What is the Self-Medication Tax System (Special Provision for Medical Expense Deduction)?
This is a special provision of the medical expense deduction system. If you purchase over a certain amount of over-the-counter (OTC) medicines containing specific ingredients during a year (January to December), the amount exceeding 12,000 yen is eligible for an income deduction. Similar to the medical expense deduction, this system offers tax benefits, such as a partial refund of income tax and a slight reduction in the burden of resident tax in the following year, if you file a tax return.
However, as this system is a special provision for medical expense deductions, it is part of the medical expense deduction system and therefore cannot be used simultaneously with the conventional medical expense deduction system and the self-medication tax system (special provision for medical expense deductions).
You will have to choose which one to apply.
Target OTC drugs
Click here to see which products are eligible for the self-medication tax deduction.
The main products from Rohto Pharmaceutical that fall under this category are as follows:
However, even if the product name is the same, it may be excluded depending on the JAN code *.
You can check the applicable JAN codes by clicking on the product name below.
*: Rohto Z b, V Rohto Contact Premium, Rohto Lycee b, etc.
Markings for eligible over-the-counter (OTC) medications
The mark shown on the right will be displayed on eligible over-the-counter (OTC) medications.
Some of the target products currently do not have the mark, but they will be gradually switched to products with the mark.
*There is no legal obligation to display the mark, and some eligible products may not have it due to production reasons, etc. Even without the mark, products that are eligible for tax deductions are still eligible for the program. Please check at the store.
When you purchase an eligible product, the receipt will also indicate that it is an eligible product. If your POS system prints detailed statements, this will be done automatically; otherwise, it will be handwritten on the receipt.
Receipts are necessary when filing your tax return, so be sure to keep them after purchasing tax-deductible products.
Target people
Those who meet the following three conditions are eligible for tax deductions.
- I pay income tax and local taxes.
- Individuals whose annual (January to December) purchase amount of eligible over-the-counter (OTC) medications exceeds 12,000 yen (including purchases for themselves and their dependents).
- Individuals who have undergone one of the following for the purpose of maintaining and promoting health or preventing disease: specific health checkups, vaccinations, regular health examinations, general health checkups, or cancer screenings.
How much tax can be saved?
The amount exceeding 12,000 yen in annual (January to December) purchases of eligible over-the-counter (OTC) medicines (including those for dependents, up to a maximum of 88,000 yen) will be tax-deductible, calculated by multiplying the taxpayer's income tax rate by the amount of the taxpayer's purchases.
(Example) If a taxpayer with an income tax rate of 20% purchases 50,000 yen worth of goods annually
- Income tax (national tax) paid to the government
(50,000 yen - 12,000 yen) x 20% = 7,600 yen
- Resident tax (local tax) for the following year
(50,000 yen - 12,000 yen) x individual resident tax rate of 10% = 3,800 yen
⇒A total of 11,400 yen will be deducted from your taxes.
How do I file my tax return?
You can prepare your tax return on your home computer using the "Tax Return Preparation Corner" on the National Tax Agency's website.
*You will need receipts (invoices) when filing your tax return, so be sure to keep them.
For more details regarding the "Self-Medication Tax System," please check this website.