The BEST 12 tax returns recommended for “September Kaketsukomi” (tax payment in September) 《Expert’s Urgent Reminder》 《Emergency Reminder》.
Reduced contents, price increases, and disappearing sets! Some items will disappear. You will lose money if you don't act before the rules are revised.
By simply changing the municipality to which you pay your taxes, you can obtain high-grade marine products such as salmon roe, Japanese beef, home appliances, and even daily necessities such as tissue paper and toilet paper for only 2,000 yen in real terms. Furusato tax payment has become a “must-do” and profitable financial technique.
However, in June, the Ministry of Internal Affairs and Communications (MIC) announced that it would tighten the conditions of Furusato tax payment after October 1. As a result, a decrease in the number of returned goods and an increase in the donation amount are expected. Mr. Yusaku Seki, editor-in-chief of Furusato Tax Payment Navi, a Furusato tax information website, explains.
Until now, rice and meat produced in other prefectures or overseas could be returned as locally produced goods if they were aged or processed in the municipality concerned. However, under the new rule, only products produced and processed in the same prefecture can be returned for aged meat and polished rice among processed products.
Popular municipalities such as Izumisano City in Osaka Prefecture (13.772 billion yen) and Iizuka City in Fukuoka Prefecture (9.086 billion yen), which ranked 5th and 8th in Japan in terms of hometown tax payments last fiscal year, have been using aged meat to solicit donations. Those who are thinking of applying for popular aged meats this year as well, such as 1.5 kg of aged beef (Izumisano City) and 4.0 kg of aged pork (Iizuka City), should take note. As with the aged meat, there is a high possibility that the rice returned, such as the “Rice Regular Delivery 2 kg x 6 times, National Rice Eating Comparison” (Hekinan City, Aichi Prefecture), which is a collection of brand-name rice from various regions, will disappear.
There is a possibility of termination without notice.
On the other hand, the reason for the increase in the donation amount is that the rule that the necessary expenses must be less than 50% of the donation amount will be strictly enforced.
The rule has always required that expenses such as procurement of returned goods, shipping costs, and fees paid to tax portals should be less than 50% of the donation amount. However, from October 1, administrative costs for the one-stop special exception system (a system that allows taxpayers to receive donation deductions without filing an income tax return) and costs for issuing certificates of receipt of donations, which were previously overlooked, must now be strictly included in the total amount of donations. The amount of the donation will increase in proportion to the increase in expenses,” said Seki.
The table below shows 12 items carefully selected by experts from the list of tax returns that are expected to be discontinued or the donation amount is expected to increase after October 1.
The town of Shiranuka in Hokkaido, which boasts the nation’s fourth largest hometown tax payment (14.834 billion yen), is also considering raising the donation amount of 500g of Hokkaido Kaisen Kiko salmon roe (soy sauce flavor) from 20,000 yen due to stricter expenses.
At the same time, “tying returns” that combine local products with home appliances are also likely to disappear. Furusato tax specialist and FP Keisuke Tobita said, “Kumatori Town in Osaka Prefecture is considering raising the amount of donations by 500g to 20,000 yen.
The town of Kumatori in Osaka Prefecture has been popular for its return gift sets that combine home appliances from overseas manufacturers such as Philips and Dyson with locally produced towels, but the “Senshu Towel x Philips Wpremier plus Sonicare 3100 Series” is likely to be discontinued on September 30. This is because the Ministry of Internal Affairs and Communications has designated tying returns of overseas products as a typical example of NG after the revision.”
Some municipalities are raising the donation amounts due to soaring raw material prices and higher prices. In particular, there is a possibility that the price of returned goods with high delivery costs, such as large household appliances and regular delivery of brand rice, will be increased or the amount of content will be reduced.
Even if a municipality has not announced the end of accepting returned goods or a price increase at this time, be prepared for the fact that there will be many cases where the acceptance of returned goods will end or the price will increase after October 1. Since not all local governments are making efforts to announce the return gifts in advance, it is advisable to apply early for the gifts you are interested in.
It is best to pay your hometown tax for the current fiscal year by the end of September.
From the September 29, 2023 issue of FRIDAY
