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The hometown tax (ふるさと納税, furusato nōzei) is a system in Japan that allows taxpayers who live in urban areas to contribute to rural areas in return for a tax credit from income tax and residence tax. Its creation was announced by the Minister for Internal Affairs and Communications Yoshihide Suga under Prime Minister Shinzo Abe in 2007. In July 2014, Abe's then chief cabinet secretary Suga announced that they had established the preparatory office for the “local headquarters”.
The local headquarters was established to help increase the number of children, especially in rural areas, and to promote the development of self-governing bodies. Promoting “hometown tax” is included in these activities.
History
In the spring of 2008 the "Hometown tax" law was legislated in Japan.
Function
Taxpayers who contribute more than 2,000 yen can have their income tax and residence tax reduced. The amount deducted is the taxpayer's entire contribution minus 2,000 yen and set amount. To receive the subtraction, the taxpayer files a final tax return. The reasoning is that many young people move to urban areas, leaving fewer people to pay rural taxes. Taxpayers choose the receiving jurisdiction.
Evaluations
Cities that offered "gifts" of local products received up to 60 million yen.
The use of gifts has been criticized as distorting the results: for example, an effective donation of just 2,000 yen can net the donor 60 kg of rice, equivalent to one adult's annual consumption. Anything above the 2,000 yen is merely a redirection of the donor's tax from the central government to a regional government.
Cities that have no specialty products or have no means to announce their activity received fewer contributions.
Yamagata prefecture
In Yamagata Prefecture, contributions have been increasing. For example, Obanazawa city and Mogami town received several million yen in 2013. They use gifts and the Internet to collect contributions. For example, Obanazawa, Yamagata offered gifts of “Obanazawa watermelon” and “sirloin steak of Obanazawa-gyū”.
References
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HOMETOWN on Behance
My Hometown Program | West Valley City, UT - Official Site
Hometown Pictures | Download Free Images on Unsplash
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Hometown Heritage | William G. Pomeroy Foundation
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Hometown
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Property Tax | TaxEDU Glossary
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280+ Hometown Community Stock Photos, Pictures & Royalty-Free Images ...
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The Hometown Project - The Awesome Foundation
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“Hometown Tax Syndrome” ~A Critical Situation of Rights and Duties ...
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“Hometown Tax Syndrome” ~A Critical Situation of Rights and Duties ...
hometown tax
Daftar Isi
Hometown tax - Wikipedia
The hometown tax (ふるさと納税, furusato nōzei) is a system in Japan that allows taxpayers who live in urban areas to contribute to rural areas in return for a tax credit from income tax and …
Home - Hometown Tax and Accounting
Experience personalized tax, accounting, payroll, and consulting at Hometown Tax & Accounting in Kimberling City, MO. Building meaningful client relationships.
Furusato Nozei: An Introduction to Japan’s Hometown Tax Program
Nov 11, 2021 · Help revitalize rural Japan by enrolling in the hometown tax program. What it is, what perks taxpayers get and an easy step-by-step guide.
Welcome | Hometown Tax & Accounting Services Inc.
We have an excellent client-retention rate, and we are extremely proud of the high-quality services that our firm provides. Please, feel free to browse our website to see the services we …
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With many years in the ever evolving tax preparation and accounting world, we are quite equipped to help you reach your financial goals and evaluate the various financial decisions that you …
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Taxes done your way, by a home town face, providing home town service! Contactless tax prep through secure, electronic client portals! Exchange documents & messages, view & sign your …
Hometown Tax & Accounting Services | Income Tax Return
Hometown Tax represents warmth, servitude and friendship. We are honored to serve our clients from within our small town and across the nation. Working for you all year long. Tax season …
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HomeTown Tax helps fill in the gaps and assures that you are managing your money in the most effective way. We offer record keeping for individuals, businesses, farms, non-profit …
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