How I donated to a Japanese charity and got it tax deducted
I’ve long wanted to help those in need in Japan, and a friend recently told me the government encourages this through tax incentives.
I, like many others, have long felt that I want to play my part in helping people in need here in Japan. Recently, my friend told me that the government actively promotes this behavior by offering tax incentives.
We’re deep into the start of the tax season in Japan now, and while the holiday season of giving might be behind us, the spirit of helping those around us continues to be just as important.
In fact, the more I researched, the more I realized that there are currently more people in need in Japan than ever before. According to recent data from the Ministry of Health, Labour and Welfare, about 1 in 6 people in Japan now live in relative poverty, marking one of the highest rates among OECD countries. Given these challenging times, the difference even a small act of kindness can make is significant.
That’s why I decided to do my research and donate to a charity—knowing the government supports such contributions through tax deductions only made it easier to finally take action. Of course, your primary motivation should be to help others, but if taking advantage of a tax break is what helps get you started, I’m sure those in need won’t mind one bit!
As I learned, donations (charitable contributions) designated by the Ministry of Finance in Japan are tax deductible, with certain limitations (generally, only charities in Japan qualify). Qualified contributions that total over ¥2,000 in aggregate are deductible in computing the national tax. The deductible ratio is 40% of the donation (a maximum of 50% when including 10% residence tax).
For example:
A ¥10,000 donation can mean about a ¥3,200 tax reduction.
A ¥100,000 donation can mean about a ¥39,200 tax reduction.
Below, I’ve compiled what I found: the eligible types of charities, a quick list of my favorite organizations that have information in English, and a step-by-step guide on how you, too, can donate and receive a tax deduction in Japan.
Donations, or charitable contributions designated by the Ministry of Finance in Japan are tax deductible, with certain limitations (generally, only charities in Japan qualify).
Qualified contributions or donations that total, in aggregate, over ¥2,000 are deductible in computing the national tax. The deductible ratio is 40% of the donation (a maximum of 50% when including 10% residence tax) i.e. (Donation – ¥2,000) x 40% is deductible from income tax.
For example:
A ¥10,000 donation means a ¥3,200 tax reduction
A ¥100,000 donation means a ¥39,200 tax reduction
Table of contents:
Types of charities eligible for tax deduction
My favorite charities that are tax deductible and in English
Step-by-step guide on how I donated to charity and got it tax deducted
1. Types of charities eligible for tax deductions
The charities you can donate to are quite restrictive and mostly focused on domestic efforts. There are two types of organizations that are eligible for tax deductions in Japan:
Non-Profit Organizations (NPOs)
Public Interest Incorporated Associations
They are essentially similar in that they must be certified by the government. To receive (and maintain) certification, they must ensure that the majority of their income goes toward their stated purpose and that they do not make a profit while doing so.
2. My favorite charities that are tax deductible and in English
Japan Association for Refugees (JAR) (EN here)
Despite the fact that the Japanese government ratified the Refugee Convention and Protocol in 1981, the overall environment surrounding the refugees and asylum-seekers requires much more improvement.
JAR aims to restore the rights lost by refugees by securing freedom and safety, ensuring repatriation does not happen, and safeguarding medical living and housing.
Areas: Refugees, Asylum, Education, Health, Social Services
Donation link: Donate Now | Japan Association for Refugees (JAR)
Shine on! Kids (NPO) [EN]
“Shine On! Kids supports children in Japan with cancer and other serious illnesses through a number of innovative, evidence-based psycho-social support programs. Understanding that a journey back to health is not only about the patient, Shine On! Kids also supports the multiple family members caring for these kids inside and outside of the hospital as well as the medical staff who undergo their own challenges of managing stress in caring for very sick kids.”
Areas: Children, Illness, Cancer, Childhood, Support
Donation link: Donate – Shine On! Kids (sokids.org)
Second Harvest (NPO) [EN]
Second Harvest is Japan’s first food bank and among the best-known Japan-based organizations whose main activities involve collecting food donations from companies, manufacturers, farmers and individuals with the purpose of distributing it to people living in shelters, orphanages, elderly support institutions and areas stricken by natural disasters. For every ￥3,000, Second Harvest is able to provide ￥24,000 worth of food.
