Forest income

Forest income expenses means the amount of business income for that year, the amount of forest income or the amount of miscellaneous income included in the necessary expenses, unless otherwise specified, Expenses for afforestation, expenses required for acquisition, administrative expenses, logging expenses and other expenses required for nurturing or transferring the forest (excluding those other than amortization expenses excluding those whose obligation is not fixed for that year)

Calculation of tax amount of forest income is calculated by the following method, but it is calculated by separation taxation without adding it with other income

Tax calculation of income tax return declaration

Tax calculation of forest income
Amount of forest income = total income amount – required expenses – special deductible amount (maximum 500,000 yen)
{(Taxable forest income amount ÷ 5 × tax rate) – deduction amount} × 5 


  • Forest income refers to income resulting from logging or transfer of forests
  • The income from logging or transferring forests within five years after the date of acquisition is not included in forest income
  • The amount of forest income shall be deducted from the total income amount related to forest income during the year by the necessary expenses and deducted the special deduction for forest income from the remaining amount
  • The special deduction for forest income prescribed in the preceding paragraph shall be 500,000 yen (in the case that the balance prescribed in the same paragraph is less than 500,000 yen, the remaining amount)