Tax agency clarified criterion for expenses on food bank support
December 20 , 2018On December 19, the National Tax Administration Agency formally recognized that donor companies that provide food products to food banks can write off these products and expenses related to the donation as a total loss. The agency announced the decision on its website, under the following conditions: that the donated food do not conflict with the government’s health and sanitation standards; that the donor company has, per its own internal protocols, deemed that food irredeemable and slated for disposal; and that the donor and food bank have signed a formal agreement of their transaction as stipulated by the Ministry of Agriculture, Forestry and Fisheries.
Prior to this decision, the tax agency recognized only a partial write-off on food bank donations, thus preventing donor companies from wholeheartedly cooperating with food banks.
Komeito played an instrumental role in the agency’s latest tax write-off decision, with House of Councilors member Toshiko Takeya working with Shinichi Isa, ministry of finance parliamentary vice-minister and Komeito member, to push through the measure.