What is the Corporate Contribution Programme?
When parents pay school fees personally, they do so from personal income after tax has been deducted. Therefore, a considerable portion of pre-tax income is required. When the parent’s employing company pays the school fee or provides the parent with an allowance or subsidy for it, the total value of company funding is added to the parent’s income and taxed at their highest rate. This is not the most efficient way of covering school tuition costs.
The Corporate Contribution Programme (CCP) can be a significantly more cost effective alternative to funding the fees of international school education in Japan. Participation in the CCP removes the personal taxes and other income deductions that are normally associated with fees.
Is it approved for tax purposes?
An agreement was reached in 1978 between the National Tax Agency of Japan and the American School in Japan. This agreement was subsequently extended to other qualifying international schools. An association (CCPA) was founded of member schools across Japan that have agreed to provide the CCP in a regulated way, following the guidance that is periodically agreed with the National Tax Agency of Japan. Rugby School Japan is a member school of the registered CCP Association.
How does it work for parents and their companies?
A school parent’s employer makes an agreed contribution to the school under a CCP agreement, and these contributions are used by the school to fund special corporate scholarships which are awarded to the children of the company’s foreign employees. These scholarships are not taxable in Japan or overseas. Therefore, the parent and their company avoid the grossing-up tax impact that would arise if they paid, or were reimbursed, regular tuition fees. Parents who ordinarily pay fees personally are doing do from ‘net’ salary with tax already paid. Arranging with the company to participate in the CCP means that school costs are not paid from after tax salary.
How does it support the school?
By participating in the CCP corporations contribute to the schools funding at no additional cost to the parent or their company. This enables the school to continue expanding facilities, invest in the highest quality teaching and desirable resources for the pupils, and ensures the continuation of an outstanding and transformative educational experience for all our pupils.
Which organisations can participate?
Organisations with foreign employees having children in Rugby School Japan, who are not foreign government employees (Embassies and Ministry representative offices), and who are not majority owners of their own company, may join the programme. The number of children attending the school and period of attendance are not deciding factors. It may be possible to participate with only one student, with several students or more than one family at the same company. The agreement is between the company and the school and administration is handled by the school.
How do I participate or get further information?
If you are interested in the CCP or require more details, the first step is to contact the Development Office by email to firstname.lastname@example.org or alternatively to print out and complete the simple application form below…
and return it by email to the Development Office.
If your child(ren) have already enrolled at RSJ and the regular Enrollment and Tuition fees have been paid it is not too late to join the CCP. In most circumstances, participation may be arranged retroactively.