Non -Profit Type Others
Taxable
Income from 34 Specified for -profit activities
taxable
◇ Even for -profit activities are tax -exempt if included in
authorised “Public Interest” activities,
Income from 34
Specified for -profit
Activities Taxable
All Income
Taxable
”Deemed Donations" (*) Available Not Available Not Available
Exemption of Income
Tax Withholding on
Interest and Dividends
Tax -Exempt None None
Tax Deduction for
D onations
【Individuals 】
Income deduction (for all PICs) or t ax credit (for
PICs meeting certain criteria )(** )
【Corporations 】
Tax write -off, to a limit of a certain amount
calculated from income, capital amounts, etc. (*** )

None

None
General Corporations
Public Interest Corporations
Tax Incentives Under the New Public Interest Corporation System
“Deemed Donations” allow corporations to get a certain amount of tax w rite -offs based on the tax laws . Public Interest
Corporations (PICs) may write off the amount of money larger than either 50 % of income, or the amount necessary for
Public Interest Activities .
** For donations to all PICs, “amount donated – 2,000 yen” is eligible for a deduction from taxable income (up to the limit of
40 % of income) . For donations to PICs meeting certain criteria required by the tax laws such as “proven to be supported
by citizens (‘Public Support Test’)”, “(amount donated – 2,000 yen) x 40 % ” is eligible for deduction from income tax (up
to the limit of 25 % of income tax) . As such, tax credit could be effective even on a small donation .
*
In addition to the tax write -off limit {(Income amount X 2.5% + the amount of capital etc . X 0.25 % ) X 0.25} for general
donations, a special tax write -off limit {(Income amount X 6.25% + the amount of capital etc. X 0.375%) X 0.5} is available
for donations to all PICs.
***