Quick Answer
To legally operate as self-employed (個人事業主) in Japan, you are generally expected to file an Opening Notification (開業届) at your tax office within 1 month of starting your business. Simultaneously file the Blue Return Application (青色申告承認申請書) to unlock up to ¥650,000 in special deductions. As of October 2023, the Invoice System (インボイス制度) affects how you handle consumption tax with business clients.
Legal Notice
This article provides general information only and does not constitute tax or legal advice. Tax rules change annually. For your specific situation, consult a licensed tax accountant (税理士 / zeirishi).
Step 1: File the Opening Notification (開業届)
| Item | Details |
|---|---|
| Official name | 個人事業の開業・廃業等届出書 |
| Submit to | Your local tax office (所轄税務署) |
| Deadline | Within 1 month of starting your business |
| Cost | Free |
| What you need | My Number card or notification card + ID, personal seal (hanko), the form |
| Online option | Available via eTax with My Number card |
Visa Note for Foreign Nationals
Filing 開業届 does NOT grant you permission to be self-employed. You need a visa status that permits self-employment (e.g., Spouse of Japanese National, Permanent Resident, Long-Term Resident, Business Manager). If you are on an Employee/Engineer visa, freelancing may require a "Permission to Engage in Other Activities" or a status change.
Step 2: Blue Return vs White Return
| Feature | 青色申告 (Blue Return) | 白色申告 (White Return) |
|---|---|---|
| Special deduction | Up to ¥650,000 (with eTax + double-entry bookkeeping) | None |
| Carry forward losses | Yes — up to 3 years | No |
| Deduct family salaries | Yes (専従者給与) | Limited (up to ¥860,000) |
| Bookkeeping required | Double-entry (for ¥650K deduction) or simple (for ¥100K) | Simple income/expense record |
| Registration deadline | Within 2 months of opening (or by March 15 for existing businesses) | Default — no registration needed |
| Recommended for | Everyone who is serious about freelancing | Very small side income only |
Step 3: Consumption Tax & the Invoice System
Key Points:
- Consumption tax exemption: If your revenue is under ¥10 million in the base period (2 years prior), you are exempt from collecting/paying consumption tax.
- Invoice System (インボイス制度): Since October 2023, businesses need a Qualified Invoice Issuer registration number to allow their clients to claim input tax credits.
- Should you register? If your clients are mostly businesses (B2B), not registering means they cannot deduct the consumption tax on your invoices — making you less competitive. If your clients are consumers (B2C), it matters less.
- Transitional measures: Through September 2029, businesses can still claim 80% (until 2026) and then 50% (until 2029) of input tax credits on invoices from non-registered sellers.
Freelancer-Specific Deductions
| Deduction | What Qualifies | Notes |
|---|---|---|
| Home office (家事按分) | Rent, utilities, internet proportional to work space | Calculate by area ratio or time ratio |
| Equipment | PC, desk, chair, software, phone | Items under ¥100,000 can be fully expensed; over ¥100,000 typically need to be depreciated |
| Transportation | Train, taxi, flights for business | Keep receipts; IC card logs can serve as proof |
| Communication | Phone bill, internet, postage | Business-use proportion only |
| Professional development | Books, courses, conferences | typically need to be related to your business |
| Insurance premiums | National Health Insurance, National Pension | Fully deductible as social insurance deduction |
| iDeCo / 小規模企業共済 | Retirement savings plans | Fully deductible; powerful tax reduction tool |
Complete Filing Flowchart
Frequently Asked Questions
Q: Can I file 開業届 late?
A: Yes — there is no penalty for late filing of 開業届. However, if you miss the 青色申告 deadline (2 months from opening), you lose the blue return benefit for that year and typically need to wait until the following year.
Q: Do I need to register for the Invoice System?
A: It depends on your clients. If you primarily work with businesses (B2B), registering is strongly recommended so your clients can claim full input tax credits. If you serve individual consumers (B2C), the impact is minimal.
Q: What accounting software works in English?
A: freee has partial English support and is popular among foreign freelancers. Money Forward Cloud also supports English. Both integrate with eTax for direct submission and handle the blue return format.
Going freelance in Japan?
A licensed tax accountant (税理士) can help you set up your bookkeeping, maximize deductions, and navigate the Invoice System.
Disclaimer
※ This article provides general information only and does not constitute tax advice. Tax rules change annually. Please verify current regulations at your local tax office or consult a licensed tax accountant (税理士).
Last updated: April 2026.
