One-Stop Exception vs Tax Return: Which Should You Use?
When you make furusato nozei donations, you are required to complete some paperwork to actually receive the tax deduction. There are two ways to do this: the one-stop exception system (ワンストップ特例制度) and the tax return (確定申告). This guide explains both methods, who qualifies for each, the key deadlines, and walks you through the process step by step.
What is the One-Stop Exception?
The one-stop exception (ワンストップ特例) is a simplified system introduced in 2015 to make it easier for salaried employees to claim their furusato nozei deductions without filing a full tax return. Under this system, you submit a simple application form to each municipality you donated to, and the deduction is applied automatically to your resident tax the following year.
The key advantage is simplicity: no tax return, no visits to the tax office, no dealing with the National Tax Agency online portal. You just fill in a form, attach copies of your My Number documentation, and mail it to each municipality before January 10.
One important difference to understand: under the one-stop exception, the entire deduction comes from your resident tax (住民税), not a combination of income tax and resident tax. This means you do not receive an income tax refund. The total amount of the benefit is the same, but it is applied differently — your resident tax the following June will be lower than usual.
Key Requirements
To use the one-stop exception, all of the following must be true:
- You are a salaried employee whose income tax is handled through year-end adjustment (年末調整) by your employer
- You do not normally file a tax return (確定申告)
- You donated to 5 or fewer different municipalities in the calendar year (January 1 to December 31)
- You submit the application form to each municipality by January 10 of the following year
Disqualifying factors: If you normally file a tax return (e.g., for side income, medical expense deductions, housing loan deductions in Year 1, etc.), you cannot use the one-stop exception — you must include your furusato nozei in your regular tax return instead.
How to Apply for the One-Stop Exception
After making a donation, the municipality will typically send you the one-stop application form along with the donation receipt. Some portals (like Satofull) allow you to request the form electronically. Complete the form and submit it, along with photocopies of your My Number documentation, to each municipality before January 10.
What is the Tax Return Method?
The tax return method (確定申告) is the standard way to claim the furusato nozei deduction. You include your donations as a deductible expense in your annual tax return, filed between February 16 and March 15 of the following year. The National Tax Agency processes your return and issues any income tax refund, with the remainder adjusting your resident tax.
When You Must Use the Tax Return Method
- You are self-employed, freelance, or a sole proprietor
- You are a pension recipient with taxable income
- You donated to 6 or more different municipalities in the year
- You are claiming other deductions that require a tax return (medical expenses, housing loan Year 1, etc.)
- You missed the one-stop exception deadline (January 10) — you can still file a tax return by March 15
- You have significant non-salary income (rental income, investment gains, etc.)
Comparing the Two Methods
| Aspect | One-Stop Exception | Tax Return |
|---|---|---|
| Deadline | January 10 (must arrive) | March 15 |
| Who qualifies | Salaried employees, ≤5 municipalities, no tax return required | Anyone; required for self-employed, 6+ municipalities |
| Process | Mail form + My Number copies to each municipality | File online via e-Tax or paper forms with NTA |
| Deduction type | Resident tax only (lower June tax bill) | Income tax refund + resident tax reduction |
| Documents needed | Application form + My Number card copy | Donation receipts, withholding slip, My Number |
| Complexity | Simple — mail forms only | More complex — full tax filing required |
Step-by-Step: One-Stop Exception
Follow these 5 steps to complete the one-stop exception:
Step 1: Confirm you are eligible.
Verify that you are a salaried employee with no need to file a tax return, and that you donated to 5 or fewer municipalities in the calendar year.
Step 2: Obtain the application form.
Most municipalities send the form automatically after your donation. If not, download it from the municipality's website or request it. The form is titled 「寄附金税額控除に係る申告特例申請書」.
Step 3: Complete the form.
Fill in your name, address, My Number, and donation details. Sign or add your personal seal (認印).
Step 4: Prepare My Number documentation.
You need copies proving both your My Number and your identity. If you have a My Number card (マイナンバーカード), a copy of both sides is sufficient. If you only have the notification card (通知カード), you also need a copy of a photo ID (residence card, driver's license, etc.).
Step 5: Mail the documents to each municipality.
Send the completed form and My Number copies to each municipality by January 10 (must arrive, not just postmarked). You need to submit one set of documents per municipality. Track your mailings to confirm delivery.
Step-by-Step: Tax Return Filing
Step 1: Collect your donation receipts.
Gather the 「寄附金受領証明書」 (donation receipt) from each municipality you donated to. These are sent by mail, typically within a few weeks of your donation.
Step 2: Gather other required documents.
You will also need your withholding tax slip (源泉徴収票) from your employer, your My Number, and any other documents for deductions you are claiming.
Step 3: Open e-Tax or visit a tax office.
The easiest way is to use the NTA's e-Tax system at e-tax.nta.go.jp. Alternatively, visit your local tax office (税務署) during the filing period (February 16 – March 15).
Step 4: Enter donation information.
In the deductions section, enter each donation under 「寄付金控除」. Enter the municipality name, donation amount, and date for each donation.
Step 5: Submit and receive your refund.
Submit your return by March 15. Any income tax refund will be deposited to your registered bank account within a few weeks. Your resident tax adjustment will take effect from June of the same year.
Key Deadlines
| Deadline | What it applies to | Notes |
|---|---|---|
| December 31 | Donation cutoff | Donations must be completed (payment processed) by Dec 31 to count for that tax year |
| January 10 | One-stop exception deadline | Application must physically arrive at each municipality by this date (not postmarked) |
| March 15 | Tax return deadline | Annual tax return filing deadline; furusato nozei for the previous year is included here |
Note: If January 10 falls on a weekend or public holiday, the deadline shifts to the next business day. Check the specific year's calendar to confirm.
Common Mistakes
- Assuming postmarked = received: The January 10 deadline requires the form to arrive at the municipality, not just be postmarked. Mail well in advance, ideally by January 5.
- Donating to 6+ municipalities and expecting one-stop to work: One-stop is only available for ≤5 municipalities. If you exceed this, you must file a tax return.
- Filing a tax return after already submitting one-stop forms: If you file a tax return, your one-stop exception applications are cancelled, and the tax deduction is handled through the return instead. This is fine — just make sure to include all your donations in the return.
- Forgetting to include donations when filing a required tax return: If you need to file a tax return for any reason (housing loan Year 1, side income, etc.), make sure to include your furusato nozei donations or you will miss the deduction.
- Missing the receipt: Tax return filers need the donation receipt. Do not discard the mail from municipalities.
For more on furusato nozei as a foreign resident, see Furusato Nozei for Foreign Residents. To find good return gifts, see our Best Furusato Nozei Gifts guide. To calculate your deduction limit before donating, use the FuruMap simulator.