{"id":7117,"date":"2025-01-07T02:04:00","date_gmt":"2025-01-07T02:04:00","guid":{"rendered":"https:\/\/www.tkpartners.or.jp\/?p=7117"},"modified":"2025-05-02T02:04:45","modified_gmt":"2025-05-02T02:04:45","slug":"furusato-nouzei","status":"publish","type":"post","link":"https:\/\/www.tkpartners.or.jp\/en\/furusato-nouzei\/","title":{"rendered":"FURUSATO NOUZEI"},"content":{"rendered":"\n

By Tomotaka Kuwata<\/a>5\u6708 2, 2025<\/p>\n\n\n\n

\u3008WHAT IS FURUSATO NOZEI<\/strong>\u3009<\/h2>\n\n\n\n

Furusato nozei was introduced in 2008 to revitalize and rejuvenate regional areas of Japan and is related to personal residence tax.<\/p>\n\n\n\n

Residence tax is calculated based upon the prior year\u2019s income, then payment slips are delivered the next year. It has to be paid to the local government of one\u2019s residence.<\/p>\n\n\n\n

Furusato nouzei is a kind of advance payment of the residence tax, and the tax payer can pay the tax to local governments outside of one\u2019s residence.<\/p>\n\n\n\n

\u3008HOW IS FURUSATO NOZEI PAID<\/strong>\u3009<\/h2>\n\n\n\n

Taxpayers can choose to prepay part of their residence tax before the end of the year to one (or more) regional areas in exchange for a gift worth approximately 30 percent of the donation value. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

\u3008HOW DOES FURUSATO NOZEI WORK (1)<\/strong>\u3009<\/h2>\n\n\n\n

Here is an example. Social insurance has been ignored to simplify the case.<\/p>\n\n\n\n

Salary in 2024   \u3000\u3000 JPY10,000,000<\/p>\n\n\n\n

Income tax \u3000    \u3000\u3000JPY 1,128,300<\/p>\n\n\n\n

Residence tax  \u3000 \u3000 JPY 760,500<\/p>\n\n\n\n

Total tax       \u3000\u3000\u3000  JPY1,888,800<\/p>\n\n\n\n

<Leveraging Furusato nozei><\/p>\n\n\n\n

JPY100,000 to Sapporo city \u21d4\u3000Gift : boiled crabs<\/p>\n\n\n\n

JPY100,000 to Shizuoka city \u21d4\u3000Gift : Video camera<\/p>\n\n\n\n

\u3008HOW DOES FURUSATO NOZEI WORK(2)<\/strong>\u3009<\/h2>\n\n\n\n

By Furusato nouzei, the taxes would be as follows:<\/p>\n\n\n\n

Income tax            \u3000\u3000 JPY1,081,800<\/p>\n\n\n\n

Residence tax        \u3000 \u3000JPY608,800<\/p>\n\n\n\n

Advance payment  \u3000\u3000JPY200,000
(Furusato nouzei)<\/p>\n\n\n\n

Total tax               \u3000 \u3000 JPY1,890,600<\/p>\n\n\n\n

\u3008HOW DOES FURUSATO NOZEI WORK(3)<\/strong>\u3009<\/h2>\n\n\n\n

Total tax before furusato nouzei \u3000 JPY1,888,800<\/p>\n\n\n\n

Totax tax after Furusato nouzei      JPY1,890,600<\/p>\n\n\n\n

Although the total tax increased by JPY1,800, a valuable gift worth approximately 30 percent of the donation amount would be sent.  <\/p>\n\n\n\n

\u3008HOW TO CHOOSE LOCAL GOVERNMENTS <\/strong>\u3009<\/h2>\n\n\n\n

Many local governments prepare their own websites for furusato nouzei, but some ecommerce companies also display various available gifts from local governments. The following are examples.<\/p>\n\n\n\n