- Special Allowance for Persons with a Disability is provided to individuals 20 years of age or over who require special care and attention on a constant basis due to severe physical or intellectual disabilities. As of 2004, the monthly allowance was \26,520. (Individuals with disabilities whose yearly income exceeds \5,180,000 are not eligible to receive the allowance.)
- Special Child Rearing Allowance is granted to parents or guardians of children under 20 years of age with moderate or severe disabilities. As of 2004 the monthly allowance was \50,900 in cases where the child has a grade one disability and \33,900 in cases where the child has a grade two disability. (A family of four whose yearly income exceeds \7,707,000 is not eligible to receive the allowance.)
- Welfare Allowance for Children with Disabilities is provided to individuals under 20 years of age who require special care and attention on a constant basis due to severe physical or intellectual disabilities. As of 2004, the monthly allowance was \14,430. (Individuals with disabilities whose yearly income exceeds \5,180,000 are not eligible to receive the allowance.)
An allowance is provided to the mothers and other caregivers of a child with disability who lives apart from the father in order to contribute to the stability and independence of the household in which the child is raised.
The national pension is a system that covers all residents of Japan, including the self-employed and individuals enrolled in employee insurance. There are three basic pensions, with benefits paid under the Old Age Basic Pension, Basic Disability Pension, and Bereaved Family Basic Pension.
The Basic Disability Pension, which is granted after having joined the insurance program (Case A) or when a certain degree of disability has occurred prior to the age of 20 years (Case B) In the latter case; however, there is an income limitation.
Grade one – \82,758 per month, 2004
Grade two – \66,208 per month, 2004
*These grades differ from the degrees indicated in the Certificate of Persons with Physical Disability.
According to the degree of the insured disability, Employee Disability Pension and Disability Allowance (a one time lump sum for minimal disabilities) are paid.
Families who have difficulties in daily life because of their low income can receive Public Assistance Benefit to ensure a minimum standard of living. There is also a supplemental allowance for persons with disabilities, depending on the type and degree of the disability.
Workers’ Compensation Insurance is a government-run system that provides benefits in the event of an injury, sickness, disability, or death of a worker while performing one’s duties or commuting to or from work.
The system provides for a disability pension and lump-sum payments as well as special benefits, medical treatment, health care, and provision of prosthesis and orthosis.
Taxpayers who have disability or who have a family member with disability can receive an income tax exemption.
The exemptions are as follows:
- Persons with a grade one or two disability under the Certificate of Persons with Physical Disability or severe disability under the Certificate of Persons with Intellectual Disability qualify for the \400,000 Specified Disabled Persons’ Exemption.
- Persons with disabilities other than the above qualify for a \270,000 Disabled Persons’ Exemption.
Local taxes are divided into prefectural and municipal taxes, depending on the authority imposing the tax. Like the income tax, the local tax system (residential tax) allows for various exemptions, including Disabled Persons’ Exemption, Specified Disabled Persons’ Exemption, and exemptions for specified disabled dependents living in the same household. Local Resident Tax is also reduced for persons with disabilities with annual incomes of \1,250,000 or less.
Exemption amounts are as follows:
Specified disabled persons – \300,000
Other disabled persons – \260,000
Persons with severe visual disabilities do not have to pay a business tax if they manage a clinic for massage or acupuncture. In addition, exemptions to the automobile tax and automobile acquisition tax are allowed for vehicles driven by persons with physical disabilities or renovated for the purpose of transporting persons with disabilities.
The consumption tax is a national tax that was formulated from the perspective of imposing a broad-based, minimal burden on consumers. The tax is indirect, with a uniform rate levied on all domestic transactions. Specified items for persons with disabilities (e.g. prosthesis and orthosis, canes, artificial eyes, special type beds, and wheelchairs) are exempt from the consumption tax.
In the case of property inherited by persons with physical disabilities, a set amount can be deducted from their taxable income. The inheritance tax is reduced in the case of disabled persons’ heirs.
- Up to 70 years of age – \120,000 for specified disabled persons
- Up to 70 years of age – \60,000 per year for disabled persons
- The gift tax is not levied on money or property up to \60,000,000 for specified disabled persons
* Numbers in ( ) are the years the laws were enacted.