Pension Income Deduction
The Pension Income Deduction (公的年金等控除) is a deduction of up to ¥1,955,000 that applies to pension income, for the purposes of calculating income tax. The deduction lowers taxable income, effectively making the the deducted amount tax free.
This deduction applies to regular pension payments, not to lump sums. For lump sums, the Retirement Income Deduction (退職所得控除) applies.