What is the Home Tax Payment System? Easy-to-understand explanation of the value and donation mechanism

Homeland tax payment system

What is the hometown tax payment system?

Furusato tax payment system is a system that allows you to send contributions to the local government in the form of “tax payment”.
Donations sent to the local government will be helpful for area recovery, problem solving and disaster recovery. You can not only donate to the local government you visit, but also to local governments across the country.
Many cities offer rewards to provide as a thank you gift.

Also, since you can file taxes on the final return, you can receive deductions and refunds of residency and income tax.
This is a system that connects donors who want to receive rewards and support the community with the local government in finding capital for the community.

When did it start?

The home tax payment system was introduced in 2008.
The following year, the total tax payments for fiscal year 2009 were 7.26 billion yen.
Tax payments increased significantly in 2012.
This is thought to be due to the 2011 East Japan Earthquake that increased the impetus to support regional reconstruction.

As a result, the system itself and the deductions were credited, and the donation amounted to 25,440 million yen in 2017.
(From “Investigation results on tax payment in the homeland” | City Tax Office, Autonomous Tax Department |)

Benefits of donations can be received in real amounts of 2,000 yen

If all conditions are met, the actual burden of home tax payments can be reduced to 2000 yen by tax deduction / refund. Paying homeland taxes is considered a rich bounty not worth the 2,000 yen burden. Here are three typical benefits of paying taxes at home.

You can get rewards

It is a reward that provides a criterion for choosing which city to donate. Many local governments offer local government-related rewards for contributions. Having a lot of luxury items doesn’t seem to be the real burden of 2,000 yen, and it seems some sponsors use their hometown tax payments as if they were shopping.

You can support your favorite local government

The homeland tax website is used to use the system, and many local governments are registered on the site. You can donate to your favorite local government according to your wishes, such as “I want to help a city that has been badly damaged by the disaster” or “I want to support a revival. of the city I went on in a “trip.

Income tax and resident tax are deductible

If you complete the process, your home tax contribution will be accepted for tax payment, and your income tax and residency tax will be withheld and refunded. Of course, the deduction does not reduce the amount donated to local governments.

Tax deduction mechanism when paying taxes in the home country

The burden of paying home taxes is limited to a minimum of 2,000 yen by tax deduction / refund (at least 2,000 yen incurs). Deductions and refunds are sponsor income tax and resident’s tax.

Your income tax refund will be deposited into your registered bank account one to two months after your last home tax return. In the year after you pay your home tax, you will be withholding resident tax. If you combine the refund amount and the income tax and residency withholding amount and deduct it from the home tax contribution amount, the minimum amount will be 2,000 yen. Donations minus 2,000 yen will not be returned at the same time.

In addition, in principle, you will need to make a final report for your home tax deduction / refund. Only after filing a final return will your home tax return be recognized as “taxable”. For people who do not have to file taxes other than their home tax and do not have to file a final return, there is also a simple procedure called a “special one-stop system”.

(From “About tax deduction” | Ministry of Home Affairs and Communications |)

How to donate using the tax payment website in your home country

To contribute with the Furusato Tax Payment, use the Furusato Tax Payment Website. Here’s how to make a general donation using the Furusato tax payment page.

Check the limit

If you exceed a certain donation amount, the out-of-pocket amount will exceed 2,000 yen. This donation is also known as a “limit amount,” and will usually be donated so as not to exceed it. The limit is determined by your annual income and family structure. Basically, you should check the limit amount first and then look at the contribution amount.

Choose a municipality on the site

The Furusato tax website contains information about local governments that offers attractive rewards. We will select and give your favorite gifts within the limit so that the pocket amount does not exceed 2,000 yen.

Receive gifts / donation certificates

Immediately after making a donation, you will receive a gift and a receipt confirming your donation. Times may vary, but if you are concerned, contact your local authority.

Special one-stop system / ultimate statement

Special One-Stop System ・ We will submit a final return and receive deductions and tax refunds.

Summary

How about. I think you can easily understand the donation and deduction / refund mechanism through paying taxes in your home country.

Calculating the limits is a bit tricky, but many homeland tax websites have simulation sites. Strictly speaking, the deduction target between the final return and the special one-stop system is different, but the total deductible amount does not change.

First of all, please use the Furusato tax payment page to find the reward you want and the local government you want to support.

Registered gift number 1 “Furusato Choice”

Ease of use is the popular “Satofuru”