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Japanese Government “KyoAni Donations are Charity!”, Tax Breaks Abound

Japan’s government will now be classifying all donations to Kyoto Animation as “disaster relief”, rather than business revenue, meaning that they will not be taxed and can even be deducted from the donor’s taxes.

The government’s decision to treat donations relating to criminal damage in the same manner as disaster relief is considered highly unusual; the policy is aimed at encouraging more companies to donate, as they can now classify such donations as tax-deductible charity, essentially making them free (below a certain threshold).

The policy additionally has the effect of reducing the stress of dealing with taxes for the victims’ families, who will still be in the process of grieving. It will also mean that Kyoto Animation can use a larger proportion of the donations for rebuilding efforts.

KyoAni has currently received around ¥2 billion (almost $18.7 million) in donations.

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