Goodbye complicated income tax returns.

Hello! Easy One Stop Exemption System!

The Hometown Tax Donation Program is a system that allows you to donate to a city, prefecture or municipality of your choice and receive a deduction on your income and residential taxes.

In order to claim the benefits, you previously needed to file a Final Income Tax Return, but In April 2015, to make it easier for participants to declare their donation deductions, the Japanese government introduced the One Stop Exemption system.Let’s see how it works!

1

One Stop Exemption Eligibility

If you are a salaried employee, and donated to five or less different cities, prefectures or municipalities in the calendar year, you can claim your hometown tax deductions through the One Stop Exemption system without having to make a final incometax return.

However, if you donated to 6 or more cities, prefectures or municipalities, or if you usually file your Income Tax Return every year (i.e. business owners, employees whose total income exceeds 20 million JPY, and those who are applying for homeloan deductions for their first year), you will need to claim your hometown tax deductions through your Income Tax Return.

2

Comparing the Final Income Tax Return and the One Stop Exemption system

Income Tax ReturnOne Stop Exemption System
DifficultyIntermediateEasy
WhenOnce a yearEvery donation
DeadlineBefore March 15th every yearBefore January 10th of the next year
Tax Deduction Amount
Same
Refund MethodRefund from your Income Tax +
Deduction from the remainder of your Residential Tax
Deduction on your Residential Tax for the next year

The hometown tax deduction amount is approximately the same for both methods. If you meet the eligibility requirements, we recommend using the easier One Stop Exemption system. If you have experience filing your Income Tax Return and do it everyyear, file for the deduction with your Income Tax Return.

3

How to apply for the One Stop Exemption

To apply for the One Stop Exemption, submit the Donation Deduction Application Form to the local government you donated to. This application form is usually sent together with the thank you gifts you receive, or at the end of the year. However,it is important to note that some local governments do not provide this application form, and you have to obtain it from the relevant government website.

form-eng

Following the implementation of the My Number system in 2016, it is necessary to include your My Number in your application. To prevent fraud, applicants are required to provide a copy of a proof of identity document and a My Number confirmationdocument to be submitted with the application. Please refer to the table below for more information.

If you have a My Number CardIf you have a My Number Notification CardIf you don't have either a My Number Notification Card
Identification documentBank copy of your My Number CardCopy of your My Number Notification CardJapanese Residence Record with your My Number
My Number verification documentFront copy of your My Number CardPlease provide a copy of one of the following
  • Driver's License
  • Driving Record Certificate
  • Passport
  • Disability Certificate
  • Mental Disability Certificate
  • Rehibilitation Certificate
  • Residence Card
  • Special permanent residence certificate
*Please ensure that your name, birthdate, and address are clearly presented in the copy

4

Important notes regarding the One Stop Exemption.

  • In order to receive the hometown tax deduction, the Donation Deduction Application Form must be submitted to the city, prefecture or municipality you donated to on or before January 10 of the following year.
  • If you contributed to multiple causes in the same city, prefecture or municipality, you are still required to submit the Donation Deduction Application Form for each individual donation.
  • If you changed address after your donation, please submit a notice of change of address to the relevant city, prefecture or municipality.
  • To file your Income Tax Return, Click here.
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