For the individual, two options;
1) Deduction from Income Method –
Total donation amount during the year – JPY 2,000
By this method the maximum donation amount is 40% of the individual’s total income.
2) Deduction from Income Tax Method –
For National Tax –
(Total donation amount during the year – JPY 2000) x 40%
By this method the maximum deductable amount is 25% of the National Income Tax
For Local Tax –
(Total donation amount during the year – JPY 2000) x 10%
By the deduction from Income Tax method the maximum donation is 30% of total income.
Individual Guide in Japanese Yen
10,000 donation | National Income Tax saving using the Deduction from Income Method | National Income Tax saving using the Deduction from Income Tax Method |
Salary 3M | 400 | 3,200 |
Salary 5M | 400 | 3,200 |
Salary 7M | 1,600 | 3,200 |
Salary 10M | 1,840 | 3,200 |
Salary 15M | 2,640 | 3,200 |
Salary 30M | 3,200 | 3,200 |
100,000 donation | National Income Tax saving using the Deduction from Income Method | National Income Tax saving using the Deduction from Income Tax Method |
Salary 3M | 4,900 | 18,000 |
Salary 5M | 9,800 | 39,200 |
Salary 7M | 19,600 | 39,200 |
Salary 10M | 22,540 | 39,200 |
Salary 15M | 32,340 | 39,200 |
Salary 30M | 39,200 | 39,200 |
1,000,000 donation | National Income Tax saving using the Deduction from Income Method | National Income Tax saving using the Deduction from Income Tax Method |
Salary 3M | 38,300 | 9,600 |
Salary 5M | 99,800 | 27,600 |
Salary 7M | 199,600 | 79,200 |
Salary 10M | 199,600 | 214,200 |
Salary 15M | 329,340 | 399,200 |
Salary 30M | 399,200 | 399,200 |
For the Company.
Deductable Amount for Corporate Income Tax is calculated as follows;
1) If a company has Paid In Capital (PIC) –
((PIC at year end) x 0.375% + (Income amount) x 6.25%) / 2
= Deductable Amount
2) If a company does not have PIC –
Income amount x 6.25% = Deductable Amount
Company Guide in Japanese Yen
100,000 Donation
PIC |
Income |
Deductable Limit for Corporate Income Tax | Deductable Amount for Corporate Income Tax |
100,000,000 | 1,000,000,000 | 41,357,500 | 100,000 |
20,000,000 | 20,000,000 | 662,500 | 100,000 |
10,000,000 | 100,000,000 | 3,143,750 | 100,000 |
10,000,000 | 10,000,000 | 331,250 | 100,000 |
5,000,000 | 5,000,000 | 165,625 | 100,000 |
1 | 10,000,000 | 625,000 | 100,000 |
1,000,000 Donation
PIC |
Income |
Deductable Limit for Corporate Income Tax | Deductable Amount for Corporate Income Tax |
100,000,000 | 1,000,000,000 | 41,357,500 | 1,000,000 |
20,000,000 | 20,000,000 | 662,500 | 662,500 |
10,000,000 | 100,000,000 | 3,143,750 | 1,000,000 |
10,000,000 | 10,000,000 | 331,250 | 331,250 |
5,000,000 | 5,000,000 | 165,625 | 165,625 |
1 | 10,000,000 | 625,000 | 625,000 |