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Program Guidelines

Taxation Benefits

 

In accordance with Article 217 of the Cabinet Order concerning the Income Tax Law and Article 77 of the Cabinet Order concerning the Corporate Tax Law, the Japan Foundation is designated as an organization that makes a significant contribution to promoting the public good (Designated Public Benefit Organization). Donations to the Japan Foundation are subject to tax deduction as described below. Receipts issued by the Japan Foundation are necessary when the donors claim a tax deduction at their local tax offices.
Calculation Method of Donation Deduction
(1) Individuals:
With a limit of 40% of gross income, an amount equal to the donation minus ¥2,000 is tax deductible.
  • ※When an inheritance is donated, the donation is tax deductible from inheritance tax in some circumstances.
  • ※Due to the revision of Tokyo metropolitan tax ordinance, donations to the Japan Foundation have been designated donations deductible from the sums of the individual metropolitan inhabitant tax. The deductible amount from the sums of the individual metropolitan inhabitant tax is [(gross amount of donations- ¥2,000)×4%].
Note:
  • a. The applicable donations are deducted from the individual metropolitan inhabitant tax for the fiscal year following the fiscal year in which the donation has been made.
  • b. Those who live in Tokyo on January 1 of the year following the year in which you have made donations benefit from tax deduction.
  • c. If the donation is also qualified by ward or municipal government of donor's domicile for deduction, donors benefit from tax deduction from the ward or municipal inhabitant tax. An amount equal to [(gross amount of donations - ¥2,000)×6%] is deductible from the sums of the ward or municipal inhabitant tax.
  • d. The upper limit of deductible donation is 30% of the total income, including other donations to prefectures, wards, and municipalities.
  • e. To benefit from deduction of individual metropolitan inhabitant tax, donors are required to fill in final return accurately and attach a donation receipt issued by the Japan Foundation for final income tax return procedure.
  • f. For further information, please visit the website of Tokyo Metropolitan Government Bureau of Taxation (http://www.tax.metro.tokyo.jp/) (only in Japanese) or contact the Bureau directly (Tel: 03-5388-2956).

(2) Corporations:
Separate from normal donations, either the total amount of donations to Designated Public Benefit Organizations or the maximum deductible amount of donations to Designated Public Benefit Organizations, whichever is smaller is treated as losses.
In cases where the amount of donations to Designated Public Benefit Organizations exceeds the maximum deductible amount of donations to Designated Public Benefit Organizations, the excess amount shall be, in the calculation of the deductible amount of donations, treated as the amount of normal donations.

The following formulas are used to calculate the maximum deductible amounts of donations.
Please note that the formulas have been revised since the fiscal year beginning after April 1, 2012.
  • ·Maximum deductible amount of donations to Designated Public Benefit Organizations
    {(Amount of capital×Number of months for the period/12×0.375%)+(Amount of income×6.25%)}×1/2
  • ·Maximum deductible amount of normal donations
    {(Amount of capital×Number of months for the period/12×0.25%)+(Amount of income×2.5%)}×1/4

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