When your medical care expenditures in a year, including all of your insured family members’ expenditures, exceed the standard amount, the excess amount of medical care expenditure is deducted from taxable income and a portion of the tax you paid will be refunded. This system is called deduction for medical care expenditures.
For details of the procedure, please contact your nearest tax office. You can also search on the National Tax Agency website.
The National Tax Agency website: http://www.nta.go.jp
On the website, you can learn about how to go through the process of deduction for medical care expenditures as well as how to fill in on-screen copies of the Final Return Forms.
The period to file final returns is between February 16 and March 15 every year. However, returns of deduction for medical care expenditures by income earners such as salaried workers are accepted for filing from January onwards.
Final Returns Form (available to fill in through the National Tax Agency website), receipts from medical institutions, tax withheld certificate, seal impression, deposit book of your account receiving returns, etc.
To provide cover for the use of self-purchased medical drugs subject to appropriate health supervision, the “Self-medication tax system (exemption for the deduction for medical care expenditures)” has been put in force as a special exception in the medical expense deduction system.
If you have received medical checkups and preventive vaccinations for the maintenance and promotion of your health as well as for disease prevention, and also your annual purchase amount of OTC drugs covered by this system exceeds 12,000 yen, by filing final returns, you are able to deduct the amount in excess of 12,000 yen (with an upper limit of 88,000 yen) from the relevant year’s total income amount.
Deduction from income through the self-medication tax system and regular deduction for medical care expenditures cannot be used simultaneously. For the medical care expenditures deduction system for the purchase of drugs covered by the system, either the regular deduction for medical care expenditures or the self-medication tax system can be applied to the purchase fees and the insured person chooses the system which will apply.
For specific procedures about final returns, please contact your nearest tax office. You can also search on the National Tax Agency website, etc.
January 1, 2017 to December 31, 2021
* This exemption can be applied to final returns from 2017
Those who fall into all of the following three categories in the relevant year (January to December) can file.
Medical drugs prescribed by doctors to drugs converted to OTC drugs sold in pharmacies, etc., (so-called switch OTC drugs) are all covered.
Taxable components and items are listed on the Ministry of Health, Labour and Welfare website.
‘Since the system was enforced, the following identification mark has been applied on packages of covered products, as a reference when purchasing them.
* You can claim for OTC drugs covered by this system even if there is no identification mark on the product package. They will be noted as covered products on the purchase receipts.