Easy Kojin Japan
Log in

Aoiro Shinkoku (青色申告): the ¥650,000 deduction many freelancers lose

The 青色申告 (aoiro shinkoku, blue return) is the biggest tax benefit available to a 個人事業主 in Japan. But it has three simultaneous conditions — and failing one lowers the deduction.

Short answer

The 青色申告 lets you deduct up to ¥650,000 from your profit. You need three things at once: an application approved on time, double-entry bookkeeping (複式簿記), and filing on time through e-Tax. Miss one and the deduction drops to ¥550,000, ¥100,000 — or zero.

What it's worth in real money

  • The ¥650,000 deduction reduces your taxable profit. In a bracket of 20% 所得税 (income tax) plus 10% 住民税 (resident tax), that's roughly ¥195,000 a year.
  • It's not once: it's every year you keep the conditions. Over five years the difference passes ¥900,000.
  • A loss under the 青色申告 offsets profits for the next 3 years — someone on the 白色申告 loses that right.
  • Missing the application deadline means waiting until next year. There is no retroactive application.

The conditions, in the order you must solve them

  1. 1

    Apply on time

    File the 青色申告承認申請書 by March 15, or within 2 months if you've just started. This is the step most people miss.

  2. 2

    Keep double-entry bookkeeping

    That's 複式簿記: every movement recorded in two accounts, with a 仕訳帳 (journal) and a 総勘定元帳 (general ledger). eKOJINjp generates both automatically.

  3. 3

    Keep your supporting documents

    Receipts and proofs for 7 years under the 青色申告. Keeping them organized and findable is part of the obligation.

  4. 4

    File on time, via e-Tax

    Filing must happen between February 16 and March 15, through e-Tax. On paper the deduction drops to ¥550,000.

Mistakes that cost the deduction

  • Thinking you apply for the 青色申告 once and you're done: the conditions must be met every year.
  • Using simple bookkeeping (簡易簿記) expecting ¥650,000 — in that case the deduction is ¥100,000.
  • Filing on paper and only later realizing you lost ¥100,000 of deduction by not using e-Tax.
  • Filing one day late: past the deadline, the ¥650,000 deduction doesn't apply.

How eKOJINjp helps

The 青色申告 books, generated from your entries

eKOJINjp keeps double-entry bookkeeping while you simply record income and expenses. It exports the 仕訳帳 (journal) and 総勘定元帳 (general ledger), and generates the official forms pre-filled for submission.

Try free for 30 days

No credit cardCancel anytime

Frequently asked questions

How is it different from the 白色申告?

The 白色申告 (white return) is simpler but has no special deduction, no 3-year loss carry-forward and no salary to family members on the same terms.

When do I need to apply for the 青色申告?

By March 15 of the year you want it to apply, or within 2 months of starting your activity if you've just opened.

Can I get the ¥650,000 filing on paper?

No. On paper, with double-entry bookkeeping, the deduction is ¥550,000. The ¥650,000 requires e-Tax (or qualifying electronic books).

Do I need accounting knowledge for double-entry?

Not necessarily. An app that keeps the books from your entries handles the technical part — you record what came in and out.

I had a loss. Is it worth filing?

Usually yes: under the 青色申告 the loss offsets profit for the next 3 years, and filing also proves your income for visa and financing.

Can I pay a salary to my spouse?

Under the 青色申告 you can deduct 専従者給与 (salary to a family member working in the business), provided it was declared in advance and matches the work done.

Keep reading

Kakutei Shinkoku (tax return)Shiroiro Shinkoku (white return)

Informational content based on public material from the 国税庁 (Japan's National Tax Agency). Rules can change each tax year.