Yayoi Kyuyo Next Supports "Revision of Non-Taxable Limit for Commuting Allowance"

Yayoi Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President, Representative Director, Executive Officer & CEO: Kenichiro Muto; hereinafter "Yayoi") announced that it has released a functional update for its cloud payroll service "Yayoi Kyuyo Next" on May 12, 2026. This update corresponds to the revision of the non-taxable limit for commuting allowances for users of personal vehicles and other transportation tools, which became effective in April 2026.

This update complies with the latest legal information, making it possible to automatically and accurately calculate non-taxable and taxable amounts based on the revised new distance categories and the non-taxable framework for commuting allowances related to parking usage.

For more information on legal revisions: https://www.yayoi-kk.co.jp/lawinfo/detail.20260401/

National Tax Agency "About the revision of the non-taxable limit for commuting allowances": https://www.nta.go.jp/users/gensen/2026tsukin/index.htm

## Background

In the Reiwa 8 (2026) tax reform, the non-taxable limit for income tax related to commuting allowances for employees who use personal vehicles or other transportation tools for commuting was reviewed. This follows the revision in November 2025, driven by factors such as increased actual costs associated with commuting and consideration for long-distance commuters. This revision introduced significant changes impacting corporate payroll practices, including the addition of new distance categories for long-distance commuters and the establishment of a new non-taxable framework for commuting allowances related to parking usage.

"Yayoi Kyuyo Next" responds to these system changes by providing an environment that automatically calculates the non-taxable and taxable amounts of commuting allowances, reflecting the revised distance categories, non-taxable limits, and the additional non-taxable framework for commuting allowances related to parking usage. This enables accurate and easy payroll calculation without having to constantly check the contents of legal revisions or perform complex calculations manually. Reducing calculation errors and practical burdens associated with system compliance is a major benefit for users, allowing them to proceed with payroll calculation and year-end adjustment tasks with peace of mind.

Yayoi will continue to reliably respond to frequent tax reforms and changes in related laws, continuously supporting corporate payroll operations through "Yayoi Kyuyo Next." By faithfully reflecting the latest official legal and institutional information and supporting legal compliance with the system, we will contribute to the efficiency of back-office operations and the reduction of workload for personnel in charge.

## Main Update Contents

1. **Support for long-distance commuters**
* Supports the newly established distance category of 55km or more and its non-taxable limit.
* If a one-way commuting distance for transportation tool usage is set, the revised distance category is automatically applied.
* It is also possible to manually select and assign distance categories according to corporate operations.

2. **Support for commuting allowances related to parking usage**
* Manages commuting allowances related to parking usage separately from other commuting allowances.
* Automatically adds an additional non-taxable limit (up to 5,000 yen per month) according to the amount of commuting allowance related to parking usage, and calculates the non-taxable and taxable amounts.

## About "Yayoi Kyuyo Next"

"Yayoi Kyuyo Next" is a cloud payroll service that realizes "payroll, attendance, and labor management. All digitized smoothly." It widely supports monthly attendance management, payroll calculation, year-end adjustment work, and labor management such as new employee onboarding and insurance procedures. As a series of operations can be completed within one service without being disconnected, it leads to improved operational efficiency.

URL: https://www.yayoi-kk.co.jp/kyuyo/

## About Yayoi Co., Ltd.

Yayoi is a company that develops, sells, and supports the "Yayoi Series" software for back-office operations, with the mission of "creating a positive cycle in Japan by energizing small and medium-sized enterprises." The "Yayoi Series" has over 4 million registered users and is used by many customers.

By combining Yayoi's strengths—its customer network, vast accumulated data, industry-leading customer service center, and relationships with partners—with technologies such as AI, we will support SMEs in achieving their desired future.

Representative: Kenichiro Muto, President, Representative Director, Executive Officer & CEO

Founded: 1978

Employees: 801 (as of September 2025)

Business activities: Development, sales, and support of business software and related services.

Headquarters: Akihabara UDX 21F, 4-14-1 Sotokanda, Chiyoda-ku, Tokyo

URL: https://www.yayoi-kk.co.jp