charity
#Charity and donations
This page cover charitable donations.
For gifts to your loved ones, or inheritance concerns, please check the corresponding wiki Tax pages.
Furusato Nozei, a popular kind of donation that often provide practical benefits in return, and use the same deduction limts as charitable donations, is linked under the Resident Tax wiki page.
Are donations tax deductibles ?
Donations can be tax-advantaged via the various deductions and credits applicable to charitable donations. There are different types of deductions available depending on the type of organization you donate to, and in some cases (e.g., certified NPOs ) it is possible to take 40% of the donation amount as a tax credit rather than taking the entire donation as a deduction.
The limit on deductions is 40% of your net income and the limit on tax credits is 25% of your income tax liability. In all cases the first 2,000 yen worth of donations is not deductible or creditable, and note that furusato nozei donations also count as deductible donations for the purposes of the 40% limit.
Things get even more complicated at the residence tax level, because each municipality recognizes a different set of organizations as qualifying for a donation deduction. Your best bet is to consult your municipality's website, or ask at the residence tax desk of your municipal office. Charitable organizations themselves can also be good sources of information about the tax-advantaged status of donations made to them.
Charities inspiration
Please enjoy some inspiration for your good deeds, some coming with personal recommendations from current supporters :
2022-12 Which Japanese Charity Should I Donate to ?