If taxable income is 6.95 million yen or less (annual income ~10 million yen), selecting comprehensive taxation and applying the dividend deduction is advantageous in most cases. However, be aware that national health insurance premiums and other costs may increase. ◇ [B-3] Foreign Tax Credit If a resident of Japan earns income overseas (including foreign stock dividends, etc.) that is taxed locally and also taxed in Japan, filing a tax return allows the local taxes paid to be deducted from your income tax (including special reconstruction income tax) for that year. This is the foreign tax credit.