Filing Types for Kakutei-shinkoku (Final Tax Return)
In Japan, there are two filing types for Kakutei-shinkoku; Aoiro-shinkoku 青色申告 (Blue Tax Return) and Shiroiro shinkoku 白色申告 (White Tax Return), that the self-employed operator can select when notifying the opening of business at tax office. In most of cases, Aoiro-shinkoku (Blue Tax Return) is selected as it gives benefits includes special deductions. In the case that you once selected Shiroiro status when set up business and want to change later on, it is possible to make the change if you apply at tax office. The application for changing the status from Shiroiro (White) to Aoiro (Blue) must be made by 15th of March on the year you wish start with.
What is required to do for Aoiro-shinkoku?
The significant difference between Aoiro-shinkoku and Shiroiro-shinkoku is the documents to be required. For example, Balance Sheet B/S and Income Statement must be created for Aoiro-shinkoku. Also, regular bookkeeping is essential and you need basic knowledge about accounting. Even if you don’t have knowledge, it is possible doing bookkeeping by using accounting software. Most popular software is Yayoi, that is available only in Japanese, unfortunately. In the first place, the set of documents for Kakutei shinkoku is all written in Japanese that is surely a problem...