”Japan blue tax return”-Japan tax accountant explains
Please make sure to file a Japan blue tax return, and send to the tax office.
Even if you are not familiar with taxes, you may have heard the word “Japan blue tax return”.
In this article, Takuma, a japan tax accountant, will explain.
An example of the disadvantages of not filing a japan blue tax return.
- If you do not file a blue tax return, you will have to pay a lot of taxes (eg, you cannot carry over the deficit, you cannot use the special blue declaration deduction, etc.)
- If you do not file a blue tax return, you may carry a large fine risk when a tax audit comes.
- If you do not file a blue tax return, it will be difficult to get a loan, etc.
What is a Japan blue tax return?
Japan blue tax return is a type of filing method for filing tax returns.
Companies and sole proprietors must complete the following procedures once a year.
Create a document that calculates the tax to be paid
Submit documents to the tax office
Pay taxes
This procedure is called a final tax return.
What is a blue tax return?
Submitting a tax return on blue paper is called a blue tax return.
There are two main methods for filing tax returns.
- Submit the final tax return on white paper (white tax return)
- Submit the final tax return on blue paper (blue tax return)
By the way, it doesn’t matter if it’s a real problem or blue paper.
“青色申告” is written in the upper right corner of the tax return form, and it is possible to distinguish between white tax return and blue tax return.
I have never heard of a case where filing a tax return on white paper caused a problem, and nowadays, filing tax returns using electronic data (electronic filing) is becoming the mainstream, so it is called a blue filing. The person is just a remnant of the past.
Reasons to regret not filing a japan blue tax return
As below four reasons why you might regret not making a japan blue tax return.
- You will not be able to carry forward the deficit
- You will not be able to save taxes
- May carry a large fine risk when a tax audit comes
- You will be at a disadvantage when you want to get a loan
- You will not be able to carry forward the deficit
If you have a year in the red, file your tax return in blue.
Taxes such as corporate income tax and Individual income tax are taxes on one year’s profits.
Therefore, there is almost no tax payment for the year in which the deficit occurred.
And, if you file a blue tax return, you can carry forward the deficit. You can reduce tax payments by adding up the profits generated from the following year onward.
* Even if it is in the red, a corporate inhabitant tax of at least 70,000 yen per year (in the case of Tokyo) will be charged as a maintenance cost of the company.
Even if I thought “I will definitely be in the black from the first year” before the opening of the business, most of the time, somehow the payment comes first and it goes into the red.
It’s easy to get into the red at first because it’s hard to make sales, advertising expenses are high, and when it comes to doing business, payment of expenses precedes before sales.
If you do not file a Japan blue tax return, you may end up paying hundreds of thousands of yen, millions of yen, and many taxes.
Rules for making a Japan blue tax return
You must meet the requirements below.
- Tax office prior approval required
- Follow accounting japan rules such as double-entry bookkeeping ,etc
We will support for your japan blue tax return
Japan tax handling can reduce taxes if you know it, but there are many cases where you lose a lot if you do not know it.
When looking for a tax accountant to ask, look for someone who is easy to consult and communicate with.
