Japanese Version 401K


Shonan tax office, No 142 July 1, 2001



  The Japanese version 401k has enforced from October 2001, and it was approved in June 22nd in this year. “The annuity of the donation of being fix” is that you direct to operate. “ The annuity of the provision of being fix” is already decided how much you can get the annuity. Therefore, they are different annuity.

  If the operation goes well, the large amount of money can be received. However, if the operation goes bad, you have to take the responsibility. The Japanese version 401k classifies into two parts. One is “the corporation type” that the corporation pays a premium for the employee. The other is “the individual type” that the self-employer and the corporation, which does not introduce this law, pay a premium by themselves. Moreover, the people who can apply this annuity are the less than 60-year-old office worker and self-employer who pay national annuity insurance.

  A full time housewife and a public official are not applied. The corporation type can entrust this annuity to the trust company, life insurance company, and damage insurance company. The individual type can entrust to national annuity foundation union. The operation management institution presents more than three goods such as the deposit, the public corporation bond, the investment entrust, the stock, entrust, and insurance goods, and then it operates according to the instruction of the members. The financial institution may operate as the operation management institution and property management institution.

Some people disagree this annuity. For instance, it is the opinion that shifts the risk of corporation annuity from the corporation to worker. It is the fact that finance of the corporation has gotten worse recently, yet retirement annuity has become huge amount of money. That became big problem to the business management. However, there is a merit, too. For example, in the past, the office worker has not received annuity if he or she works above being constant, yet now, this annuity can be carried when changing one’s occupation. It is more possible to change the favorable occupation like the foreign country, for the lifelong employment has collapsed recently. In addition, there are merits on the tax law, too. For instance, the corporation can do financial loss inclusion with the donation, the donation of the individual is an object for income subtraction, and they can be treated very well in tax law. The tax law revision is usually done in March, but these were done in June when the annuity of the donation being fixed law was enforced. Besides that, tax law revisions done since April are non-taxation system in June and revision that safe stock ban. This year tax law revision must be careful.


    I hope that the Japanese version 401k works well in tax law because of thinking of that the public annuity of a service object age was raised and the opaqueness in the future. However, we cannot expect much annuity in this economic situation because it has the character of savings which prepared for the future more than to call a sure annuity, and the management cost of the annuity is high. Therefore, we must consider that the possibility of receipt is lower than a premium.


Tax Topic


       The road rating price of this year is announced in August 3 rd.

The road rating price and evaluating magnification are likely announced by national tax bureau and tax offices on August 3rd. The road rating price is the base of evaluation price of land for inheritance tax and donation tax. The official price of land has been down for 10 years. Price was down 4.2 % in habitation place and 7.5 % down in the commercial place compare to previous year. The road rating price of this year also seems to fall.


The official bonus is that financial loss non- inclusion


The official bonus is called financial loss non-inclusion and is a taxation income in corporation tax. It is contained to the financial loss for a servant concurrently holding the posts of executive and the executive who is always doing work as the servant. However, sometimes, all bonuses can be contained to be financial loss. For instance, family of the proprietor becoming with employee is increasing because of personnel reduction. These people are not “the servant concurrently holding the post executive” in tax matter.

       This rate of having stock is

1 the family partnership

2 more than 50% of stock when the parent, brothers, and sisters add their stock.

3 stockholder’s group has more than 10%

4 the rate of having stock of a official or a official’s spouse exceed 5 %

return to front page


return to Japanese version