#Japan #Tokyo #Furusato Tax #Ministry of Internal Affairs #Local Tax Law

Ministry of Internal Affairs and Communications Announcement

On September 26, 2023, the Ministry of Internal Affairs and Communications revealed essential updates regarding the Furusato Tax system in Japan. This system encourages citizens to make donations to local entities to support their hometowns, thus fostering regional development and revitalization across the nation.

According to Article 37-2, paragraph 2 of the Local Tax Act (Law No. 226 of 1950) and Article 314-7, paragraph 2, the ministry has designated specific entities eligible to receive donations under this program.

What is the Furusato Tax?

The Furusato Tax program was introduced as a way for individuals to redirect a portion of their residential tax payments towards local governments and designated entities in areas where they have a personal connection, even if they do not reside there. This system allows for a form of tax deduction while simultaneously providing financial support to regional municipalities across Japan. It has been widely popular among citizens, leading to an increase in donations that benefit local economies.

Designation Process and Criteria

The designation of organizations eligible for the Furusato Tax involves a rigorous evaluation process. This includes assessing the financial stability and operational capacity of various entities, ensuring they can effectively utilize the contributions received for local projects and initiatives. The ministry aims to ensure that the selected organizations can fulfill their obligations and, in return, effectively promote the values of the Furusato Tax, encouraging citizen involvement in regional development initiatives.

Promoting Regional Development

The announcement of designated organizations is part of a broader strategy by the Ministry of Internal Affairs to incentivize citizens to actively participate in regional enhancement efforts. By making contributions, residents can feel more connected to different areas, engage with local cultures, and contribute positively to their development.

The program is not only beneficial for local authorities but also offers various incentives for donors, such as gifts from specific regions, creating a mutually beneficial relationship between citizens and local governments.

Future Prospects

Looking ahead, the Ministry of Internal Affairs is dedicated to maintaining the momentum of the Furusato Tax initiative. With an ongoing commitment to fostering good governance and transparency, they plan to enhance the system continuously, making it easier for citizens to understand how their contributions are being spent and the positive impact they are generating.

If you have any questions or need further information, you can reach out to the Local Tax Bureau, City and Town Tax Section. Their contact details are as follows:

• - Contact Persons: Naruta, Yamazaki, Kato
• - Phone Number: 03-5253-5669 (Direct Line)

In conclusion, the designation of organizations under the Furusato Tax system marks a significant advancement in promoting regional growth in Japan, providing an excellent opportunity for individuals to help shape the communities they are connected to. As residents engage more in this initiative, it cultivates a sense of belonging and encourages mutual support across the nation.