Tax reforms introduced in fiscal 2011 included a new "tax credit" setup, for individual donations made to administrative agency approved Public Interest Incorporated Foundations and Public Interest Incorporated Associations, and TIA received this approval on November 22, 2011.
The donation made by individual to Public Interest Incorporated Foundations approved by administrative agency in that year will be a target of the subtraction retroactively to the day of the registration. Therefore, if you have made a donation after April 1, 2011, it is eligible for a tax credit, so when you make your final declaration, you can choose from either "deduction from taxable income" or "tax credit."

A) Tax Credit

You can deduct the equivalent of 40% of "The total amount of contributions that are paid out to administrative agency approved foundations and/or associations this year minus 2,000 yen" from this year's income tax. For amount of the contribution that is covered, you are limited to 40% of your total amount of gross income and for the tax deduction amount, you are limited to the equivalent of 25% of your income tax.
<Calculation method>
[The amount of donation-2,000 yen (with a limit of 40% of gross income)] x 40% = the amount of tax credit (with a limit of 25% of gross income)
(e.g. 1) In case that you paid a supporting membership fee to TIA;
　3,000 yen – 2,000 yen = 1,000 yen x 40% = 400 yen (\400 is deductible from your tax amount)
(e.g. 2) In case you donated 100,000 yen to TIA;
　100,000 yen – 2,000 yen = 98,000 yen x 40 % = 39,200 yen (\39,200 is deductible from your tax amount)

B) Income Deduction

"The total amount of donations that are paid out in this year – 2,000 yen" is deductible from the donor's annual income. The deductible special donations are up to the equivalent of 40% of the annual income.
<Calculation method>
The amount of donations – 2,000 yen = amount of income deduction (with a limit of 40% of gross income)
(e.g. 1) In case that you paid a membership fee to TIA;
　3,000 yen – 2,000 yen = 1,000 yen (\1,000 is deductible from your annual income)
(e.g. 2) In case you donated 100,000 yen to TIA;
　100,000 yen – 2,000 = 98,000 yen (\9,8000 is deductible from your annual income)

※ You need to file a tax return to get a tax deduction.　 You can't get a donation subtraction by a year-end adjustment at workplace.
※ You can choose from either "tax credit" or "deduction from taxable income."
※ At the declaration, you need to attach a receipt issued by TIA. The receipt of TIA is applicable to "tax credit" and "deduction from taxable income." (A certificate of being a group targeted for tax credit is printed on the TIA receipt.)
※ Please contact us about issuing a receipt.
※ For more information on a final income tax return, please ask the taxation office of your neighborhood.

<For inquiries>
Public Interest Incorporated Foundation Tochigi International Association
〒320-0033 9-14 Honcho, Utsunomiya City TEL: 028-621-0777