Introduction to the Hometown Tax One-Stop Special Exception System & Special Application Form - Home
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Introduction to the Hometown Tax One-Stop Special Exception System & Special Application Form
What is the One-Stop Special Exception System?
The One-Stop Special Exception System is a convenient mechanism that allows you to claim deductions for your Hometown Tax donations without filing a tax return. You can use this system if you donate to five or fewer municipalities within a year. Ordinarily, claiming donation deductions through the Hometown Tax program would require a tax return, but salaried employees who undergo year-end adjustments can still receive the deduction by utilizing the One-Stop Special Exception System. To use the One-Stop Special Exception System, you must submit the required documents, including an application form, to each municipality you donated to within the specified application period. Once applied, the deduction will be automatically reflected in the residential tax from June of the following year, with no income tax deduction.
[Donor] → (1) Donation + Submission of One-Stop Special Application Form → [Recipient Municipality] → (2) Notification → [Resident Municipality] → (3) Deduction from the following year's residential tax → [Donor]
Benefits of the One-Stop Special Exception System
No need for a tax return to receive donation deductions Salaried employees who undergo year-end adjustments can receive donation deductions without filing a tax return.
Simple procedure Complete the process by mailing the required documents to each municipality you donated to.
Eligibility Requirements for the One-Stop Special Exception System
The One-Stop Special Exception System is available if the following conditions are met:
The applicant is a salaried worker who does not need to file an income or residential tax return.
No other income or residential tax filings are required besides the Hometown Tax donation.
Donations were made to five or fewer municipalities within the year.
In simpler terms, this system is available to those with no other tax filings outside of Hometown Tax donations. Most salaried employees will qualify without issue.
Note: Even if you donate more than five times, as long as the donations are made to five or fewer municipalities, you can use the One-Stop Special Exception System.
Based on regulations as of August 17, 2022; changes may occur due to future revisions.
Charitable donations made through organizations (e.g., the Japanese Red Cross Society) are not eligible for the One-Stop Special Exception System and require a tax return to claim deductions as a Hometown Tax.
Those filing a tax return cannot use the One-Stop Special Exception System.
⚠️ Important Points for the One-Stop Special Exception System
Only applicable to residential tax deductions
Note: When not exceeding the deduction limit for income tax, there is generally no difference in the total deduction between the One-Stop Special Exception System and tax returns.
A separate One-Stop Special Application Form is required for each donation made
Be mindful of the deadline for submitting the "One-Stop Special Application for Deduction of Donations"
If your application details change, submit the "Notification of Change in Application Details" by the deadline
Filing a tax return invalidates the One-Stop Special Exception application
Timeline for the One-Stop Special Exception System
The application deadline for the One-Stop Special Exception System is January 10 of the following year after the donation was made. For donations made between January 1 and December 31 of the current year, prepare an application form and required documents for each donation and send them to the municipality by the deadline. If you miss the deadline, you must file a tax return to claim the deduction.
Process for Using the One-Stop Special Exception System
STEP 1
Gather the Required Documents
To use the One-Stop Special Exception System, first gather the following documents.
It is essential to send a completed One-Stop Special Application Form (Application for Special Deduction for Donations) to each municipality you donated to.
While municipalities often mail these forms, they can also be obtained from the respective municipality's or the Ministry of Internal Affairs and Communications' websites.
How to Obtain the One-Stop Special Application Form
The form can be obtained in the following ways.
If you prefer to prepare your own form, you can download a blank form, print it, and fill in the required information before submission.
Identification Documents
Attach copies of both your My Number and an identity verification document.
Please prepare the documents using one of the following methods:
Option A
Both sides of the My Number card (copy)
Option B
Notification card or resident record (copy with My Number)
Driver's license or passport (copy)
Option C
Notification card or resident record (copy with My Number)
Two or more copies of official documents recognized by the municipality, such as health insurance card and pension book
Note: Cover health insurance numbers, policyholder symbols, and numbers, as well as QR codes with a post-it or similar item before copying if displayed on the insurance card.
STEP 2
Complete the Application Form
Fill out the necessary information on the One-Stop Special Application Form (Application for Special Deduction for Donations). Refer to the [Sample Form] for guidance.
STEP 3
Mail the Documents to Each Municipality by the Deadline
Mail the documents prepared in STEP1 and STEP2 to each municipality where a donation was made. The application deadline is January 10 of the following year (must arrive by this date).
Ensure the documents arrive without any errors by the deadline.
Pre-submission Checklist
Option A: Both sides of the My Number card (copy)
Option B: Notification card or resident record (with My Number) + Driver's license or passport (copy)
Option C: Notification card or resident record (with My Number) + two official documents, such as health insurance card, pension book
Note: If you made multiple donations to the same municipality, you must submit an application and identification document for each donation.
Difference Between the One-Stop Special Exception System and Tax Return
In addition to the One-Stop Special Exception System, you may also claim deductions for Hometown Tax donations through a standard tax return. Here is an overview of the key differences.
Eligible Taxes
Income tax and residential tax
Residential tax only (income tax portion is also deducted from residential tax)
Example Deduction
For a donation of 10,000 JPY
For a donation of 10,000 JPY
Self-payment: 2,000 JPY
Self-payment: 2,000 JPY
Deducted from income: 800 JPY
Deducted from income: 0 JPY
Deducted from residential tax: 7,200 JPY
Deducted from residential tax: 8,000 JPY
Municipalities Count
More than 5 municipalities allowed
Up to 5 municipalities
Application Deadline
February 16 to March 15 of the following year
January 10 of the following year
Eligible Taxes and Deduction Amounts
Tax deductions vary by method. A tax return allows deductions from both income and residential taxes, whereas the One-Stop Special Exception System only applies to residential tax.
For deductions near the maximum limit, both methods yield nearly identical results in deduction amounts.
FAQ for the One-Stop Special Exception System
When can I apply? You can apply from the donation date onward. No proof of deduction or donation receipt is required for this application.
What if the documents are incorrect or late? Applications with errors or late submissions will not be accepted. In such cases, please file a tax return.
When will I receive the application form? Some municipalities do not mail the form. In that case, download the form for submission.
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