Throwaway account for this one.
I moved to Japan recently and have a very high income. I’ve changed my tax residency to Japan and all that.
Anyways, I was told by my wife (JP) that ふるさと納税 is THE THING to do in Japan. I read up on it, and it seems that, basically you get equal amount of tax deduction based on your donation to a particular 自治体 minus 2000 yen.
Now, I did the math using Japanese online calculators, as well as 年収早見表, and it seems that the upper limit for contribution room is absurdly high.
For example, according to this chart, if you earn 25M / yr, then your upper limit is 85万円 [https://www.soumu.go.jp/main\_content/000408217.pdf](https://www.soumu.go.jp/main_content/000408217.pdf)
For someone earning 50M / yr, then this calculator tells me it’s about 220万円 :
[https://furunavi.jp/deduction.aspx](https://furunavi.jp/deduction.aspx)
For someone earning 100M / yr, then it’s 430-450万円 ish as well.
That’ll buy like 100kg of mangoes and 30kg of beef and 100kg of シャインマスカット from さとふる. You can essentially eat a whole year just on ふるさと納税..
Provided at that income level, you’re paying almost 45-55% effective tax rate incl residence tax, but it’s still a great deal.
Is this correct? Essentially I can get x00万円 worth of items for free? That’s mad.
Thank you!
by throwmeawayCoffee79