NAO News letter November 1, 2007

平成18年度税制改正−損害保険料控除の改編（平成19年以後　地震保険料控除）

平成１８年度税制改正により、損害保険料控除が改組され、損害保険契約等に係る地震等損害部分の保険料等の支払合計額(最高５万円)を総所得金額等から控除する地震保険料控除になりました。

　改正前
　　(1)短期損害保険料（控除額　最高３千円）
　　(2)長期損害保険料　(控除額　最高１万５千円)
　　　(1)と(2)の両方がある場合、控除額は最高１万5千円

改正後　
(1)短期損害保険料　−廃止
(2)長期損害保険料　−平成18年12月31日までに締結した長期損害保険契約等について
は、当面従前の制度(控除額　最高1万５千円)が適用されます。
(3)地震損害保険料　(控除額　最高５万円)　
(２)と(３)の両方がある場合、控除額は最高５万円

この改正は、平成１９年分以後の所得税について適用されます。

Year 2006 Tax Reforms-----Change in Deduction for Casualty Insurance Premiums (Deduction for Earthquake Insurance Premiums from 2007 onwards)

Under the year 2006 Tax Reforms, deductions for casualty insurance premiums were modified, and deductions for earthquake insurance premiums were newly introduced. Policyholders are now allowed to deduct insurance premium paid for earthquake coverage (maximum 50,000 yen) from their gross income.

Pre-Reform
(1)Short-term casualty premiums --- Maximum amount of deduction 3,000 yen.
(2)Long-term casualty premiums --- Maximum amount of deduction 15,000 yen.
If the total of (1) and (2) exceeds 15,000 yen, the deductible amount will be 15,000 yen.

Post-Reform
(1)Short-term casualty premiums --- No deductions allowed.
(2)Long-term casualty premiums --- For long-term casualty insurance contracts entered into prior to December 31, 2006, pre-reform rules (maximum amount of deduction 15,000 yen) will apply for the time being.
(3)Earthquake insurance premiums --- Maximum amount of deduction 50,000 yen.
If the total of (2) and (3) exceeds 50,000 yen, the deductible amount will be
50,000 yen.

These changes are applied to individual income tax beginning from fiscal 2007.