Tax Benefits

＜Individuals> (Applicable Only to Residents of Japan)

Corporations (Applicable Only to Those That Pay Corporate Taxes in Japan)

(1) Tax Credit and Tax Deduction

Gifts to Waseda University have been certified by the Ministry of Education, Culture, Sports, Science and Technology as donations that are eligible for tax benefits. There are two types of benefits: [A] Tax Credit and [B] Tax Deduction, as explained below. When filing tax returns, donors should choose one of the two options.
 
[A] Tax Credit
A tax credit is a direct reduction of the amount of income tax, regardless of the income tax rate. For most people, this option lowers taxes more than the [B] Tax Deduction option.
1.    If the amount of your gift exceeds 2,000 yen in that year, you will receive a tax credit (i.e. the income tax for that year will be reduced) by an amount equivalent to 40% of the excess amount.
(Gift amount※1 － 2,000 yen) × 40％ ＝ Amount of tax credit※2
※1 The maximum amount of your gift that is eligible for the tax credit is 40% of your total income for that year.
※2 The maximum amount of tax credit is 25% of your income tax for the year.
2.　When you file your tax return, you will need (1) a copy of the tax credit certificate and (2) a receipt ※3 issued by Waseda.
※3 Waseda’s address is included in all receipts.
［B］Tax Deduction
Since the income tax rate is calculated after tax deductions, if your gift takes up a large portion of your income, this is a better option to reduce taxes.
1.　If the amount of your gift exceeds 2,000 yen in that year, the excess amount will be deducted from your income when calculating your taxes for the year.
Gift amount※4 － 2,000円 ＝ Deduction in taxable income
※4 The maximum amount of your gift that is eligible for the tax deduction is 40% of your total income for that year.
2.　When filing a tax return, you will need (1) a copy of the tax deduction certificate and (2) a receipt issued by Waseda.
《How to Calculate Your Income Tax》
(1) Taxable income × (2) Income tax rate － (3) Deductions = (4) Amount of income tax
Income Tax Table (As of 2015)
(1) Taxable income (2) Income Tax Rate (3) Deductions
1.95 million yen or less 5％ 0円
More than 1.95 million and
less than or equal to 3.3 million yen		 10％ 97,500円
More than 3.3 million and
less than or equal to 6.95 million yen		 20％ 427,500円
More than 6.95 million and
less than or equal to 9 million yen		 23％ 636,000円
More than 9 million and
less than or equal to 18 million yen		 33％ 1,536,000円
More than 18 million and
less than or equal to 40 million yen		 40％ 2,796,000円
More than 40 million yen 45％ 4,796,000円
・ For the [A] Tax Credit option, the tax credit will be applied to (4) the amount of income tax.
・ For the [B] Tax Deduction option, the taxable income will be reduced. In the above income tax table, "(1) Taxable income" is the amount after applying tax deductions.
 
 

(2)Deduction in Individual Inhabitant Taxes

Donors whose address is in one of the municipalities listed below (as of January 1 of the year after the gift to Waseda was made) can claim deductions in inhabitant taxes for the following fiscal year. Please request a deduction when you file your tax return. If you wish to receive a deduction in inhabitant taxes without filing a tax return, please contact your local municipality.

Prefectures

that offer deductions

 Tokyo, Saitama, Fukuoka

Municipalities

that offer deductions

Nakano Ward (Tokyo) [Limited to donations to university projects of Nakano International Community Plaza]

Nerima Ward (Tokyo), Nishi-Tokyo City (Tokyo), Tokorozawa City (Saitama Prefecture), Kumagaya City (Saitama Prefecture), Kitakyushu City (Fukuoka Prefecture)

〈Cities and villages that are designated by the Tokyo Metropolitan Government to receive deductions〉
Musashino City, Hinohara Village, Toshima Village

〈Cities and towns that are designated by Saitama Prefecture to receive deductions〉
Gyoda City, Kazo City, Hanyu City, Konosu City, Fukaya City, Warabi City, Toda City, Asaka City, Wako City, Niiza City, Okegawa City, Kuki City, Yashio City, Fujimi City, Hasuda City, Satte City, Hidaka City, Yoshikawa City, Hakuoka City, Miyoshi Town, Kosei Town, Namegawa Town, Arashiyama Town, Ogawa Town, Kawashima Town, Tokigawa Town, Misato Town, Yorii Town, Miyashiro Town, Sugito Town, Matsubushi Town