Areas: Food, Food Bank, Food Donation, Distribution, Food Preparation, Starvation
Donation link: Donate Money (http://2hj.org/)
TELL (NPO) [EN]
TELL is a not-for-profit organization dedicated to providing world-class, effective support and counseling services to Japan’s international community as well as helping to address the country’s growing mental health care needs.
Their outreach programs include company stress checks, suicide awareness and prevention, exceptional parenting, lifeline school awareness, disaster relief, child protection and anti-bullying.
Areas: Mental Healthcare, Counselling, Hotline, Lifeline, Suicide Awareness, Anti-Bullying, Counseling, Psychotherapy, Child Protection
Donation link: Donate | TELL Japan (telljp.com)
Hands On Tokyo (NPO) [EN]
Hands On Tokyo collaborates with many local organizations to encourage volunteering in Tokyo to revitalize playgrounds, deliver food to the hungry, support people with visual impairment, inspire children in children’s homes, and the list goes on. One quality that is unique to Hands On Tokyo is our passion to becoming the catalyst that will help spread volunteerism in Japan.
Areas: Senior Citizens, Visual Impairment, Handicapped, Children, Charity, Sports
Donation link: Hands On Tokyo - ハンズオン東京 -
3. Step-by-step guide on how I donated to charity and got it tax deducted
1. Donate to my organization
After a lot of thinking, I decided to donate to Second Harvest!
It was very convenient as the website is easy to navigate, in English and to top it off, they allow donations by credit card!
Just click here if you want to donate to them, and be sure to fill in “Yes” on the question “Would you like a tax-deductible receipt for filing taxes in Japan? (If so, you must provide contact information on the next page)”
After filling in my payment details and my address, I got this screen:
2. Get my NPO receipt
A couple of weeks after my donation, I received a certification of donation receipt in the mail:
C. Decide your tax deduction method
There are essentially two ways you can apply for your donation-based deduction:
Year-end Adjustment (年末調整) with Your Employer
Some employers can process charitable deductions during the year-end adjustment. You typically hand your receipts and relevant documents to your HR or accounting department. However, not all employers handle charitable deductions this way—make sure to check in advance.Self-File (確定申告) using e-Tax or Paper Forms
If your employer doesn’t handle charitable deductions or if you’re self-employed, you’ll need to file a tax return. You can do this in person at the tax office or online using the National Tax Agency’s e-Tax system.Using e-Tax
The online portal for e-Tax (Japan’s electronic tax filing system) can be accessed here:What you’ll need:
A My Number Card (with valid IC chip) and either a card reader or a compatible smartphone that can read the card.
Your 寄附金受領証明書 (proof of donation receipt) from the charity.
Basic personal information (income, pension, any other deductions, etc.).
How it works:
Log in to e-Tax with your My Number Card.
Fill in your income details and deductions.
For donations, input the amounts and then attach/scanned copies or details of your donation receipts as required.
Submit electronically.
D. Send in your tax declaration (if self-filing)
If you’re filing a paper return (確定申告書), submit it along with the original donation receipt to your local tax office. Remember, you can only claim the portion of your donations exceeding ¥2,000, and you’ll get a deduction of (Donation – ¥2,000) x 40% from your national income tax (and up to 10% for your residence tax, depending on your situation).
Key Points & Deadlines:
The filing period for taxes typically runs from mid-February to mid-March.
Ensure you attach the original receipt from the NPO (not a copy).
If you filed via e-Tax, you’ll upload the receipts electronically or follow their instructions to mail them, if needed.Conclusion
Conclusion
It’s unfortunate, but recent statistics show that poverty is on the rise in Japan, with more people than ever facing economic hardship. Whether it’s due to job insecurity, rising living costs, or global economic challenges, an increasing number of families and individuals here are struggling to make ends meet. By donating (even a small amount) to one of these wonderful charities, you can make a big impact in someone’s life.
Yes, you absolutely should donate because you want to help, not just for a tax deduction. But if the possibility of a tax break gives you that extra push, then by all means seize the opportunity. At the end of the day, the people you help will be grateful you contributed in whatever way you could, and together we can create a more compassionate, supportive Japan.
Thank you for sharing this, Rei.