Corporate Contribution Programme / Donation Plan
What is the CCP?
The Corporate Contribution Program (CCP) is a scholarship program that is available to organisations which are responsible for covering the educational expenses of their expatriate employees' children. It is currently unique to Japan. Instead of paying Tuition fees and fees of Enrolment, companies and organisations agree to make donations to the School. These donations fund special corporate scholarships, which are awarded to dependents of companies participating in the programme and are also used to fund the development of the School for the benefit of all the BST students. The British School in Tokyo is one of the founder members of the CCP Association.Benefits to Participating Organisations
If a company or organisation directly funds the school fees of an employee, or indirectly reimburses such fees paid by their employee, a taxable benefit is generated for the employee. At the higher rates of tax this additional expense can be significant, and when the company compensates the employee this ‘equalisation’ is in turn taxable and compounded each year.Under an agreement established by the American School in Japan in 1978, and since followed by other international schools in Japan, scholarships funded through the CCP are not taxable as personal income. As such, the cost of school fees is reduced significantly by avoiding the cost of tax which would ordinarily be grossed up on the school fee equivalent. Corporations will need to assess the scale of the saving which will depend on the overall tax position of the employee.