Tax benefits are available at each stage of contribution, investing and benefits.

 

■When making contributions 　

・Companies of a corporate-type DC: The full amount of contributions are deductible.

(No income tax, residential tax, etc. are imposed on participants.) 　

・Participants of an Individual DC (iDeCo): The full amount of contributions is subject to income deduction. 　　　　　　

(The entire amount of contributions is subject to deduction for small enterprise mutual aid premiums. Applicable only if the participant himself/herself has income.)

 

■When investing pension assets

Tax-free (no tax on interests and investment gains) 　

＊Pension assets are subject to special corporate tax (1.173%), but the taxation is currently suspended.

 

■When receiving retirement benefits 　

・Pension: Miscellaneous income (subject to public pension deduction after adding up other public pensions) 　

・Lump-sum (one-time) receipt: Retirement income (subject to retirement income deduction)