We’ve looked at how to do your taxes as a freelancer in Japan, so we know freelancers are allowed several business expenses. Now you might be asking yourself ‘what can I expense as a freelancer in Japan?’ This article will tell you:

  1. What you can expense
  2. What you cannot expense
  3. Other tips

Yearly Tax Timetable

Don’t forget that you are required to pay tax on your earnings from January 1st to December 31st of the previous year.

You should submit all documents between February 16th and March 15th of the following year.

1. What You Can Expense

Necessary expenses (hitsuyō keihi 必要経費) are incurred while working and earning an income. This strictly applies to work-related expenses that can be backed up with records such as receipts. This can include:

  • Rent (when your house is your main place of work)
  • Utilities (when your house is your main place of work)
    For example: water, gas, and electricity
  • Costs related to entertaining or meeting with clients
    Such as: restaurant, bar, or even karaoke room charges
  • Travel expenses
    Including: train, bus, and taxi fares, as well as hotel rooms on a business trip
  • Office supplies
  • Advertising to promote your business
  • Interest paid on loans taken out to buy business assets
  • Medical expenses exceeding a certain amount
  • Insurance premiums
  • Maintenance and repair of business assets
  • Taxes related to operating a business
    This includes: enterprise tax, fixed assets tax, automobile tax, real estate acquisition tax, registration and license tax, stamp tax, and more.

2. What You Cannot Expense

The following are not considered necessary expenses:

  • Enterprise tax not related to business
  • Rent paid to those living in the same household
  • Income tax
  • Residence tax
  • Fines and penalties

We help freelancers

With World in Freelance, you can find:

  • Fully remote options – Work anywhere you want.
  • Passion projects – Spend time on what inspires and excites you.
  • Japanese language upkeep – Team up with top Japanese tech companies.

3. Other Tips

To make claiming expenses easier for yourself, stay organized. Paperwork is still widely used in Japan so make sure you have everything you need. Keep a clear record of your income and expenses. Store all the receipts you think you might need, just in case.

Note that you’ll need a specific type of receipt (ryōshū-sho 領収書) to be able to claim, so make sure to always ask for the correct type when incurring expenses. You should also keep these receipts for up to seven years.

Finally, keep in mind that everyone’s tax situation is different. If you are unsure, check the national tax agency website or speak to the staff at your local tax office. You can also get in touch with an English-speaking certified tax accountant if you need professional assistance.

Get Help With Freelancing in Japan

Check out our ultimate guide to freelancing in Japan to help you get started.

Inbound Technology is also ready to guide you on your freelance journey. Get in touch with a knowledgeable career advisor here. You can also find us on LinkedIn.