〈Municipalities designated by Fukuoka Prefecture to receive deductions〉
Omuta City, Nogata City, Tagawa City, Yanagawa City, Yame City, Chikugo City, Okawa City, Yukuhashi City, Toyomae City, Naka City, Ogori City, Chikushino City, Kasuga City, Onojo City, Munakata City, Dazaifu City, Koga City, Fukutsu City, Ukiha City, Miyawaka City, Kama City, Asakura City, Miyama City, Nakagawa Town, Umi Town, Sasaguri Town, Shime Town, Sue Town, Shingu Town, Hisayama Town, Kasuya Town Mizumaki Town, Okagaki Town, Onga Town, Kotake Town, Kurate Town, Katsuragawa Town, Chikuzen Town, Tomine Village, Otorai Town, Oki Town, Hirokawa Town, Kaharu Town, Soeda Town, Itoda Town, Dato Town, Akamura Village, Fukuchi Town, Kanda Town, Miyako Town, Yoshitomi Town, Kamige Town, Tsukiage Town
Please note:
・ We are required to submit a list of donors to the above municipalities and to any other municipalities that may designate Waseda as an entity eligible for inhabitant tax deductions in the future. The donor list will include the donor's name, address, gift amount, and the date of receipt.
・ To obtain the latest information, as well as details on municipalities not listed above, please visit the website of each municipality.
(Gift amount※1 －2,000円) × Inhabitant tax deduction rate※2 ＝ Amount of inhabitant tax deduction
※1 The maximum amount of your gift that is eligible for the tax deduction is 30% of your total income for that year.
※2 The deduction rate for inhabitant taxes is: 4% for prefectures, 6% for municipalities, and 10% for both.
 

(3)How to Claim Deductions for Your Gift

Those who reside in Japan and wish to receive tax benefits must file a tax return at their local tax office during the tax filing period of the year after they make their gift.
When you file your tax return, you will need (1) a copy of the tax credit / tax deduction certificate and (2) a receipt issued by Waseda.
 
Please note:
・    We recommend that you prepare your tax return through the Tax Return Preparation Corner on the National Tax Agency website.
・    If you have any questions about tax returns, please contact your local tax office.

Corporations can include their gifts to Waseda in their deductible expenses for the fiscal year. There are two ways to do so: specified gifts (which can be included in deductible expenses up to a certain amount) and recipient-designated gifts (where the entire amount can be included in deductible expenses).

(1) Specified Gifts

・    Because specified gifts are in its own category, they do not count towards the maximum amount of deductible expenses allowed for general donations.
・    To include specified gifts in deductible expenses, you need (a) a receipt issued by Waseda and (b) a copy of the tax deduction certificate.
・    We will send you the above documents once we receive your gift.
［How to Calculate the Maximum Amount Allowed for Deductible Expenses］
Maximum amount allowed for deductible expenses = ((a) Capital base amount + (b) Income base amount) ×1/2
(a) Capital base amount = Capital amount (capital amount at the end of the fiscal term + capital reserve amount at the end of the fiscal term) × Number of months in the fiscal year / 12 months × 3.75/1,000
Note: For fiscal years that began before March 31, 2012, the amount was equivalent to 2.5/1,000.
(b) Income base amount = Income amount for the current fiscal term × 6.25/100
Note: For fiscal years that began before March 31, 2012, the amount was equivalent to 5/100.
 

(2) Recipient-Designated Gifts

・    In addition to the donation sign-up form provided by Waseda, a donation sign-up form addressed to the Promotion and Mutual Aid Corporation for Private Schools of Japan is required.
・    In order to apply for tax exemption, you will need a receipt issued by the Promotion and Mutual Aid Corporation for Private Schools of Japan . We will send it to you once the Corporation issues it.
Please note: The "date of receipt" for the Promotion and Mutual Aid Corporation for Private Schools of Japan is approximately one month after the payment is made to Waseda. Therefore, if you wish to make a payment less than a month before you close your books, please consult Waseda’s External Affairs and Fund-Raising Section, Office of the President, in advance.