🎁 Furusato Tax Point Rewards Fully Banned!

❓ What's changing?

'Furusato tax' lets you donate to a municipality of your choice, receive a tax deduction, and get a local thank-you gift. Until now, sites like Rakuten, Satofuru and Furunavi competed by adding their own points (Rakuten Points, PayPay Points, etc.) on top of donations. In a notice dated June 28, 2024, the Soumu-sho (Ministry of Internal Affairs) flagged this, and from Oct 1, 2025 fully banned donation drives that come with such site-specific points. However, ordinary credit-card points—those you'd also earn on any everyday purchase—count as 'points tied to a normal transaction' and are exempt, so they still apply. The gifts and the tax deduction itself are unchanged.

👥 Who is affected?

• ●Taxpayers in Japan who use furusato tax (including foreign residents)
• ●People who donated mainly to earn Rakuten or PayPay points
• ●Companies running the intermediary platforms
• ●Municipalities that receive the donations

🌏 Impact on foreign residents

Foreign residents who pay resident and income tax in Japan can also use furusato tax to receive regional specialty gifts for an effective ¥2,000 out-of-pocket cost. The ban does not remove the gifts or the deduction, but the extra site points (worth a few to over ten percent) disappear, so the deal feels smaller. Points still applied to donations through the end of September 2025, sparking a rush of last-minute giving. From now, you choose by gift and site usability rather than points.