If you are a sole proprietor doing business in Japan, filing individual tax return is necessary to ensure proper tax compliance. However, tax filing in Japan is complex and challenging.
What should You Start With?
Bookkeeping is the first step to completing your tax return. Tax liabilities are calculated based on business profits. To determine these, it is necessary to prepare accounting data using double-entry bookkeeping. Your tax return must include financial statements showing your business revenue, expenses and profits.
Thanks to the advances in cloud accounting software, it is now easier to maintain bookkeeping on your own than before. However, none of these software solutions provide an English interface, which makes it difficult for English speakers in Japan handle their bookkeeping on their own.
The following vendors are representative cloud accounting software companies:
- Yayoi Kaikei
https://www.yayoi-kk.co.jp/shinkoku/aoiroshinkoku/ - Money Forward
https://biz.moneyforward.com/tax_return/ - freee
https://www.freee.co.jp/personal-business/fr-dgbh8f3n/
How to File Your Tax Return
The tax environment for sole proprietors in Japan is well-developed, and the convenience of e-Tax has improved dramatically. However, since the service is primarily provided in Japanese, it remains challenging for English speakers to file their tax returns using e-Tax on their own.
Below are the steps you need to take to complete your tax return:
- Complete your financial statements.
- Prepare your tax return based on the financial statements using the “Tax Return Preparation Corner” below.
- File your tax return through e-Tax.
- Make a payment of your tax liabilities.
Tax Return Preparation Corner for 2024
https://www.keisan.nta.go.jp/kyoutu/ky/sm/top#bsctrl
Guidelines provided by the National Tax Agency
https://www.nta.go.jp/english/taxes/individual/index.htm
Our Services
- Tax advisory services, spot tax consultations, support for starting individual businesses and company establishment, and support for startup financing, among others.
- We can handle taxes related to overseas transactions, international taxation, and English support.
- Service areas: Primarily in Nerima Ward, Shibuya Ward, Toshima Ward, Suginami Ward, Nakano Ward, Shinjuku Ward, and Setagaya Ward, as well as the 23 wards of Tokyo,
Nishitokyo City, Mitaka City, Musashino City, and other areas outside the 23 wards of Tokyo, including Kanagawa Prefecture, Saitama Prefecture, and Chiba Prefecture.
Nagano Prefecture (due to being my hometown).
*We can also provide nationwide support using online tools.”
- The content of the blog on this site is written based on various laws and regulations at the time of writing, so the information provided may not necessarily be the most up-to-date.
- The content is presented under limited conditions, and some specialized topics have been avoided to make the articles more accessible to the general public. While we strive to enhance accuracy, the blog administrators will not be held responsible for any damages or disadvantages that may arise from the use of the information provided in the blog (including information provided by third parties).
- When making decisions regarding your own tax issues, please make sure to consult with your tax advisor and make your own judgments at your own responsibility.