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Hey I was half catching something on the tv yesterday about some kind of furusato tax.

I can't quite remember the name but it seemed to be something like you donate some cash and get some 'presents' in return (food, local specialities etc).

Some towns making a good business out of it, by the sounds.

Anyone any idea what I'm on about here? It was definitely ふるさと followed by two kanji the second one being 税.

 

:confused:

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I had never heard of it either, but apparently it's called ふるさと納税.

 

Legally, you are donating money to some inaka town, and you get a tax deduction from your income taxes of 2,000 yen less than whatever you donated.

Then the town sends you some local products as thanks.

For example, if you donate 5,000 yen to the town of Urahoro in Hokkaido, they will send you something like this:

01649_004.jpg

 

Or some other assortment of your choice. (They have a catalog.)

 

Basically, sounds like a tax deduction for omiyage shopping.

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Some infographics:

 

 

Taxpayer donates 10,000 yen each to three different towns, for a total of 30,000 yen, and gets a bunch of local products in return (as thank you gifts, so no sales tax):

flow01.jpg

 

 

Next year, the taxpayer files a tax return (確定申告) and declares the donations:

flow02.jpg

 

 

The taxpayer eventually gets back a total of 28,000 yen (all but 2,000 yen of what was donated):

flow03.jpg

 

 

Looks brilliant, actually.

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It depends on the town(s) you choose.

Looking around, some towns will give you, for example, 2,000 yen worth of stuff for a 5,000 yen donation, and 5,000 yen worth of stuff for a bigger one.

You can get 5 kg of rice from one town, a bottle of shochu or sake from another.

Some towns offer honorary residency certificates, good for discounts at local attractions.

Some offer free access to a local onsen.

Of course, some don't give anything back, or maybe just a thank-you letter.

 

But anyway, big variety, and it looks like one could certainly come out well ahead of the 2,000 yen/year it would cost to participate.

I imagine competition between towns will heat up if this takes off.

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This sounds ridiculous, but that doesn't mean it isn't real. By the sound of things, I wouldn't be surprised the 2000 of tax the person does pay will simply be lost in all the additional paperwork.

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