Japan Clarifies Rules on Corporate “Furusato Nozei” Donatoins

Tokyo, April 21 (Jiji Press)–Japan’s Cabinet Office has clarified the rules of the corporate version of the country’s “furusato nozei” donation system, in order to encourage companies to use the system. Under the system, companies can receive tax breaks for such donations, but local governments are prohibited from providing these companies with other economic benefits, such as subsidies. In response to complaints that this rule is unclear, the government agency has presented specific examples. According to the examples, the outcomes of joint studies between donating companies and universities or other institutes will not be considered economic benefits for the companies if the outcomes are expected to help revitalize local economies and improve local residents’ daily lives. The Cabinet Office calls for such research outcomes to be published on the websites of local governments and research institutes to allow other companies to participate. Professional sports teams’ use of stadiums and arenas built with donations from their owner companies will also not be considered an economic benefit if the facilities are available to local residents and organizations on an equal footing. END [Copyright The Jiji Press, Ltd.]