INI
Hometown Tax Donation System (Furusato Nozei) - INI
The Hometown Tax Donation System (Furusato Nozei) is a Japanese tax system that began in 2008. Taxpayers can choose any municipality nationwide (not just their hometown) to make donations and receive tax deductions from their income and residence taxes the following year. The system is characterized by receiving local products as return gifts with an actual out-of-pocket cost of only 2,000 yen. The purpose is to reduce tax revenue disparities between urban and rural areas and promote regional revitalization, with over 1,700 municipalities designated by the Minister of Internal Affairs participating.
hometown tax
tax system
regional revitalization
donation
tax deduction
residence tax
income tax
return gifts
[item.basic-mechanism]
code=01
slug=basic-mechanism
name=Basic Mechanism
description=The basic mechanism and features of the hometown tax donation system.
category=mechanism
[item.deduction-calculation]
code=02
slug=deduction-calculation
name=Deduction Calculation
description=Deduction amounts are calculated using a three-tier structure.
category=mechanism
[item.income-based-limits]
code=03
slug=income-based-limits
name=Donation Limits by Annual Income
description=Estimated donation limits based on annual income.
category=calculation
[item.onestop-special-system]
code=04
slug=onestop-special-system
name=One-Stop Special Exception System
description=A system to receive deductions without filing a tax return.
category=procedure
[item.tax-return-filing]
code=05
slug=tax-return-filing
name=Tax Return Filing
description=Deduction method through tax return filing.
category=procedure
[item.return-gifts]
code=06
slug=return-gifts
name=Return Gifts
description=Local specialty products and other gifts received in return for donations.
category=benefits
[item.local-product-standards]
code=07
slug=local-product-standards
name=Local Product Standards
description=Standards for local products recognized as return gifts.
category=regulation
[item.2025-revisions]
code=08
slug=2025-revisions
name=2025 System Revisions
description=Changes including the ban on point rewards from October 2025.
category=regulation
[item.application-procedure]
code=09
slug=application-procedure
name=Application Procedure
description=Procedures from donation to tax deduction.
category=procedure
[item.important-notes]
code=10
slug=important-notes
name=Important Notes
description=Important points to note when using the hometown tax system.
category=caution