Individual income tax deduction

Your giving to Sophia not only support students studying at Sophia but also have a positive impact on your income tax situation.
You can choose either tax deduction or tax credit.

(1) Tax deduction

A tax deduction reduces your taxable income, which in turn reduces your tax liability. You can deduct the amount of your giving from your taxable income.
Please be advised that the total deduction is restricted to 40% of the income tax. To calculate amount of tax deduction before file a tax return, please refer to the following formula.

Total amount of annual gift - 2,000 JPY = amount of deduction from income

(2) Tax credit

A tax credit directly reduces your tax liability, regardless of your income tax rate.
Please be advised that the total deduction is restricted to 25% of the income less 2,000JPY. To calculate amount of tax deduction before file a tax return, please refer to the following formula.

(Total amount of annual gift - 2,000 JPY) x 40% = amount of tax credit

Procedures

Please file your final tax return to your competent tax office in the year after your giving.
If you have any questions about your final tax return, please contact your competent tax office.