📅 2025-05-30
If you work as a freelancer or sole proprietor in Japan, annual tax return filing (確定申告) is mandatory. Learn everything about filing methods, required documents, and expense deductions.
Kakutei Shinkoku (確定申告) is the process of calculating and filing your previous year's income (Jan 1 - Dec 31) and taxes with the tax office. The filing period is from February 16 to March 15 annually. Freelancers and sole proprietors must report business income, real estate income, and other income. Filing is mandatory if non-salary income exceeds 200,000 yen or if salary exceeds 20 million yen.
White Return (白色申告) allows simple bookkeeping but offers no special deductions. Blue Return (青色申告) requires double-entry bookkeeping but provides up to 650,000 yen in special deductions. Blue Return requires prior application (within 2 months of starting business or by March 15), and offers additional benefits like loss carryforward and family employee salary deductions.
Business-related expenses are deductible. This includes communication costs (phone, internet), supplies (office items, computers), rent (office or proportional home office space), advertising, entertainment, vehicle expenses, and depreciation. Keep receipts and invoices for 7 years. Mixed personal-business expenses must be reasonably apportioned based on business use.
e-Tax allows you to file your tax return online from home. You need a My Number card and card reader (or smartphone). Filing Blue Return via e-Tax provides an additional 100,000 yen deduction (total 650,000 yen). Accounting software like freee, MF Cloud, or Yayoi makes bookkeeping and filing much easier.
Any tax owed must be paid by March 15. Payment methods include bank transfer, direct debit, credit card, and convenience store payment. If you overpaid through withholding, you'll receive a refund, typically within 1-2 months to your designated account. Check if you need to make estimated tax payments (July, November).
Your first tax filing may seem complicated, but it becomes familiar with annual repetition. Use accounting software, organize receipts regularly, and consult a tax accountant (税理士) for difficult aspects. Accurate filing helps avoid unnecessary tax audits and achieves legitimate tax savings.