JAPAN TAX BULLETIN

Hometown Tax Donation (Furusato Nozei)

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Hometown Tax donation (Furusato Nozei) is a system that allows individuals to receive income tax and inhabitant tax deductions for donations made to local governments of their choice. In addition, since the donor can receive return gifts from the recipient local government, the number and amount of such donations have been increasing in recent years attracting more and more attention.
This article explains how it works and how the tax amount is reduced.