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Furusato Nozei "Hometown Tax"

2/15/2018

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Furusato Nozei is a kind of donation out of income tax that people offer to the local or prefectural governments of their choice and in response, many municipalities repay the donors’ generosity by sending them "thank you gifts". In most cases, the gifts are local specialties.

Foreign residents who work and pay taxes in Japan, can also participate in Furusato Nozei program and receive gifts in return for their donations.

Furusato Nozei

How Furusato Nozei Works

The Furusato Nozei is essentially a system that allows you to redirect a portion of your income tax to any village, town, city or prefecture that you would like to help out. By doing this, you are supporting the development of smaller, less funded municipalities, and as a thank you, the beneficiary sends you a gift. You can choose the gift from the list of products they offer.

You need to keep the receipts that you receive from the municipalities you donated to. When you report your income tax return, apply for the tax deduction and include the receipts as proof of donation. As a donor, you can choose what cause, project or policy you want to support, such as environmental programs, arts-related activities and aid in times of disaster.

The deductible tax amount depends on annual income and family structure. Fill in your salary range and family structure in the Tax Payment Simulator to get your tax deduction amount. If your tax deduction amount does not cover the full cost of the gift you like, you can pay the difference and still make the order.

You can choose how to donate and search by category, price range, city or project on Furusato Nozei page. You can also make multiple donations to different areas or different projects throughout the year.

There are several Furusato Nozei Halal products which can be ordered online.
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Related Reading:
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  • Taxes In Japan
  • Work In Japan​​​
  • Why You Should Learn Japanese
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