First, confirm whether you need to file and identify your income types
A final tax return reports income earned from January 1 through December 31 of the previous year. Your bookkeeping and deduction methods may differ depending on whether the income is business income or miscellaneous income. If you also have salary income or income subject to withholding, collect your withholding slips and payment statements as well. Filing periods may vary by year and holidays, so check the schedule announced by Japan’s National Tax Agency for the relevant tax year.
Blue return filing requires an advance application and proper books
The special deduction for blue return filing can be ¥100,000, ¥550,000, or ¥650,000 depending on your bookkeeping method and submission method. To claim the ¥650,000 deduction, you must meet requirements such as double-entry bookkeeping, as well as e-Tax submission or electronic book preservation requirements. The application deadline also depends on when you started your business, so do not assume you can simply choose it when filing.
You must be able to explain how expenses relate to your business
Business-use communication costs, supplies, advertising, rent, and similar expenses can be claimed only for the portion used for business. For costs shared with personal use, such as housing or mobile phone bills, establish a usage ratio and keep supporting records. Expensive equipment may need to be depreciated rather than claimed in full in the year of purchase. Keep receipts, invoices, and transaction records for the retention period required under tax law.
Reconcile your figures once more before submitting through e-Tax
Check that your total sales match your deposit records, that withholding tax has not been omitted, and that personal expenses are not mixed in. Review the e-Tax guidance for available authentication methods, including the My Number Card method. Accounting software helps with data entry, but it does not determine whether an expense is business-related.
Payment and refund schedules depend on the result
If you owe tax, follow the deadline and payment method shown on your tax return. Refund timing varies depending on the filing details and review process. If you are a consumption-tax taxable business, conduct overseas transactions, pay wages to family members, or have sold a major asset, it is safer to consult a tax office or licensed tax accountant before filing.