According to the “Survey on Current Status of Furusato Nozei” by the Ministry of Internal Affairs and Communications, the amount of Furusato Nozei received in 2021 was a record high of approximately 830.2 billion yen and the number of tax payments received totaled 44.47 million.
Both the number of people who used Furusato Nozei and the amount of donation were the highest ever.
Why is Furusato Nozei so widely used in Japan?
This page tells you the benefits of using Furusato Nozei.
Deduction from resident tax and income tax
Furusato Nozei is a system that allows you to make a donation to a municipality of your choice. The donation made through Furusato Nozei is deducted from your income tax and resident tax through the “donation deduction” procedure.
For more details, please refer to Basic Knowledge about Furusato Nozei.
Attractive Returned Gift
Furusato Nozei is not a tax-saving scheme, since the amount donated as Furusato Nozei is only deducted from resident tax and income tax. However, it is still beneficial because your favorite cities, towns, and villages will send you attractive gifts in return.
Especially for people living in urban areas of Japan, Furusato Nozei is often used as an event that enriches and excites their lives.
For example, regions with a thriving agricultural industry will send beef, pork, chicken, dairy products, fruits, vegetables, rice, and their processed products. If the area has a thriving fishing industry, fish, shellfish, seaweed, and their processed products will be returned.
Traditional crafts made by artisans in various regions of Japan may also be returned as a source of local pride. Tableware such as pottery and porcelain, kitchen utensils such as kitchen knives, and figurines are valuable items that allow people to feel Japanese culture close at hand.
In addition to goods, services are also popular. In cities, towns, and villages with famous tourist attractions, you may receive discount travel coupons, lodging coupons, or hot spring tickets. You can relax and enjoy the scenery and food of undiscovered attractions.
You can support your favorite municipality from distant places.
Many people pay Furusato Nozei because they want to support a community where they have lived in the past or where they have been impressed by their travels.
It is almost certain that Japan’s population will decline in the future, and the rate of population decline will be even faster in rural areas. As the population decreases, tax revenues will also decrease, which may make it difficult to maintain the great nature and culture of the city, town or village. Furusato Nozei is not just a donation, but a suitable mechanism to support a municipality from a distant place.
You can earn points by credit card payment or by using the dedicated website for Furusato Nozei.
Some local governments allow you to pay Furusato Nozei by credit card. Since many of them may charge several tens of thousands of yen at a time, you can earn a large amount of points. The amount of points depends on the type of credit card.
And some websites for Furusato Nozei offer their own points, which can be used later to save money.
