Tax Benefits of Donating (Individuals)

1. Income Tax
Donations to the I-House are eligible for an income tax deduction. Please choose one of the two methods of “tax credit” or “income deduction” described below. Both a copy of the receipts issued by I-House and a certificate issued by the government are necessary when claiming such a tax deduction at the local tax office.

a. Tax Credit: Deduction from income tax
(Amount of donation – 2,000 yen) x 40% = amount of tax credit
The amount of tax credit is limited to the equivalent of 25% of your income tax.

b. Income Deduction: Deduction from taxable income
Amount of donation – 2,000 yen = amount of deduction from income
The amount of donation is limited to a total of 40% of gross income.

2. Inhabitant tax
Donors can also benefit from a tax deduction for the ward or municipal inhabitant tax, depending on the rules of the ward or municipal government of the donor’s domicile. A copy of the receipts issued by I-House is necessary when claiming such a tax deduction at the local tax office.

(Amount of donation – 2,000 yen) x rate of inhabitant tax can be deducted from the amount of annual inhabitant tax.

Note:
The amount of donation is limited to a total of 30% of gross income.
Rates of inhabitant tax depend on the prefecture, ward or municipality where the donor is domiciled.

Furthermore, I-House has been registered as one of the public interest organizations which can receive a donation through the “hometown” tax payment system in Minato Ward. If you make a donation to Minato Ward using their Furusato Donation system, your inhabitant tax burden shall be reduced corresponding to the donation amount.

3. Inheritance tax
If you donate part or all of the property acquired by inheritance to the I-House, inheritance tax will not be levied on the donated property. The deadline for filing inheritance tax is within ten months from the day following the day when the death of the decedent was registered.
⇒Information on a bequest