Washington International Law Journal


Koji Ishimura


As the size and scope of Japan's philanthropic activities have grown, so has the need to re-examine Japan's tax policies with regards to charitable giving and volunteerism. In particular, there is a need to review the classification of tax-exempt entities under the Corporate Tax Law to ensure that only bona fide non-profit activities are tax-exempt. Japan should also explore new tax incentives to encourage volunteerism, such as allowing deductions for out-of-pocket expenses incident to charity work, carryovers, and a liberalization of Japan's current system for specific itemized deductions. Finally, Japan's tax policies should be used to encourage more cross-border philanthropy given the nation's interest in increasing its presence in international affairs.

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