What is Furusato Nozei?

If you were born and raised in a rural area and moved to the city, I think everyone has a desire to give back to your hometown. To the hometown that raised you, supported you, and made you a fully competent person.
When you start living in a city, get a job, and start paying taxes, you will have to pay taxes to the Municipality where you live. People grow up receiving various resident services such as medical care and education from the Municipality where they were born and raised, but many people move to the city when they go on to higher education or get a job, and pay taxes there. As a result, urban Municipality receive tax revenue, but no tax revenue goes to the local Municipality where you were born and raised. "How can we create a system to contribute to one's hometown through the tax system?" With this in minds, "Furusato tax" program was started.
With Furusato tax system, you can select which Municipality (including your hometown) to donate to, which allows you to help the Muncipality you have been supported or you want to support. Each Municipality is also trying to promote region community development, it can also lead to your new awareness (=!).

Furusato Nozei has many attractive points. I would like to introduce three main points.

You can pay Furusato Nozei to any Municipality, not just your hometown. Please choose the Municipality you would like to support after looking at each Municipality's approach to Furusato Nozei donations and how the donations will be used, which are published on their websites. Each Municipality specifies how their donations will be used, such as "revitalizing region industries,'' "childcare support,'' and "environmental conservation,'' and you can choose how your donation will be used. The most attractive point of Furusato Nozei is that you can choose the Municipality you really want to support.

Many Municipalities deliver local specialties to donators as "the Gift of Thanks'' to express their gratitude for donations and to promote the region. The content of the Gift of Thanks is rich in variety, including local speciality products, fruits, vegetables, meal plans with accommodation at hotels, and agricultural trial experiences. You can learn about the region and have fun choosing the Gift of Thanks. Please note that the Gift of Thanks is only by the goodwill of the Municipality, and you can still support Municipality and contribute to the region development by simply making a donation without the Gift of Thanks.

The benefit of Furusato Nozei donation is that the donation amount minus the co-payment of 2,000 yen will be refunded or deducted from resident tax or income tax. For example, if you donate 10,000 yen, you will receive refunds of 8,000 yen, which is calculated 10,000 yen- 2,000 yen. With the co-payment of only 2,000 yen, you can gain the benefits of receiving not only the Gift of Thanks but also a tax deduction. However, the maximum deductible amount varies depending on the individual's income and family composition, so it is necessary to check in advance.

Applying for Furusato Nozei system is very easy. We proceed in five steps:

1. Learn (Check the maximum deduction amount)
2. Donate (Choose where to donate, apply for donation, and pay)
3. Receive the delivery (The Gift of Thanks and necessary documents will arrive)
4. Apply (Procedures for tax deduction)
5. Receive a deduction (deducted/refunded from taxes)

〇 Check the maximum donation amount (limit amount)
Although there is no upper limit on the amount that can be donated with Furusato Nozei, there is an upper limit on the amount that can be tax deducted. Remember to check the maximum amount before making a donation and donate within that maximum amount.

〇Choose where to donate (Municipality)
You can choose where to donate not only because "you were born and raised in the Municipality", but also because "you have special memories'', "you agree with the use of the donation,'' "you think the Gift of Thanks is attractive,'' and "the amount of the donation fits your budget" etc.

〇Apply for the donation and make a payment
You can select multiple Municipalities to apply for donations. However, in order to use the "One-stop Special System" for tax deduction procedures, donations must be made within "5 Municipalities."
On this site, you can select a Municipality and the Gift of Thanks, apply for it using the apply button, and make payment.

〇The Gift of Thanks will be delivered.
You will receive the Gift of Thanks from the Municipality where you donated.
*If you make a donation only (a donation without the Gift of Thanks), you will not receive it.

〇 Donation receipt certificate arrives.
This is a document that proves that the Municipality has received the donation. Be sure to keep it in a safe place, as you will need it later in the tax deduction process.
Receipts and the Gift of Thanks are often sent separately. Arrival times also vary by Municipality.

You have to carry out procedures to receive preferential treatment in the tax deduction system. A deduction is the reduction of a certain amount from a donation amount, and a tax deduction can be axplained simply as a reduction from the amount of tax owed.
In order to receive a tax deduction, you must complete either a final tax return or the One-stop Special System. Compared to a final tax return, the procedure for One-stop Special System is easier, but there are some rules regarding use, such as "the number of Municipality where you can donate is limited". Here, be sure to remember the necessity of procedures, types, and deadlines for each.

Furusato Nozei is a system in which the amount after deducting the co-payment of 2,000 yen from the donation is deducted from the tax.

The One-stop Special System is a system that allows you to easily receive tax deductions without filing a final tax return, but you must fill out the "Special Declaration Application Form for Tax Deduction of Donation" and return it to the Municipality where you donated.
The conditions for use are "those who do not need to file a final tax return or resident tax return" or "applying for Furusato Nozei payments to five or less Municipalities in one year".

In other words, if you donate to six or more Municipalities, you will need to file a final tax return.
There is no problem even if you make donations multiple times to the same Municipality as long as the number of Municipality is five or less.

Additionally, an application is required for each donation, so if you donate to the same Municipality three times, you will need to apply three times.
Please note that even after applying for the one-stop special system, the application will be invalidated if the number of donations reaches six or more Municipalities. In that case, please file a final tax return.

[How to apply]: Mail as many applications as the number of donations to the recipient Municipality. [Application deadline]: Application forms must arrive at the recipient Municipality by January 10 of the following year of the donation. [Tax deduction method] : Deduction from resident tax(Unlike a final tax return, there is no refund from income tax, but the amount that should be refunded from income tax is deducted from resident tax)

For a final tax return , there is no limit on the usage conditions (number of Municipality applying for Furusato Nozei) that were in the One-stop Special System. If you cannot apply for the One-stop Special System, use a final tax return.

[How to apply]: Submit final tax return documents and "donation receipt certificate" to the tax office. [Application deadline]: Apply by March 15 of the following year of the donation. [Tax deduction method]: Refund from income tax and resident tax. *If the deadline for final tax return has passed, you can apply for a refund retroactively for the past five years using the method called "refund filing."

In addition to the benefit of contributing to region community development, Furusato Nozei also has the benefit of making the people around you happy.

The above is an overview about "Furusato Nozei". In MOGUFULL, you can search for the Gift of Thanks from ranking . Why don't you start using it right now?