School Fees

The Corporate Contribution Program (CCP) is a potentially cost effective and advantageous alternative to paying Enrolment and Tuition fees. Participation removes the additional income taxes that are normally imposed on the income of parents whose employers undertake to cover their children’s school fees in Japan.

Under an agreement with the National Taxation Agency, established in 1978 by The American School in Japan, the CCP is available to companies and organizations that would ordinarily take responsibility for covering educational expenses for their foreign employees’ children. In subsequent guidance the National Taxation Agency extended approval of the CCP to a number of independent not-for-profit international schools in Japan. Currently, more than 20 schools in Japan operate this program.

Under the authorized agreement, corporations that participate in the CCP, by making an agreed contribution, enable the school to fund special corporate scholarships which are awarded to the dependent children of the companies’ employees. These scholarships are not taxable as personal income in Japan and so the corporations avoid the considerable grossing up tax impact that would arise if they paid, or reimbursed, regular tuition fees.

For the majority of independent not-for-profit schools, the income from tuition alone does not cover the essential costs plus the additional cost of maintaining and developing highly rated education programs. By participating in the CCP, corporations contribute to the necessary funds, without additional cost to the company.

Organizations based outside of Japan or the Japan branches of such organizations with foreign employees having children in an international school providing the CCP, and who are not foreign government offices (Embassies and Ministry representative offices), may participate in the program. The number of children attending the school is not a deciding factor so it may be possible with only one student, or equally so with several students and from different families at the same company. The agreement is between the company and the school and the administration of CCP is handled by the school.

If a company wishes to join the CCP or requires further information, the first step is to contact the CCP administrator at each school or alternatively to print out and complete the schools’ CCP Questionnaire and return it.

To administer the CCP, the school must become a member of the Corporate Contribution Program Association (CCPA). The CCPA is an association of international schools in Japan that provide CCP at their school, and the purpose of the CCPA is to monitor that the CCP has been operating at each school in accordance with the rules which have been approved by the National Tax Agency in Japan. The CCPA also provides guidance to member schools and an opportunity to exchange information regarding proper use of the CCP through regular meetings.

Donations made under a CCP agreement can only be classified as General Donations (ippan kifukin) and should not be classified as Tokuzo donations even if the school is capable of receiving such donations.