must be issued by a financial institution, and must clearly show that currency was exchanged and funds were remitted directly to the dependent.
- Alternatively, you may submit a credit card statement for a family card issued under the dependent’s name, showing overseas spending.
These documents must clearly list the dependent’s name and the remittance date. If the recipient is not the person you’re claiming as a dependent, the application will be rejected.
In other words, if you’re claiming your mother as a dependent, then your remittance proof must clearly show her name as the recipient—otherwise, the National Tax Agency of Japan will not accept it.
In some Taiwanese expat communities in Japan, people have shared tips about sending their own debit cards back home and having their families use them as proof of support.
But here’s the deal: this method is not officially accepted. Even if your family uses the card overseas, the card is still under your name, and the statement doesn’t prove the expense was for your family. So it can’t be used as valid remittance documentation. (Logically speaking, there’s just no way to verify who the money was really for.)
Some people might say they’ve used this method successfully for years without problems. That’s likely because tax inspections used to be more lenient, and some companies may have reused old documents without re-verifying.
But audits have become more strict in recent years, so it’s safest to stick to official guidelines when preparing your documents.
Of course, if you want to test the debit card method, Tsubaki would love to hear how it goes (haha). But if I were a tax accountant, I’d clearly say: don’t do it.
How Much Should You Remit?
This is one of the most frequently asked questions. How much do you need to remit to qualify for the Overseas Dependent Deduction ?
For a long time, there was no clear rule, which made the system easy to take advantage of. But in 2023, the Japanese government finally established a clear threshold:
To qualify for the overseas dependent deduction, the minimum remittance amount must be ¥380,000 per year.
Before this update, standards were inconsistent. Tsubaki personally remits money to family regularly, so this has never been a concern. But when it comes to the minimum amount recognized, it may still depend on your company’s HR policy.
Some people online reported that they successfully applied with as little as ¥10,000 or even ¥1,000, while others said their companies required at least ¥100,000 to accept the deduction. So the best approach is to ask your company’s HR directly.
If you’re filing through self-declaration (確定申告), many recommend remitting at least ¥30,000, but Tsubaki personally suggests going with ¥100,000 if your budget allows—just to be on the safe side.
(⚠️ Note: Since 2023, the requirement is officially ¥380,000 or more, so those two earlier thresholds can be ignored.)
Deadlines & Application Timing
- Remittance Period: January 1 – December 31
- Year-End Adjustment (年末調整): Typically around November (document submission deadline depends on your company)
- Self-Tax Declaration (確定申告): February 16 – March 15 of the following year
Cheaper Options for Overseas Remittance
In the past, most people used traditional banks for overseas remittance, but these often charge hefty fees, sometimes several thousand yen per transaction.
Recently, more people have switched to online remittance services that are faster and more affordable. But be careful—don’t use sketchy platforms, or you could risk losing your funds.
The most popular and trusted option among overseas workers is undoubtedly Wise (formerly TransferWise).
Wise is one of the most widely used platforms for international transfers. It’s fast (1–3 business days), low-fee, and secure. Even Tsubaki personally recommends it! Compared to Revolut, Wise is considered more reliable in Japan.
💡Use my referral link to waive the transfer fee for up to ¥80,000 on your first remittance. （https://transferwise.com/invite/u/liut28）
So… How Much Tax Can You Actually Get Back?
Earlier, we explained how much of your income you can deduct using the dependent deduction. But let’s be honest—what everyone really wants to know is: “How much money will I actually get back?”
To help you quickly estimate the refund, I’ve prepared a simple tax refund quick reference chart (for illustrative purposes only).
Dependent Age | Deduction Amount (JPY) | Income Tax Refund (5%) | Income Tax Refund (10%) | Income Tax Refund (20%) | Resident Tax Refund (Avg. 10%) |
16–18 | 380,000 | 19,000 | 38,000 | 76,000 | 38,000 |
19–22 (Student) | 630,000 | 31,500 | 63,000 | 126,000 | 63,000 |
23–69 (Not living together) | 380,000 | 19,000 | 38,000 | 76,000 | 38,000 |
23–69 (Living together) | 580,000 | 29,000 | 58,000 | 116,000 | 58,000 |
70+ (Not living together) | 480,000 | 24,000 | 48,000 | 96,000 | 48,000 |
70+ (Living together) | 580,000 | 29,000 | 58,000 | 116,000 | 58,000 |
To check your potential refund, just add the income tax refund amount and the resident tax refund amount from the chart above. That’s the total amount you could expect to get back from the government.
For example, if John is supporting his 52-year-old mother, and his final income tax rate is 5%, his tax refund would be approximately:
¥19,000 (resident tax) + ¥38,000 (income tax) = ¥57,000 total
That’s over ¥50,000, which is easily enough to cover for a flight back to home, right?
Final Thoughts
There are many tax deductions available to those working in Japan that can really help lighten your financial burden. Don’t miss out on these benefits just because the process seems tedious—these deductions are your rights. Especially in this era where almost everything is taxed, it’s more important than ever to understand the system and use it to protect yourself.
The Overseas Dependent Deduction is a great example. With just a bit of paperwork and a few clicks, you could be saving a substantial amount in taxes each year—definitely not something to overlook!
That said, Tsubaki wants to remind everyone: when applying for this deduction, make sure the remittance service you use can provide formal proof of transfer, and don’t forget to prepare documents that clearly prove your family relationship.
Also, since claiming the dependent deduction can affect your Furusato Nozei (Hometown Tax Donation) cap, don’t forget to recalculate your donation limit before making any purchases. Otherwise, you might end up making a donation without getting the tax break you expected!
If you still have questions about the application process, feel free to leave a comment below—Tsubaki will get back to you as soon as possible!
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