Amended tax exclusion limit for commuting allowance for employee who commutes to workplace by personal car

On 17 October, Japan’s government issued an ordinance which amended the tax exclusion for transportation allowance paid to employee who commutes to workplace by personal car. The new rule will be effective retroactively from 1 April 2014.

According to the current situation of commuting allowance payment, the ordinance changed the word “bicycle” to “automobile” used in Articles 20 section 2 paragraph 2 and paragraph 4 of Income tax laws as well as raised the tax exclusion limit.

The table below shows the tax exclusion limit amount for employee who uses bicycle or automobile to commute to workplace:

Distance X

Before amendment

After amendment

2km X < 10km

4,100 JPY

4,200 JPY

10km X < 15km

6,500 JPY

7,100 JPY

15km X < 25km

11,300 JPY

12,900 JPY

25km X < 35km

16,100 JPY

18,700 JPY

35km X < 45km

20,900 JPY

24,400 JPY

45km X < 55km


28,000 JPY

X 55km


31,600 JPY