Details on Preferential Tax Treatments
The National Institutes for Cultural Heritage is one of the designated public-service promotion corporations. Individuals and corporate making contributions to the National Institutes for Cultural Heritage receive preferential tax treatments different from standard tax deduction for other corporations. The donation fee paid to the National Institutes for Cultural Heritage is subject to this tax deduction system.
* If you pay income tax in Japan and wish to receive a Certificate from The National Institutes for a donation deduction,
please contact us (firstname.lastname@example.org) after submitting the ‘Donation Application Form’.
When an individual makes donations to a public-service promotion corporation, the amount paid is treated as a "designated donation" and a certain amount is subject to tax deduction following appropriate procedures. This system allows either [the sum of total donation made during the year] or [Amount equal to 40% of total income] (Applied to the lower amount of the two) minus 2000 yen to be deducted from taxes.
Ex) If total annual income is 8,000,000 yen:
40% of total annual income = 3,200,000 yen
Tax deducted in this case is calculated as follows:
If total amount of donation is 50,000 yen; (50,000 yen - 2,000 yen = 48,000 yen)
If total amount of donation is 4,000,000 yen; 3,200,000 - 2,000 yen = 3,198,000 yen
Please submit the certificate from the National Institutes for Cultural Heritage when filing your taxes. The receipt is needed to receive preferential tax treatment. Please store it securely.
* Credit card transactions takes a few months to complete. If paying with credit card after October, receipt of your donation may not be issued until the following year. If you are making donations after October and would like the tax deducted the same year, please pay by bank transfer.
When a corporate makes donations to a public-service promotion corporation, the amount paid can be listed separate from standard donations to receive preferential tax deduction. In addition, the revisions to the tax system in 2012 raised the deductible amount limit to allow for a further preferential treatment.
⇒Deductible tax amount = (Capital fund x 0.375% + 6.25% of Gross Income) x 1/2
Please submit the certificate from the National Institutes for Cultural Heritage when filing your tax. The receipt is needed to receive preferential tax treatment. Please store it securely.