Friday, December 21, 2018

Furusato Nozei

Furusato Nozei Program is a hometown tax donation program organised by the Japanese government to support the development less funded municipalities in Japan with less people working and paying taxes to.

In Japan, one have to pay residence tax which is a tax that you pay to your local municipal for living there. It is calculated based on your earnings and you start paying it from your second year onwards for your first year there.


Paying the residence tax alone will not get you anything but one can opt for futusato nozei and pay tax to another municipal of their choice. In doing so, you can opt for a gift that you like for donating to them. 


The amount donated will of course be used for residence tax deductions. For that donation, you do need to bear 2000 yen from the amount you have donated, that will not be used for the calculation of tax deduction. There's a limit to which the amount that you can donate for it to be included in the calculations that's based on your annual salary.


At first, I didn't know how it works and was skeptical.....but I decided to try it anyways. I donated once in my second year and received 2 beautiful melons for it.


In my 3rd year, I decided to donate twice and received some beautiful peaches and grapes! 

It's a pretty good program actually as you get something in return. Of course, there are other things as well other than fruits, but I love fruits so I opted for them. 

Yes, it might be cheaper to just buy the fruits yourself if you want to eat some but this helps with tax deduction so it's great!

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