Two Tokyo-based nonprofit organizations will now be allowed to receive preferential tax treatment in order to shore up their finances and spur more people to donate to them, the National Tax Agency said Tuesday.
People who donate money to the NPOs can now apply for tax exemptions and corporations can write off such donations as losses.
It was the first time the tax agency has named NPOs that will fall under a revised law on special tax measures that came into effect in February.
The two NPOs currently eligible for the preferential tax treatment are Project HOPE Japan, based in the western Tokyo suburb of Musashino. The group supports medical activities in Asia, especially in Thailand and Indonesia. The other NPO is Japan Tennis Wellness Association, based in Setagaya Ward, which offers free tennis lessons for people with disabilities.
Under the law, NPOs that serve the public, such as organizations involved in medical and welfare services, environmental conservation, disaster relief or the promotion of peace, will be eligible for preferential tax treatment once they are authorized by the agency.
Around 300 organizations have inquired about the new status and several have applied.
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